Principles of Political EconomyPerry, Arthur Latham
General
Principles of Political Economy
Perry, Arthur Latham
Economics
By this shutting off from domestic goods the natural competition of
corresponding foreign goods by means of such tariff-taxes, a monopoly
is created at the instance and for the sole benefit of certain classes
of privileged home-producers. They can sell alone (monopoly) just so
far as other sellers are kept out by these heavy taxes. The goal of
all their striving is to get an artificially-enhanced price for their
own products at the cost of their countrymen by means of a market
restricted to themselves through obstacles excluding foreign sellers.
The end proposed by these shrewd manipulators is realized in fact.
Domestic prices are lifted on so-called "protected" goods. This is the
first effect of the monopoly. It has often been alleged, and with
great vehemence by the late Horace Greely, that competition among the
domestic producers of such wares will lower their price again to the
natural point; but if this is so, what _motive_ have the individual
producers to work so assiduously in elections and lobbyings to get on
and keep on these tariff-taxes? Again, Mr. Greely, and all others of
like association, forgets the admirable generalization of Robert
Stephenson,--"_Where combination is possible, competition is
impossible._" Combination among producers to keep up prices is always
possible in a market restricted by law. This has been proven on a
large scale in the United States during each of the past thirty years:
combinations among coal operators to keep up the prices of "protected"
coal by restricting the annual output of their collieries;
combinations among carpet and other woollen manufacturers to maintain
high prices of their fabrics by restricting their workmen to certain
hours per day or to certain months per year; have been among the
commonest of industrial events in all this interval. Within a very few
years past there has come into almost universal vogue among these
monopolists a new kind of combination called "_Trusts_,"--again
abusing a good word by making it cover an abominable purpose,--which
are probably illegal at Common Law, which only become possible under
monstrously unjust tariff laws, and which work wide-spread wrong among
the masses of the people.
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