In a more diversified economy with division of labor, a uniform ten percent rent still causes each laborer to produce a value of 1 but consume only 0.9, so one-tenth of labor’s value is lost, while the proprietors’ tenth is equally wasted for lack of additional needs or exchanges.
By Pierre-Joseph Proudhon, from What Is Property?
Key Arguments
- He transforms three hundred wheat-producers into a variety of artisans and functionaries—"one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven schoolmasters, one mayor, one judge, and one priest"—each supplying the community.
- He sets a baseline where "the total production being one thousand, each laborer’s consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; ironwork and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001. Total 1."
- When a ten percent revenue is due, he notes it does not matter whether only farmers or all workers pay: "The farmer raises the price of his products in proportion to his share of the debt; the other laborers follow his example. Then, after some fluctuations, equilibrium is established, and all pay nearly the same amount of the revenue. It would be a grave error to assume that in a nation none but farmers pay farm-rent—the whole nation pays it."
- He recalculates each laborer’s consumption under the tax: "wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and ironwork, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009. Total 0.9."
- Therefore, "The laborer has produced 1; he consumes only 0.9. He loses, then, one-tenth of the price of his labor; his production still costs more than it is worth," meaning a structural percentage of labor-time is not compensated by any utility for the worker.
- As in the simpler model, he insists the proprietors’ tenth is equally waste: they are "laborers themselves" who already "possess in the nine-tenths of their product the wherewithal to live: they want for nothing. Why should they wish their proportion of bread, wine, meat, clothes, shelter, etc., to be doubled, if they can neither consume nor exchange them? Then farm-rent, with them as with the rest of the laborers, is a waste, and perishes in their hands."
Source Quotes
In such a society, one-tenth of the product being inconsumable, one-tenth of the labor goes unpaid—production costs more than it is worth. Now, change three hundred of our wheat-producers into artisans of all kinds: one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven schoolmasters, one mayor, one judge, and one priest; each industry furnishes the whole community with its special product. Now, the total production being one thousand, each laborer’s consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; ironwork and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001.
Now, change three hundred of our wheat-producers into artisans of all kinds: one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven schoolmasters, one mayor, one judge, and one priest; each industry furnishes the whole community with its special product. Now, the total production being one thousand, each laborer’s consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; ironwork and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001. Total 1. But the community owes a revenue of ten percent, and it matters little whether the farmers alone pay it, or all the laborers are responsible for it—the result is the same.
Then, after some fluctuations, equilibrium is established, and all pay nearly the same amount of the revenue. It would be a grave error to assume that in a nation none but farmers pay farm-rent—the whole nation pays it. I say, then, that by this tax of ten percent each laborer’s consumption is reduced as follows: wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and ironwork, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009.
It would be a grave error to assume that in a nation none but farmers pay farm-rent—the whole nation pays it. I say, then, that by this tax of ten percent each laborer’s consumption is reduced as follows: wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and ironwork, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009. Total 0.9. The laborer has produced 1; he consumes only 0.9.
Total 0.9. The laborer has produced 1; he consumes only 0.9. He loses, then, one-tenth of the price of his labor; his production still costs more than it is worth. On the other hand, the tenth received by the proprietors is no less a waste; for, being laborers themselves, they, like the others, possess in the nine-tenths of their product the wherewithal to live: they want for nothing.
Why should they wish their proportion of bread, wine, meat, clothes, shelter, etc., to be doubled, if they can neither consume nor exchange them? Then farm-rent, with them as with the rest of the laborers, is a waste, and perishes in their hands. Extend the hypothesis, increase the number and variety of the products, you still have the same result.
Key Concepts
- Now, change three hundred of our wheat-producers into artisans of all kinds: one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven schoolmasters, one mayor, one judge, and one priest; each industry furnishes the whole community with its special product.
- Now, the total production being one thousand, each laborer’s consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; ironwork and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001. Total 1.
- It would be a grave error to assume that in a nation none but farmers pay farm-rent—the whole nation pays it.
- I say, then, that by this tax of ten percent each laborer’s consumption is reduced as follows: wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and ironwork, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009. Total 0.9.
- The laborer has produced 1; he consumes only 0.9. He loses, then, one-tenth of the price of his labor; his production still costs more than it is worth.
- Then farm-rent, with them as with the rest of the laborers, is a waste, and perishes in their hands.
Context
Second numerical model in the Second Proposition, where Proudhon generalizes from pure agriculture to a differentiated economy with services and administration, demonstrating that a general rent of 10% depresses all workers’ real consumption below their production and that proprietors’ extra share is economically useless, reinforcing his claim that property makes production more costly than the utility it yields.