Lesson 5: Wealth, Capital and Privilege

Please read Part II, Chapters 11 - 16 and "Defining Political Economy"

1. Why was it necessary to fix the meaning of the term "value" before the definition of "wealth" could be properly understood?           | Text |

2. What is the essential character of wealth?           | Text |

3. What is the relationship of wealth and service?           | Text |

4. What is the meaning of capital in political economy?           | Text |

5. What are some different senses in which the word "capital" is used?           | Text |

6. Are things whose value arises from obligation part of capital? Why is this important to the study of political economy?           | Text |

7. For individual firms making entrepreneurial decisions, Henry George's definition of "capital" in political economy           | Supplement |

a. must take modern financial systems into account.
b. is a key element of highly successful business plans.
c. is neither relevant nor useful.
d. is relevant and useful.
8. Why did Henry George not include services in his scheme of political economy?            | Supplement |

9. Services           | Supplement |

a. are increasingly relied on in a declining economy.
b. decrease in importance as an economy develops.
c. tend to offer low-income jobs.
d. are provided by labor, land, capital or any combination of the three.
e. All of the above.
10. What are George's definitions of "rich" and "poor"?           | Text |

11. Why are values arising from obligation generally more enduring than those arising from production?           | Supplement |

12. To what privilege has the quality of value attached more constantly than to any other valuable thing?           | Text |

13. Why is it that the value of articles of wealth tends to decrease, while the value of privileges tends to increase with social advance? Offer an example of each.           | Text |

14. According to Henry George, the most vital aspect of economic behavior is           | Text |

a. storing up of labor-power in the form of capital.
b. preservation of entrenched power and privilege.
c. control of land.
d. labor's ongoing productive work.