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
Let the principle be tested by Money measurements. Will any sane man
pay $100 to satisfy any Economic desire of his which he knows he can
satisfy as perfectly for $75, or $80, or $90, or even more than $90
so it be less than $100? Certainly not. Then the Economic law in
question may be expressed in terms of Money. Instead of saying that
men seek to satisfy their Economic desires with least exertion, we
may express the same natural law by saying that men seek to satisfy
their Economic desires at the lowest Money cost. Both statements have
the same meaning. The only difference between them is that the latter
is expressed in terms of Money measurement whereas the former is
expressed in terms of human effort.
Another familiar demonstration of this natural Economic law that men
both individually and in the mass seek to satisfy their Economic
desires with least exertion, is the human craving for Labor-saving
invention. Could any more comprehensive exemplification of the natural
law in question be demanded? Why does mankind crave Labor-saving
methods for producing Artificial Objects from and upon Natural
Resources, if there be no law of human nature which impels mankind to
seek satisfaction of Economic desires with least exertion? John Orr
concisely sums up this Economic law in these words: “Very strong and
deep is the desire of men to find the easiest way of doing things.”[4]
[4] “Short History of British Agriculture,” By John Orr. Oxford
University Press, 1922.
The earliest expression of this principle was by Henry George in 1879.
Alluding to Political Economy, the term by which Economics was then
identified, he wrote: “It lays its foundations upon firm ground. The
premises from which it makes its deductions are truths which have the
highest sanction; axioms which we all recognize; upon which we safely
base the reasoning and actions of every-day life, and which may be
reduced to the metaphysical expression of the physical law that motion
seeks the line of least resistance--viz., that men seek to gratify
their desires with the least exertion.”[5]
[5] “Progress and Poverty: An Inquiry into the Cause of
Industrial Depressions, and of Increase of Want With
Increase of Wealth. The Remedy.” By Henry George. New York:
D. Appleton and Company. 1883.
Public-domain text, read in full here on John Shaqi.
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