Spencer Heath Archive

Item 1050

Dictation by Heath to Lucile Heath MacCallum

1934?

There are various contributing causes to a business depression, but the basic cause — the cause which is a common factor in all depressions — is the mounting cost of doing business. Business consists in people working with mind and body upon the material of the earth, changing these substances and moving them to the places where they are to be consumed.. A further department of business is the performing of personal and professional services. The efficiency of business is enormously increased by the use of tools. These tools are employed by people working, and they may be simple as any axe or hoe or they may be complex, as a factory or a steamship. When these substances or goods are ready to be consumed (or services ready to be performed), they will fall into the hands of three types of people or interests: (1) those who perform labor without owning tools (laborers), (2) those who work owning tools (capitalists), (3) those who own the surface and substance of the earth (land owners). That portion received by laborers is called wages; that part received by the owner of tools is called interest; that part received by the owners of land is called rent. That portion received in wages is currently consumed; that portion received by capitalists