The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-07-30
THE LAWS OF DISTRIBUTION.


three laws for the distribution OF
wealth between the three factors OF
production-land, labor, and capital.
They did not keep the three factors
separate. and their laws of distribution
are unrelated.
Henry George, after showing that
the laws of distribution are laws or
proportion and should cOrrelate, says:
"But between the laws Of the distribu-
ton of wealth as lad down IN the
standard works. there is no such reia-
ton. Ii we fish them out and bring |
them together, we find them to De as
follows Wages are determined by
the ratio between the amount OF capt.
tai devoted to the payment and sub
sistence of labor and the number OF
laborers seeking employment. Rent is
determined by the margin OF cultlva-
ton; all lands yielding as rent that
part of their produce which exceeds
what an equal application OF labor
and capital could procure from the
poorest land in use. interest Is ue-
termined by the equation between the
demands of borrowers and the supply
Of capital offered by lenders. Or, II
we take what is given as the law or
profits. it is determined by wages,
falling as wages rise and rising as
wages fall or, to use the phrase OF
Mill. by the cost of labor to the capl-
talist
The bringing together Of these cur
rent statements of the laws of the dis
tribution of wealth shows at glance
that they lack the relation to each 9TH
or which the true laws of distribution
must have"
In The Independent fof July
pointed out Mr.. Georges mistake IN
working out the laws Of dis .ribltion;
and in this article l will attempt to
show that although all have blundered
more or less still all have been part
" right; and | will go step farther
than Henry George; and show that
the laws of distribution not only
correlate, but that they may be stated
as one law. viz. the law of supply ano
demand.
Landlord, laborer, and capitalist
each tries to get as large portion o.
the product as possible. When lane
Is scarce, rent is high, and the share
the laborer can retain as wages de
ponds not only upon what the land
lord leaves" as Mr.. George states, Blu
also upon the scarcity of capital a
stated by other writer's. Competition
Is always one-sided, and 1t is Away
the parties who represent the facto
that is most abundant who compete
When there are more laboreTs tha
landlords and capitalists can employ
the unemployed compete for wha
work there is and wages fall; whe
conditions are reversed, employer
compete for laborers and wages rise
In that case even socialists could hard
ly object to competition.
Land is scarce when there is nc
enough suitable land offered for US
on reasonable terms to supply the re
Quirements of laborers. 1t may o
either naturally or artificially scare
The same is true of capital and bot
may be scarce at the same time, G
one may be scarce while the other
plentiful; but it is impossible for tn
three factors to be plentiful or scare
at the same time; for, it laborers al
scarce it must be either because thel
is more good land, or more capiti
than they can use.
The law of distribution may
stated thus:
The distribution of wealth betwee
the three factors of production, Ian
labor, and capital, depends upon tt
relative supply of, and demand TO
the three factors, the factor whit
is scarcest taking the largest; and tn
which is most plentiful taking Il
smallest share.
Now, does not this statement of Il
case harmonic with all the facts?
is in perfect harmony with Ricardo
Law of Rent. 1t is in harmony wi
the old idea that wages depend up
the ratio between the number OF
borers and the amount of capital q
voted to their employment; and RI
onciles that theory to Mr.. Georg
theory that wages depend on
margin of cultivation, falling as
falls and rising as it rises" 1t sho
that instead of the two theories bel
antagonistic, the whole truth
cludes them both.
1t is not in harmony with
Georges idea that interest and wa
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