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
Protective tariffs sought by wealthy manufacturers are granted, not
ostensibly to help them, but to help the country. The argument is that
the benefits are diffused. Aid to enterprises in private hands, such as
ship subsidies or as the grants to the Pacific railroads, are defended
on the ground that, as a whole, society benefits by thus increasing the
income of one class. The promise of social service is most urged by
those who get the immediate benefit. Their eyes are keenest. The
manufacturer sees clearly the benefits that will come to his factory
from a protective tariff, but before he can get it he must convince many
others that they too will gain. The majority of the American electorate
is not voting a special favor at the polls, but is recognizing what it
believes to be in its own interest. Most students of social questions
doubt the wisdom of most of these grants to the wealthy on grounds of
social service. The burden of proof is on their advocates, but few
to-day are so rash as to say that such a claim of social service is
never sound.
[Sidenote: Private property in land questioned]
5. _Property in natural agents is the most strongly attacked._ In the
case of great natural deposits, such as those of coal or iron, the
social service that is performed by the mine-owner is hard to see. Great
incomes are drawn in the form of royalty or rent by those who never lift
a pick or direct a stroke of work. Agricultural land in the hands of
absentee landlords yields an income not very clearly due to social
service, and this phase of property has been especially assailed during
the past century. The modern form of this discussion is concerning "the
unearned increment," the rise in the value of lands as a result of
social growth. It is proposed to appropriate by "the single tax" the
entire rental value of the land for the use of the public.
The defense of property in land is first positive: taking not the
extreme but the usual case, private property secures the discovery and
development of natural resources and their thorough use and good
management (not necessarily by personal labor with the hands). If this
is true, it is well for the individual and for the community to have
this wealth in private hands. But in other cases there is merely a
negative argument for property in land: no other better method of
employing it has been devised and found practicable The experience with
state ownership of mines, forests, and estates has not definitely
answered in every case the question whether the social results of state
ownership are more favorable than those of private ownership. In some
cases they clearly are not, in others they may be; and as the balance of
opinion inclines in the direction of public ownership, other reforms
will doubtless be undertaken.
[Sidenote: Inequality of fortunes]
Public-domain text, read in full here on John Shaqi.
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