A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
Accordingly some form of combination must be devised which will suppress
profit, together with “all that gives rise to that inordinate desire
for buying in the cheapest market and selling in the dearest.” But the
instrument of profit is gold or money. Profits are always realised in the
form of money.[521] Gold is an intermediary in every act of exchange,
and its intervention goes a long way towards explaining the anomaly of
selling a commodity for more than cost price. The objective, then, must
be money, and it must be replaced by labour notes, which will supply us
with a measure of value altogether superior to money. Seeing that labour
is the cause and substance of value, it is only natural that it should
afford us the best means of measuring value. It is quite obvious that
ample homage is paid to the Ricardian theory of value, but conclusions
both novel and unproved are drawn from it.
The producer who wishes to dispose of his produce will be given labour
notes in proportion to the number of hours which he has worked. In the
same way the consumer who wishes to buy that product will be called
upon to pay an equivalent number of labour notes, and so profit will be
eliminated.
The condemnation of money was not new, but what was original was the
discovery that labour notes could supply the place of money, a discovery
which Owen considered “more valuable than all the mines of Mexico and
Peru.” It has truly been a wonderful mine, and has been freely exploited
by almost every socialist. But it hardly squares with Owen’s communistic
ideal, which aimed at giving to each according to his needs. The labour
notes evidently imply payment according to the capacity of each. Besides,
what is the use of any system of exchange that is not to be employed for
purposes of distribution?[522]
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