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the ultimate standard of value-第7章
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ge; we get the real kernel of the matter。 And this kernel; according to the empirical law of cost; is nothing else than 〃the toil and trouble〃 of labor。 The well…known controversy that long monopolized the attention of the classical economists; whether the price of goods depends upon the quantity of labor expended; as Ricardo taught; or upon the amount of wage; as Mill correctingly suggested; afforded ample opportunity to correct this error。 They failed; however; to do so。 The old Smithian 〃toil and trouble〃 remained in a sort of scientific haziness; until; through Gossen; and especially through Jevons; it was brought to full and clear recognition。 Then; for the first time under the name of the 〃disutility of labor;〃 it was raised to the rank of an elementary economic power; while its counterpart; the utility of the good; was set over against it。 The old confusion; however; attached itself to the new name。 If I am not greatly mistaken; not only the followers of the old classical school; but also many of the adherents of the newer theory; developed by Jevons; still stand under this ban。 In the case of Professor Macvane; the confusion is quite pronounced; as when he explains the cost of the classical law of cost as 〃pain of labor and fatigue of muscles。〃(24*) Professor Edgeworth take substantially the same position when he occasionally explains the 〃disutility〃 in terms of 〃cost and sacrifice。〃(25*) Or when he sets first utility and cost;(26*) and again; utility and disutility over against one another。(27*) Again; when he indulge in a polemic against the Austrian school of economists; and urge that they have neglected the great Ricardian law of cost and stripped it of its significance; and that they have not properly recognized the function of disutility in the determination of the economic equilibrium and the value of goods。(28*) Professor Marshall; as it seems to me; also become involved; to some degree; in this confusion。 While Ricardo held that costs of production; and Jevons held that marginal utility was the determinant of value; Marshall holds that both enter into the determination of value; and that; like the two blades of a pair of shears; they are co…equal factors in this determination。 Nor does he assume this position in any tentative way; but rather holds that he has found the solution for a problem long in dispute。(29*) No matter who is responsible for this confounding of the cost of the empirical law of cost with the disutility of labor; the fact remains that the confusion does exist。 In order to distinguish as sharply as possible between the two principles referred to; I may remark that there is a rule which may be called the law of disutility; according to which the value of all goods that come under its influence tend to be in equilibrium with the amount of the pain involved in their production。 But this is far from being the same as the great empirical law of cost。 It depends upon quite different assumptions; and upon the play of other and intermediate motive。 Finally; it has a different and much smaller field of operation。 On the one side; it includes but a small part of the territory covered by the empirical law of cost; and on the other; it include a certain portion of territory which is not covered by the law of cost。 This somewhat minute and pedantic; though none the less necessary; examination of the famous law of cost leads us to the following conclusion。 The law of cost; as applied to the actual facts of our economic life; is susceptible of verification; in the sense that the synchronously reckoned cost; or the sum of the value of goods expended in production; coincides with the price of the product。 Again; under the assumption that this synchronously reckoned cost can all be resolved historically into labor; it is possible to verify the proposition that the price of the product is determined by the sum of the labor expended; measured in terms of the value of this labor。 But the law of cost is certainly not true in the sense that the price of those goods which are within the domain of the law of cost is determined by the amount of the pain involved in their production。
V。 The Law of Cost and the Value of Labor。
I would now ask; and my colleague of the Austrian school ask with me; what advance have we made toward a solution of our problem。 Even though it be shown by means of the famous law of cost; that the value of freely reproducible goods may be resolved into the value of their means of production; or into the value of the most ultimate or elementary factor in production; i。e。; labor; we still must ask; what progress has been made in explaining the value of goods? Manifestly this translation of the value of goods into the value of the means of production; does not give us the final solution for our problem; for we must still further inquire; how we are to determine the value of these means of production; or if we regard the means of production as resolvable historically into the labor previously expended; how are we to determine the value of this labor? Let us proceed immediately to the consideration of the second half of our question。 This will bring us at once to the root of the problem。 For the sake of clearness I will accept as the basis of the argent the doctrine proposed by those who are in opposition to me in this matter。 In Professor Marshall's most admirable book which may fairly be taken as representative of the present status of economic theory in England; may be found several answers to the question: What determine the value of labor? In one place; he teaches that 〃free competition tends in the direction of making each man's wages equal to the net product of his own labor; by which is meant; the value of the produce which he takes part in producing; after deducting all the other expenses of producing it。〃(30*) He also holds; that 〃the wages of every class of labor tend to be equal to the net produce due to the additional labor of the marginal laborer of that class。 It may be remarked; that in obtaining the value of labor out of the value of the product of labor; one is in entire harmony with the conceptions of the Austrian school。 What effect this has upon the law of cost will appear later on in the discussion。 In another place(31*) Professor Marshall give us quite a different standard for determining the value of labor。 He holds; that in the case of every agent of production: 〃there is a constant tendency toward a position of normal equilibrium; in which the supply of each of these agents shall stand in such a relation to the demand for its services; as to give to those who have provided the supply a sufficient reward for their efforts and sacrifices。 If the economic condition of the country remain stationary sufficiently long this tendency would realize itself in such an adjustment of supply to demand; that both machines and human beings would earn generally an amount that corresponds fairly with their cost of production。〃 I am not quite sure how wide an application Professor Marshall would give to this statement。 This much; however; is clear; he would apply the distinction of the classical school; between the rapidly fluctuating 〃market price〃 and the 〃normal value〃 which is based upon cost; to the commodity…labor。 In the passage just cited he manifestly wishes to indicate the standard according to which the normal or long period position of wages is finally determined。 But as it appears to me; he is not quite clear whether he would make the efforts and sacrifice of the laborer the ultimate standard (as his expression; 〃sufficient。。。 for their efforts and sacrifices;〃 would seem to indicate); or whether he would take the cost of rearing and maintaining human beings as the standard (as the expression 〃amount that corresponds fairly with the cost of production of human beings〃) would imply。 Doubt may also arise whether it is his opinion that the absolute height of wages tends to an equilibrium with the 〃efforts〃 or 〃cost of production of human beings〃; or that the differences in wages to which these give rise are but variations from an average level; the absolute height of wages being determined by other considerations。 If this last is Professor Marshall's opinion; then I am in entire agreement with him in his conception of the value of labor。 That differences in the pain of labor tend to bring about corresponding difference in wages; I have already admitted。(32*) The same influence; and for quite analogous reasons; may be exercised by differences in the cost of producing human beings。 If; however; the expression is to be interpreted in the wider sense; that the absolute height of wages is finally determined by the pain of labor; or by the cost of producing human beings; then; as it seems to me; Professor Marshall has taken a position which cannot be maintained。 This; so far as the pain of labor is concerned; I have endeavored to show in a previous chapter。 In regard to the cost of producing human beings; a twofold objection suggests itself。 First; this statement is hardly verified by experience; for modern economists are quite generally agreed that the 〃iron law of wages〃 cannot be interpreted as meaning that the necessary cost of maintenan
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