The Freeman 1972 - The Ludwig von Mises Institute

1972 FABLE OF THE BERRY PICKERS 709pation with "consumerism", to theneglect of improved use of availableresources, and expansion ofproductive capacity through capitalaccumulation, does not repre~sent praiseworthy public policy.The campaign to "protect" theconsumer by government actionbecomes especially objectionablewhen it reaches the point - as itnow has - where business firms aresubjected to a degree of harassmentthat clearly impedes operationand increases costs. Indeedthis state of affairs is truly ominous,and should be viewed withalarm rather than acclaim. Thewheels of production don't keep onrolling automatically, without anencouraging overall climate andthe efficient participation of allhands - attendants and operatives,technicians, managers, and fundfurnishers.Opening the Door on ProblemsAcceptance of Proposition One,with the accompanying view ofeconomic activity as a dichotomyof producing and consuming, solvesno problems. But recognition ofthis axiomatic, universally applicable,feature of economic lifedoes provide a useful approach, agood starting point, for furtherstudy; it serves to open the doorto an examination of importantissues and problems.The bare statement of PropositionOne leaves untouched the criteriaof "producing" and "consuming"and further inquiry is neededto ascertain the essential characterof these broad divisions ofeconomic activity, particularly inan economy where specializationand exchange are highly developedand a myriad of consumer commoditiesand services flow from acomplex array of plants and equipment.What are the earmarks ofproductive conduct versus nonproductiveaction? It's easy to saythat producing consists of makinga contribution somewhere alongthe production pipeline but thisdoesn't tell us much. For onething we must distinguish betweeneconomic and noneconomicgoods (the latter being ratherhard to find these days, when eventhe air breathed may not be entirelyfree of cost to the user orsomeone else). And who or whatdetermines the composition of theoutput either in a particular enterpriseor for the whole economy?Proposition One, as such, leavesthis important question unsettled.The problem of drawing a linebetween the producing and consumingstages, and distinguishingresources employed in producing("capital goods") from end product("consumer goods"), is lessimportant, but perhaps deserves afew comments. Where does productionend and consumption begin?