The Theory of Idle Resources by W. H. Hutt

Author:W. H. Hutt [W. H. Hutt]
Language: eng
Format: epub
ISBN: 978-1-93355-095-4
Publisher: Ludwig von Mises Institute
Published: 2011-11-06T16:00:00+00:00

CHAPTER VII

PARTICIPATING IDLENESS

(1) Resources are in participating idleness when their idle existence confers the right to participate in monopoly-revenues

WE COME next to the consideration of a condition which can very easily be mistaken, in some circumstances, for “pseudoidleness.” We shall call it “participating idleness.”1 The condition arises when, as the result of a price higher than the competitive, resources remain attached to, or are induced to attach themselves to an occupation in which they are not actually employed. The inducement which prevents their scrapping is the fact that their owners acquire the privately or legally conferred right of participation in the monopoly-revenues or the chance of so doing. The right is usually contingent upon some productive services actually being offered in the monopolized field by the participating individual or firm. And some of the services available may actually be utilized. But the resources providing those services are either only partially employed or else only intermittently employed. To discuss this question we must make use of the largely self-explanatory conceptions of “enforced idleness” and “withheld capacity,” whose full significance we shall endeavor to make clear later.

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