Quick comprehension of
"the Natural Economic Order"

Part 1:Distribution
1-8:Influence of Freeland of the third class
on Rent and Wages

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Both the original version(in German) and its English translation of this part are available on the web as well.

Here intensive farming and extensive farming are compared. Let's imagine of a farmer who wants to employ workers:

Farming

Intensive

Extensive

Workers

50

12

Surface

100 acres

100 acres

Harvest

2000 tons

600 tons

Harvest per acre

20 tons

6 tons

Harvest per capita

40 tons

50 tons

The intensive farming increases the harvest, but decreases the product per capita. You can increase your income by doing the extensive and increasing the product of each worker, but if the land is scarse you have no other way than doing the intensive, settling with less income. Freeland of the third class, which enables workers to have their farm, makes them flow out of the contracted farms to the freeland, obliging landowners to increase the wage to retain them, leading to its levelling, says Gesell.

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(mig@lime.plala.or.jp)