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the ultimate standard of value-第4章
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s again consists; in part; of interest and wages of spinners; and in part; of the money expended upon consumption and durable goods; say the wool consumed。 It is manifest that the analysis may be continued in this way until finally the money cost of every single stage of production is resolved into interest and wages。 In so far as the price of the finished product or of the intermediate products (cloth; yarn; wool; etc。); actually conform to their money cost of production; they cannot fail; in the end; to coincide with the total sum of the interest and wages expended in their production。 Or what is the same thing; they will agree with the total outlay of the original elements of production…labor and abstinence…rated according to their value or price。 The primary outlay in production; especially the labor; to whose consideration we will; for the sake of brevity; confine ourselves; can; as we know; be measured by other scale or standards。 If we attempt to verify the law of cost; with reference to these other methods of measuring costs; we soon come to grief。 It is very clear; for example; that the 〃law of cost;〃 in the sense that the price tends to conform to the quantity or duration of the labor expended; will not hold good。 To prove this; we need only advert to the simple fact that the product of a day's labor of a machinist or cabinetmaker is much higher in value than the product of a day's labor of an ordinary ditch…digger。 This holds good; not only for the difference between skilled and unskilled labor; but also for the less pronounced differences that exist between the various groups or grade of common labor。 The well…known doctrine of the socialists; which bases all value upon the quantity of labor expended; must either do violence to the facts or be untrue to itself; and this entirely independent of the fact that it ignore the cost element…abstinence。 When; for example; Marx concedes that skilled labor must be translated into terms of common average labor; and so; for the purposes of estimating cost; must be regarded as some multiple of this common average labor; he is only verbally faithful to the proposition that the duration of labor is the true measure of cost。 As a matter of fact; he makes; the value of the labor expended the measure of the cost。 Our investigation becomes far more difficult when we come to consider the fourth of the above enumerated meanings of the word cost; this meaning understands by the word cost; the sum of the pains or disutilities which the laborer must endure in production。 This brings us to the cardinal point of the whole question; a point; however; which require the most careful investigation。 It is quite conceivable that the correspondence which we have already noted between the value of freely reproducible goods and their synchronously reckoned cost; and again between that value and the value of the labor expended; may extend to a third member。 In this case the law of cost would be true in a threefold sense。 To establish this it would be only necessary to show; that the value of the labor corresponds with reasonable accuracy to the amount of pain that the laborer endure。 Such a correspondence actually occurs under a certain definite assumption。 This assumption depends upon the facts; first; that the pain of labor increases with its duration; and second; that the labor is continued until the pain of the last increment of labor (Arbeitstheilchen); say the last quarter of an hour; is in exact equilibrium with the marginal utility of the product of that final increment of labor。 In this event we have here a common rendezvous for our several items the utility of the product; the pain endured by the laborer; the value of the labor; and finally the value of the product。 Let us illustrate this by an example。 We will take a man engaged in one of the ordinary trades; say a cabinetmaker or a locksmith。 A certain amount of money; say five cents; which he obtains for a quarter of an hour's labor; has for him a definite value。 This is determined by its marginal utility; or by the importance of the last need which he is in a position to satisfy through the outlay of five cents。 Now; according to well…known principle; about which my English and American colleague and myself are in entire agreement;(16*) this marginal utility will be smaller; as the daily pay of the laborer increases。 It will; for instance; be smaller when the laborer receive two dollars and forty cents for twelve hours of work; than when he receives one dollar and sixty cents for eight hours of work。 Again; according to equally well…known principles; about which there is a no less complete agreement among all parties to the controversy; the fatigue and strain of the laborer grows with the increase in the duration of labor。 Other thing being equal; the tenth hour of labor is unquestionably more fatiguing than the third or sixth; and a fourteenth or an eighteenth would certainly be still more fatiguing。 Now; since the marginal utility of every five cents added to the pay of the laborer is; less than the utility of the last preceding five cents; and since with each additional quarter of an hour of labor the pain increases; there must come a point where the two will meet or be in equilibrium with each other; it is also undoubtedly true that when the laborer is entirely free to determine the length of his labor day; he will continue his labor until this point of equilibrium is reached。 He will work nine and one…half hours when and because to his mind five cents is just sufficient indemnification for the disutility of the thirty…eighth quarter…hour of labor; but not sufficient for the somewhat greater disutility of the thirty…ninth quarter hour。 This point of equilibrium will; of course; vary for different laborers。 A laborer; for instance; who must provide for a large family; and to whom the addition of five cents means the satisfaction of a quite important want; will be inclined to work longer; as will also a strong; vigorous laborer; who feels less fatigue from this labor。 On the other hand; the sickly or lazy laborer; or the one who has fewer; or less pressing wants; will stop at an earlier point。 He will prefer a longer period of leisure to the increased amount of wages; which he would have obtained had he continued to work。 It is just as manifest that; other things being equal; the point of equilibrium will vary for one and the same laborer; according to the amount of the wages which he will receive for the additional quarter hour。 A laborer who would work thirty…eight quarter hours; for five cents per quarter hour; would perhaps work forty…two quarter hours; if he could obtain seven and a half cents per quarter hour; while if he received only two and a half cents; he might only work thirty quarter hours。(17*) Or the number of hours of labor and the degree of fatigue; which the laborer will endure; will vary with the rate of wages。 Upon what then; under the above assumption; will the rate of wages (in other words the value of the labor) and the value of the created products depend? For the simple conditions of a Robinson Crusoe this question is already answered。 The value of the goods produced; which for a Crusoe have no price; but merely a objective value; will equal their marginal utilities to him。 Since the product constitute his wages or the recompense for his labor; the rate of wages or the value of his labor is identical with the value of the product。 Finally; Crusoe; as a reasonable being; will continue his labor to that quarter of an hour; the disutility of which will be exactly counterbalanced by the utility of the goods produced in this quarter of an hour。 All four of the items which we have been considering would then be equal。 Value of product…value of labor…marginal utility…pain of labor。 If it is asked: What; in this case; are the factors that determine the value of the product? We must reply that 〃utility〃 and 〃disutility〃 are here of equal importance。 The utility of the goods produced and the pain of the labor undergone。 This point of equilibrium by which the marginal utility; and therefore the value; is determined; is in reality the marginal point for both utility and disutility。 We might therefore; in this case; say with Professor Marshall; that; in the determination of value; utility and disutility; or pleasure and pain; work together like the two blade of a pair of shears。 Though essentially the same thing; the matter take a somewhat more complicated form; when we turn to the consideration of a laborer in our actual economic world; still assuming of course that the laborer is free to continue; or to terminate his labor when he please。 Here also; the value of the product will equal the value or wages of labor。 This will be true; even though the laborer does not receive his reward directly in the form of the created product; but receives a certain money consideration; in lieu of his share of the product。 When competition has done its work; and forced the value of the product down; until it equals its cost; then the wages which the entrepreneur has paid out either directly or indirectly; must equal the value of the product; (we here ignore all payments for abstinence
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