Social Value: A Study in Economic Theory, Critical and ConstructiveAnderson, Benjamin M. (Benjamin McAlester)
General
Social Value: A Study in Economic Theory, Critical and Constructive
Anderson, Benjamin M. (Benjamin McAlester)
Value
subscriptions to build this or that statue, for the support of scientific
work or philanthropies, or even through thefts: "Quelquefois meme c'est par
des vols ou se montre la perversion d'un esprit sectaire, l'aberration et
la profondeur de ses convictions passionees."
Commonly, indeed, money performs even this function, that of measuring
currents of belief, passion, enthusiasms, etc., through the process of
exchange, and, ordinarily, it is difficult to get any single current
separately. We simply get the resultant of an equilibrium of a complex of
forces in economic values. But sometimes a single factor stands out so
prominently that we can abstract from the rest, and let money changes
measure changes in it alone. For example, during the three days of the
battle of Gettysburg, the premium on gold, as measured in terms of Federal
paper, fell from forty-five per cent to twenty-three and a fourth per
cent.[205] For the market, this means simply a change in the economic value
of Federal paper. But for one who cares to look even superficially behind
the scenes, it means an increased volume of belief in the triumph of the
Federal arms--a belief that at once affected economic values, and was
measured in terms of money. Or, the economist may abstract a single legal
factor, as a tax law, and measure its influence on the assumption that the
rest of the situation is constant, in the well-known laws of shifting and
incidence.
Such clean-cut instances are not the rule, however. The organic complexity
of the social forces lying back of economic values makes it difficult to
disentangle single elements, and measure their force. For one thing,
variations in one factor usually mean movements in the others. If we may
borrow terms from chemistry, while the economist may give us a
_qualitative_ analysis of these forces, it is hard for him to give us a
_quantitative_ analysis. And the characteristic of pure economic theory has
been its effort to get quantitative, quasi-mathematical laws. The "pure
theorist," therefore, does well to start with a quantitative value concept
(a convenient shorthand or symbol for the infinite complexity that lies
behind it), a value quantity in which the net outcome of social
interactions does precisely manifest itself, and study the laws which it
manifests. His chief interest is, not in the origin of economic value
itself, but in the changes in quantities in value in different goods and
services as these manifest themselves in the market, and submit themselves
to economic measurement. In a word, his chief interest is, not in value,
but in _prices_.[206] And the great bulk of pure economic theory, and
practically all that is of greatest importance in pure theory, is in the
theory of prices, and not in the theory of value. Lest I be misunderstood,
the qualification must be repeated: prices here mean, not money-prices, but
prices in the generic sense. In this sense of the word price, it is just as
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