Problems in American Democracy

n their own efforts for their living. Since every individual probably works because of a combination of motives, it is possible somewhat to analyze the reasons why men work. The most fun

ovided, work is commonly continued for th

the average individual does not consciously make the public interest the chief end of his labors. However altruistic a man may be, he will not be able

or purely family use. Shoes, clothing, tools, and similar articles were produced laboriously and on a small scale. In comparison with industrial conditions in the nineteenth century, there was at that time little industrial co?peration [Footnote: By co?peration is here meant simply the working together of different persons or groups of persons. Co?peration in this sense is to be distinguishe

ustries. By subdividing their labor more and more minutely, and by each specializing in the particular type of work which he could do best, men found that their total output could be greatly increased. This complex division of labor, made possible by the us

and often by hand, to large-scale production in factories equipped with complex machines, has had important results. It has so increased our control over Nature that even the humblest workman of to-day enjoys many comforts denied kings a few centuries ago. On the other hand, the Industrial R

y our wants. Since, also, the satisfaction of wants is the important thing, it is clear that the performance of a service, such as teaching or painting, may be more important than the manufacture of a material object which no one wants. Production may th

or by small groups of artisans working together under relatively simple conditions. To-day production is a vast and complicated process. To the eye of the untrained observer a great mass of factories, farms, railroads, mills, machines, s

of land and its products, oceans, lakes, rivers, rain, humidity, and climate. Since Nature is rather a vague term, and since, also, the economist

t as a basis of transportation, we harness its motive power, and we make extensive use of the innumerable raw materials

o to the trouble to secure possession of them. In an important sense Nature is passive, and if she is to furnish us with a living, we must engage in labor. This labor may be mental or physical, the important point being that it is effort undertaken to increase our control over Nature. Savages are content to use products in substantially the form in

any of her treasures, and man is physically weak. Hence he has hit upon the device of making tools to help him in his contest with Nature. During the period of the Industrial Revolution many simple tools were supplanted by complicated devices run by power and called engines and machines. To the econom

on and use of capital is one of the distinguishing features of modern civilization. The laborer alone can produce little; aided by capital he can produce much

on. Two hundred years ago nothing else was essential to production. The average individual had h

ngs which he personally consumes. To-day, for example, there are numerous individuals raising cattle, the hides of which are to be made into shoes; other individuals are perfecting means of transportation so that those hides may be carried to market;

s, about whom we shall have more to say in the next chapter, constitute an important economic group. They co?rdinate, in the example given above, the cattle grower, the railroad manager, the tanner, the factory builder, and the manufa

essential value, that it is sometimes overlooked altogether. This is the work of the government in protecting productive enterprises. Government aids in production by suppressing theft, violence, and fraud; by allowing individuals to engage in helpful businesses;

er we shall find that there are wide differences of opinion as to the relative importance of some of these factors. We shall find, indeed, that the most vital economic problems which confront American democracy depend for their solution upon a clear understanding of the facts s

NS ON T

e chief reason

"old way of ge

nt by the "new way

ef effects of the In

onomist's definit

es Nature help

relation of N

labor is necessa

nature and func

ination as a fact

ifth factor

RED R

ings in American De

f the fo

ntary Economics,

iption of Indus

es of Economic

f Nations, Book I,

N THE REQUI

es rise to the division of

n the two kinds of division of

te the principle of the divisio

ry illustrate the principle of the

l illustrate the principle of the div

ich result from the division of labor? (Smith,

complex division of labor upon

rces of power utilized by

gin of capital. (C

tors which give value to

ividuals co?perate to furnish the humblest work

f modern industrial effi

INVESTIGATI

n of labor. Secure the amount of output per man by dividing the total product by the number of workmen co?perating in its production. Compare the output

cts of the division of labor upon the health and spiri

chiefly or entirely upon human, animal, water, steam or electric power. Why do

incomes chiefly or entirely from land, labor, capital, or the process of co?rdinating land, labor,

ve factors of production has contributed toward

of Economics, chapter iv. Cheyney, Introduction to the

ries A, pages 73-83; Series B, pages 17-25; Series C, pages 17-25.

lution in the United S

ed States, chapter

vi. Marshall and

ion, chap

f the cotton gin. (Co

and the reaper. (Con

of Bread. Additional material on this subject may be secure

eel. (Smith, The Story of Ir

tion. (Lessons in Community and Nati

States government. (Dryer, Eco