Abstract

Even after the establishment of capitalist production, capital was not able to freely operate on the land. Capitalists are obliged to pay ground-rent to landowners as compensation for the use of the land. Ground-rent takes two main forms. One form is the absolute rent that must be paid in order to rent any sort of land. Even though the agricultural sphere has a higher rate of profit due to a low capital composition, the barrier of landed property makes it possible to prevent the free influx of capital from the industrial sphere, thus giving birth to surplus profit that is transformed into absolute rent. The other form of ground-rent is the differential rent that is higher on land with a higher rate of fertility. Through the restriction of landed property, the surplus profit that is generated from the differences in land conditions for capital that is unable to freely operate is transformed in differential rent. From this situation, the idea arises that the land itself generates the fruit of ground-rent, thus establishing the land fetish. This is the «land–ground-rent» pillar of the trinity formula.

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