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
_Natural Transformations of Society increase its Productive
Power._--There is no doubt that the changes of shape through which the
social organism is going cause it to grow in strength and efficiency.
More and more power to produce is coming, as we have seen, in
consequence of these transmutations. They always involve shifting
_labor_ about within the organization and often involve shifting
laborers, taking some of them out of the subgroups in which they are
now working and putting them into others, something that cannot be
done without cost.
_Immediate Effects of Labor Saving._--Inventing a machine that can do
the work of twenty men will cause some of the twenty to be discharged.
They feel the burden of finding new places, and if they are skilled
workmen and their trade is no longer worth practicing, they lose all
the advantage they have enjoyed from special skill in their
occupations. Do they themselves get any adequate offset for this, or
does society as a whole divide the benefit in such a way that those
who pay nearly the whole cost get only their minute part of the gain?
Is there unfair dealing inherent in progress in the economic arts, and
must we justify the movement only on the ground of utility, though
knowing that a moralist would condemn it? These are some of the
general questions that are to be decided by a study of this phase of
economic dynamics. We need to know both what the movement will in the
end do for humanity and what it will at once do for particular
workmen.[2] In addition to ascertaining what the ultimate results of
the movement will be, we need to trace, with as much accuracy as is
possible, the effects of the disturbances that are involved in
generally beneficent changes.
[2] Our study may lead to a moral verdict without being
itself an ethical study; we limit the inquiry to questions of
fact, but perceive that some of the facts are of such a kind
that they must lead a reader to condemn or approve the social
economic system.
CHAPTER XVI
EFFECT OF IMPROVEMENTS IN METHODS OF PRODUCTION
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