The Evolution of Capitalism

Land, Time and Value

• Land is the original source of Value.
• Land is productive but scarce.
• Its scarce production value can only be enhanced through human innovation.
• Human Innovation increases with increases in Labor Time.
• Originally, the only Production Cost of Land Value was Labor Time.
• Land Value was originally realized from the essential production of food (hunger), clothing (protection) and shelter (protection).
• Labor Time Costs were paid in food, clothing and shelter.
• Labor Time Costs were stable upon sufficient production of food, clothing and shelter.
• Further developing our Land; our Labor Time produced Extra Land Value or Capital Stock Profits.
• Capital stock profit was originally the accumulation of Extra Land Value.
• Extra Land Value was originally paid in Labor Free Time and/or other Luxuries.
• However, when Land was appropriated to private landlords, our Extra Land Value paid and afforded a Land Rent.

• Land Rent was Non-natural Extra Land Value.
• Extra Land Value was divided among Labor Free Time and Land Rent.
• Landlords were incentivized (short-term) to perpetually increase Land Rents.
• Labor Time was incentivized to create more Land Value.
• Perpetually increasing Land Rents initially stagnated increases in Labor Free Time.
• Eventually, perpetually increasing Land Rents realized all of the Extra Land Value.
• Finally, perpetually increasing Land Rents increased Production and Distribution Costs of Land Value by increasing Labor Time.
• Labor Time became insufficient to afford perpetually increasing Land Rent.
• Land Rents and Labor Time Costs increased above scarce productive Land Value.
• Landlords were consuming too much food, clothing and shelter that originally paid for the Labor Time.
• As a result, the Labor Time went hungry and unprotected.
• Labor Time became unstable producing (Land Rent) inflation or lower land values.
• Finally, Land Value and Land Rents cyclically decrease to afford essential Labor Time Costs of Land Value Production.