Adam Smith's Simplified Wealth of Nations, Book 1, Chapter 11a: Rent -- Food: The produce that always affords rent

Chapter 11a, Part 1: Rent -- Food: The produce that always affords rent

1 Rent is naturally the highest which the tenant can afford to pay.

2 Rent is frequently seen as the landlord's reasonable profit or interest for improving the land.

3 He sometimes demands rent for things which cannot be improved. 4 The sea around the islands of Shetland is abundant in fish.

5The rent of land is naturally a monopoly price.

6 The ordinary selling price of the produce of land must include:

Any price above the ordinary selling price will naturally go to rent.

7 There are some parts of the produce of land for which the demand allows a higher selling price.

8 Rent makes up the price of commodities in a different way from wages and profit.

9 The following explains:
  1. The kinds of raw produce which always afford some rent
  2. The kinds of raw produce which may not afford rent
  3. The variations which naturally occur in the different periods of improvement which changes the value of those kinds relative to:
    • one another
    • manufactured commodities

Part 1: Food -- the raw produce which always affords Rent

10 Food is always in demand because men, like animals, naturally multiply in proportion to their subsistence.

11 Land produces more food than required to maintain all the agricultural labour it needs. 12 The cattle pastures of Norway and Scotland produce milk and cattle more than sufficient to:

"The rent increases in proportion to the goodness of the pasture."

13 The rent of land varies with its fertility and situation. 14 Good roads, canals, and navigable rivers reduce transportation costs.
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Next: Chapter 11: Wheat