Advertisement

Understanding Rents in the Real Economy

  • Edward Nell
Chapter
Part of the Palgrave Studies on Henry George for the 21st Century book series (PSHGC)

Abstract

George understood “progress”—economic growth—to be disruptive and innovative, taking place through developments that changed the proportions and relative prosperity of different sectors. He began his analysis with the movement of settlers to the “unbounded savannah,” where they cultivated fertile land, cooperated and established the division of labor, increasing productivity, and, as a result, they became a complex society with differential advantages and disadvantages to certain locations and parcels of land. Rents thus emerged (modeled using Sraffa’s equations). This picture is a good basis on which to build an approach to inequality and instability, but it is not consistent with the factor markets of conventional marginal productivity theory. George’s approach is superior.

Keywords

Progress Poverty Division of labor Rent Differentials 

Bibliography

  1. Alchian, Armen. (1950) “Uncertainty, Evolution and Economic Theory.” Journal of Political Economy (58): 211–21.CrossRefGoogle Scholar
  2. Andrews, P W S (1949) Manufacturing Business. London: Macmillan.Google Scholar
  3. Bryson, Philip J. (2011) The Economics of Henry George: History’s Rehabilitation of America’s Greatest Early Economist. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  4. Garegnani, Pierangelo. (1970) “Heterogeneous Capital, the Production Function, and the Theory of Distribution,” Review of Economic Studies, 73(3) 407–36.CrossRefGoogle Scholar
  5. George, Henry. (1915) Progress and Poverty. Garden City: Doubleday.Google Scholar
  6. Hall, R, and Hitch, C. J. (1939) “Price Theory and Business Behavior,” Oxford Economic Papers, 2: 12–45.CrossRefGoogle Scholar
  7. Harcourt, G. C. (1972) Some Cambridge Controversies in the Theory of Capital. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  8. Kurz, Heinz. (1990) Capital, Distribution and Effective Demand. Cambridge: Polity Press and Basil Blackwell.Google Scholar
  9. Kurz, Heinz, and Neri Salvadori. (1993) “The ‘Standard Commodity’ and Ricardo’s Search for an ‘Invariable Measure of Value.’” In The Dynamics of the Wealth of Nations, edited by Mauro Baranzini and G. C. Harcourt. London: Macmillan.Google Scholar
  10. H Kurz and N Salvadori, 1995, THEORY OF PRODUCTION:A Long Period Analysis; Cambridge, UK: Cambridge University Press.Google Scholar
  11. Laibman, David, and Edward J. Nell. (1977) “Reswitching, Wicksell Effects, and the Neoclassical Production Function.” American Economic Review (63): 100–13.Google Scholar
  12. E. J Nell, ed. 1980. GROWTH, PROFITS AND PROPERTY, Cambridge UK: CambridgeUniversity Press.Google Scholar
  13. Nell, E J. (1998a) The General Theory of Transformational Growth: Keynes after Sraffa. Cambridge: Cambridge University Press.Google Scholar
  14. Nell, E J, ed. (1998b) Transformational Growth and the Business Cycle. London: Routledge.Google Scholar
  15. Nell, E J. (2017) “Unemployment and Transformational Growth in the Long Run,” in M Foster, and M Murray, eds., Full Employment and Social Justice: Solidarity and Sustainability, Berlin: Springer.Google Scholar
  16. Nell, E J and Errouaki, K. (2013) Rational Econometric Man. Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  17. Petri, Fabio. (1982) “The Patinkin Controversy Revisited.” Quademi dell Instituto di Economia, no. 15.Google Scholar
  18. Ricardo, David. (1951) Principles of Political Economy and Taxation. Vol. 1 of The Works and Correspondence of David Ricardo, edited by Piero Sraffa. Cambridge: Cambridge University Press.Google Scholar
  19. Schefold, Bertram. (1997) Normal Prices, Technical Change and Acculmulation, London: Macmillan.CrossRefGoogle Scholar
  20. Sraffa, Piero. (1960) Production of Commodities by Means of Commodities. Cambridge: Cambridge University Press.Google Scholar
  21. Turner, Adair. (2014) “The Consequences of Money-Manger Capitalism,” Oct. 4, YouTube.com.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Edward Nell
    • 1
  1. 1.New SchoolNew YorkUSA

Personalised recommendations