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POLITICAL  ECONOMY

A  brief  study  of  distribution  will  disclose
a  fundamental  identity  of  theory  underlying
the  determination  of  wages,  and  the  determination ­
  of  interest,  profits,  and  so  forth  :
though,  of  course,  in  detail  there  are  many
differences  between  these  several  determinations ­
  arising  out  of  the  diverse  natures  of  the
various  factors  engaged  in  production.  It
will  be  my  first  object  so  to  expound  the
theory  of  distribution  as  a  whole  as  to  bring
out  the  identity  of  theory.  In  order  to  do
this  it  will  be  requisite  to  make  certain
assumptions.  The  first  thing  assumed  will  be
that  all  production  is  group  production  :  and
as  a  matter  of  fact  under  modern  conditions
in  the  Western  world  most  production  is
group  production.  Group  production  means,
it  will  be  remembered,  that  the  individual  does
not  produce  independently  but  in  conjunction
with  a  number  of  other  individuals  and  other
productive  agents.  The  second  assumption  is
that  each  member  of  each  class  of  factors  is
equal  in  efficiency  ;  in  other  words  that  there
is  nothing  to  choose  between  the  various
members  of  any  class  of  factors.  All  the
employers  in  an  industry,  we  suppose,  are
equally  clever,  alert  and  diligent  ;  all  the
workmen,  we  suppose,  are  equal  in  respect
of  their  physical  and  mental  powers,  and  are