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Production is a team effort. A chain saw by itself is useless to me if I want to cut down a tree. A worker with empty hands is equally worthless. Together, the worker and the saw can cut the tree very nicely. In other words, the productivity of one factor, such as labour, depends upon the amount of other factors available to work with.
It is this interdependence of productivities of land, labour, and capital goods that makes the distribution of income a complex topic. Suppose we had to distribute at one time the entire output of a nation. If land had by itself produced so much, and labour had alone produced so much, and machinery had by itself produced the rest, distribution might be easy. Under supply and demand, if each factor produced a certain amount by itself, it could enjoy the undivided fruits of its own work.
That means it is generally impossible to say how much output been created by a single input taken by itself. The different inputs interact with one another. Labour is the father of product and lands the mother. We cannot say which is more essential in producing a labour baby, a mother or a father.
It is this interdependence of productivities of land, labour, and capital goods that makes the distribution of income a complex topic. Suppose we had to distribute at one time the entire output of a nation. If land had by itself produced so much, and labour had alone produced so much, and machinery had by itself produced the rest, distribution might be easy. Under supply and demand, if each factor produced a certain amount by itself, it could enjoy the undivided fruits of its own work.
That means it is generally impossible to say how much output been created by a single input taken by itself. The different inputs interact with one another. Labour is the father of product and lands the mother. We cannot say which is more essential in producing a labour baby, a mother or a father.
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