Home Section 7

Now Visiting

We have 6 guests online
The Law, by Bastiat
Member Price: USD $1.89
"It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder."

-- Frederic Bastiat


Lesson 69 - Fundamentals of Economics Part I Print E-mail

 

Thus, it is the consequence of man's mental capacities - problem solving and tool-making - that has permitted and enabled him to do what other forms of life have not been able to do.  Namely, to produce more and better goods and services than prior generations enjoyed.

While beavers, birds, and other animals will produce and build nests, dams, and so on, they continue to do so in the same fashion as their oldest ancestors.  Men on the other hand have always been able to produce things which even their fathers and mothers were not able to imagine.

Tools then are the key factor in our equation, recognizing of course that it is man's mind that has first imagined or concieved the tool.

A tool is nothing more than a device which permits us to produce or obtain something we want in greater quantities and with an expenditure of less time and energy than would be required without the tool - if the item could be produced at all without the tool.

Tool making is thus important for one reason: it enables us to multiply our total output.

Suppose for example an individual who finds himself in a very primitive situation.  He is in the middle of a forrest with absolutely no tools at his disposal.

The man is hungry.  He knows there are berry bushes in the area.

Let us assume that he is able to pick about one quart of berries per hour.

Without the aid of a tool, this man will be able to increase his production only in arithmetic units.  In other words, in one hour he can pick one quart.  In two hours, two quarts.  In five hours, five quarts, and so on.

If the man wanted to pick say, six quarts of berries per day, to eat or to trade, he would have to plan on spending six hours per day exclusively on this task.



 
 

Fundamentals of Liberty