An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-BawerkSmart, William
General
An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-Bawerk
Smart, William
Austrian school of economics; Value
But, on this simple and, to a certain extent, measurable basis of
necessary, universal, and limited wants, we rear a superstructure of
other kinds of want. Of the distinctively human wants, there are many
that become “necessary” from the individual or social development of
intellectual and spiritual beings. Beyond these, again, there are
innumerable desires, caprices, and follies. These, however, are not
in the least limited in their demands: here “the appetite grows by
what it feeds on.” As civilisation and as wealth progress, not only
does the old circle of want expand, but new wants awaken. This makes
classification of such wants all but impossible. Between the wants of
the savage or the child and those of the educated man or delicately
nurtured woman, there is a long gradation of almost infinite fineness.
How are we to put in one category the hunger and thirst which are
satisfied, among members of one class, by bacon and beer, and, among
members of another class, by stately dinners and rare vintages; or
the “love of dress,” which in one sphere demands “a black silk and a
gold brooch,” in another, diamonds and old lace? Yet the fact that
goods may be purchased at prices from a farthing upwards, proves that
the community _has_ classified its wants in some sort of way. We find
exchange existing in all communities, even the simplest, and exchange
presupposes that we have already arranged our wants on a scale, and
said that the satisfaction of such and such wants confers a high value
on the goods which satisfy them, and the satisfaction of such and such
a low value. What is the principle of this scale?
Adam Smith, and all who have followed him in paraphrasing his text “a
diamond has scarce any value in use,” certainly referred to a scale
of wants, and considered this scale so important, and so universally
recognised, that they had to separate off the value measured by it
(use value) from the value measured by money or barter (exchange
value). But they did so instinctively, and, if we inquire what this
scale is, we have some difficulty in translating the instinctive
expression.
Public-domain text, read in full here on John Shaqi.
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