humidity, and climate. Since Nature is rather a vague term, and since,
also, the economist looks upon land as the most important element in
Nature, we may lump together all of the materials and forces of Nature
and apply the term "land."

Taken in this sense, land is clearly of great importance in
production. We build houses and factories upon it, we use it as a
basis of transportation, we harness its motive power, and we make
extensive use of the innumerable raw materials which it furnishes.
Without land there could be no production, in the sense in which the
economist understands the word.

69. MAN'S LABOR A SECOND FACTOR IN PRODUCTION.--Something besides
land, or Nature, is necessary before our wants can be satisfied.
Nature is often careless of our needs and desires. True, she offers us
berries, coal, firewood, and many other commodities which are
practically ready to use, but even these articles will not satisfy our
wants unless we go to the trouble to secure possession of them. In an
important sense Nature is passive, and if she is to furnish us with a
living, we must engage in labor. This labor may be mental or physical,
the important point being that it is effort undertaken to increase our
control over Nature. Savages are content to use products in
substantially the form in which Nature provides them; civilized
peoples work over the products of Nature until the utility or want-
satisfying power of those products has been greatly increased. Man's
living improves as he progresses from indolence to hard physical
labor, then from hard physical labor alone to a combination of
physical and mental labor intelligently directed.

70. CAPITAL A THIRD FACTOR IN PRODUCTION.--Land to furnish raw