168 
POLITICAL ECONOMY 
A brief study of distribution will disclose 
a fundamental identity of theory underlying 
the determination of wages, and the deter 
mination of interest, profits, and so forth : 
though, of course, in detail there are many 
differences between these several determin 
ations 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