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. _This classification of goods is abstract, in that it is a
classification, not of concrete goods, but of qualities shared in some
degree by nearly all goods._ Most goods unite in some degree both
characters, but in varying measure. This is, therefore, a continuity
classification, the varying classes of goods grading from those whose
durableness is zero (just at the moment of consumption) to those most
durable, which yield an endless series of uses or products. Yet the
classification is practical, corresponding as it does with thoughts
which men have in the use of goods. By repairs and other methods goods
become, and are looked upon as, durable sources of a series of uses.
It is to be noted further that the enjoyable goods pass over into
psychic income, that is, they are the stream of objective utilities that
is each moment detaching itself as income from the great mass of wealth.
The durable goods are those utilities which for the time remain, not yet
ripened or ready to be converted into psychic income.
§ II. CONDITIONS OF ECONOMIC WEALTH
[Sidenote: Income as affected by climatic conditions]
1. _The bounty and variety of the natural supply of indirect goods in
the material world are the prime conditions of a bountiful income to
society._ The effect of climate on the supply of goods available for man
is complex. Climate is itself a direct source of gratification. As
temperature must be adjusted to man's need, climate satisfies wants
directly. Health, energy, the beauty of noonday woods and of sunlit
clouds are conditioned on the favor of nature. Climate affects, further,
the supply of material economic goods. All the earlier civilizations
arose in warmer countries. But, after man had gained a certain mastery
over the obstacles of nature, he was able to soften the harsher features
of climate, and with better shelter and clothing, with better stocks of
winter food and fuel, the more favorable features of the temperate zone
could be utilized. So civilization moved northward from Egypt and India
to Greece and Rome, to northern Europe and America.
[Sidenote: By natural resources]
Soil conditions for vegetable life determine first the amount and kind
of animal life. Animal life from one point of view is a parasite, living
on the vegetable; it is only the vegetable that has power to assimilate
most inorganic compounds. Water being a need of plant life, the amount
of rainfall is one of the most important conditions of industry. Man,
therefore, depends on the resources of the soil directly or indirectly;
a fertile soil furnishes him either directly a supply of vegetable food,
or indirectly a supply of animal food.
Natural supplies of metals, of coal, and of timber are important
consumption goods, but they are also indirectly the condition for a vast
variety of other goods. The industry that could exist without iron,
copper, and coal would be of a very low grade.
[Sidenote: By flora and fauna]
Public-domain text, read in full here on John Shaqi.
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