A history of Greek economic thought .. by Trever Albert Augustus

Author:Trever, Albert Augustus. [from old catalog]
Language: eng
Format: epub, pdf
Tags: Economics
Publisher: Chicago, Ill.
Published: 1916-03-25T05:00:00+00:00

standard by which all products are measured is need or demand (xpeia) for reciprocal services, 1 thereby making demand a social fact dependent upon organized society. It is, in his thought, the "common denominator of value" which finally determines the actual basis on which all goods are exchanged or services rendered. Elsewhere Aristotle's conception of value is more individualistic, like that of Xenophon and Plato, but Haney 2 overlooks this passage in asserting that his notion of value is "purely subjective." It is not merely "equal wants" that are considered, as he states, but equal costs as well. 3 This demand, or common measure of value, is expressed in terms of money (vdnurfxa). 4

It is clear then, from this passage in the Ethics, that Aristotle understood that economic value is determined by demand, as measured in money, and by labor invested or cost of production. 5 This latter element, of course, involves the condition that the product be limited in supply, though this is not expressly stated. 6 To be sure, the interest of the moral philosopher is also paramount here, 7 as in the Politics passage. The thought is centered on fair exchange, as a phase of justice, rather than upon the problem of value. Nevertheless, his discussion reveals a clear insight into demand and cost of production as the two most important elements in economic value. 8

1 1133025-27; 1133&6 f. Cf. p. 34, n. s, for Plato's use of the term.

2 Op. cit., pp. 47 f.

3 Cf. the discussion and notes above; also 1133015 f., where both elements seem to be recognized, though the meaning of the passage is disputed. Cf. infra, p. 108, n. 3.

4 1133019 ff.; 29; 1133610 ff., cited infra, on money. It clearly distinguishes the quality of exchangeableness. Cf. iv. 1. 1119626 f., cited infra, n. 7. Cf. pp. 38 f. for Plato's theory.

5 So Stewart, op. cit., in loc; Zmavc, Arckiv., etc., p. 415, who criticizes Karl Marx (Kapital, 4th ed., I, 26) for denying this. Barker (op. cit., p. 379) says that Aristotle did not recognize the "seller's cost of production"; but cf. 384, where he implies the opposite.

6 But cf. his definition of wealth, pp. 85 f.

7 Bonar (op. cit., p. 40) criticizes him for this. The words d£ia and ri/j.7] are not used in the passage, but for the former in a very clear economic sense, cf. iv. 1. 1119626-27; xPVpa-Ta 8£ \tyoiJ.cv irdvra 8<rwv i] d^la vo^lff^an perpetrat..

8 For further discussion of this Ethics passage, cf. infra on money, exchange, and distribution. Mag. mor. i. 33. 1193619-119462 repeats the idea, citing Plato Rep. on the exchange of the four producers in his primitive state.

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