Production; A Study in Economics

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1907. Excerpt: ... the inhabitants to manufacture them for themselves, and so cease to import them from abroad. And in the course of time this result generally is attained. The nation instead of consuming as heretofore cheap foreign manufactured goods will now use the dearer home manufactured goods which owe their existence to the high duty. It might be imagined that the manufacturers would remain content with this, and not wish to aim beyond this original objective, namely to purvey at a high price for home consumption articles hitherto manufactured abroad. It might even perhaps be best for them to avoid any further increase of the production, and confine themselves to producing exactly the quantity of products necessary to meet the nation's demand. Such an arrangement, however, whether they desire it or not, would be difficult of accomplishment. A new phase of manufacturing operations in the protected country is at hand: it may be called manufacture's second period. 117. The Subsequent Effects Of Duty (a) Comparison of the two Periods The characteristic feature of the first period was that during that period the protected manufacturers pursued and attained their object of superseding foreigners, and themselves supplying the nation with manufactured goods at high prices. When the protected manufacturers pass this limit for their production, and produce more manufactured goods than the nation can consume, the second period has commenced. How the conditions in the second period of protection will develop depends upon so many different circumstances and causes that no universally received rules can be given. A rough sketch of the distinguishing features of the period is all that we shall here attempt to give. (b) The Signs of Over-Production of Manufactured Goods It is...