Theory of Land Nationalization and Land Rent

Abstract

The aim of this treatise is to develop the theory of land nationalization on the basis of the theory of land rent. Firstly, the modern form of landed property and land rent, that is the form in which property in land realized economically, are elucidated. Secondly, the logic of formation of the two normal forms of land rent is examined. And finally, the logic and form of disappearance of rent, are studied. About the theory of differential rent, two points are emphasized; Firstly, differential rent is a false social value "ein falscher sozialer wert" in substance which does not include labour in it and it is what society overpays for agricultural products at the cost of consumer. Secondly, on differential rent II, the surplusprofit arising from successive investment of capital flows into the pockets of the landowners, because the surplusprofit is fixed as land rent by property right of the land. Then, the more capital is invested in the land and the higher development is achieved in agriculture, the greater rents accrue per acre. Absolute land rent, which arises from the basis of lower capital composition of agriculture, comparing to that of the average social capital, is created from the landed property itself, which is opposed to capital as alien force and barrier. It would be, therefore, abolished by the elimination of the monopoly of landed property, i. e. the nationalization of land by the government of bourgeoisie. But, in that case, differential rent still remains as before and is levied by the government. Differential rent-a false social value, which is determined by market-value-as it asserts itself on the basis of capital production through competition, would be abolished through replacement of the capitalist mode of production, by a conscious and planned association which controls market price of the products of soil. But in that case, it retains differential earnings which would be invested on worse soil to improve, it. Thus, by equalizing the conditions of siols, the substantial basis of differential rent would be vanished and ultimately the economic basis of the monopoly of landed property would be eliminated.