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
This by itself is sufficient to show that Adam Smith’s graduation of
wants is quite misleading in the present connection. When we ask about
the “degree” or “urgency” of any individual want, we get no information
by determining to what class or kind it belongs—whether, for instance,
it is the need for a necessary or the desire for a luxury. The craving
for food, as has been suggested, belongs so conspicuously to the
first class of wants, that we do not so often speak of “wants” of
subsistence, as of “needs” of subsistence. The desire for liquor,
again, some people would scarcely dignify by the name of “want” at
all. Yet many people will attach as much importance to the one as to
the other. If we are to judge by his expenditure, the working man may
graduate his wants thus: bread, house room, liquor, tea, tobacco,
clothes, meat; while a rich man may spend more on his horses than
he does on his house, and his grocer’s bill may be less than his
florist’s. The fact seems to be that, with the scale of wants which
each man makes for himself, the graduation by classes or kinds has very
little to do. From the consideration already pointed out, that certain
wants are fundamental, necessary, and universal, the class must,
indeed, have something to do with it, but the other two considerations,
the limited nature of these wants and the abundance of provision for
them in most communities, throw the consideration of necessity quite
into the background.
There is one case, however, where Adam Smith’s scale comes nearly
true;—where the income is just sufficient, and no more, to cover the
barest wants of man as a living being. If a seamstress has to sustain
life on a shilling a day, she will take care to dispose of the shilling
in such a way that she spends on food just enough to keep life in, on
clothes, enough to keep her warm, while the meanest roof that will keep
out the rain will satisfy her “want of shelter.” And, in proportion as
we approximate to this direst poverty, will the class have more to do
with the scale. Even the seamstress, however, will probably “jump” the
class of comforts, and spend her last penny on the highest concrete
want among the luxuries of the poor, tea.
Public-domain text, read in full here on John Shaqi.
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