Investing · Western classics
David Ricardo:On the Principles of Political Economy and Taxation, Excerpt 55
David Ricardo《On the Principles of Political Economy and Taxation》· On the Principles of Political Economy and Taxation · Investing
In such case, capital will be preferably employed on the old land, and will equally create a rent; for rent is always the difference between the produce obtained by the employment of two equal quantities of capital and labour. If with a capital of 1000_l._ a tenant obtain 100 quarters of wheat from his land, and by the employment of a second capital of 1000_l._, he obtain a further return of eighty-five, his landlord would have the power at the expiration of his lease, of obliging him to pay fifteen quarters, or an equivalent value, for additional rent; for there cannot be two rates of profit. If he is satisfied with a diminution of fifteen quarters in the return for his second 1000_l._, it is because no employment more profitable can be found for it. The common rate of profit would be in that proportion, and if the original tenant refused, some other person would be found willing to give all which exceeded that rate of profit to the owner of the land from which he derived it.
Source:
https://www.gutenberg.org/ebooks/33310
Locator:Excerpt 55 · Verified:2026-10-19 · Verification:Short excerpt
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