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, ground and/or rent:
“The absolute things, the last things, the overlapping things, are the truly philosophic concerns; all superior minds feel seriously about them, and the mind with the shortest views is simply the mind of the more shallow man.”
—William James (1842–1910)
“One need not be a great beau, a seductive catch, to do it effectively. Any man is better than none. To shrink from giving so much happiness at such small expense, to evade the business on the ground that it has hazards—this is the act of a puling and tacky fellow.”
—H.L. (Henry Lewis)
“I have been breaking silence these twenty-three years and have hardly made a rent in it.”
—Henry David Thoreau (1817–1862)