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. _The services of each are being measured and paid for by each and
all._ In two ways society is putting its valuation on the economic
services of other members of society: first, by law, or formal social
convention; secondly, by individual estimates. By formal law is
determined what institutions shall be continued. If the class of
property owners is considered worthy of this reward, the institution of
property will be continued; if not, it will be altered or destroyed.
These decisions are made imperfectly, but as well as men of limited
intelligence and honesty can make them. If men were more capable in both
these ways they would enact better laws. Again, individuals are putting
their estimates on others in bidding for services to minister to wisdom
and virtue or to ignorance and vice. If there is to be a much juster
estimate of social service, there must be wiser men in society.
[Sidenote: The ideal of social service]
Does the world owe each man a living? No; on the contrary, each man owes
the world his services in exchange for his living. The pauperism of
spirit that consists in taking something for nothing is found in every
rank of society that enjoys the blessings of progress without giving its
best services in return. The ideal of a better adjustment of reward and
service grows in the minds of men. Social evolution, shaped by this
changing ideal and by accumulating experience, will bring into closer
relation the social services and the economic rewards of men.
CHAPTER 40
WASTE AND LUXURY
§ I. WASTE OF WEALTH
[Sidenote: Loss of wealth in an isolated or an exchanging economy]
1. _The accidental destruction of wealth is a loss to the owner, rarely
with benefit, on the whole, to others._ In the consumption of wealth the
loss of its utility is accompanied by the gratifying of wants; in the
destruction of wealth utility is lost without the gratifying of wants.
In a simple society, without exchange, the result of such a loss is
evident. If food is destroyed, men suffer from hunger or gratify
appetite less perfectly; if clothing is destroyed, they are cold; if
houses are destroyed, they have no shelter. Likewise, if the
self-sufficing family on a farm loses wealth by fire or storm or blight,
its economic environment is made less fitted to gratify wants. In the
conditions of our society, where goods are exchanged, the result appears
to be different. The need to replace the lost goods makes a demand for
special kinds of labor or goods. There may be, therefore, an immediate
benefit to some, which obscures the corresponding loss to others. If a
part of the income of the loser must be diverted from other uses to
replace the wealth destroyed, those from whom he would have bought
suffer an unexpected falling off of their sales, and he has himself
gained nothing. The net result is a loss of wealth and gratification to
the community as a whole.
Public-domain text, read in full here on John Shaqi.
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