When capital increases, the portion falling to the proprietor or capitalist increases in absolute value and diminishes in relative value; while the portion falling to the labourer (or consumer) increases both in absolute and relative value. . . . .
Observe how this takes place. In proportion as civilisation advances, lands which are situated near populous centres rise in value. Productions of an inferior kind in such places give way to productions of a superior description. First of all, pasture gives way to cereal crops, then cereal crops give way to market gardening. Products are brought from a greater distance at less cost, so that (and this in point of fact is incontestable) meat, bread, vegetables, even flowers, are sold in such places cheaper than in neighbourhoods less advanced, although manual labour costs more. . . . . . .
LE CLOS-VOUGEOT.[72]
. . . . Services are exchanged for services. Frequently services prepared beforehand are exchanged for present or future services.
The value of services is determined not by the labour they exact or have exacted, but by the labour which they save.
Now, in point of fact, human labour goes on constantly improving in efficiency.
From these premises we may deduce a phenomenon which is very important in social economy, which is, that in general anterior labour loses in exchange with present labour.
Twenty years ago I manufactured a commodity which cost me [p350] 100 days’ labour. I propose an exchange, and I say to the purchaser, Give me in exchange a thing which cost you also 100 days’ labour. Probably he will be in a situation to make this reply, That great progress has been made in twenty years. What you ask 100 days’ labour for can be made now in 70 days. I don’t measure your service by the time it has cost you, but by the service it renders me. That service is equal only to 70 days’ labour, for in that time I can render it to myself, or find one who will render it to me.
The consequence is that the value of capital goes on continually deteriorating, and that anterior labour and capital are not so much favoured as superficial economists believe.
Apart from tear and wear, there is no machine a little old but loses value, for the single reason that better machines of the same kind are made nowadays.