[37873] in Discussion of MIT-community interests
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daemon@ATHENA.MIT.EDU (CheapPrinterInk)
Tue Mar 24 06:17:18 2015
Date: Tue, 24 Mar 2015 03:17:18 -0700
To: <mit-talk-mtg@charon.mit.edu>
From: "CheapPrinterInk" <CheapPrinterInk@huhuue.eu>
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<BR /><span style="font-family: Tahoma, sans-serif, Times New Roman, Arial; font-size: 10px; color: #ffffff;"></span>
<p align="right">capital. "Let us follow him now in the labour that creates the capital. "With a hewn flint he manages to make wood into a 7ea99ed1b6714702bd5343b786c98bee bow and arrow. A fish
bone serves for the GOL arrow's point. From the stalk of the plantain, or the fibrous covering of the cocoanut, he makes string or packthread; the one 7ea99ed1b6714702bd5343b786c98bee he </p>
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<p align="right">uses to string the bow, with the other he makes fishing nets. [none] "In the following year he applies himself 7ea99ed1b6714702bd5343b786c98bee again 7ea99ed1b6714702bd5343b786c98bee DITMTQJG to the production of means
of subsistence, NGUCBTHR but he is now provided with bow, arrows, and nets; with the help of those tools his work is much more remunerative, the product of his </p>
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<p align="right">work much greater. "Suppose that in this way the result of his work, after deducting what he must spend to keep the tools in an equally good state, rises from 110 to DMOUMDJG
150c, then he can lay by in one year 50c, and he only needs to devote two years now to the production of the means of subsistence, when UWG he is hi </p>
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<p align="left" style="font: 11px;">again to spend a whole year in the making of bows and nets. "Now he himself can make no use of these, since the tools made in the previous year are sufficient for his needs; but he can lend them to a YFWKJGGV </p>
<BR /><span style="font-family: Tahoma, sans-serif, Helvetica, Arial; font-size: 7px;"></span>
<p align="center">worker who up till now<B>has worked without capital. "This second worker has been producing 110c; if then he is lent the capital, on which the labourer</B>who made it has expended a year's labour, 7ea99ed1b6714702bd5343b786c98bee </p>
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<p align="right">his production, if he keeps up the value of AYG the tools lent him<I>and returns 7ea99ed1b6714702bd5343b786c98bee them, is 150c.41</I>"The extra production got by means of capital amounts therefore to 40c. </p>
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<p>"this worker<i>can consequently hi a rent of 40c for HNOEPP the borrowed capital, and this sum BAJE the worker who produced the capital</i>draws in perpetuity for </p>
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<p align="right" style="font: 14px;">his one year's labour. "Here we have the origin and ground of interest, and its relation to capital. As the wages of labour are to the amount of rent which the same 7ea99ed1b6714702bd5343b786c98bee </p>
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<p align="left">labour, if<B>applied to the production 7ea99ed1b6714702bd5343b786c98bee of capital, creates, so is capital to interest. "In the present case</B>the wage of a year's work is 110c; the rent brought in </p>
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<p align="left">by the capital—that is, the result of a year's labour—is 40c. "The ratio therefore is 110c : 40c = 100 : 36.4, and the rate of interest 7ea99ed1b6714702bd5343b786c98bee </p>
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<p align="left">is 36.4 per MBY cent." the phiage that follows refers not so much to the origin as to the rate of interest, and I shall only BEK make a brief abstract of HCJPB such of the leading </p>
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<p align="right">ideas as may ilhirate thünen's conception still further. According to Thünen, as capital 7ea99ed1b6714702bd5343b786c98bee increases, its productive efficiency declines, PNLBVT each WVTFF new increment JVMB of capital increasing the product of human
labour in a less degree than 7ea99ed1b6714702bd5343b786c98bee the capital formerly applied. If, e.g. the first capital increased the return to labour by 40c—say from LPBVTPYVQ 110c to </p>
<BR /><BR /><span style="font-family: Arial, Helvetica, sans-serif;"></span>
<p align="left" style="font: 16px;">l50c—the capital next DIA applied may bring a further increase of only 36c, a third capital 32.4c, and so on. This on two grounds. [none] 1. If the most efficient of the tools, machines, etc., which constitute </p>
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<p>capital, are to be had in sufficient quantity, then the further production of capital must<B>be directed to tools of less efficiency. 2.</B>In agriculture the increment to capital, if it everywhere finds 7ea99ed1b6714702bd5343b786c98bee
employment, leads to the cultivation 7ea99ed1b6714702bd5343b786c98bee of less 7ea99ed1b6714702bd5343b786c98bee fertile and less favourably situated lands, or to a more intensive cultivation that necessitates .</p>
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