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
For a complex illustration, consider a railway passenger car. It is
Wealth because it is an Artificial Object produced by Labor from and
upon Land. But does it fall into that subdivision of Wealth which
is distinguished as Capital--Wealth used for the production of more
Wealth? As to its owners it is Capital, for they are using it to
increase their share of Wealth in process of production; but as to
the aggregate of social Wealth, its passengers, if not using it for
productive purposes, are consuming Wealth unproductively. To the extent
that the passengers are not on productive missions, but are gratifying
their own wants, a passenger-car is in Economic contemplation Wealth
in process of ultimate consumption to satisfy wants; to the extent
that its passengers are on productive missions it is Wealth devoted to
the Production of more Wealth, and therefore in the subcategory which
is distinguished as Capital. The fact that part of its use is for
Production and another for enjoyment does not disturb the principle
which distinguishes Capital from Wealth in process of ultimate
consumption for the satisfaction of wants.
Capital is Wealth in forms that are consumed in the further or better
production of Wealth toward final forms for ultimate consumption. To
save such Wealth in the sense of preventing its consumption would be to
waste it; but to permit its consumption in the Productive Process is to
give it serviceability.
So with all other details of the Productive Process, from natural raw
materials to and including delivery to ultimate consumers. Capital is
produced by Labor from and upon Land and in forms of Wealth--either
Artificial materials or Artificial contrivances--which, being adapted
and devoted to further Production of Wealth, are part of Labor’s
artificial materials or mechanism or both--Wealth produced for
augmenting Productive power. In Economic phrasing, Wealth used in the
Production of Wealth is Capital.
2--_Trade_
Another prominent sub-classification of secondary facts involved in
the Productive Process is inseparably associated with Capital. This
subordinate category is Trade, to which our attention was directed in
the second stage of our delving down from the surface of Economics to
its Basic Facts.
Public-domain text, read in full here on John Shaqi.
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