The Unity of Law - As Exhibited in the Relations of Physical, Social, Mental and Moral Science

...a concept of value so simple that, in the words of one of the leading experts in economic science, “there could be no situation where a person decides to make an exchange where this rule would not apply.” Here, as everywhere, simplicity and broad application go hand in hand. This law covers every commodity or object that can have value, and thus contributes significantly toward proving that natural laws are universal. Previously, the value of land had been attributed by all economists to causes widely different from those that gave value to the goods produced on that land.

Until then, among the many theories about the “nature, measurement, and causes of value,” none had existed—to quote the same high authority again—that had not proven itself to be “prone to constant exceptions.” The law provided at that time was that of labor saved; the limit of

“Carey, and after him Bastiat, have introduced a formula based on observation original: à posteriori that I believe is destined to be universally adopted. It is deeply regrettable that Bastiat limited himself to only mentioning it occasionally, instead of giving it the importance that Carey so rightly did. When evaluating the balance between the cost to oneself and the benefit original: utility to others, a thousand circumstances may interfere. It is desirable to know if there is a universal law or principle among humanity. Concepts like supply and demand, scarcity original: rarity, and abundance are all insufficient and prone to constant exceptions. Carey noted, with great insight, that this law is labor saved, or the cost of reproduction—an idea that I think is most brilliant original: felicitous. It seems to me that no case can arise where a person decides to make an exchange where this law would not apply. I will not consider a trade equal unless I see that the item comes to me at a lower cost of labor than would be required for me to reproduce it myself. I consider this formula to be most brilliant; because while on one hand it retains the idea of 'cost' (which the mind always considers), on the other it avoids the absurdity of theories that pretend to see value as always equal to the initial cost of production. Finally, it more perfectly demonstrates the essential justice that governs us in our exchanges.”—FERRARA: Library of the Economist original: Biblioteca dell’ Economista*, volume 12, page 117.