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
4. _A high efficiency of industry is dependent on many social causes
making possible a great specialization._ It was said in another
connection that division of labor is dependent upon the size of the
market. With a large population massed at one spot, so that the demand
for even the less important products is large, there may be a high
specialization of industry. An increase of transportation, such as
railways and telegraphs, is equivalent for many economic purposes to
growth of population on one spot. In colonial days it took ten days to
go from Boston to Philadelphia, and two weeks to go to Washington. San
Francisco is now for many economic purposes but one fourth as far from
Boston as Washington was at that time. California and the eastern states
are distant only thirty minutes by telegraph and three days and a
fraction by railroad, and are thus in many respects in the same market.
The great development during the past century in the means of
communication and of carriage has made possible, as never before, the
massing of population to secure the advantages of division of labor in
most lines, without meeting the hitherto insurmountable difficulty in
the securing of food for such large numbers in a limited space. The
population draws its food from the whole vast area; whereas it is massed
at the points more favorable for other products and can make use of the
most highly specialized machinery. These several conditions thus have
favored the growth of large industry under a single control and
direction, on a scale never before approached. These changes have
brought in their train social problems connected with the concentration
of economic power. It remains to be seen whether the unquestioned
economies of this new organization can be retained and improved while it
is divested of its evils.
[Sidenote: Growing importance of directive ability]
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