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
_Apparent Exceptions to the Rule._--Exceptions to this rule which are
rather apparent than real will occur to every one. The discovery of a
great supply of mineral oil put an end to the use of whale oil for
illuminating purposes, though it allowed the whale fishery to survive
on a reduced scale and produce oil for other purposes, in so far as
the rawest material, the whales themselves, were not exterminated. The
exhaustion of a supply of raw material was here a dominant fact, and
the effects it produced may be again expected when mineral oil shall,
in turn, become scarce. Men will move out of the subgroup producing
the crude oil, as nature forces them to do so, but their movement
cannot be referred merely to improvement in the mode of extracting the
oil or transporting and refining it. The fact which illustrates the
rule we have stated is that while mineral oil drove whale oil out of
the field as an illuminant, this did not reduce the number of men in
the general group which produces illuminating oil. More men were set
working in the oil fields than ceased working on the whaling ships. A
new raw material was used in creating a similar finished product, and
as the general industry which made this product grew larger rather
than smaller, the total demand for labor in oil production was not
lessened. This does not prove that old sailors did not suffer from the
change. Young sailors could go to the oil fields or elsewhere, but men
who were not adaptable could not do so, and the hardship thus
entailed is not to be overlooked. We are, however, forming a judgment
of movements which pervade a vast industrial system, and we need most
to know what is their grand resultant. If that were a general
displacement of labor, causing increasing idleness and suffering, the
system that involved this result would stand condemned. The general
resultant is the opposite of this.
_A Drift of Labor toward Certain General Groups._--We have just
noticed that movements of labor in the group system, caused by
improvements in method, consist mainly in an upward flow of labor,
accompanied by irregular lateral movements, the labor drifting to the
right or the left as it is more strongly attracted now to one point
and now to another on the same horizontal plane. The general mass of
it swerves now to the right and now to the left in its general
ascending course, though none may be actually expelled. This
description of the drift of labor is too general even to describe all
the permanent currents. Some entire groups produce only or chiefly
luxurious goods, and to those there is the same drift of labor as
there is to the upper subgroups of the general series. If there be a
group of _D_'s making an article which only the well-to-do can afford
to use, it will swell in size and in the volume of its output from the
same causes--improved methods and general enrichment--which cause
_A'''_, _B'''_, and _C'''_ to outgrow _A_, _B_, and _C_.
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