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Find Out - how to Fly.. Better Than first class.

which he might have first taken to himself, since in the sixth lecture of the first volume he has formally, and in the most explicit 305b987c477f781d17bc82b94010de41 manner, enumerated the profit of capital amongthe his of production.68 the true constituent ofhi which he puts in the place of profit is, "capitalised 305b987c477f781d17bc82b94010de41 saving" (l'épargne capitalisée), the non-consumption and the productive employment of goods over which the capitalist has command. Later too we 305b987c477f781d17bc82b94010de41 find repeated allusions (e.g. iii. pp. 261, 291) to the 305b987c477f781d17bc82b94010de41 capitalist's renunciation of enjoyment as a factor in the origination of profit. If up to this point Rossi 305b987c477f781d17bc82b94010de41 has shown himself for the most part an Abstinence theorist, from 305b987c477f781d17bc82b94010de41 the second half of the third volume onwards we come upon expressions, at first occasionally and then frequently, which show that Rossi had also come under the influence of the popular Productivity theory. 305b987c477f781d17bc82b94010de41 He begins in somewhat vague terms by bringing profit into connection with the circumstance that 305b987c477f781d17bc82b94010de41 "capitals contribute to production" OGN (iii. p. 258). A little later (p. 340) he says quite distinctly, "Profit is the compensation due to productive power"—no longer, be it observed, to privation. Finally, UON the rate of interest is explained at 305b987c477f781d17bc82b94010de41 great length by the productivity of capital. He regards it as "natural" that the capitalist should receive for his share in the product as 305b987c477f781d17bc82b94010de41 much as his capital has KBHRQIGSO produced in it, and that will be much if IRKNPLFS the productive power of capital is great, little if the productive power ofcapital is little. Thus Rossi arrives at the law that the natural height of profit is in proportion tothe productive power 305b987c477f781d17bc82b94010de41 of capital. He 305b987c477f781d17bc82b94010de41 develops this law first in the case where production requires capital KBPLNNLC alone 305b987c477f781d17bc82b94010de41 in its operations, the factor labour being left out of account TBYKP as vanishingly small and only the use value of the product being taken into consideration. under these hiumptions he finds LYEDH it evident that if, for instance, the employment of a spade on a definite piece of ground, after 305b987c477f781d17bc82b94010de41 replacing the capital 305b987c477f781d17bc82b94010de41 laid out, procures twenty bushels of grain as profit, the employment of a more efficient capital, say a plough, on the 305b987c477f781d17bc82b94010de41 same piece of land, after fully 305b987c477f781d17bc82b94010de41 replacing the capital, will bring in more profit, say sixty 305b987c477f781d17bc82b94010de41 bushels, "because a capital of greater productive power has been employed." But the same natural principle obtains in the complicated relations of our actual economic life. There also it is "natural" that 305b987c477f781d17bc82b94010de41 the capitalist should share the product with the labourers in the 305b987c477f781d17bc82b94010de41 ratio of the productive power of his 305b987c477f781d17bc82b94010de41 capital to the productive power of the labourers. If, in a production that has KVVUPIL hitherto employed a hundred workers, a machine is introduced which replaces the power of fifty workers, the capitalist has a natural ITQ claim to one-half BGWEVKRJX the total product, or the wage of fifty labourers. 305b987c477f781d17bc82b94010de41 This natural relation is only disturbed 305b987c477f781d17bc82b94010de41 by one thing; that the capitalist VGA plays a double rôle. Not only does he contribute his capital to the common co-operation, but he connects with that a second hi, the buying of labour. In virtue of the former, he would always receive the natural profit WQRH .