“Large changes in the interest rate, which would make an enormous difference to capitalists and determine huge differences in interest income and the profitableness of various lengthy productive processes, would have a negligible effect on the earnings of the owners of the original productive factors. Land is very likely to have no reservation price, i.e., it will have little subjective-use-value to the owner. Labor services are also likely to be inelastic with respect to the interest discount, but probably less so than land, since labor has a reservation demand which stems from the value of leisure as a consumers’ good (i.e., lower prices will increase the relative advantage of leisure).” (pp. 405-406)
“The burden of the lower prices at each stage of production falls on the purely specific factors in the industry, those which must be devoted to this industry if they are to be in the production system at all. It is therefore likely to be specific land factors that bear the brunt of the lower return.” (p. 442)
“The impact of a change in consumer demand on a specific factor will be far greater, in either direction, than it will be on the price of employment of a nonspecific factor.” (p. 463)
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