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
Limited strictly to distinguishing Wealth consumed in the process
of producing more Wealth--Artificial Objects devoted to further
production of Artificial Objects,--the term Capital is a convenient
subclassification of some kinds of Wealth. To appreciate that
characterization one need but think, for instance, of any sort of
productive machinery. Is it not an Artificial Object? Is it not
produced by Labor? Is it not produced from and upon Land? Is it
not used by Labor upon Land for further production of Artificial
Objects? And are not those observations true also of seed gathered
and saved for planting? of minerals mined for metal? of metal to be
transformed into productive machinery? of food material turned into
food at a restaurant? Are they not true of every kind of intermediate
product--from Machinery (which, though finished as machinery, is
only an intermediate factor in the process of producing Wealth for
ultimate consumption), back to the rawest of artificial raw materials
and forward through all gradations to the food on a dinner table, the
clothing on a diner’s body, the floor under his feet and the roof over
his head?
One obsession regarding Capital, even when the term is used with
Economic accuracy, is that it consists of saved Wealth. There is no
such process, in any literal sense, as saving Wealth--Artificial
Objects--except for ripening or reproduction purposes. Even for those
purposes the saving is in the nature of using, its object being the
production of more Wealth rather than preserving this Wealth. Any
saving of Wealth in the Economic sense, consists in utilizing it in the
Productive Process.
Are art objects exceptional? Not such as are relatively reproducible.
Only “uniques” are exceptions, if indeed they may be regarded as within
the boundaries of Economics. Saved over long periods, hundreds upon
hundreds of years in some instances, these would seem to be out of the
field of contemporary Economics. What gives them their extraordinary
value? The same kind of non-Economic sentiment, on a higher plane,
perhaps, that gives extraordinary value to heirlooms. Such products are
not Wealth in the Economic sense any more than sacred tombstones are.
Though produced by Man from and upon Natural Resources, they cannot be
satisfactorily reproduced. They are closer to the nonproducible Natural
Resource category than to the reproducible Wealth category.
That titles to Wealth may be saved is true enough. But in no extensive
sense can Wealth itself be saved. Unless consumed in the production of
more Wealth, or in the satisfaction of human desire, Wealth goes to
waste.
Public-domain text, read in full here on John Shaqi.
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