The Common Sense of Political Economy

Wicksteed, Philip H.
(1844-1927)
BIO
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Editor/Trans.
First Pub. Date
1910
Publisher/Edition
London: Macmillan and Co.
Pub. Date
1910
Comments
1st edition.

1. Cf. pages 414 sqq.

2. Cf. pages 118.

Book I, Chapter II

3. For a more closely accurate treatment of this subject see Book II. Chap. II.

4. Page 34.

5. Cf., however, pages 423 sqq.

6. On the nature of this assumption of a regular and easily discernible law, see Book II. pages 464 sqq. The values dealt with in the text may be obtained by integration from the function x2/2 -7x + 79/3.

7. Many readers may find it helpful to anticipate at this point the study of the tea curve in Book II. Chap. II.

8. See Book II. Chap. II., especially pages 464 sqq.

9. The corresponding formula is x2/2 - 13x/2 + 125/6.

10. Pages 45 sqq.

11. As promised, or indicated, on page 3, 18, 36.

12. Cf. Book II. pages 423-434.

13. See Book II. pages 420 sqq.

Book I, Chapter III

14. See pages 152 sqq.

15. Cf. Chap. VII. page 297.

16. See Book II. Chaps I. to III.

Book I, Chapter IV

17. Cf. page 3.

18. Cf. pages 346 sqq.

19. A further study of monetary questions will be found in Book II. Chap. VII.

20. Page 130.

Book I, Chapter V

21. But see Book II. Chap. I.

22. Cf., however, pages 167 sq.

23. Cf.page 162.

24. See pages 352 sqq.

Book I, Chapter VI

25. Cf. Book II. Chap. III.

26. Page 218.

27. Cf. Book II. Chap. VII.

28. See pages 256 sqq.

Book I, Chapter VII

29. Pages 298 sq.

30. Pages 269.

Book I, Chapter VIII

31. Cf. Book II. pages 522 sqq.

32. Book III. pages 637 sq., 693 sqq.

33. It should be noted that the supposition we have made does not necessarily imply that the material product of the two men is less than double that of one alone. One man might be able to bottle ten gallons of mineral water per hour and the two together thirty, but the marginal value of the water when issued at the rate of thirty gallons an hour might be only half what it would be if issued at the rate of ten, and thirty halves are fifteen; so that while the issue was trebled by the combination of the two men, the earnings might only be increased by one half. Compare further Book II. Chap. V. pages 546 sqq.

34. Cf. pages 309 sq., 660 sqq.

35. See further Book III. pages 693 sqq.

36. Pages 186 sqq.

Book I, Chapter IX

37. Cf. Book II. pages 551 sqq.

38. See pages 289, 290.

39. Cf. page 46.

40. Pages 71 sqq.

41. In 1894 I published (London, Macmillan and Co.) a short mathematical treatise entitled An Essay on the Co-ordination of the Laws of Distribution. In paragraph 6 I made a premature attempt to solve the general problem of distribution, which was at once pronounced by Professor Flux to be worthy of attention, rather on account of its presentation of the problem than on account of the solution offered; and Professors Edgeworth and Pareto subsequently shewed that the solution itself was erroneous. This paragraph of the Essay, therefore, must be regarded as formally withdrawn, and the solution now offered in the text must take its place.

42. Cf. pages 203 sqq.

43. See page 118.

44. Pages 83, 84, 197.

45. Cf. Book II. pages 416 sqq.

Book II, Chapter I

1. Compare the qualifications to the Principle of Superposition on page 204.

2. Pages 34 sq.

3. Cf. pages 66 sqq.

4. For a worked-out example see my Alphabet of Economic Science (London, 1888), pages 128 sqq.

5. Page 54.

6. For the full justification of this statement, see below, pages 440 sqq., especially pages 446 sqq.

7. Cf. page 101.

8. See Chap. II. of this book, and cf. Chap. III.

9. See page 85.

10. "Origin" is the technical term for the point marked O in all our figures.

11. See pages 21, 82, etc.

12. Cf. page 441, and the whole of Chap. II.

Book II, Chapter II

13. Chapters II. and III., though important from the theoretical point of view, are of an abstract and somewhat academic character, and some readers may prefer to go on at once to Chapter IV.

14. See page 60.

15. This analytical proof is, strictly speaking, unnecessary; for since we have ah = aeok and ks = kogd, we have also aegd = ah + ks = ac; and this involves the equality of bef and fgc. But the proof by substitutions may probably be found the more enlightening.

16. At the bottom of page 451.

17. Cf. page 426.

18. But see below, pages 467 sqq.

19. Cf. pages 45-47.

20. Cf. page 435.

21. Cf. pages 552 and 568 sqq.

22. But compare the following chapter.

23. Cf. Appendix to Chapters II. and III. pages 490-492.

Book II, Chapter III

24. See page 477.

25. See pages 15 sqq. and 423 sqq.

26. Cf. further pages 521 sq.

27. Cf. page 483.

Book II, Chapter IV

28. Cf. pages 485 sq.

29. Cf. pages 218 sqq.

30. Pages 229 sqq.

31. Page 498.

32. Pages 233 sqq.

33. Macmillan, 1900.

34. Pages 219 sqq.

35. I have preserved the convention by which the "demand" curve is made to run down and the "supply" curve to run up, from left to right. Of course it has no significance and might just as well be neglected or reversed.

36. Pages 336 sq.

37. Pages 229 sqq.

38. Pages 414 sqq.

39. It is necessary, however, to note that in thus reversing our original l curve we have assumed a stability in our psychic unit on the axis of Y that was not granted in our first construction of the figure. The ordinates of the p and l curves for any abscissa were determined with reference to each other, at that point, and consequently our ordinate of 7 for the l curve, when the abscissa is 13, means that irksomeness of effort (or desire for its cessation) at that point is seven times as great as the advantage accruing from labour at that point. It does not follow that it is just equal to the advantage accruing at the abscissa 7, unless we can be sure that the psychic value of the unit remains stable for p throughout its course; and we have seen (pages 469 sqq.) the extreme difficulty of securing even a fair approximation to such stability in far simpler cases than this. If we retain the form of the p curve, and reversing the l curve relate each ordinate to the now corresponding ordinate of p, we may get a different form of the curve, representing the same relations and the same psychic values. But the point at which the two ordinates are equal to each other must obviously be the same.

Book II, Chapter V

40. Pages 533 sq., 539 sq.

41. Pages 361 sqq.

42. Cf. below, page 540.

43. Page 504.

44. Page 538.

45. Page 537.

46. Pages 345 sqq.

Book II, Chapter VI

47. It is of course admitted and understood that such minuteness of estimate takes us absolutely away from all contact with practical business or practical possibilities. It is adopted merely for graphic purposes and to illustrate the principles involved in the current expositions.

48. Co-ordination of the Laws of Distribution, London, 1894.

49. As a matter of fact the assumed data throughout conform to the formula, crop = 2.248x2e-(7/180)x, in which x stands for the number of "hours" put in per annum per 40 land-units. The corresponding formulæ for the pair of curves on Fig. 41(a), page 566, will naturally be 2.248xe-(7/180)x for the curve containing the rectangle, and 2.248[2 - (7/180)x]xe-(7/180)x for the curve the integral of which equals the rectangle.

Book II, Chapter VII

50. Pages 127-141.

51. Notes that are at a discount, and will not discharge gold debts to their face value, in their own country, will of course be at a discount elsewhere too, independently of the balance of indebtedness.

52. As I believe that the line of investigation here pursued is somewhat novel, and as I have no technical knowledge of minting or of the gold market, the whole of this section should be regarded as a tentative suggestion rather than a dogmatic exposition. My reason for giving it at all is that I believe the usual treatment of the subject to be theoretically unsound (cf. pages 610 sqq.), and therefore it seemed desirable to attempt a fresh analysis.

53. See below, page 606 sq.

54. Page 603.

55. Pages 590 sqq.

56. Pages 600 sq.

57. The prevalent idea that private melting is illegal is without foundation. It is illegal to deface or intentionally abrade (sweat) sovereigns. Any one may melt them.

58. This is only a particular case of the general phenomenon which is defined under "Gresham's law" as the tendency of bad money to drive out good. This is not really a special law affecting the currency. It is merely a special application of the general principle that if S1 and S2 are units of two specified commodities (in this case heavy and light sovereigns) which are equally capable of serving the purposes of A (who cannot indeed distinguish between them), whereas S1 will serve certain purposes of B (who can distinguish between them) better than S2 will, there will be a tendency, as they pass in exchange, for B to "secrete" the S1's for his own special purposes and pass on the S2's to A. Or in more general terms, if S1 will serve some purposes as well as S2 and other purposes better, there will be a tendency to assign S1 to those purposes which it can serve better than S2 rather than to those it can only serve as well. A light sovereign (within the limits of legal tender weight) will serve the purposes of the ordinary citizen as well as a heavy one, but the latter will serve the technical purposes of the jewellers best.

Book III, Chapter I

59. The only theoretical reservation is that any individual gambler may stop short (if only because he dies) before the run has been long enough to absorb all his gains. But it is a mistake to think that there must come a moment in the career of every gambler at which, if he were wise enough to stop, he would be a winner on his whole transactions. It is probable but not certain that there may be such a moment, or such moments, early in his experience; but the longer he goes on the less likely is it that he can ever stop as a winner on the whole body of his transactions since he began.

60. Page 246.

61. See page 246.

62. See pages 423 sqq.

63. See pages 209 sq.

64. See pages 693 sqq., and cf. page 344.

65. It has often been noted that old sailors are scarcely ever out of a job, because of their general resourcefulness and versatility.

66. See pages 546 sqq.

67. See pages 370 sq.

68. Cf. pages 682 sq.

69. Cf. page 357.

70. For some remarks on unemployment and "tariff reform," see pages 666 sqq.

71. See, however, page 649.

72. See Vaughan Nash, The Great Famine, pages 134 sqq., London, 1900.

73. The salaries of the Indian officials, pensions and all, are surely not higher than the market value of the talent and fidelity which they exercise at their posts. So far as that goes, the justice and peace given her cannot presumably be purchased on any easier terms; but England might give them to India for less than they cost, instead of charging her the full price and then giving her doles when she is ruined.

74. See pages 383 sq.

75. Cf. pages 352-357.

76. Pages 152 sq.

77. Cf. pages 184 sqq.

78. Cf. pages 145 sqq., 189 sqq., etc.

Book III, Chapter II

79. Pages 148 sqq.

80. Pages 373 sqq.

81. Pages 589 sq.

82. Pages 183 sqq.

83. See pages 640 sqq. and cf. pages 356 sq. etc.

84. Cf. pages 146 sqq., 189 sqq., 215 sq.

85. Pages 209 sq.

86. For if the Municipality borrows capital from individual lenders and pays for work and material at market rates, we are far from any accepted definition of socialism.

87. See page 341 sq., and compare page 573.

88. We have neglected the expense of collecting and distributing the revenue and have taken Consols at par, for the sake of simplicity.

89. Page 354.

Book III, Chapter III

90. See page 77.

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