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
There is a real exception where the accidental destruction removes some
social difficulty. The great fire in London and the great fire in
Chicago resulted in wonderful improvement. When an old city is built
almost entirely of wood, each owner may think it to his interest to keep
the old buildings. A great fire sweeps them all down and compels the
rebuilding of the city on a new and higher standard. But the usual
social result of accidental destruction is a loss. It is a use of wealth
without a fulfilling of the purpose of production, the gratifying of
wants.
[Sidenote: Intentional destruction of wealth by the owner]
2. _The intentional destruction of wealth by the owner, to make trade
good, benefits neither himself nor others._ The case in mind is one
where there is full choice between keeping or losing the good, not such
a case as the throwing overboard of a part of the cargo when the ship is
in danger of sinking, in the hope thereby of saving the rest, or as the
blowing up of buildings to prevent the spread of a fire. In such cases
the destruction is inevitable without man's action; he merely tries to
minimize it. The case in mind is the deliberate destruction of wealth
that might be kept for use. One labor leader, for example, boasted that
when he drank pop he always broke the bottle "to make trade good" by
helping the glass industry. The refuting of this fallacy is one of the
time-honored tasks in political economy. There is, it is true, an
increase in the demand for glass and glass-blowers' labor, but without
an increase in gratification; but at the same time there is a decrease
in the demand for other goods which would afford additional
gratification. The proverb, old in Shakespeare's time, runs, "Nothing
can come of nothing." What is spent for one purpose cannot be for
another; "you cannot eat your cake and have it too." A given income can
be spent in one of many ways, but not in all ways or even in two ways at
once. It is a question of this _or_ that. At the same moment that the
demand for pop-bottles is increased, the demand for other things is
decreased, possibly that for pop-corn or pop-guns or Populist
papers--who can tell? Such a form of benevolence is a mistaken,
uneconomic attempt to provide labor for one man by taking it from
another.
If the advocate of wealth-destruction would be consistent, he should
break, not merely the pop-bottle, but the water-pitcher and the table as
well; he should make a bonfire at least once daily of his clothing, his
house, and its furnishings; he should advise blowing up the steamboat
and ripping up the railroad when they have carried a single load of
passengers. Thus, when all men were naked and starving, and civilization
had sunk to savagery, trade would have been made as "good" as, by the
policy of destruction, he could ever hope to make it.
[Sidenote: Intentional destruction of others' wealth]
Public-domain text, read in full here on John Shaqi.
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