Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
case of government, by fees for governmental services, and the coöperation
of a chamber of deputies in the imposition of taxes and the determination
of official salaries etc.(678)
Section CXV.
Influence Of Growing Civilization On Prices.
On the whole, prices become more and more regular as national-economic
civilization advances. Progress in civilization tends to bring the parties
engaged in the struggle for prices that is buyers and sellers, nearer to
one another, in so far as it uniformly decreases the cost of production,
and increases the purchaser’s ability to pay.(679) (See § 101.) The more
universal division of labor makes commercial intercourse more necessary to
every one, at the same time that it makes it more of a habit to him; and
hence exchange ceases more and more to be a matter of caprice or chance.
The better means of transportation and communication render it easier, in
every way, for supply and demand to meet. With the advance of general
enlightenment and education, an acquaintance with commodities also becomes
more general, and every purchaser is on a better way to be able to
estimate the cost of production which the seller has to bear. Hence,
fraudulent prices and prices founded in error become less frequent; and
all this is helped forward by the greater accuracy of weights and
measures. The increase of population makes competition more active in all
branches of trade, while at the same time, with the greater freedom of
circulation, a number of causes which previously operated to produce very
high prices in one place and very low ones in another are removed.(680)
But especially, the growth of a distinct class of merchants leads to a
uniformity in price. This class are incited by their own interest to
purchase at low prices and sell at high prices. Thus, their competition in
the former case raises prices, and lowers them in the latter.(681) In all
lower stages of civilization, the custom of making offers and beating down
in price plays a great part, while where culture is higher, the system of
fixed prices (but not by government) gains ground continually. Here
Turgot’s principle is applicable, viz.: that the current price of an
article is tacitly understood when one asks a merchant the price of his
wares.(682)
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