The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
But in what sense is even this part attributable? Not in the sense that
the labor is the original source of value which imparts that value to
its products. The usufruct of wealth is the basis of rent; the need to
pay rent is not the cause of value in the product. Likewise, product is
the basis of wages, labor is not the origin of value. Labor, like the
forces and qualities of wealth, is the cause of technical changes. These
changes, if favorable, cause the goods to take on a higher value which
is reflected back to the labor. The labor itself has not a
predetermined, ascertainable value, but only a resultant, derived value.
An exception to this statement appears on a superficial view of the
value of labor hired under the wage contract to make a particular
product. The labor having a market value because of a large number of
well-known alternate uses, can be diverted to a particular use only on
condition of a definite payment. Labor here, as viewed by the employer,
appears to have an original value; products, a derived value. But in the
logical view, labor is seen to impart technical qualities to the goods;
in turn, the goods to impart value to the labor. Man hunts throughout
industry for those things to which his labor can be applied usefully. He
foresees in them the changes that will increase the value. It is only as
he has judged rightly that the value taken on by the things is reflected
back to the labor attributed to it.
[Sidenote: No unit of labor to serve as a standard of value]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account