Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public Policy — John Shaqi
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
_The Transition of Goods from one State to Another._--The beginning of
its service in the purchaser's dining room takes the wood of the table
out of the category of producers' goods; but there is some raw
material that is never destined to emerge from that category and enter
another. Its last state of existence as a good will be that in which
it is embodied, not in an article for consumers' use, but in an active
tool. Our tree might have furnished some of its wood for a
wheelbarrow, and if so, that part of it would have been a capital good
until it ceased to be an economic good at all. If we watch it as it
grows toward its economic maturity, we see it sawed, planed, and
otherwise fashioned under the laborer's hand, and maintaining during
all this time its passive attitude, just as does the wood that is
destined to constitute a table. When the wheelbarrow is completed, it
does not, like the table, begin to minister directly to consumers'
wants, but begins actively to aid some laborer in a further productive
operation. It carries mortar to the wall of an unfinished building and
is thus taken out of the list of passive goods--recipients of
utility--and is ranged with other active tools which impart utility.
The same thing is true of the steel that is destined to compose the
head of a modern woodman's ax or the stone that is in process of
fashioning into the rude hatchet of some primitive savage. As raw or
partly wrought material it is a passive capital good; later it becomes
an instrument of the active sort.
_The Ultimate Perishability of all Kinds of Goods artificially
Made._--In the end both kinds of material will cease to be capital
goods. The raw stuff that goes into food, clothing, furnishings, or
the like will become consumers' goods, while the raw material of tools
will, in its final form, the tools themselves, have one more lease of
life as capital goods. In the end, however, as wheelbarrows, axes,
hatchets, and the whole long list of active implements are used up,
they cease to be capital goods because they cease to be economic goods
at all. They are as truly ordained to be ultimately used up as are
food and clothing, and this is true of the most durable things that
are artificially made. Walls, roadways, bridges, and buildings slowly
deteriorate till the time comes when for productive purposes their
room is worth more than their company.
Public-domain text, read in full here on John Shaqi.
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