Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1891-05-08
SINGLE TAX DEPARTMENT.
HOW TO GIVE LABOR ITS FULL
EARNINGS.


Mr. j. III. 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 la
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-
agantly administered?
On page 40 of Progress and Poverty"
Mr.. George quotes Adam Smith as fol-
lows:
THE produce of labor constitutes the
natural 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 156 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 ito each man all that his labor pro-
duces" and ''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 a 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
drawn from either rent, wages or inter
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 the
capitalist.
Interest, the reward of capital, is
earned by capital, capital being labor
stored up in the form of wealth, and
used in producing more wealth. Inter-
est, therefore, is not drawn from the
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
munity, as a whole, aids the individual.
Land bears no rent until the presence
of population, the growth and improve
nent of the whole community, have
made some locations more valuable
and productive than the best To-
cations which can be had free.
BY guaranteeing to certain in
individuals the exclusive posses
sion of locations which it has rendered
valuable, society increases their pro-
duct. The excess of their product over
that which the same application can Sc
cure from the least productive land in
use is rent. AS it is not the result of
extra application of either labor or cap
ital, rent is not part of the earnings of
individuals. Therefore, taking rent for
public purposes will not decrease wages.
But the effect of leaving rent in the
hands of individuals is to greatly de-
crease wages as well as interest, and
the total product of the community.
This results first, from the fact that the
private ownership of rent causes the
speculative monopolization of land; and
second, from the fact that society, not
receiving the rent which it creates, is
compelled to levy taxes on production
and products of industry, which event
ually are drawn almost entirely from
the earnings of labor.
Wages and interest are fixed and
would be fixed under the single
tax as well as now, by the
rent line or margin of cultivation;
that is to say, they are fixed by the re-
ward which labor and capital can secure
on the best land which bears no rent
Or, to put it more clearly, the
average rate of wages of skill
ed labor is determined by the
wages of unslxilled labor; and the wages
, of unskilled labor are determined by
what such labor could produce by EN-
ploying itself on the best land that can
be had free of rent; the general rate of
interest being determined in the same
way. The reasons why wages, at the
primary distribution of products, are
not the full earnings of the individuals
to-day, is because the margin
of cultivation is artificially
lowered. The desire on the part
of all men to hold all the land they can
get. using to it's full extent only a mere
fraction of it, creates a speculative
monopolizatlon of land and lowers the
margin of cultivation far below what it
would naturally be if speculation in
land were destroyed by the single tax
Hence, rents are artificially increased
and wages and interest lowered, wages
and interest being now fixed by what
can be produced on the best unappro-
priated land, instead of being fixed by
what could be produced on the best I'M
used land, which is where the margin
of cultivation naturally should be.
AS long as land speculation exists the
value of land increases in a greater