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
In a perfectly static condition there would be, as we have seen, a
standard shape for all society, which means a normal apportionment of
labor and capital among the producing groups and subgroups and also
among the local divisions of the general area. The elements would
subside to a state of equilibrium and become motionless, as water
finds its level and becomes still in a sheltered pool. The body of
fluid takes its standard shape and retains it, so long as no
disturbing force appears. Now, society would have such a standard
shape and would require, in the absence of dynamic changes, a
relatively short time in order to conform more or less closely to it,
if it were not for the unnatural apportionment of population in
different parts of the area that the society inhabits and the
obstacles which wholesale migrations encounter. For the solution of
problems of the present and the near future we must accept as a
standard the quasi-static adjustment of the population and the
consequent quasi-static selection of industries in the different local
divisions of the broad area--the arrangement that we have described as
locating an excess of manufacturing in the more densely peopled areas
and an excess of agriculture in the more sparsely settled ones. With
this qualification it may be said that there is a standard
apportionment of labor and capital among the producing groups, and
that these agents gravitate powerfully and even rapidly toward it. If
there were a certain amount of labor and capital at _A_, a certain
amount at _B_, and so throughout the system, this standard shape would
be attained, and the elements would not move, except as a very slow
movement would be caused by changes in the comparative density of
population of different regions.[1] This standard shape would long
remain nearly fixed if it were not for the appearance of the dynamic
influences which are so active within the area we are studying.
[1] It is obvious that capital as well as population is
distributed with uneven density over the territory occupied
by society; but the movement of capital is less obstructed
than that of a great body of people, and moreover it is
chiefly the fact that the people are not dispersed over the
area in a natural way which creates the chief obstacle to the
moving of capital. It goes easily when it accompanies a
migration of laborers.
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