Part 16

In apportionment, or Distribution, there are two major categories, Wages and Rent, corresponding respectively to the two Production categories, Labor and Land. A minor Distributive category, corresponding to the minor category in Production called Capital, is distinguished as Interest. This term identifies the earnings of Capital. Inasmuch, however, as Capital is part of Labor-produced Wealth, Interest must be a subdivision of Labor-earned Wages.

The Wages category in Distribution comprises, fundamentally, all that part of Labor-produced Wealth which is not allocated by natural Economic law to Rent for permission to use Land. This allocation is determined by the greater desirability of some Natural-Resource locations (Land) over the most desirable that may be had for the taking--of those at the “Margin of Production” as it is technically called, the “margin of cultivation” as it was called when agricultural areas alone were thought of as Land, at the Economic frontier as it may be most significantly described.

All assignments of Wealth in Distribution being determined by comparisons of desirability of service (Value measured in terms of Money), we find ourselves at the close of our brief review back at the Money surface of Economics where we began our delving expedition down to the Basic Facts.

As a result of that expedition we know, if we think with clarity and fidelity, that Economics is the science, not of making Money, but of Producing and Distributing Artificial Objects from and upon Natural Resources by Man. The usefulness of our expedition depends upon our grasp of and fidelity to the generalization of all Economic facts into those Basic Facts which are respectively distinguished in Economic terminology as Land, Labor and Wealth.

Questions for Self-Examination

1.--Name the three Basic Facts of Economics as described in the foregoing pages.

2.--Define them as there defined.

3.--In your judgment are there any others? If so, name and define them.

1.--What is Money as defined in the foregoing pages?

2.--How would you define it?

III

1.--What is Trade as defined in the foregoing pages?

2.--How would you define it?

1.--What are the Basic Facts of Economics as in this book explained?

2.--Comment upon that explanation, and give your own.

1.--Describe the Productive Process as explained in the foregoing pages.

2.--Describe it as in your judgment it ought to be described.

1.--Describe the Distributive Process as explained in the foregoing pages.

2.--Describe it as you think it ought to be described.

VII

1.--Review the Primer briefly but considerately throughout.

FOR THEIR ADVICE, THEIR SUGGESTIONS, THEIR CRITICISM AND THEIR ASSISTANCE IN OTHER RESPECTS, THE AUTHOR HEREBY EXTENDS GRATEFUL ACKNOWLEDGMENTS TO GEORGE A. BRIGGS, HARRY GUNNISON BROWN, ANDREW P. CANNING, STOUGHTON COOLEY, LEWIS JEROME JOHNSON, ALICE THACHER POST, FREDERICK W. ROMAN, MARY VAN KLEECK, AND JOHN Z. WHITE.

IT IS GRATIFYING TO MAKE RECORD ALSO OF THE FINANCIAL AID CONTRIBUTED TO THE PUBLICATION OF THIS PRIMER THROUGH A GENEROUS PERSONAL BEQUEST TO THE AUTHOR FROM THE LATE MRS. MARY E. GARST SMITH OF NORTH BROOKFIELD, MASS., WITH AN EXPRESSION OF HER HOPE FOR ITS USE ON LINES WITH WHICH THIS WORK IS IN ACCORD.

Transcriber’s Notes

Punctuation, hyphenation, and spelling were made consistent when a predominant preference was found in the original book; otherwise they were not changed.

Simple typographical errors were corrected; unbalanced quotation marks were remedied when the change was obvious, and otherwise left unbalanced.