Note, Diagram K
The quantity-output of energy per unit of time being the same in each example shown, the area which controls the flow must vary inversely as population-density varies. It will be seen, then, that the only possible constant unit of value, with which to measure the economic reactions arising from population, area and time, must be a compound unit expressing in its constitution the reciprocal relationship between these three essential components as modified by the cost of order, or 1 tax-paid man-acre in perpetuity.
Since the hour is constant and the population-density varies in the ratio of 15:30:60, or 1:2:4, then to keep the value constant in our unit the area component must vary inversely, that is, as 60:30:15, or 4:2:1.
If the more ritualistic economists should question the assertion that, under democracy, the only measurable components of economic value are population, area and time, as modified by the cost of order, they cannot, at any rate, question the scientific structure of the unit based upon this assertion. To turn the tables, and put them on the defensive, let us ask them to construct a valid scientific unit from their own economic elements—Land-value, Labor and Capital, measured in terms of gold, or Labor and Nature, measured Heaven knows how, or Labor alone,—and leave them to their hopeless problem.
It is a scientific absurdity to pretend that any unit of constant economic value can be expressed as the fixed weight of a commodity, even if this commodity is gold. If it is an admittedly unenforcible title to a fixed weight of gold, the absurdity is still more apparent, as we are further involved in the question of the value of the title as well as in the question of the value of the gold itself. The latter is a sufficient conundrum since the total quantity of gold is unknown and uncontrolled. Because gold can be privately produced and the national stock can be diminished by private action, it has no integral relation to value. The only value expressed by gold today is that of a major delusion; and this—like the exuberance, depression and panic to which, in turn, it gives rise—is purely psychological.