ABSTRACT
The economist first of all turns his attention to the production of useful things that we need for our well-being; and he finds that there are certain factors that are absolutely necessary if we want to make useful goods. The economist having defined wealth and having decided that it consists of all useful commodities which have exchange value, pins himself to the consideration not only of large quantities of those commodities but to any quantity however small. We also require raw materials, the farmer requires seed and manure: the textile manufacturer, cotton and other raw materials; all producers require some machinery to assist in the work. These things that are necessary to keep the worker going, and to keep the industrial army at work, enabling them to produce useful goods are called capital. Thus we have a third factor in production, the three factors being land, labour and capital.
