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
The impersonal and the personal views of distribution are not, however,
contradictory; they are different aspects of the same question. It
cannot be said that the analysis of economic rent is a purely abstract
piece of work. In fact, the impersonal view of distribution is essential
to an understanding of the personal view of it. The one gives general
principles, the other the special cases. In the practical economic
issues of the day, the most urgent need is a better popular
understanding of the abstracter theory of value. It is a guiding thread
through otherwise bewildering mazes.
[Sidenote: Composition of personal incomes]
The actual incomes of individuals are made up of different elements. The
wage-earner and the salaried man are rarely quite without material
wealth. The enterpriser gets some income also in the form of contract
interest, or as rent from machinery. Actual personal incomes are
therefore a sum of various functional or impersonal incomes. The
earnings of every agent may be thought of as always going either to some
individual or to some group. By social convention the receiver of
incomes that are not personal gifts is supposed to have produced them.
This involves the great assumption that the owner of a piece of land has
produced or contributed in some way to society an amount equal to the
rent. This may be true in many cases, but in many cases this view cannot
be accepted without close scrutiny.
[Sidenote: Law in relation to wealth]
3. _Property and wealth are respectively the personal and the
impersonal, the legal and the economic, aspects of productive agents._
Law holds an important place in the discussion of actual economic
questions. This fact was not overlooked by John Stuart Mill, and it has
been far more clearly recognized in the last few years, especially by
the German economists. Political law in the broadest sense, as embodied
in the state, is, in the first place, a set of rules to guide the
conduct and regulate the relations of men in society--a legal code; it
is, in the next place, a governmental machine to determine disputes
between men--a judicial system; and it is, finally, physical power to
bring contestants into court and to secure and protect their rights--a
police force. Whether acting through legislature, courts, or police, in
all its dealings with wealth the law is predominantly personal. The
question the law asks and answers regarding wealth is not _What_, but
_Who?_ Who is the owner, who should control, receive, enjoy the income?
Economic wealth consists of scarce things, of valuable agents, and
because they are scarce, men quarrel over them. Because of the
impersonal economic fact that a field and a machine produce scarce
goods, arises the legal question as to which man is entitled to enjoy
them.
[Sidenote: Property and wealth]
Public-domain text, read in full here on John Shaqi.
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