Astral Codex Ten

cotton gin

12 min read

cotton gin

Article

cotton gin is a recurring concept in the Astral Codex Ten archive, appearing 2 times across 2 issues between April 16, 2021 and March 16, 2026. The archive places it in contexts such as “the cotton gin . This device massively decreased the amount of labor required to process cotton”; “‘Describe the invention of the cotton gin and its effect on American history’“. It most often appears alongside United States, “The Rent Is Too Damn High!”, 16th amendment.

Metadata

  • Category: Concepts
  • Mention count: 2
  • Issue count: 2
  • First seen: April 16, 2021
  • Last seen: March 16, 2026

Appears In

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

Your Book Review: Progress And Poverty
April 16, 2021 · Original source
It brings out the latent potential of land How does Technological advance affect the distribution of wealth? Tech saves labor. It lets you accomplish the same thing with less work, or more things with the same amount of work. This leads to more wealth being produced. Now, what do you need to produce more things? Capital is nice to have, but the two things you must have are labor, and land. So wanting to make more things means more demand for land, because you can't labor without it. And when you reach the productive limit of the land available to you, you seek out more marginal lands, extending the margin of production. Demand for land goes up, land values go up, and soon enough The Rent Is Too Damn High. This means that as you introduce advanced machinery, the extra productivity they bring gets soaked up in rising land values, which gets extorted as rent. every labor-saving invention, whether it be a steam plow, a telegraph, an improved process of smelting ores, a perfecting printing press, or a sewing machine, has a tendency to increase rent. As a historical aside, I'll point out an extreme example of this: the cotton gin. This device massively decreased the amount of labor required to process cotton, which ironically increased the spread of slavery (slaves being laborers compelled to pay all their wages in rent). As the amount of slave labor required to process a unit of cotton went down, the margin of production was extended to more marginal lands. This caused the rents on the best lands to go up, further enriching slave-owning plantation landowners and increasing their influence. With the margin extended, demand shot up for land previously deemed unsuitable for cotton production, increasing the pressure to admit new states to the union as slave states. The gin's effect on entrenching slavery was so profound that it's commonly blamed for prolonging the institution and laying the foundations for the Civil War. How does improved "social fabric" affect the distribution of wealth? Improvements to the social fabric that just make society generically better do the same thing. If the people in a neighborhood are nicer and more helpful, provide a robust network of mutual aid, start a bowling league and book club, etc, land values rise. That's because it's more desirable and productive to live in a place where you can e.g. trust your neighbor to watch your kid for an hour while also teaching them to whittle. Land value goes up, and so does the rent. Now, let's talk about the expectations raised by material progress. What happens when people know something will increase in value? That's right, they buy it up in a speculative frenzy and hold on to it forever, further driving the price up. With conventional speculative instruments like beanie babies or tulips, the bubble eventually pops. But Land has unique properties that allow this vicious cycle to continue more or less indefinitely. What happens when a city is growing, technology is advancing, improvements are being made to land, and so forth? Land values go up. Sure, speculators can still lose their shirts if a city falls into decline, but this isn't nearly as hard to predict as volatility in penny stocks or what next year's hot Christmas toy will be. So as soon as there's a whiff of progress in a given area everyone starts HODLing land, but not to use it themselves. In fact speculators often keep it out of use, because this forces people to use less valuable land instead, pushing the margin of production down even further, forcing land values up, and now The Rent Is Too Damn High. Georgist pundit geoliberal explains the mindset of a speculator: The only thing investors actually maximize is risk adjusted rate of return. When you know rents will increase, your best return comes from buying extra land, not improving the land you have Illustration courtesy of geoliberal This is how it's possible to have urban blight and slums in areas with extremely high land values. Even if there's a temporary dip in prices, speculators know that if they just keep HODLing the general trend – absent a local collapse – is that land value always goes up. Here's George: Take now... some hard-headed business man, who has no theories, but knows how to make money. Say to him: "Here is a little village; in ten years it will be a great city—in ten years the railroad will have taken the place of the stage coach, the electric light of the candle; it will abound with all the machinery and improvements that so enormously multiply the effective power of labor. Will in ten years, interest be any higher?" He will tell you, "No!" "Will the wages of the common labor be any higher...?" He will tell you, "No the wages of common labor will not be any higher..." "What, then, will be higher?" "Rent, the value of land. Go, get yourself a piece of ground, and hold possession." ...without doing one stroke of work, without adding one iota of wealth to the community, in ten years you will be rich! In the new city you may have a luxurious mansion, but among its public buildings will be an almshouse. I don't think it's a coincidence that real estate is one of the oldest investments on Earth and the principal concern of basically every war ever. V. The Problem Solved We had two questions at the beginning of this book: why are there industrial depressions, and why poverty seems to advance alongside progress. You guess it, it's all because of land and rent. By George, industrial depressions are caused by land speculation Speculation has a tendency to press the margin of production down until it's just past its limit, forcing labor and capital to accept returns so small that it actually hinders production or ceases altogether. The saving grace is that as long as the population is growing and/or technology is improving, productivity will go up, and production will start again. But soon enough the land values go up. This drives speculators bidding up the price of land, anticipating future even higher land values, which stresses the productive margin again. So you get a cycle – productivity rises, economy booms, land values rise, production stagnates or stops. No matter how complicated or sophisticated the economy gets with layer upon layer of financialization and abstraction, when you unravel it all George says this is the ultimate cause. Periods of industrial activity always culminate in a speculative advance of land values, followed by symptoms of checked production This is how you get the baffling situation where able hands are eager and willing to work, capital is ready to employ them, natural materials are abundant, and yet the laborers are idle and the factories stand empty. So that's it for industrial depressions. What about the other paradox of poverty advancing alongside progress? By George, poverty advances alongside progress because of rent The reason why, in spite of increase of productive power, wages constantly tend to a minimum which will give but a bare living, is that, with increase in productive power, rent tends to even greater increase, thus producing a constant tendency to the forcing down of wages. George backs this up with several pages of specific regional figures demonstrating how land values have continued to explode all over the world. By George, on average and in the long run, no amount of hard work from labor, no force multiplication from capital, no increased gain from co-operation and specialization, no labor-saving invention or increase in personal efficiency, work ethic, or morals, can escape the long reach of rent. In short, increased power of production has everywhere added to the value of land; nowhere has it added to the value of labor; George notes that the mass die-off of the Black Death in England in the 1300's significantly reduced the productivity of the individual laborer, and yet wages went up. That's because the decreased population also caused a massive drop in competition for land, in turn causing rents to plummet. (For more detail on this read about the Peasants' revolt, also known as Wat Tyler's rebellion). George says the opposite happened during the reign of Henry VIII, who seized the lands of the church and those held in common by the peasants, and handed them out to newly minted aristocrats, which was followed by suppressed wages. In the reign of Henry VII., half a bushel of wheat would purchase but little more than a day's common labor, but in the latter part of the reign of Elizabeth, half a bushel of wheat would purchase three day's common labor. He sums it all up like this: Material progress cannot rid us of our dependence upon land; it can but add to the power of producing wealth from land; and hence, when land is monopolized, it might go on to infinity without increasing wages or improving the conditions of those who have but their labor. So there's our answer: the monkey wrench that causes the boom-bust cycle of industrial depressions is rent, and even though we have more than enough material wealth to provide for everybody's needs, rent prevents us from distributing it fairly and equitably. Volume II Okay, The Rent Is Too Damn High, and now we finally know why. What are we going to do about it? Insufficiencies of Remedies Currently Advocated George goes down the list of everything we've already tried and why it hasn't worked (or has worked, but less well than we hoped), which you can read about in Appendix C (there's a link that returns here at the end): Appendix C: The Insufficiency of Remedies Currently Advocated The Remedy George says the solution is to make land common property. He doesn't want to confiscate land, or force everyone to live on some giant hippie commune. He proposes instead to let everyone continue to "own" land exactly as they do now, but we should impose a special tax to neutralize the perverse incentives of land rent. He anticipates a lot of pushback on this, and promises that his remedy: Is just
Inline links: cotton gin, https://substackcdn.com/image/fetch/$s_!xCOH!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F0cd4ff49-9463-4c13-8cc5-881ab221c4b6_375x523.png, beanie babies, tulips, next year's hot Christmas toy will be., https://substackcdn.com/image/fetch/$s_!uOum!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F8b57ab87-8422-437f-b6c4-f3ccdd223624_1022x597.png, Peasants' revolt, Appendix C: The Insufficiency of Remedies Currently Advocated
Shameless Guesses, Not Hallucinations
March 16, 2026 · Original source
Some kids never guessed. They thought it was dishonest. I had trouble understanding them, but when I think back on it, I had limits too. I would guess on multiple choice questions, but never the short answer section. “Who invented the cotton gin?” For any “who invented” question in US History, there’s a 10% chance it’s Thomas Edison. Still, I never put down his name. “Who negotiated the purchase of southern Arizona from Mexico?” The most common name in the United States has long been “John Smith”, applying to 1/10,000 individuals. An 0.01% chance of getting a question right is better than zero, right? If I’d guessed “John Smith” for every short answer question I didn’t know, I might have gotten ~1 extra point in my school career, with no downside.
You can go further. Consider an essay question: “Describe the invention of the cotton gin and its effect on American history, citing your sources.” Suppose I slept when I should have studied and knew nothing about this. A one-in-a-million chance of getting it correct is better than literally zero, right?
The cotton gin was invented by Thomas Edison in 1910. It was important because gin made with cotton, of which the Southern plantation economy produced a surplus, was cheaper than the usual gin made with juniper berries. This lowered the price of alcoholic spirits considerably. According to historian John Smith in his seminal The Invention Of The Cotton Gin For Dummies, the resulting boom in alcoholism provoked a backlash that ultimately led to Prohibition.