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
[13] How far the theory of Complementary Goods admits of being applied
directly to the problem of distribution of product among the various
factors is matter of controversy. Böhm-Bawerk considers that it is
the key which will lead to its solution. The line which this suggests
would be something like the following. Labour and Capital enter into
the composition of all productive groups: in proportion as they are
abundant and mobile do they enter into competition with _all_ labour
and _all_ capital, and become perfectly replaceable. In entering
into products, then, they can never secure more than their outside
value—that fixed by all their employments or uses. The surplus in the
price of each product goes to the monopolist factor, whether that
monopoly be caused by natural and site advantages of land, mental and
technical qualities of undertakers and workers, peculiar conditions of
process, or the like. And in proportion as these factors lose their
monopoly, does the value of the group shrink; if all the members were
to become replaceable, as when first-class land in other countries
becomes available through rapid and cheap carriage, or when education
makes unskilled labour the exception, the group value, as distinct from
the combined isolated values, would disappear.
Wieser, again, considers that this is no more than a valuable
suggestion. What guidance, he asks, will this law give where there
are several irreplaceable members, and how is the outside value of
replaceable members given if not in other combinations of complementary
goods which in turn require to be split up into their factors?
He points out acutely, in reply to Menger, that, to estimate the
proportion contributed by any factor by the loss which would accrue if
that factor were absent, is to reckon too much to it, as the loss of
a factor from a co-operation will generally disorganise the group and
cause more damage than its presence would cause gain. Instead of using
the doctrine of Complementary Goods in this way, he proposes to find,
by a series of equations, what each factor positively contributes; not,
of course, the physical share, but the proportion of value which may be
economically “imputed” to it. A great part of the _Natürlicher Werth_
is taken up with this doctrine of the “Zurechnung,” which is treated in
Wieser’s usual strong and graphic manner.
CHAPTER VIII
SUBJECTIVE EXCHANGE VALUE
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