The Louisiana Democrat., 1891-04-08
SINGLE TAX DEPARTMENT..
HOW TO GIVE LABOR ITS FULL
EARNINGS,


Mr.. j. II. Walrath, of Milwaukee,
Wis, does not understand how society
can take by taxation part of the wealth
created by labor, and yet leave to each
man his full earnings. He writes as
follows:
The single tax platform declares shat
each man is entitled to all that his labor
produces" also, that the single tax
would ''solve the labor problem and
raise wages in all occupations to the
full earnings of labor"
Now, under the present system OF
private ownership of land, does not Ia
Dor produce not only the wages paid to
labor, but also interest realized tor use
of capital, profits to employers of labor,
rents paid to landlords on land and the
buildings thereon, and also all the taxes
collected for the support of all govern
ments, whether. economically or extrav-
agaptly administered?
On page 40 of Progress and Poverty"
Mr.. George quotes Adam Smith as fol-
lows:
"The produce of labor constitutes the
Datural recompense or wages OF labor
In that original state of things which
precedes both appropriation OF land and
the accumulation of stock, the whole
produce of labor belongs to labor. And
on page 1856 Mr.. George says: Where
land is free and labor is unassisted by
capital, the whole produce will go to
labor;" and on page 1875 he formulates
the produce problem thus: produce
equals rent plus wages plus interest"
Now, under the single tax system the
revenues for the support of
government will be realized
from land rents, but will it not
be true then, as now, that such rents
will be included in the total production
of labor? And if SO, then how can the
adoption of the single tax result in CIV
ing s'to each man all that his labor pro-
duces'' and s'raises wages to the full
earnings of labor" as indicated in the
platform?
All produce is divided into three parts
rent, wages and interest. 1t is con-
fusion of terms to speak of further di-
vision into profits, or two kinds OF rent
Profits is term meaning partly wages
of superintendent, partly interest.
Rent is the payment for the use of land
only; payment for the use of house, as
distinguished from the land it stands
on, is interest, not rent, for rented
house is capital, it is wealth in course
of exchange. AS for taxes, they are
f,.,,>, ~ want int
est. The primary division of the entire
: product therefore is always into these
three parts, rent going to the landown
er, wages to the laborer, interest to thu
capitalist.
Interest, the reward of capital, il
earned by capital, capital being labo
3 stored up in the form of wealth, an'
$ used in producing more wealth. Inter
est, therefore, is not drawn from th
: earnings of labor and does not reduce
wages
Economic rent is that part of the to
}. tai product which represents the in
. creased power with which the com
5 munity, as a whole, aids the individual
u Land bears no rent until the presenc
: of population, the growth and improve
ment of the whole community, hav
made some locations more valuabl
9 and productive than the best Il
a cations which can be had fret
Y BY guaranteeing to certain il
individuals the exclusive posses
. sion of locations which it has rendere
' valuable, society increases their pr
= duct. The excess of their product ovt
!, that which the same application can s.
- cure from the least productive land
10 use is rent. AS it is not the result {
: extra application of either labor or ca
l. ital, rent is not part of the earnings
IL individuals. Therefore, taking rent Il
5. public purposes will not decrease wage
u But the effect of leaving rent in tt
y hands of individuals is to greatly d
- crease wages as well as interest, al
W the total. product of the communit
~ This results first, from the fact that tt
private ownership of rent causes tt
speculative monopolization OF land al
- second, from the fact that society, n
= receiving the rent which it creates,
-. compelled to levy taxes on products
and products of industry, which ever
ually are drawn almost entirely fro
ha the earnings Of labor.
nd Wages and interest are fixed a
&c would be fixed under the sing
- tax as well as now, by t
rent line or margin of cultivate
MT that is to say, they are fixed by the
ha ward which labor and capital can sect
~ on the best land which bears no re
on Or, to put it more clearly,
,e- average rate of wages OF SIX
,la ed labor is determined by
~ wages of unskilled labor; and the wal
ke of unslsilled labor are determined
what such labor could produce by G
or. blowing itself on the best land that {
Md be had free of rent the general rate
his interest being determined in the sa
ssIf way. The reasons why wages, at
rds primary distribution of products,
ba- not the full earnings of the individr
its to-day, is because the mar
nm. of cultivation is artifici;
,er lowered. The desire on the |
red of all men to hold all the land they
his get, using to its full extent only n
am fraction of it, creates a specula
: monopolizat,on of land and lowers
the margin of cultivation far below VIII,
AN would naturally be If speculation
yoy- land were destroyed by the single
lext Hence, rents are artifcially incre'
an and wages and interest lowered, WI
will and interest being now fixed by Y