J. S. Mill's role as a transitional figure between classical and egalitarian liberalism can be partly explained by developments in his often unappreciated economic views. Specifically, I argue that Mill's separation of economic production and distribution had an important effect on his political theory. Mill made two distinctions between economic production and the distribution of wealth. I argue that these separations helped lead Mill to abandon the wages-fund doctrine and adopt a more favorable view of organized labor. I also show (...) how Mill's developments impacted later philosophers, economists, and historians. Understanding the relationship between Mill's political theory and economic theory does not only matter for Mill scholarship, however. Contemporary philosophers often ignore the economic views of their predecessors. I argue that paying insufficient attention to historical political philosophers' economic ideas obscures significant motivations for their political views. (shrink)