Section One

Definitions

Man, like every other organism, can only live by the transformation of his environment to his own use. He must transform his environment from a condition where it is less to a condition where it is more subservient to his needs.

That special, conscious, and intelligent transformation of his environment which is peculiar to the peculiar intelligence and creative faculty of man we call theProduction of Wealth.

Wealth is matter which has been consciously and intelligently transformed from a condition in which it is less to a condition in which it is more serviceable to a human need.

WithoutWealth man cannot exist. The production of it is a necessity to him, and though it proceeds from the more to the less necessary, and even to those forms of production which we call luxuries, yet in any given human society there is a certainkind and a certainamount of wealth without which human life cannot be lived: as, for instance, in England to-day, certain forms of cooked and elaborately prepared food, clothing, warmth, and habitation.

Therefore, to control the production of wealth is to control human life itself. To refuse man the opportunity for the production of wealth is to refuse him the opportunity for life; and, in general, the way in which the production of wealth is by law permitted is the only way in which the citizens can legally exist.

Wealth can only be produced by the application of human energy, mental and physical, to the forces of nature around us, and to the material which those forces inform.

This human energy so applicable to the material world and its forces we will callLabour. As for that material and those natural forces, we will call them, for the sake of shortness, by the narrow, but conventionally accepted, termLand.

It would seem, therefore, that all problems connected with the production of wealth, and all discussion thereupon, involve but two principal original factors, to wit,Labour andLand, But it so happens that the conscious, artificial, and intelligent action of man upon nature, corresponding to his peculiar character compared with other created beings, introduces a third factor of the utmost importance.

Man proceeds to create wealth by ingenious methods of varying and often increasing complexity, and aids himself by the construction ofimplements. These soon become in each new department of the production as truly necessary to that production aslabour andland. Further, any process of production takes a certain time; during that time the producer must be fed, and clothed, and housed, and the rest of it. There must therefore be anaccumulation of wealth created in the past, and reserved with the object of maintaining labour during its effort to produce for the future.

Whether it be the making of an instrument or tool, or the setting aside of a store of