Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm LifeFairchild, Geo. T. (George Thompson)
Science
Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm Life
Fairchild, Geo. T. (George Thompson)
Agriculture -- Economic aspects; Economics
This supposition, if ever correct, is subject to great modifications. None
know better than farmers that a bushel of wheat from one field may have
cost twice as much as a bushel from another field, without any possible
distinction in value. Every mechanic knows that what he has accomplished
with great exertion may have been duplicated by some labor-saving device
with half the exertion, the two values being essentially equal. Nothing is
more common than to find articles in the market sold without regard to
cost because they are superseded by more desirable articles. Indeed, the
most ardent defender of cost as the sole basis of value is obliged to
notice multitudes of exceptions to the rule. Yet it must be granted that
only those articles involving effort in securing them have value at all,
and in general the amount of effort actually put forth has some relation
to our estimate of value.
In general, men do not exert themselves more than necessary to meet wants,
and in any exchange with others estimate the value of what they have
produced by the exertion expended. Yet, as products of the same kind
exchange in the same market without regard to their individual cost, it is
evident that some other principle must be discovered. Nevertheless, no
farmer will continue indefinitely the raising of a crop which brings in
the market less than a fair average return for his labor in raising it. In
a series of years he expects his wheat to return a fair compensation for
labor expended. In the same way every manufacturer expects a full return
for all cost of all his efforts, and would not continue his work from year
to year without such expectation. Moreover, when for any reason the market
value of anything is much above its cost, somebody is ready to increase
the supply of that particular article, and more will add their efforts in
the same direction until its value approaches nearly the general cost of
production as compared with the cost of other products selling in the same
market.
Public-domain text, read in full here on John Shaqi.
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