Progress and Poverty

Land, labor, and capital are the three factors of production. The term land is intended to include all natural resources, such as the earth and all its locations, minerals, oil and waterfalls as untouched by human hands; the term labor, all human exertion whether by brain or brawn or both; the term capital, all wealth (such as tools, machinery, investments and goods in process of exchange) used to produce more wealth. The return to each factor distribution: landowners get the part called rent, laborers (whether by brain or by brawn, or both) the part called wages, and capital the part called interest.