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
In that connection Man is governed by natural law, a manifest law of
human nature. It resembles the familiar law of external nature in
obedience to which physical force advances along the line of least
resistance. The former, the Economic law, may be concisely, accurately
and indisputably expressed in these terms: Men seek to satisfy their
Economic desires with the least exertion.
The validity of that generalization is sometimes questioned on the
basis of the fact that men often seek to satisfy their desires with
excessive exertion. But is that true? Is it not at best only apparently
true? Although for the purpose of satisfying a desire for something,
one were to walk three miles when he might reach his goal and satisfy
his desire by a shortcut only one mile long, but which is unknown to
him or is haunted by a dreadful ghost or infested with predatory men or
savage animals, or so reputed to be, he would nevertheless be seeking
to satisfy his desire with the least exertion. To risk contact with a
ghost or a robber or savage beasts would add much more to his exertion
mental and physical, than a walk of three miles for the satisfaction of
a desire that might be satisfied by a walk of one. The statement that
men seek to satisfy their desires with least exertion is to be read
with the interpretation that they do so with the least known and the
least dreaded exertion; also that the desire may include effort for the
sake of effort, for effort desired as in exercise for health’s sake or
exertion for the sake of play.
The Economic principle that men seek to satisfy their desires with
least exertion does not imply that all men, or any of them know what
the least possible exertion is. It is least only in their more or
less biased or ignorant judgment. There is no contention that they
do satisfy their desires with least exertion. The contention is that
they naturally seek to do so. Critics of this natural law of Economics
should have a care lest they fail to “see the forest for the trees.”
Like the principle in physics to which it is analogous this law of
Economics involves the element of least resistance. As in physics the
line of least resistance may not be a straight line, although that is
its tendency, so in Economics it may not be a direct line. Nor may
it be the same line from generation to generation. Precisely as in
physics physical obstacles may divert a line from direct to crooked,
so in Economics such obstacles as customs, habits, superstitions and
ignorance may cause analogous diversions. But as the physical line
of least resistance, though not always the shortest by foot rule
measurement, is the shortest considering obstacles, so the Economic
line of least exertion is as straight as habit, custom, superstition,
advice, ignorance, and other obstacles permit.
Public-domain text, read in full here on John Shaqi.
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