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
[Sidenote: Desire for better agents impels men to improvements]
1. _While man destroys some agents of production he multiplies many
others._ We have noted many kinds of depreciation, destruction, and
wearing out of wealth; but the normal thing in a healthy society is an
increase, on the whole, of rent-bearers. The increase of rents is due to
two causes: changes in the agents by which they become more efficient
technically, or more numerous; and changes taking place outside of the
agents, affecting the utility of the products. The first of these will
be considered in this section.
The increase of the efficiency of agents is usually the aim of the
individual producer, and thus is brought about an increase of the stock
of wealth. In some cases, however, improvements such as the dredging of
harbors or as the protecting of forests, are made by men collectively
through the agency of governments. Somewhere, however, the desire for
these changes must arise in the minds of individuals. Increase of most
things involves "cost" or sacrifice, in the psychological sense; that
is, man must strive, perhaps suffer, to get a certain result. This end,
therefore, must be in itself desirable, and social organization must be
such as to present a motive to the men to make the needed effort.
[Sidenote: Improvements by adaptation of natural resources]
2. _Rent-bearers may be increased in quantity and improved in quality by
the adaptation of natural resources to man's purposes._ To get food, men
use the tracts of land that under the conditions give the largest
product. Other tracts less fertile, or for some reason less available,
are ditched, tiled, and diked, and fertilizers are carried up steep
hillsides to make a soil upon the very crags. In commerce and
transportation, new ways are opened by canals, railroads, and tunnels.
An isthmian canal will raise the efficiency of ships plying between New
York and San Francisco, enabling them to carry a greater amount of
freight within a year. The tolls will represent to the users an
expenditure only partially offsetting the increased efficiency of the
agents of transportation. By the building of wharves, the dredging of
harbors, and by many other methods, indirect agents are constantly
growing in number and efficiency.
[Sidenote: Machinery is an adaptation of natural resources]
Public-domain text, read in full here on John Shaqi.
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