88. THE LABORERS RECEIVE WAGES.--The payment which the laborers
receive for their part in the production of the shoes is called wages.
Since the laborers help in shoe manufacture, the employer can afford
to pay them. Not only can he afford to pay them, but he must pay them.
Otherwise the laborers would not work for this particular
entrepreneur, but, in a freely competitive market, would offer their
services to a competing employer.

Wages, like rent and interest, depend upon the conditions of supply
and demand. If, in comparison with other aids in production, the
services of laborers are wanted badly, and if, at the same time, there
is a scarcity of the desired type of labor, then wages will be high.
If, on the other hand, there is an over supply of laborers, and also a
small demand for that type of labor, then wages will tend to be low.

89. THE GOVERNMENT RECEIVES TAXES.--In addition to paying the land-
owner, the capitalist, and the laborers for their share in producing
the shoes, the entrepreneur must pay taxes to the government. These
taxes may be considered as payment for that maintenance of law and
order without which the economical manufacture of shoes would be
impossible. The share which goes to the government is determined by a
unique method: the government does not try to secure as large a share
of the product as possible, but strives, on the contrary, to exact as
little as possible, and still meet its expenses. The subject of
taxation requires special treatment [Footnote: See Chapter XXXII.] and
does not, therefore, call for further mention in this chapter.

90. THE ENTREPRENEUR RECEIVES PROFITS.--That share of the income
derived from the sale of the shoes which goes to the entrepreneur is
called profits. It is only fair that the entrepreneur receive some