Recherches sur la richesse des nations, I, p. 190.> saw a sign of inherent land fertility, there is only exactly to the extent in which agricultural work is becoming more and more difficult, less and less "cost-effective". As continuously increasing the population is forced to plough up all less fertile of the earth, obtaining a grain crop with these new sites required more work: either ploughing must be deeper, or crop area should be more extensive, or more requires fertilizers; production costs are more high in these latter yields than when first received initially, the rich and fertile lands. And these so hard the produced products is no less necessary, rather than all other products (if you don't want starvation for some part of humanity). Therefore, it is the cost of production grain on the most barren land will determine the price of grain anyway, even if it was received through two or three times lower cost of labor. As a result, those lands that are easier process, profits increase, which allows owners of the land rent, charging for a significant rent. Land rent is the result not of generosity nature and scarcity of land. This paucity continuously every day becoming noticeable: in fact, the population is increasing; open more and more poor land, costs production increase, prices for agricultural products increase, followed by land rent. Under the pressure of these circumstances it is quite possible -- and even necessary -- that the nominal wages also starting to rise to cover the minimum costs of maintaining existence;
Recherches sur la richesse des
ReplyDeletenations, I, p. 190.> saw a sign of inherent land fertility,
there is only exactly to the extent in which agricultural
work is becoming more and more difficult, less and less
"cost-effective". As continuously increasing
the population is forced to plough up all less fertile
of the earth, obtaining a grain crop with these new sites required
more work: either ploughing must be deeper, or
crop area should be more extensive, or more
requires fertilizers; production costs are more
high in these latter yields than when first received
initially, the rich and fertile lands. And these so hard
the produced products is no less necessary, rather than all
other products (if you don't want starvation for some
part of humanity). Therefore, it is the cost of production
grain on the most barren land will determine the price of grain
anyway, even if it was received through two or three times
lower cost of labor. As a result, those lands that are easier
process, profits increase, which allows owners
of the land rent, charging for a significant
rent. Land rent is the result not of generosity
nature and scarcity of land. This paucity continuously every day
becoming noticeable: in fact, the population is increasing;
open more and more poor land, costs
production increase, prices for agricultural products
increase, followed by land rent. Under the pressure of these
circumstances it is quite possible -- and even necessary -- that the
nominal wages also starting to rise
to cover the minimum costs of maintaining existence;