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 Position of Individuals in the Producing Organism._--When we say
that production has been socialized, we mean something very
far-reaching. We mean that an organization has grown up in which men
are members or parts of members, and that this great organization has
undertaken to do the productive work for all the individuals that
compose it. For the first time we now recognize a sociological fact
among the premises of economic science. When men, whose predecessors
may have lived in isolated families or in a society organized for
defense or for the mere pleasures of association, now develop a truly
economic society, the individual depends on other individuals as well
as on nature for the supply of his wants. Economic independence gives
way to interdependence, because the fortune of each man is largely
dependent, not merely on his own efforts, but on the relations which
he sustains to other men. Simple laws of nature still largely control
his income, but social laws also have a certain control over it.
_Exchanges in their Primitive Stage._--The exchanging of products is,
of course, the process with which the organization begins, and this
process is introduced by easy and natural stages. The man who at first
makes everything for himself develops a particular aptitude for making
some one thing; and, though he may still continue to make most things
for himself, he finds it advantageous to barter off a part of the
supply of the one article for the making of which he is especially
well fitted. He seeks out a neighbor whose special aptitude lies in a
different direction and who has a surplus of some other article. It
may be that one is a successful fisherman and the other is, by
preference, a maker of clothing, and that they can get a mutual
benefit by an exchange of food for raiment.[2]
[2] If we were giving a history of the division of labor, we
should have to record the effects of differences of climate
and of agricultural and mineral resources in occasioning, at
an early period, a territorial division of labor. We are here
describing the division of labor which occurs within a
society and in consequence of what may be called social
economic causes.
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