Book-bot.com - read famous books online for free

Essays on some unsettled Questions of Political Economy by John Stuart Mill
page 99 of 163 (60%)
If any contrivance, therefore, were devised by which that part of the
outlay which consists of previous profits could be either wholly or
partially dispensed with, it is evident that more would remain as the
profit of the immediate producer; while, as the quantity of _labour_
necessary to produce a given quantity of the commodity would be
unaltered, as well as the quantity of produce paid for that labour, it
seems that the ratio between the price of labour and its produce would
be the same as before; that the cost of production of wages would be the
same, proportional wages the same, and yet profits different.

To illustrate this by a simple instance, let it be supposed that
one-third of the produce is sufficient to replace the wages of the
labourers who have been immediately instrumental in the production; that
another third is necessary to replace the materials used and the fixed
capital worn out in the process; while the remaining third is clear
gain, being a profit of 50 per cent. Suppose, for example, that 60
agricultural labourers, receiving 60 quarters of corn for their wages,
consume fixed capital and seed amounting to the value of 60 quarters
more, and that the result of their operations is a produce of 180
quarters. When we analyse the price of the seed and tools into its
elements, we find that they must have been the produce of the labour of
40 men: for the wages of those 40, together with profit at the rate
previously supposed (50 per cent) make up 60 quarters. The produce,
therefore, consisting of 180 quarters is the result of the labour
altogether of 100 men: namely, the 60 first mentioned, and the 40 by
whose labour the fixed capital and the seed were produced.

Let us now suppose, by way of an extreme case, that some contrivance is
discovered, whereby the purposes to which the second third of the
produce had been devoted, may be dispensed with altogether: that some
DigitalOcean Referral Badge