International trade

Bibliographic data

Monograph

Identifikator:: 1758394757

URN:: urn:nbn:de:zbw-retromon-136209

Document type:: Monograph

Author:: Taussig, Frank William http://d-nb.info/gnd/120199459

Title:: International trade

Place of publication:: New York, NY

Publisher:: Macmillan

Year of publication:: 1927

Scope:: XXI, 425 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Theory

Collection:: Economics Books

VARYING COSTS; DIMINISHING RETURNS 79 favorable to the United States, — if she gets 14 of linen for 10 of wheat — money incomes are comparatively high in the United States, comparatively low in Germany. Wheat then is com- paratively high in price in the United States, and is at the same comparatively high price in Germany. Linen is at a comparatively low price in Germany, and at the same low price in the United States. As consumers of linen, the Americans gain from their high money incomes ; as consumers of wheat, the Germans lose from their low money incomes. But as producers of wheat, the Ameri- can wheat-growers are under a handicap in selling their wheat in Germany. They cannot sell so much, nor can they displace as many German wheat-growers as they could if their money incomes and their wheat prices were lower. And the Germans as pro- ducers of wheat are not so hard pressed by American competition as they would be if their (the German) money incomes were higher. The low rates of money wages lessen their expenses of production, and wheat lands which would go out if money wages were higher are able to hold their own and maintain themselves in face of American competition. In the talk of the man on the street, and also, unfortunately, in the reasonings of pretentious books on economies, consequences of this kind are dealt with as if they indicated a disadvantage to the United States and an advantage to Germany. The American wheat-growers find in higher money wages an obstacle to the cheap production of wheat and to the extension of exports; this is bad for the United States. The German wheat growers find in lower money wages an aid in meeting foreign competition ; this is good for Germany.. The man on the street almost invariably has the mercantilist point of view: exports are to be promoted, but domestic production is also to be safeguarded against competing imports. Not a few economists share these prepossessions, some- times deliberately, more often thru a lack of sustained and con- sistent thinking. True, no economist, and indeed no thinking person, would deny that high money wages, combined with low prices of goods, bring material prosperity; but, when faced by a concrete situation, few accede readily to the conclusion that high

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