The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-07
ovERrRoDtcTIoN. AN ABsuRDrTY.

In 1893 and again in 1896 we heard a vast
deal about ''overproduction." Indeed, it is
difficult to recall an Industrial depression
during the past century that "overproduc-
ton" has not been put forward as one
of the contributing factors, If not the
chief cause.
1t is one Of the peculiarities of economic
history that theories. utterly absurd in
themselves, will occasionally obtain almost
universal recognition among not merely
economic thinkers and writers, but also
among the great mass of intelligent and
thoughtful people. 1t will be recalled that
at one time practically everybody believed
in the "wage-fund'' theory, the absurd no.
ton that there was just so much money
in the world hat could be devoted to
wages, and the more wage-earners there
were the less would be the portion of each.
Nor did we succeed in shaking off this
absurdity until modern statistics showed
a steady Increase of wage-earners accom-
panied by an increase of wage rates.
Twenty years hence We shall laugh at
the notion of ''overproduction" as heartily
as we now laugh at the exploded wage
fund theory. We shall by then realize that
we have been producing vastly more than
we ever did before in proportion to the
number of consumers. without ''overpro-
ducing." There is no such thing as over
production. The word, taken in it's gen.
eral economic sense, reduces itself to an
absurdity. 1t implies that a whole people
may work too much and produce too much,
produce too much wealth. 1t leaves out of
account altogether the expansion of hu-
power In a people working actively and
accommodating wealth.
The only invariable economic laws are
those founded deep in human nature. He
that attempts to build an economic axiom
on physical conditions OF the period builds
his theory on self-interest or some other
fundamental human instinct, has a law
that will stand. Next to the instinct of
self-preservation in the human breast
comes the desire for comfort, the longing
to enjoy the good things of life. 1t is
tLiS tiidt has biOdbAt IN huiidh idSc "
barbarism to civilization. 1t has caused
houses to supersede caves, the railroad to
supersede the donkey and the Atlantic liner
TO replace the dugout canoe. While 1t may
fail occasionally in the individual. it is as
dependable in the mass as the selfish in
stinct that makes Gresham's law more
potent In finance than all the huma1
statutes ever enacted.
1t Is this phase OF human nature that
keeps the expansion of human wants in
variably ahead of the increase of purchas-
ing power. Therefore. whenever industrial
society is so organized that the purchas-
ing power of the people will advance in
due proportion to their productivity the
| product of their labor will be absorbed.
When 1t is not so absorbed the trouble lies
I'm their method of distribution or of ex-
| change; IL annot be that they are pro-
ducing too much. Let US take the indi-
vidual Smith. as a fair type of the con-
sumner. If Smith be idle most OF the time,
| and getting but little for what work he does,
he lives i'm a boarding house. He consumes
but little In the way Of breaastuffs or
! provisions. and little In the way OF cloth