Absolute Ground Rent
The absolute ground rent is sometimes explained as the rent which landowners can extract because they monopolise the access to or supply of land, and sometimes as the rent which arises due to the difference between the product-values and prices of production of output in agriculture, because of a lower than average organic composition of capital in agriculture as compared with industry.
According to Marx's own concept, absolute rent cannot exist when the organic composition of capital in agriculture becomes higher than the social average. Marx envisaged that labour productivity would be higher in manufacturing than in agriculture, for the longer term, reflecting the fact that the organic composition of capital (the ratio C/V) was higher in manufacturing than in agriculture. This implied, that in agriculture the value of output produced was persistently higher than the production price of that output.
Read more about this topic: Differential And Absolute Ground Rent
Famous quotes containing the words absolute and/or rent:
“The teacher must derive not only the capacity, but the desire, to observe natural phenomena. In our system, she must become a passive, much more than an active, influence, and her passivity shall be composed of anxious scientific curiosity and of absolute respect for the phenomenon which she wishes to observe. The teacher must understand and feel her position of observer: the activity must lie in the phenomenon.”
—Maria Montessori (1870–1952)
“We want some coat woven of elastic steel, stout as the first, and limber as the second. We want a ship in these billows we inhabit. An angular, dogmatic house would be rent to chips and splinters, in this storm of many elements. No, it must be tight, and fit to the form of man, to live at all; as a shell is the architecture of a house founded on the sea.”
—Ralph Waldo Emerson (1803–1882)