ctive force of labor in many cases (but in many cases not, as
the patent records everywhere show) we have been for a long time
aware.

LAW NO. II. "Division of Labor. The formation of branches of work and
the splitting up of activities increases the productivity of labor."

As far as this is true it is a mere commonplace since the time of Adam
Smith. How far it is true will appear in the third division of this
work.

LAW NO. III. "Distance and transportation are the most important
causes of the advance or hindrance of the organization of productive
forces."

LAW NO. IV. "The industrial state has incomparably greater capacity
for population than the agricultural state."

LAW NO. V. "In economics only material interests count."

These are the natural laws on which Herr Duehring founds his new
economics. He remains true to his philosophic methods.

(Hereupon Engels proceeds to the discussion of Duehring's opinions on
ground-rent.)

Herr Duehring defines ground-rent as "that income which the landowner
as such derives from ground and land." The economic idea of
ground-rent, which Herr Duehring undertakes to explain to us, is
transformed right away into the juristic concept so that we are no
further than at first. He compares the leasing of a piece of land with
the loan of capital to an entrepreneur but finds, as is so often the
case, that the comparison will not hold. Then he says "to pursue the
analogy the profit which remains to the lessee after the payment of
ground-rent, answers to that portion of the profit on capital which
remains to the entrepreneur who operates with borrowed capital after
the interest on the borrowed capital has been paid."

(To these arguments Engels replies:)

The theory of ground-rent is a special English economic matter, and
this of necessity because only in England does a mode of production
exist by which rent is separated from profit and interest. In England
there prevail the greater landlordism and the greater agriculture. The
individual landlords lease their lands in great farms to lessees who
are able to cultivate them in a capitalistic fashion and do not, like
our peasants, work with their own hands, but employ laborers just like
capitalistic entrepreneurs. We have here then the three classes of
bourgeois society, and the income which each receives--the private
landlord in the form of ground-rent, the capitalist in that of profit
and the laborer in the form of wages. No English