An introduction to the theory of value : $b On the lines of Menger, Weiser, and Böhm-Bawerk — John Shaqi
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
There is a rough, but sometimes convenient, division of goods
into Necessaries, Comforts, and Luxuries. Corresponding with this
classification of goods, we might consider the physical needs satisfied
by “necessaries” as the most important; and in the first rank of
utilities, therefore, we should put goods necessary to sustain life,
such as food, clothes, shelter. Next would come health and fulness of
life, and in the second rank of utilities we should put good food,
good clothes, good shelter. Last we should put the refinements or
the artificial appetites of life, and, corresponding with these, we
should have music and pictures, liquor, tobacco, and so on. It is easy
to see that the sanction or principle of this scale is a negative
one. It is not based on the satisfaction we get from goods, but on
the consequences which will ensue to our lives if these wants go
unsatisfied. Food is in the first rank of goods, because here death
follows unsatisfied need. Tobacco is in a subordinate place, because
the want of it causes, at worst, discomfort. And diamonds come in the
lowest rank of useful goods because the loss of them involves a quite
trifling loss of wellbeing. Here is a scale of wants with a definite
enough principle.
But it is a scale adapted to circumstances so simple as to have no
resemblance to any known form of society. Possibly the economists’
favourite classic, Robinson Crusoe, has had something to do with the
making of it. Certainly there never was a people who divided out
their labour to satisfy successively the wants of such a scale, not
producing anything for fulness of life till all had the necessaries,
nor anything for pleasure till all had the necessaries of efficiency.
Such a division of labour would evidence a higher level of reason and
self-restraint than our communities have reached, since it would be
founded on a deliberate theory of social life. The very suggestion that
the loss of diamonds is “trifling” would justify the reproach one has
sometimes to bear, that “it is well seen political economy was written
by men!” The fact remains that this is nobody’s scale: the poorest
savage, the worst paid mill-girl, the most refined woman, will put
ornament only second to bare necessaries.
Public-domain text, read in full here on John Shaqi.
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