Understanding Rents in the Real Economy

Edward Nell
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Edward Nell: New School

Chapter Chapter 2 in Henry George and How Growth in Real Estate Contributes to Inequality and Financial Instability, 2019, pp 11-25 from Palgrave Macmillan

Abstract: 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 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psochp:978-3-030-18663-0_2

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DOI: 10.1007/978-3-030-18663-0_2

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