The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
In following up the theory at this critical point, it is necessary to
resort to the fuller statement of the _Distribution of Wealth_,[15] the
point being not so adequately covered in the _Essentials_. Consistently
hedonistic, Mr. Clark recognises that his law of natural justice must be
reduced to elementary hedonistic terms, if it is to make good its claim
to stand as a fundamental principle of theory. In hedonistic theory,
production of course means the production of utilities, and utility is
of course utility to the consumer.[16] A product is such by virtue of
and to the amount of the utility which it has for a consumer. This
utility of the goods is measured, as value, by the sacrifice
(disutility) which the consumer is willing to undergo in order to get
the utility which the consumption of the goods yields him. The unit and
measure of productive labor is in the last analysis also a unit of
disutility; but it is disutility to the productive laborer, not to the
consumer. The balance which establishes itself under competitive
conditions is a compound balance, being a balance between the utility of
the goods to the consumer and the disutility (cost) which he is willing
to undergo for it, on the one hand, and, on the other hand, a balance
between the disutility of the unit of labor and the utility for which
the laborer is willing to undergo this disutility. It is evident, and
admitted, that there can be no balance, and no commensurability, between
the laborer's disutility (pain) in producing the goods and the
consumer's utility (pleasure) in consuming them, inasmuch as these two
hedonistic phenomena lie each within the consciousness of a distinct
person. There is, in fact, no continuity of nervous tissue over the
interval between consumer and producer, and a direct comparison,
equilibrium, equality, or discrepancy in respect of pleasure and pain
can, of course, not be sought except within each self-balanced
individual complex of nervous tissue.[17] The wages of labor (_i.e._,
the utility of the goods received by the laborer) is not equal to the
disutility undergone by him, except in the sense that he is
competitively willing to accept it; nor are these wages equal to the
utility got by the consumer of the goods, except in the sense that he
is competitively willing to pay them. This point is covered by the
current diagrammatic arguments of marginal-utility theory as to the
determination of competitive prices.
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