Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
This is another difference between national resources or world resources
and private resources. The resources of a private person, which are only
a link in the whole chain of trade, and which are, therefore, estimated
at the value in exchange of their component parts should, indeed, always
be increased by savings made. (§ 8.) For even the most excessive
increase of supply in general, which largely lowers the price of a whole
class of commodities, will never reduce the price of individual
quantities of that commodity below zero, and scarcely to zero. It is
quite otherwise in the case of national or world resources which must be
estimated according to the value in use of their component parts. Every
utility supposes a want. Where, therefore, the want of a commodity has
not increased, and notwithstanding there is a continuing increase in the
supply, the only result must be a corresponding decrease in the utility
of each individual part.[221-2]
If a people were to save all that remained to them over and above their
most urgent necessities, they would soon be obliged to seek a wider
market in foreign countries, or loan their capital there; but they would
make no advance whatever in higher culture nor add anything to the
gladness of life.[221-3] On the other hand, if they would not save at
all, they would be able to extend their enjoyments only at the expense
of their capital and of their future. Yet these two extremes find their
correctives in themselves. In the former case, a glut of the market
would soon produce an increased consumption and a diminished production;
in the latter the reverse. The ideal of progress demands that the
increased outlay with increased production should be made only for
worthy objects, and chiefly by the rich, while the middle and lower
classes should continue to make savings and thus contribute to wipe out
differences of fortune.[221-4]
[Footnote 221-1: Up to this point, indeed, wants increase
with the means of their satisfaction. The man who has two
shirts always strives to get a dozen, while the person who
has none at all, very frequently does not care for even one.
And so the person who has silver spoons generally desires
also to possess silver candle-sticks and silver plates. On
Lucullus' 5,000 chlamydes, see _Horat._, Epist., I, 6, 40
ff.]
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