Land as capital Frank Fetter

alfred marshall (1842–1924)

fetter participated in notable debate english economist alfred marshall, both through 1904 principles of economics , number of journal articles in american economic association s journals , in quarterly journal of economics. contested marshall s position land theoretically distinct capital. fetter argued such distinction impractical, stating that,

the notion simple matter distinguish between yield of natural agents , of improvements fanciful , confusing.... objective classification of land , capital natural , artificial agents task must transcend human power of discrimination.

fetter s stand on issue further led him oppose georgist ideas land value tax. mark blaug, specialist in history of economic thought, credits fetter , john bates clark influencing mainstream economists abandon idea land unique factor of production , hence there special need special theory of ground rent.... in fact basis of attacks on henry george contemporary economists , fundamental reason why professional economists increasingly ignored him.