Spencer Heath Archive

Item 1063

Penciling on three-hole ring-binder pages

Fall of 1933? Earlier?

Original is in item 1057.

Labor and Capital — Say one unit of each — move towards an opportunity — a place or thing existing prior or at least independent of the presence of these two units — a portion of land or other public thing having an annual or a capitalized value — or a portion of land or other opportunity that has no such value and hence is free to be availed of without the payment of any annual or capital price.

In the latter case the entire product of the labor and capital activity becomes at once wages and interest and the interest is the amount of the joint product which the labor alone could not have produced. If the laborer owned the capital he would retain both products and there would be no division. This is exactly what does happen when a man with his own tools (capital) satisfied /satisfies? check original/ his desires out of an opportunity that no other man particularly desires and hence that has neither annual nor capitalized value.

If, however, the portion of land or other opportunity is so situated in respect to proximity of population or similar conveniences or advantages that the unit of labor and unit of capital applied to it as in the former case will yield a larger product due to these advantages, then this portion of land will be more desired than other land and will be so desired by the amount that this product is greater