The basic facts of economics : $b A common-sense primer for advanced students — John Shaqi
The basic facts of economics : $b A common-sense primer for advanced studentsPost, Louis F. (Louis Freeland)
General
The basic facts of economics : $b A common-sense primer for advanced students
Post, Louis F. (Louis Freeland)
Economics
If now we unravel the countless and confusing Economic phenomena of
our world by assigning each miscellaneous fact as it faces us to its
natural place in the three categories or Basic Facts, and then observe
with common-sense acuteness the natural laws of cause and effect that
govern the mutual relations of those Basic Facts, we put ourselves in
position to solve correctly every Economic problem that can challenge
solution. Not to do so is to invite confusion of thought and false
conclusions. Those Basic Facts are the “Big Three” of the Economic
universe.
Hints at all this came to us in passing through our Lesson on
Economics, our Lesson on Money, and our Lesson on Trade. For
confirmation of those hints and of the generalizations of the present
Lesson, let us with Money in hand and Trade in mind visit one of the
Trade terminals which are known in every-day speech as “retail stores.”
What do we see at this “store” but a complex aggregation and
combination, in multitudinous and confusing variety, of the services of
Man in producing Artificial Objects from and upon Natural Resources to
ultimate consumers through channels of Trade and in terms of Money?
The number of those products here assembled, together with the
complexity of the infinite detail involved in their production, would
be bewildering were we to plunge into the ocean of particular facts
unequipped with a clear mental grasp of the Basic Facts and their
mutual Economic relations. For illustration, here is a barrel of
potatoes to which the store clerk calls our attention with a view to
delivering it to us in Trade for some of our Money.
Now, what could be simpler at first thought than a barrel of potatoes
as an Economic fact? A farmer has “raised” the potatoes and brought
them to market, where we may have them for their Money price. But what
of the farmer’s “help”? and the plough with which he prepared the
ground? the hoe or more modern implement he used in the processes of
cultivation and of reaping the crop the horses or the motor he ploughed
with? the building in which he stored the crop before marketing it?
the wagon he carried it to market in? the transportation equipment
with which it was carried from a larger market place to this retail
store? the factories in which the barrel was promoted from lumber to
its present condition of usefulness? the factories and stores and
railroads and ships and wagons and tools? the banks and book-keepers
and truckmen? All such factors must be taken into account, with many
more, in their vast and various and intricate relationships, if we
are to know the Economic history and to solve the Economic problems
regarding even so familiar an Artificial Object as a barrel of potatoes
on sale at a retail store.
Public-domain text, read in full here on John Shaqi.
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