Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public PolicyClark, John Bates
General
Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public Policy
Clark, John Bates
Economics
[1] Exceptional local conditions may make an influx of
population for a time a cause of greater productivity rather
than of less. The general and permanent effects are
otherwise, and it is on these that the present argument
rests.
[Illustration]
If the line _BB'_ represents the unequal level of _natural_ wages in
different localities, on the assumption that populations remain
unequal, the undulating curve _DD'_ which crosses and recrosses the
line _BB'_ represents actual local rates fluctuating about the
standard ones.
_How a Static Adjustment for the World is a Dynamic Influence within
a Limited Part of It._--Commodities are, by traffic, crossing the
social boundary in both directions, and with the goods there go and
come influences that affect the economic life of the central society.
Methods and modes of organizing business are taught by each region to
the other, though most of the teaching is done by the people of the
center and most of the learning by those of the environment. All this
affects the center and falls within our study. It has dynamic effects
within the center, though it is only a part of a static adjustment for
the world as a whole. If the grand bank of Newfoundland were to
subside to the level of the middle of the Atlantic, there would be a
great rush of water toward the place that the banks now occupy, but
this would be only what is required in bringing the general level of
the sea to an equilibrium. It would be essentially a static
phenomenon, but for the region of the banks it would be dynamic in the
highest degree. A rush of population from China to America would be a
change tending to establish an equilibrium of population in the world,
but it would be a startling bit of dynamics for America. Teaching the
Chinese all the mechanical arts that we know would be creating an
equilibrium of another sort, in which methods would be similar in the
two countries; but for China itself this acquiring of practical arts
would be dynamics acting on a vast scale. What is a static adjustment
for the world is a dynamic change for parts of the world, and all such
changes that can occur within the area of economic society proper and
within the period we can wisely include in our study we need to take
into account. Changes in population, wealth, method, and organization
must be studied, however they may originate.
CHAPTER XV
PERPETUAL CHANGE OF THE SOCIAL STRUCTURE
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