BOOKS OF THE DAY

Dominion, Volume 14, Issue 6, 2 October 1920, Page 11

BOOKS OF THE DAY

''The Real 'Wealth of Nations."

Mr.'John'S. Hecht; follow of tfie'ltoyat Economic Society ,and, author of "The Real Wealth of' Nations, or A New Civilisation and Its Economic Foundations"' (tr. C.- Harrap mul- Co., per Australasian! Publishing. Company, and Whitcpmbe and Tombs))' inust m Credited 1 witH 'laving written a book on; 'latterday economio k problems wMdh-' is very--largely original in v its, general theory''and- detailed con'teitipns and proposals.'' ' What-"Is more, tfyy author's clarity, of expression" is such that hW'bobk should -app>;a'l :-to 'a.'.large, class of readers who are apt to be repelled, by the'all'too frequent vagueness and' .lack of decided, argument, one way or the "other, ;to.be found in works. deaiing.ivith wtet, uidef it's, old- name 'of--political .ioonoiny, was onco, fityle'd "the ' dfsinal "ecieSce."\ Whether the reader[accp.iits'fir rejects HcchtV'th'eorles Wd practical; suggestions,-ihe- cannoj fail to be struck,' alike by ' 'the' 'novelty'' of somo at least, of- tho. features' of the author's economic plan and by the evident- sincerity ..'find earnestness pf itsr presentation. He oommenetjs by stating what he terms some "real fliiomn of economics" —thirty-one of them, Herearo Bomo'oi them:— ''

.. What man Dro'duccß.'is'man-wealth: and 'tta producor. Has .the. first; claim thernnn.He may not; however, keen it all. himself, as the law of the- '.'Survival -of. the Fittest" cannot be accepted'by humanity. ■The unity -of intrinsic value to .which 'all wealth Is measured.'. in.In any 1 year,-'on. any'..day, la. tho, dally necessaries of life'of 'the average man. • The real-cost of .production l?.the contumptlon of necessaries, -arid wealth only results when a: man. produces more in a given -time.'.than .he", "must"consume . Wealth and-: civilisation ''deDend noon - Labour and kpital only'.nro'duoe.wealth when : harnessed to skill or -brains. , Had' all !men been equal to ■ the lowest there would-.have: been, no v wealth. 110 • civilisation; and" no. progress; /•; All waste . harms- the. community, al-though-tho-waste ot othors often benejits .ffiaividuiils. • V Were .-all men equal,"the differences in the-.-physical .structure-' 'nj,4 climate of various parts-of 'the world:.would';make them nneaual. ' .

' ■'fSir. Heoht-is'not a'belieyer..ifi,the' benejfts'to ba derived ftota aniextertded inhe'says; "may benefit individuals' at the .'expense .of,-t.he nation, and .consequently, may-not promote - international '; concord-."' . !&«•:.; the money markets of the world, there, may be -objection to another axiom:-"One 'na,tibn must : ri6t'lß' : exchange, another' for-.'the" benefit of' indivi'dtifils." '. TAb" to!.'the~: itroß." "objective'of''Economics or-the:: Science of the • Government of' Nations,.; as.'.of the world," itris;:h6re-'declared; - :to be 'the maximum-.wealth-production afc.the least .labour-expenditure, combitaed _ with 'an •equitable •'exchange' ' arid » distribution, .' ■fhertof " ' • Mr.-V Hecht ; 'Amnvar interest- !'• srig 1 -"definitionof ■wealth." • "Anything or intangible' beyond; man's ;.iini jnediate I 'necessaries'-of ; life/which ■con''diices' to'"the welfare . and improvement «&£• the' hutiian irade." '; And'- again, i-, >•' •.

We have now shown "'that the , (mere existence."Of-neither capital ■ nor. .unskilled labour produces' 'wealth;' "\Wefl.lth. "Con' slstlnß Of a surplus-; of. : necctf»aries nr labour-saving devices, results only when both-are-harnessed to .skill .(and., we repeat that by skill is rileant any effort of hand, brain, or mind, desiened to achieve greater or better production or a higher efficiency); so that labour and: capital are the "team" and skill is the "whip" which must drive both and decide aB to their work and . reward.* '

. Mr. Heckt . very con-1 temptuous 'o'f 'the' average- politicians or so-called 1 rulers, and would replace- the present system by. one under which a government would be more largely composed of m-enof real knowledge, especially, scientific, knowledge) and heads 'of departments chosen for their expert adminiqtrativ.e skill. -Imports njyl-exports would be controlled ~by_ an industrial council, hom'e workers being, protected from competition by workers m other lands. The, old-time :;Victdrian. Free .Trader .lyoujd, I fear, have had a rude shock could ha havo. lived, to -peruse.Mr;.:Hecht's book. More than one of tho author's industrial proposals and predictions may-bo,voted too optimistic, but there can be no denying; that could "true profit-sharing" become universal, and strikes unknown, were the housing problem solved ' and the army' of unemployed and casual labour disappear, the "new civilisation" which is here propounded would he :-a- very jjeslT. able 6tate of affairs. Mr. Hecht's book has already attracted considerable attention both in Great''Britaiifana the United States, and will no doubt find many readers in this country. *