Economic essays

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Monograph

Identifikator:: 1753623200

URN:: urn:nbn:de:zbw-retromon-136107

Document type:: Monograph

Title:: Economic essays

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1927

Scope:: viii, 368 S.; Ill., graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

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Title:: The relation between statics and dynamics / John Maurice Clark

Collection:: Economics Books

THE RELATION BETWEEN STATICS AND DYNAMICS 67 of statics. But where the problem and conditions are dynamic, discrepancies between the behavior of these varions elements are of the essence of the inquiry. Investment funds are spent on other things than technical productive equipment, and capitalized earning power rests partly on these other things, and partly on things for which no investment funds may have been spent at all. These elements must be carefully distinguished and their relations to each other inductively studied. No one of these aspects of capital can be made paramount or all-sufficient at the expense of the others. All must be recognized, and some sense of their dynamic interplay must be a part of that concept of capital which is to be an appropriate tool of dynamic study. 13. The Concept of Production The static problem and static assumptions make it possible to treat production as a quantitative addition to human gratifica- tions, or at least to the means of gratification. Human wants are taken for granted, and the molding of wants is therefore not a part of static production. The protection of legal rights pre- vents the wants of some from being gratified at the expense of others, and competition prevents business incomes from being increased by withholding gratifications rather than by creating and bestowing them. The perfect static market prevents any gains being made by sheer “higgling and bargaining.” Thus the so-called technological concept of production is applicable, and is an adequate description of the process by which income is to be secured, in the static state. The process of bargaining, and the characteristic work of the entrepreneur, have, before the static equilibrium can be fully reached, worked themselves out to the point of zero return and have no further functions to perform, either from the standpoint of private gain or social production. Thus the concept of production is much simplified. But from the dynamic or realistic standpoint, the concept of production undergoes a transformation similar in general char- acter to that which we have already seen in the case of capital. Discrepancies arise between its various aspects: especially the aspect of private gain, that of technical production, and that of social creation of utilities. Private gains are to be secured by the adjustment of prices in bargains, by the modification of desires and the guidance of choice through salesmanship and

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