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
When monster-like corporations once start a competitive strife with
each other, it is very fierce and very costly for themselves; and this
affords an inducement for taking that final step in organization which
brings competition to an end. That is organization of a different
kind, and the effects of it are very unlike those of the cooerdinating
process which goes on within the several establishments. In this, its
final stage, the organizing tendency brings a whole subgroup into
union, and undoes much of the good it accomplished in its earlier
stage, when it was perfecting the individual establishments within the
subgroup. While the earlier process makes the supply of goods of a
certain kind larger and cheaper, the final one makes it smaller and
dearer; and while the earlier process scatters benefits among
consumers, the final one imposes a tax on consumers in the shape of
higher prices for merchandise. Yet the union that is formed between
the shops is, in a way, the natural sequel to the preliminary
organization which took place within them and helped to make them few
and large. Trusts are a product of economic dynamics, and we shall
study them in due time. The organization we have here in view is the
earlier one which takes place within the several establishments. It
obeys a law of survival in which competition is the impelling force,
though it leads to a condition in which an effort is made to bring
competition to an end. This earlier organization is most beneficent in
its general and permanent effects; and what has been said of the
results of progress in the technique of production may, with a change
of terms, be said again of progress in the art of cooerdinating the
agents employed. It is a source of temporary gain for _entrepreneurs_
and of permanent gains for laborers and capitalists. It adds to the
grand total of the social product and leaves this to be distributed in
accordance with the principle which, in the absence of untoward
influences, would treat the producers fairly--that which tends to give
to each producer a share more or less equivalent to his contribution.
In its nature and in its results it is the opposite of that other type
of organization which seeks to bring competitive rivalry to an end,
and in so far as it succeeds divorces men's contributions to the
social product from the shares that they draw from it.
CHAPTER XXII
INFLUENCES WHICH PERVERT THE FORCES OF PROGRESS
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account