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
Likewise of every other human contrivance for human satisfactions.
In multitudinous detail it is an inexplicable mystery except to an
all comprehensive body of experts, and even to them if they ignore
the Basic Facts. Yet every complexity disappears when the details are
assigned to their appropriate natural categories of Man as the sole
producer, Natural Resources as the sole basis and source of production,
and Artificial Objects as the product; or, reverting to technical
Economic terms, when the confused details are appropriately assigned
to Labor as the Productive power, to Land as the basis and source of
Production, and to Wealth as the Product.
All Economic details, from least to greatest, from simplest to most
complex, from most familiar to most mysterious, throughout the
labyrinthine intricacies of the Productive Process in Economics, are
like the details in the Economic history of the house-wife’s needle of
our illustration. What the points of the compass are to navigation, or
the four fundamental divisions of arithmetic to mathematics, such are
the three Basic Facts to the Productive Process in Economics.
SIXTH LESSON
DISTRIBUTION
At the outset in this Lesson let the difference between Distribution of
Wealth and delivery of Wealth be again emphasized.
Delivery is part of the Productive Process to which the next preceding
Lesson was devoted. No Wealth is finally produced until, finished for
ultimate consumption, it has been produced to ultimate consumers by
final delivery.
Quite another thing is Distribution in the technical Economic sense. In
this sense Distribution is the apportionment of Labor-produced Wealth
in appropriate categories with reference to the Economic relationship
of Labor to Land--of Man to Natural Resources.
A better term than Distribution, since this term has been so much
abused by giving to it the sense of delivery by transportation (a mere
phase of Production), would probably be Division. But Distribution
of Wealth has too long served as the technical term for the Economic
division or sharing of Wealth, to be discarded offhand.
Although the Distribution of Wealth in appropriate shares, with
reference to the Economic relationship of Labor to Land, affects the
sharing of Wealth by individuals, it does not completely dictate either
the proportions or the magnitude of individual shares. These may be
determined not only by natural Economic law but also by purchase, by
common usage, by conventional inheritance statutes, by highway robbery,
by forgery, by burglary, by petty theft, by “confidence” tricks, by
lucky speculation or gambling games, by beggary, by “crooked business,”
by generous gifts, by legal distortions, by taxation, by a thousand
and one other influences, legitimate or illegitimate, outside the
jurisdiction of natural Economic law. Radically different are those
fundamental Economic apportionments in Distribution with reference to
the natural relations of Labor to Land.
Public-domain text, read in full here on John Shaqi.
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