Principles of Political EconomyPerry, Arthur Latham
General
Principles of Political Economy
Perry, Arthur Latham
Economics
A second effect of this monopoly (as of all monopolies) is to worsen
the quality of the goods sold in an artificially restricted market.
The historian Gibbon noticed this fact more than a century ago, and
said: "_The spirit of monopolists is narrow, lazy and oppressive.
Their work is more costly and less productive than that of independent
artists; and the new improvements so eagerly grasped by the
competition of freedom, are admitted by them with slow and sullen
reluctance._" Alfred Lapoint, United States consul in Peru, warned the
State Department at Washington in 1883 of this poor quality of our
manufactures, which were then trying to find a South American market.
He wrote: "_It is my duty to indicate that great carelessness prevails
with our manufacturers; for instance, I was called upon to purchase in
the United States a steam pump and boiler, which I ordered from one of
the most famed manufacturers, and when it arrived, not alone was the
boiler inadequate for the pump, but actually after two months' work
the upper tube sheet split in three parts, a proof of its bad quality
and construction._" As men are, a natural competition among buyers and
sellers is just as needful to keep up the quality of goods as to keep
down their price. Good quality always costs more of effort and skill
and capital than bad quality: why should producers continue to furnish
good quality to a market from which a free competition in good
qualities is excluded by law? Every tendency of human nature, as well
as every relevant fact in history, attests, that poor wares at high
rates invariably attends upon tariff-monopolies. Shoddy takes the
place of wool. Cheaper crowds out better material. Skilled workmanship
is displaced by unskilled. Processes of manufacture are hastened in
time, and left incomplete to the damage of the goods in order to save
capital. Monopoly is always and everywhere the foe of excellence.
Public-domain text, read in full here on John Shaqi.
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