The Colfax chronicle., 1891-11-21
Rent as rars Of Cost.

~~>@'%~As" ~ - oAA03 III OAH0ktfk JH8}
cost Includes wages of labor, wear AMI
tear Of capital interest on capital
taxes, interest on taxes, and rent This
is mistake, and, for single tax advo.
Gates q dangerous one to make. II
rent were an element of cost it would
enter into the price of commodities,
thus shifting taxes on rent to the con.
sumer; and shrewd adversary, by
pointing out the deduction, might easily
confuse the single tax advocate who
was guilty of this false analysis
A little reflection will make it per.
fectly clear that rent is no part either
OF cost or price. The only distinctive
elements of cost are wages of labor
and, using the term in its or ginal sig.
ni6cation, blackmail. The former in
cludes wear and tear OF capital and in
terest on capital; the latter includes
taxes on labor. interest ON such taxes,
and the exactions of monopoly. Bnt
normal rent is neither wages nor black
mail 1t is the difference in value be-
tween the least profitable opportunities
to which labor resorts. and better op.
portunities. 1t is not part of cost. be-
cause at this least productive point
there is no rent; and it does not enter
into price, because price is determined
by cost of production.
The farmer who tills soil naturally
fertile gets in the same market no more
for his grain, bushel sor bushel. than
the farmer who produces equally good
grain from less prolific soil; his ad-
vantage is his ability TO produce moro
grain with equal labor. and the valuc
OF this advantage determines the differ
ence in rent between the two farms.
The merchant who occupies q choice
location in the heart of his business
district can charge no more for the
same goods than one whose store is on
cheaper ground; his advantage is his
ability to sell more goods in given time
and with given labor. and this advan-
tage determines the difference In rent
between the two places The smoker
who buys his cigar where rents are
high pays no more, il as much, than
one who buys the same quality of cigar
where rents are low. The higher rents
of the former slace are paid. not by
means OF niener prices Dus IN conse-
Y eenccs " quicker safes wages, mousse
nirc' sal1e OF furniture ana interest are
lower, relative to the volume of bust.
ness done, in places of high rents than
"a places OF low rents; ana the accumuia-
tion of these advantages constitutes the
differences in rent
:. Is OBVIOUS tnat rent In thess Illus
'ra''ons IS no part either OF cost OF
prlce oupposing the poorer land In
III 'ne ,ilussrasions 10 command no
'en'' : rent can not possioiy DC part OF
'ne cost OF producing from u, or selling
N u; ana as proiuce sells at cost tcost
:. sei''ng inciuaeaI rent can be no part
y 'ne pr r'cc. ana since tnis Is SO OF
''oaucc from tnc poorer land AMI OF
,oous soM .ne poorer locasicns,
.1u>s =. GO u .nose Prooucea from
'"u So'" ~ tnc Det.e! or' as
'qu.i com noo,1ics sen ir the same
~ equas pe'cc' rent caa not en-
cr inso 'nc price OF one unless II en-
eIs inso .ns price OF al; ont IL does
~ er'e' - ~ eue price o' Prsuuce from
'nu | 'eaIins no rent ana, therefore.
can no' en.cr inoo 1ne pricc OF land
'o's'ne rens anu inasmnch as no
''o4u.s csn sen continuously oeiow
%" ."c aosence oi rent as az element
: Psicc proves us absence as an ele-
lens % cost for simpticity' we sup
ose 'hs poorer opportunities IN these
'as'ss'ons l:. 70 DC rent iree' oat the
s'nc'p'e woan DC tne same VI they
.esc no', proViueo snsy commanded
'wcr REM 'nan tne ne''er oprortuni-
cS -, a. .nes uuuouctea'y wouid
Nr' .awasa Ask,nson' OF boston. u
,e " 'ac men wno mak,s tnis mis.
INC INC oi ,esarulng ren. as an nelemen' OF
rat a land yalue tax won,d I've shifted
msrcnau1s ana nanuiactnrers
,a,gc up '"e'r rent as one o. tho items
."cir ous'ness expense ne iaiers
las r,ns ~ wsi' as wages Is par' o.
70 COS, u proa"c'' anu tnae they em-
Il I