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The principles of political economy and taxation
The produce of the earth—all that is derived from its surface
by the united application of labour, machinery, and capital,
is divided among three classes of the community; namely,
the proprietor of the land, the owner of the stock or capital
necessary for its cultivation, and the labourers by whose industry
it is cultivated.
But in different stages of society, the proportions of the whole
produce of the earth which will be allotted to each of these classes,
under the names of rent, profit, and wages, will be essentially
different; depending mainly on the actual fertility of the soil, on
the accumulation of capital and population, and on the skill,
ingenuity, and instruments employed in agriculture.
To determine the laws which regulate this distribution, is the
principal problem in Political Economy: much as the science has
been improved by the writings of Turgot, Stuart, Smith, Say,
Sismondi, and others, they afford very little satisfactory
information respecting the natural course of rent, profit, and
wages.
In 1815, Mr Malthus, in his Inquiry into the Nature and Progress
of Rent, and a Fellow of University College, Oxford in his Essay on
the Application of Capital to Land, presented to the world, nearly
at the same moment, the true doctrine of rent; without a
knowledge of which, it is impossible to understand the effect of the
progress of wealth on profits and wages, or to trace satisfactorily
the influence of taxation on different classes of the community;
particularly when the commodities taxed are the productions
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