I’m currently reading Adam Smith’s Wealth of Nations. He says that the price of any item is divided into three parts: the wages, the rent, and the profit. Wages are the price of labor, rent in the price of land, and profit is the price of capital.
Concerning rent, Smith says: “The rent of land, it may be thought, is frequently no more than a reasonable profit or interest on the stock laid out by the landlord upon its improvement. This, no doubt, may be partly the case upon some occasions; for it can scarce ever be more than partly the case. The landlord demands a rent even for unimproved land, and the supposed interest or profit upon the expense of improvements is generally in addition to this original rent. These improvements, besides, are not always made by the stock of the landlord, but of the tenant. When lease comes to be renewed, however, the landlord commonly demands the same augmentation of rent, as if they had been all made by his own…The rent of land, therefore, considered the price paid for the use of land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give.”
The Marxist argument, that the owners of the means of production can deprive workers of part of the product of their labor, seems to ring true in this case.
As good Lockeans, we accept the labor theory of property: unowned resources become private property when somebody mixes their labor with it. So if I plant a small vegetable garden in an empty field, I own that garden.
However, if I eat all the food, and then do not grow more vegetables, it is exactly the same as if I had never “mixed my labor with it” at all. So I should not be able to exclude anybody from the land, or make somebody buy it from me and pay me for it.
If we look at it like so, we find that I did not “own” the land at all; I was merely temporarily occupying it with my property, the vegetables. The same could be said of a building: if I build a house, and 100 years later that house collapses into a pile of rubble, for all practical purposes I never built a house there at all. Somebody else could then homestead the land (after I sell any scrap metal that might be present in the rubble) and not pay me a cent for that land.
Doesn’t that make more sense than saying that somebody can “own” empty land for perpetuity?