Knowledge is power : $b A view of the productive forces of modern society and the results of labor, capital and skill.Knight, Charles
Philosophy
Knowledge is power : $b A view of the productive forces of modern society and the results of labor, capital and skill.
Knight, Charles
Industrial arts; Industries
By following the direction which capital gave to his industry, the
prodigal, whose course we have traced up to the point when he went into
the condition of a labourer, became at length a capitalist. "He had
gained, after a considerable time, money enough to purchase, in order to
sell again, a few cattle, of which he had taken pains to understand the
value. He speedily, but cautiously, turned his first gains into second
advantages; retained, without a single deviation, his extreme parsimony;
and thus advanced by degrees into larger transactions and incipient
wealth. The final result was that he more than recovered his lost
possessions, and died an inveterate miser, worth 60,000_l._"
He gained "money," and he "purchased" cattle. In the simple transaction
which has been recorded of the first exchange of the prodigal's labour
for capital, we find the circumstances which represent every exchange of
labour for capital. The prodigal wanted meat and drink, and he gave
labour in exchange for meat and drink; the capitalist wanted the produce
of labour--he wanted a new value bestowed upon his coals by labour--and
he gave meat and drink in exchange for the labour which the prodigal had
to give. But the prodigal wanted something beyond the meat and drink
which was necessary for the supply of the day. He had other immediate
necessities beyond food; and he had determined to accumulate capital. He
therefore required "a few pence" in addition to the "meat and drink."
The capitalist held that the labour performed had conferred a value upon
his property, which would be fairly exchanged for the pence in addition
to the food, and he gave, therefore, in exchange, that portion of his
capital which was represented by the money and by the food. This
blending of one sort of consumable commodity, and of the money which
represented any other consumable commodity which the money could be
exchanged with, was an accident arising out of the peculiar
circumstances in which the prodigal happened to be placed. In ordinary
cases he would have received the money alone,--that is, he would have
received a larger sum of money to enable him to exchange for meat and
drink, instead of receiving them in direct payment. It is clear,
therefore, that as the money represented one portion of the consumable
commodities which were ready to pay for the labour employed in giving a
new value to the coals, it might represent another portion--the meat,
for instance, without the drink; or it might represent all the
consumable commodities, meat, drink, lodging, clothes, fuel, which that
particular labourer might want; and even represent the accumulation
which he might extract out of his self-denial as to the amount of meat,
drink, lodging, clothes, and fuel which he might require as a consumer;
and the farthing saved out of his money-payment might be the nest-egg
which was to produce the increase out of which he purchased cattle, and
died a rich miser.
Public-domain text, read in full here on John Shaqi.
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