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
3. _The intentional destruction of wealth owned by other persons is
falsely thought to benefit trade in general._ The cases referred to are
not acts done with criminal motives, but those done with a view to the
public interest. If one sets fire to the property of another, seeking
revenge or plunder, he is guilty of the crime of arson. But what shall
be said of volunteer firemen that let an old house burn down to provide
labor for carpenters and "to make business good"? The duty of firemen is
to put out fires, no matter what the building is; but they choose
sometimes to be ministers to the social interest as they interpret it.
The more spent for carpenters' work out of any income, the less can be
spent for other objects. It is true, however, that if in a small town
the money to rebuild is borrowed from a distant loan or insurance
company, there is an increase in employment in that town for one season;
and that is as far as most men try to carry their economic analysis. Let
the student carry it further.
[Sidenote: The seen and the unseen]
Servants sometimes excuse the breaking of dishes and furniture on the
ground that it makes work, and that the employer can afford it. But
income is thus diverted from other expenditure, either for production or
for consumption. In the light of the theory of wages, it would appear
that carelessness reduces the servant's own efficiency, and in the long
run the loss comes, in part at least, off the wages of that particular
servant. Bastiat's discussion of the broken window-pane is often and
deservedly quoted. What is seen is a certain immediate benefit that the
glass-maker and glazier get; what is not seen is that the power to
expend an equal amount for other things is thereby lost by the owner of
the house.
[Sidenote: The wasteful use of wealth]
4. _The destruction of unnecessarily large value to secure a given
gratification is not economically sound._ The careless use of wealth to
secure an inadequate result is likewise justified as "making trade
good." The blunder that compels the rebuilding of a wall in a rich man's
garden is an occasion for congratulation to those who see in it a happy
provision of work for the unemployed. It is easy to forget that the
proper use of goods is the final step in production. According as goods
are well or poorly used, the production--that is, the real income or
gratification they afford--is large or small. Differences in skill in
the use of wealth are great. A French cook, we are often told, can make
a palatable soup from what goes from the average American kitchen into
the swill-pail. Waste in the use of goods is more likely to be found in
new countries where wealth comes more easily and necessity does not
enforce frugality.
Public-domain text, read in full here on John Shaqi.
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