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
It may be looked at from either angle, and treated in either way. A
complete theory of distribution involves many of the most fundamental
social values. Indeed, it is through the machinery of distribution that
the non-economic values most vitally affect economic values. Wages,
interest, competitive profits, are surely legal categories, and are
possible only in a society where there is free labor and private control of
industry. We may agree with Wieser[211] that, as categories of economic
causation, interest, rent, and wages will remain even in a communistic
society (and, doubtless, also profit and loss), but that is far from saying
(as Wieser of course recognizes) that they would remain as distributive
shares. Each social system has its own distributive scheme.
But, in a system like that of Western civilization to-day, where human
services and the uses of land and instrumental goods are offered in the
market like other commodities, we may treat them in terms of the price
analysis with as much propriety as the other commodities. The prices paid
for them measure a complex of social forces, but we cannot always
disentangle these social forces and measure them separately. It is hard to
tell precisely how much influence on the price of labor has been exerted by
a speech from Mr. Gompers, or a Federal injunction, or a law for the
exclusion of certain classes of immigrants. If we wish to handle
distribution quantitatively, we must do it superficially, studying in the
market the effects which the underlying social forces manifest there with
reference to the rewards of the different factors of production. This has
been increasingly the case with later theories of distribution. If, on the
other hand, we take the discussion which J. S. Mill gives in book II of his
_Principles_, we shall find that the price analysis plays relatively little
part, and that he considers chiefly the influence of the more fundamental
social values.[212]
A failure to recognize the distinction between value theory and price
theory seems to lie behind the complaint which Professor Davenport makes
against the "Social Value School" in his criticism of Professor Seligman:
"As soon as we turn from the value problem to the separate treatment of the
distributive shares, we find ourselves to have descended from the
cloud-land mysteries of transcendental economics to the old and beaten
paths of the traditional analysis."[213] To this complaint the obvious
answer is that we have turned from fundamental value theory to abstract,
quantitative price analysis. And the social value theorist has as much
right to do this as has any other economist--in fact, if our theory be
true, only on the basis of a social value doctrine has any economist a
right (logically) to take up price analysis.
Public-domain text, read in full here on John Shaqi.
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