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 Economic Necessity of Doing what is legally Difficult._--From the
point of view of an economic theorist it is enough to show that the
practices which cut off the potential competitor from a safe entrance
into the field of production so pervert the economic system as to hold
in abeyance its most fundamental force, that of competition. They
vitiate the action of every law which depends on competition. Value,
wages, interest, profits, and the very structure of society feel the
perverting effect of this repression of the force that under normal
conditions serves to adjust them. From a practical point of view it is
enough to show that the existence of such practices--if the monopolies
that grow out of them shall continue and increase--present to the
people the alternative of accepting an economic state which is
unendurable, or accomplishing, in a legal way, what many already
pronounce impossible. For the purpose of this treatise it suffices to
point to the fact that few attempts worth mentioning have been made to
suppress any of these practices except the first--that of favoritism
in connection with freight charges--and that in the case of this
practice only a beginning of serious effort has been made. While there
is some excuse for abandoning a purpose when long and determined
effort to execute it has failed, there is no possible excuse for
concluding, _in advance of such effort_, that a systematic policy
which gives a promise of saving us from an intolerable outcome is
impracticable. All the props of monopoly should be taken away and not
one merely, and before this shall be tried radical measures will not
be in order. Socialism will not be fairly before the people's
parliament till it shall come as the only escape from a condition of
private monopoly. What economic law clearly shows is that monopoly
will not come if the practices on which it depends shall be
suppressed, and the people may be trusted to determine whether the
suppression is or is not possible. That they may decide this question
the issue that depends on it must be brought before them; and all that
falls within the sphere of the economist is the stating of the effects
of monopoly, the causes of its existence, and the public action that
if taken will remove these causes. The preservation of a normal system
of industry and a normal division of its products requires the
suppression of all those practices of great corporations on which
their monopolistic power depends.
CHAPTER XXIII
GENERAL ECONOMIC LAWS AFFECTING TRANSPORTATION
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