Page:David Atkins - The Economics of Freedom (1924).pdf/127

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A Dynamic Theory of Economics
97

Looking at the problem from a slightly different angle, let us imagine we are required to establish a measure capable, at all times and under all conditions, of maintaining its relative integrity within an orderly area of fixed dimensions and varying pressure. The statement of the problem defines the only possible solution; for since our measure has to express the value of pressure upon area, each of these components of value, together with the cost of maintaining the integrity of this area, must be represented in its composition. The effective value expressed by this “measure of value” can only be determined further in terms of units of time.

Taking a simple scientific parallel, if we desire to express the potential value of a confined force we do it often in terms of pounds pressure per square feet. If we further desire to express the effective value of this force in motion we employ the factor of time and state it as so many foot-pound-seconds, which is simply an expression of pressure per square foot, less the cost of making this potential pressure effective, measured in terms of the mass and rotation of the earth—our ultimate unimpairable dimensions. It would be useless to attempt to measure the value of this force by a definite weight of wheat, lard, cotton, corn, silver or gold, no matter how highly we held them in esteem.

Within an area such as the United States, if we care to be guided by scientific procedure, we must employ for the measurement of economic value, instead of ounces of gold, or very doubtful titles to ounces of gold, a definite unit based upon census-area. If, because of economic order and security, the reactions of effort are quickened, neither our unit nor accumulated capital will be adversely affected. The basic unit remains the same, but it measures a greater flow of effective effort; and should logically command at least the same quantity of goods and services of others, instead of less, as does our present unit. This symptom of a unit of value commanding less as activity increases should have absolutely established its scientific invalidity if most of us had not been too busy to think about the matter.

If we employed such a unit, we would, at any rate, rise or