Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. The standard of value

Collection:: Economics Books

278 VALUATION, DEPRECIATION AND THE RATE-BASE But the generally accepted remedy, the granting of more pay, is at best only a temporary expedient. Scarcity of labor is not responsible for high prices. It may be assumed that there is and always will be an abundance of labor to produce and to distribute the things that man demands in order to live in comfort. High prices are themselves an ade- quate stimulant to the production in quantity of all varieties of things which are in demand. But the occasional periods during which there is a rapid advance of what is commonly called “ the cost of living >’ have the gradual but none the less certain effect of reducing the amount, despite their possible abundance, of the desirable things which the family can afford. The standard of living at such times gradually comes down when considered by averages for an entire nation. A rise in the cost of living is always sure to accompany or to closely follow an inflation of currency and will, naturally, prevail when countries are running heavily into debt — when, in con- sequence, taxes are high and the individual strives to earn more dollars than theretofore with the same output of effort, in order that the greater number of dollars wanted by the government for taxes, and required to meet his family requirements, shall be forthcoming. The value of the money unit measured in terms of commodities is at such times dropping down. Everybody wants more of the currency for every service performed. Wages must go up. All prices rise, and as they rise there is new de- mand for higher wages and salaries. Some one has said that the movement thus goes on in an endless circle. The illustration would perhaps be more apt if an ever widening spiral were sub- stituted for the circle. There has been no remedy for such conditions, heretofore, except as found in the succeeding periods of business depression such as have been recurrent during more than a hundred years with rather surprising regularity at intervals of about twenty years. At such times the over speculation incident to rising prices, frequently inflated, particularly of land, has passed its crest. Appreciation has been forestalled. New investments in land cease. Loans are

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