PAGE 8
THE BATTALION
TUESDAY AFTERNOON, AUGUST 15, 1944
Profit Motive Of
Economic Freedom
Editor’s note—This is the last in a ser
ies of articles begun last spring by F. B.
Clark, head of the Department of Eco
nomics, discussing economic freedom and
post war planning.
A widespread error prevails re
garding the motive, or impulse of
productive activity in an order of
economic freedom. It is almost in
variably spoken of as the profit
motive.
Careful attention given by lead
ing economists to the nature of
DR. N. B. McNUTT
DENTIST
Office in Parker Building
Over Canady’s Pharmacy
Phone 2-1457 Bryan, Texas
profits has resulted in the rejec
tion by them of the assumption
that the pursuit of profits is the
moving impulse of productive ac
tivity. In their less guarded mo
ments the. most careful of them
will sometimes employ the expres
sion, profit motive. They do it,
however, usually because they may
thus better make themselves un
derstood. When engaged in exact
analysis they would almost invari
ably employ the less objectionable
expression, self interest.
In one way or another everyone
who participates in any productive
activity is moved by self interest.
We do not mean by this that the
impulse is always, nor even most
ly, selfisfy. In this instance the
word self embraces many urges
other than those directly relating
to the particular individual.
An enumeration of everything
COVERALLS
My new shipment of coveralls in small sizes
has arrived—so let’s get a pair of Aggie Coveralls.
Don’t fail to visit our store for many
other hard-to-get items
See us before selling your used books, campaign
hats, A. M. C. Collar Ornaments. Help the Aggies
that will be here in the fall. Sell your A. M. C. if
you are leaving school.
THE STUDENT CO-OP STORE
that might logically be included in
the expression self interest as the
moving impulse of productive ac
tivity would amount to calling at
tention to the obvious. We may
wish for a higher motive. Possibly
some day mankind may attain to
a higher plane, and mutual aid, as
dreamed of by the anarchists, may
supplant self interest as the mo
tive. But as human beings are now
constituted it is just about as il
logical to speak of abolishing the
profit motive, which has been
shown should correctly be thought
of as self interest, as the urge to
productive activity as it would be
to eliminate the sexual urge as the
moving cause of the growth of pop
ulation.
We cannot even accurately speak
of the aim of business activity as
being that of making profits. When
we remember that each partici
pant in the productive process, in
econoihic analysis, has a share at
tributed to it, and when we re
member that none of these shares
is profits, we are forced to con
clude that profits are entirely un
necessary. Over long periods of
time, few business ventures actual
ly realize profits. Whenever, there
fore, profits have any part in in
cluding productive activity, they
represent a hope rather than an
aim.
Whether one is a business man
or a laborer, one is inspired by
identical impulses. For the lack of
a better term we may think of it
as making a living. The one thing,
above all else that inspires the
business man is that of “making
ends meet,”—keeping the accounts
balanced. In making ends meet,
however, all participants in the
productive processes have to be
taken into account. It is just as
certainly necessary that the one
who operates the enterprise have
a return commensurate with the
value of his services as it is that
TOWN HALL
presents
The Houston Summer Symphony
Under the direction of.
Ernst Hoffman
at
%•
KYLE FIELD
THURSDAY, AUGUST 1?, 19M
8:30 P. M.
Free to Aggies, Servicemen, and Residents.
the “laborer is worthy of his hire.”
A legitimate income to the busi
ness man carries no presumption
of profits as such.
Production for the Market
In one way or another, the mar
ket phenomenon makes its appear
ance in each of the other social
orders except anarchy. Even in an
anarchistic economy the market
phenomenon would appear unless
all goods and services actually did
become superabundant and hence
lose all value. In an anarchistic ar
rangement the law of supply and
demand, for those goods which did
not become free goods, would make
its appearance much as it does un
der economic freedom. The very
existence of the order of economic
freedom, however, is dependent on
an open market.
The most effective way to usher
in one of the other orders is to
render inoperative the open mar
ket. By inoperative we mean legal
ly inoperative. It is not likely that
we shall ever have perfect compe
tition in all of its aspects. There
is a great deal of difference be
tween having the power to do a
thing and having the legal right
to do it. I may not have the power
to undersell my competitors in an
order of economic freedom, but I
certainly have the right to do it.
If, however, my competitors are
allowed to invoke the courts to
inhibit my making the attempt
then neither the right nor the
power exists. In an order of eco
nomic freedom the right is pro
tected by the courts of justice with
the hope that wherever the power
exists it will become a reality.
It may well be that under con
ditions of free competition goods
of the same quality and kind will
bring uniform prices. Uniformity in
prices, however, exists because of
the operation of the great economic
law of supply and demand. Varia
tions from uniformity of prices of
identical articles on the same mar
ket is evidence of the absence of
open and free competition. Uni
formity of prices is not enough,
however, to assure the existence
of the open market. Price uniform
ity may exist because of a con
scious agreement among traders
but it does not have the sanction
of law in an order of economic
freedom, except in narrowly limit
ed fields where monopoly may be
defended as necessary or desirable.
(To Be Continued)
Cancer kills about 160,000 peo
ple every year in America.
—PRESIDENT—
(Continued from page 1)
continue to be worn after the
above-mentioned date.”
This order was released by Col.
M. D. Welty, commandant, and Lt.
Col. A. J. Bennett, CAC, executive
officer. The order will be distri
buted to the organizations as soon
as possible.
Seniors requested Gilchrist to
permit the wearing of senior boots
some three weeks ago and at that
time he said he would take the
matter under consideration with
an open mind. The announcement
came at the end of a series of com*
ferences which began last Wed
nesday morning, August 9. Anoth
er meeting was held Saturday aft
ernoon, August 12, with Col. M.
C. Welty and Gilchrist.
Tentative approval for the boots
was made at that time and discus
sion included the draft of the order
suspending the order banning
boots. After he had given approval
for the boots Gilchrist requested
that the men who are eligible to
wear senior boots endeavor to buy
the boots second-hand. He further
asked that those planning to wear
boots off the campus give the mat
ter careful consideration before de
ciding to do so and if they did de
cide to do so to exhibit discretion.
He expressed the viewpoint that
some elements would not approve
of A. & M. Cadets wearing boots
off the campus.
At the present time there are
21 men who have boots, 21 who
have boots ordered, and about 45
who have asserted that they can
obtain boots. This constitutes the
majority of the commissioned cadet
officers and seniors.
STUDENT CO-OP
Bicycle and Radio Repair
PHONE 4-4114
Enjoy Bryan’s fine New
Swim Pool at the Bryan
Country Club.
You’ll like the smart
ness and fine tailoring
of Catalina swim trunks
—there’s plenty of style
to choose from.
$2 to $5
f f)aldrop&(6
“Two Convenient Stores”
College Station -o- Bryan