Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
But, the more men become used to comparing the aggregate of human wants,
and the aggregate of the goods which minister to the satisfaction of these
wants, as if they were two great wholes, gradually shading each into the
other, the more does the value in use of the different kinds of goods
assume, for purposes of social rating or estimation, a fungible
character.(76) If a new kind of goods be produced or discovered, which
satisfies the same wants in a more complete manner than another, the
latter, although it has suffered no change, generally loses in the value
put upon it, especially if the new goods can be produced in any desired
quantity. An instance of this is the change effected in the value of the
dyers weed, woad, by the introduction of indigo.
Things present in quantities greater than the amount necessary to supply
the want they satisfy, preserve their full value in use, to the limit of
that want, after which they are simply an element of possible future
value, dependent on an increase of the want; but they have no value for
present use.(77)
The economic valuation of goods, however, is by no means exhausted, so far
as the isolated individual housekeeper is concerned, by the mere
establishing of its value in use. As the systematic effort of every
rational individual in his household management is directed towards the
obtaining, by a minimum of sacrifice of pleasure and energy, a maximum
satisfaction of his wants, even an Adam or a Crusoe is, in his economy,
compelled to estimate not only what the goods to be acquired accomplish
(value in use) but also what they will cost—cost-value. Even the most
indispensable kind of goods, for instance atmospheric air, is considered
to have no value, when it can be obtained in sufficient quantity, without
any sacrifice whatever.(78)
Section V.
Value.—Value In Exchange.
The value in exchange of goods, or the quality which makes them
exchangeable against other goods, is based on a combination of their value
in use with their cost-value, such as men in their intercourse with one
another will make.(79) Without value in use, value in exchange(80) is
unthinkable.
But there are many, and even indispensable goods which are not at all
susceptible of being exchanged; for instance, the light and heat of the
sun, the open sea etc.(81) Other goods, although capable of being
exchanged, have no value in exchange, because they exist in
superabundance, and may be obtained by everyone, without trouble and
without reward; for instance, drinking-water in most places, ice in
winter, and wood in the primeval forest.(82) Moreover, the idea of such
“free goods” is in great part relative. The water of a river may, for
drinking purposes, be “free” goods, and yet, for purposes of irrigation,
have great value in exchange. (_John Stuart Mill_).
Public-domain text, read in full here on John Shaqi.
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