4. Rent

When one speaks of the classes which are steadily becoming the sole property holders and exploiters, the monopolists of the instruments of production, distinction must be made between the capitalists and landlords.

The land is a peculiar means of production. It is the most necessary of all; without it no human activity is possible; even the sailor and the aeronaut need a point of departure and a landing place. Furthermore, it is a means of production that cannot be increased at pleasure. For all this it must be noted that as yet it has but rarely happened that every inch of ground in any state was actually occupied or used productively by its inhabitants; even in China there are still wide stretches of unproductive land.

In medieval Europe each farmer possessed his buildings and parcel of land. Water, forest and pasture were municipal property, and there was enough land so that each might be given possession of any which he reduced to cultivation. Then came the development of commodity-production. The products of the land now had ah exchange value. As a result the land also became, as it were, a product; it had a value. As soon as this occurred the communities began to limit their numbers and take measures to insure the perpetual possession of lands; they became close corporations.

But another class, the feudal lords, were also yearning for the communal property. And in regions where farming on a large scale had developed they succeeded in driving the small farmers from the soil. In the course of events practically all land became the private property of a few.

Thus a monopoly has come into existence, and a monopoly of an altogether extraordinary sort. The earth’s surface is held by a few, not only against the propertyless proletarian class, but against part of the capitalist class itself. A part of the industrial capitalist class may for a time monopolize a branch of industry, but its monopoly is never absolute or permanent. In these respects the land monopolists have the advantage, their monopoly may be both absolute and lasting.

This form of capitalism is most highly developed in England, where a small number of families have possession of all the land. Whoever needs land obtains the use of it only by paying rent. As a rule the capitalist cannot buy land for a factory or dwelling. Thus a part of his profit always goes to the landlord.

In most parts of the world, however, the line is not so sharply drawn. On the continent of Europe, for example, the capitalist manufacturer, mine operator, etc., usually owns the land necessary to his operations. The great landowners, on their part, usually carry on their farming operations themselves.

On the other hand, as capitalism develops, proletarians are more and more herded in cities. This leads to an unprecedented heightening of land values and a reinforcement of the position of the land-owning class. Workers must pay higher and higher rent, and this, in turn, necessitates an increase in their wages. Thus once more the industrial capitalist is forced to share his spoils with the land-owner.