Does production require all 3 factors? Strictly speaking, no. On a primitive and simple scale, labor can produce wealth on land without using capital. This is almost never the case today -- yet it is an important point. We know that labor can produce capital without the aid of capital because capital is a subset of wealth. Some wealth must already be there, so that it can first be used as capital!
For more on this, see Progress and Poverty, First Part, Chapter 3. |