Agricultural pricesWallace, Henry A. (Henry Agard)
Science
Agricultural prices
Wallace, Henry A. (Henry Agard)
Agriculture -- Statistics; Farm produce; Prices
Under the market price or supply-and-demand price system as it has
prevailed, the constant tendency is for the wealthier people, both among
farmers and among business men, to increase their wealth at the expense
of the poorer people. Poor people who embark in general business or in
farming, no matter how intelligent, are likely to go into and come out
of any particular enterprise at just the wrong time. The average man who
is moderately well fixed and stays by a particular enterprise year in
and year out, manages to secure for himself just a little better than
ordinary wages. The man who is wealthy and expands his operations just
as prices are starting up, and reduces operations just as prices are
starting down, secures large profits.
The fluctuating price system, which means great profits to a wealthy
few, serious losses and wrecked lives for a few, and a bare livelihood
for many, is the natural result of the _laissez faire_ policy of the old
classical economists. Their idea was to let things alone, on the theory
that, let alone, prices would sooner or later adjust themselves to the
proper point. In practice, prices almost never reach a proper point, but
are constantly moving either above or below cost of production. One
hundred years of _laissez faire_ policy have demonstrated beyond a doubt
that under such a system the wealthy few inevitably become richer,
whereas the bulk of the people get just enough to keep them going.
The _laissez faire_, supply and demand, speculative, or market price
system, is condemned by nearly every one except the business men who run
it and believe they understand its beneficent workings, and the
economists of the classical type who, in their careful reasoning, are
unable to think of any other way of determining satisfactory prices over
any period of time. The common people and the lofty idealists were
greatly elated during 1917 and 1918 at the apparently successful working
of fixed prices established more or less in defiance of the speculative
or _laissez faire_ price system.
Public-domain text, read in full here on John Shaqi.
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