Service (economics)

“ In its last analysis a service is never a material thing, but a psychic effect on men and their wants. Material services and human services are merely specific kinds of the genus services (or utilities) , and it would doubtless be a better usage to speak of labor's services and wealth's uses. Wages bear the same relation to man's services that rent does to the material uses of wealth. Wages are more like rent than like interest in that neither wages nor rent are expressed as a percentage. While rent is the value of the uses of things, wages is the value of the services of men. ”

“ Though we measure service-value by Money, though Money fluctuates as a Value-measuring device, though some individual services fall in product value relatively to the productive power of service, though some individual services may increase in Value for one reason or another, there is nevertheless a Value level in Trade which tends constantly to maintain an equilibrium between service-value and service-utility. Money-measured Value and Money standards of Value may rise above or fall below the service-cost of produced commodities. ”

“ As human services naturally tend to exchange at par for equally desirable human services, so do different forms of Wealth, each product of human service, tend to exchange at par for equally desirable forms of Wealth; and as Wealth in the Rent category and Wealth in the Wages category are alike service-products of Labor applied to Land, exchanges of every kind of Wealth tend to be effected on the basis of equality in the expenditure of Labor for their Production. ”

“ If Economic thinking is to be done with definite terminology instead of word-juggling, all compensation for human service must be expressed by a technical term different from the technical term for premiums for varying grades of Natural Resources. The accepted technical terms are Wages for Human service and Rent for Natural Resource advantages. Though “rent of ability” be picturesque in dramatics, it is farcical in Economics. ”

“ To the degree that governments faithfully exercise their legitimate public functions and refrain from interfering with legitimate private functions, they contribute to the Productive Process. This is demonstrated by observable Economic results. Wherever Government approximates a realization of its functions, Economic conditions are manifestly better than where it neglects or abuses them. Evidently, then, Government is a form of human service which, like all other human service forms, belongs as an Economic factor in the Labor category. ”

“ Honest Business, inclusive of all serviceable activities—service for service, to adopt a phrase in definition of Business—would be identical with Economics. Either, like the other, may be described superficially as the process of the science of making money.
Quite consistently with the foregoing survey, Economics has been described as the science of “mankind making a living.” This definition, too, excludes the solitary life by limiting Economic science to cooperative mankind—in other words, to Economic association. ”

“ But taking men as they are and things as they are, in most [Pg 301] places the enterpriser's service is necessary and must be paid for. His contribution to the success of the industry depends on his nature and ability, and it can be distinguished theoretically and practically from the contribution made by the workmen. Nothing but changes in human nature, in education, and in morality can diminish the necessity for his service. ”

“ Involving the production of commodities by individual contributors of human service through an infinity of specializations, and their assignment to individuals by the intricate processes of service for service, Trade tends not only to increase the per capita supply of commodities, but also to effect their fair per capita assignment in proportions corresponding to the relative desirability of the numerous and various contributions of individual service to their production. ”

“ The “enterpriser” is a worker whose compensation for service is not fixed but depends upon the profitableness of the enterprise he pursues, which may be any business venture from mining or manufacturing to merchandizing, and in any capacity from employer seeking “profits” to salesman on “commission.” To eliminate this type of Economic service from the fundamental Labor category in Economic science is not only useless and misleading but also absurd. ”

“ There is here suggested the superficial aspect of what is known as the problem of complementary values. Where two or more things are indispensable to a product, how much shall be credited to each?
Labor gratifies directly and indirectly
4. Human service has the same general relation to wants that material goods have, affording gratification either directly or indirectly. It is axiomatic that to be "economic goods" human efforts like material goods must afford utilities whose importance is felt. Many services give pleasure directly and are immediately consumed. ”

“ Collection in other cases, as for the service of lighthouses to passing ships, is impossible. Public industry secures, through the economy of large production, a cheaper and more efficient service, the benefits and costs being diffused throughout the community. ”

“ In describing Trade as consisting essentially of interchanges of human services, we are of course to be understood as including not only such services as are embodied in tangible commodities, but also personal service. ”

“ Through the processes of Trade, myriads of commodities for the satisfaction of human wants, commodities produced by human service to the point of delivery to ultimate consumers, flow to ultimate consumers out of retail stores. These depots for final delivery in Trade are the customary terminals of production, where certifications of service in terms of Money are usually exchanged for products of service in the form of commodities. ”

“ The wages paid by the various methods of remuneration—as, by time, by the piece, by premium for output—all conform in a general way to the economic value of the service. Many methods are employed to measure the services of wage workers. If time is used, a general or average output is assumed, and the workman must come up to that standard if he is to hold his place. If payment is by the piece, the price per piece must be enough to make possible the prevailing time-wage to workers of that grade if the supply is to be maintained in that industry. ”

“ One kind of corporate service, a comprehensive kind, should perhaps be given brief special consideration for the double purpose of illustrating the Productive functions of every variety of corporate service and of explaining the Economic characteristics of that outstanding one of all. ”

“ If he is one of an absolutely free community, he can obtain what others are willing to give him in Trade for the service he renders directly or indirectly to them. If Production be arbitrarily obstructed, whether by impediments to Natural Resources or to Trade, his ability to obtain Wealth is not so much according to what he produces or to the service of any other kind that he renders, but according to his command over the sources of Production and the channels of Trade whereby he may levy tribute or escape it. ”

“ So, too, of every other kind of human service in the Productive Process, whether the service take on such direct forms of Production as making Artificial Objects and such as delivering them from hand to hand or place to place, or such indirect forms as promoting the comfort, the enjoyment, the health, the education, the cleanliness or what not (provided it be Economically legitimate) , of such human workers as literally do make or deliver Artificial Objects. All are in the Labor category. ”

“ The Services may be conceived of and spoken of separate from the Value into which they merge, although they come into existence solely for the sake of that resultant Value, and it is more exact and final to propound that Money, itself a Service, is a measure of all other Services considered as constituent elements of the Values into which they fall. ”

“ Requiring effort to produce, these economic goods are limited in supply and hence have a value in exchange for other goods. For this reason they are commonly spoken of as wealth. Certain personal services, those of the physician, the lawyer, the foreman, the laborer, also have an economic value in that they are limited in supply, satisfy material wants, and can be exchanged for tangible goods. These services form a part of the economic activities of society, a very important part. So the study of economics includes these personal services as well. ”

“ Every one is taught a trade or a profession according to its bent and the demand for services in the several callings, it being the policy of the state to so regulate [118] these things that the value of services is about the same in all callings. ”

“ When we are told in the later political economy that the several agents or factors in production normally earn what they get, it is perhaps fairly to be construed as a claim that the economic service rendered the community by any one of the agents in production equals the service received by the agent in return. ”

“ From the selfish point of view the chief interest of the employer is to keep the bills down and to get the greatest possible amount of service even at the cost of the greatest expenditure of human strength; among employees, it is to do sufficient work to retain a good place, and to use whatever materials are most convenient. ”

“ The advantages in the scheme are in the saving of expense in buying, economy in the preparation of all the materials consumed, a division of labor on the part of the co-operators which enables each to follow her own tastes in work, and a removal of all difficulties with the subject of service by making the servants responsible to a corporation, not to individuals. ”

“ Capital and the Administrative Staff—Capital and the Manual Workers—The Manual Workers inter se—The Administrative Staff and the Manual Workers—Industry and the Consuming Community—Industry and the Nation.
Before we can construct any scheme of reform of our industrial system we must have a clear idea of what is industry. In the prosaic language of economics it is a purposive production of commodities and services, the immediate object of those engaged in it being to provide, through the result of their work, the material means of satisfying their wants and desires. ”

“ This includes the labor invested in the necessary transportation, superintendence and distribution. Hence in our accounts, the value of products of all kinds are credited and debited as given amounts of labor. This is what in the outer world would be called the price. A given number of hours of labor in one branch of useful service to society is worth just the same number of hours of labor in some other branch, and the exchange is made on that basis. The one primary object of this system of exchange is to secure equal and exact justice to all. ”

“ In any system of universal service there needs to be some plan of industrial adjustment, as to time, payments, and releases from work, so that the burden will not fall too heavily upon special industries at critical times of output. ”

“ Precisely the same objections that hold in all other employments to the wage system hold as well in domestic service. In other occupations it has been seen that the almost universal testimony of those who have tried profit sharing is that the system results in economy in the use of materials, care in the handling of machinery and implements of work, and a feeling of partnership, the spur of which as a motive “is only excelled in sharpness by complete proprietorship.” ”

“ But division of Labor would be useless were it not for Trade. Each of those frontiersmen must trade his share in the other’s habitation for the other’s share in his habitation; each of those messengers must exchange his claim to compensation for delivering one of the other’s two messages for the other’s claim to compensation for delivering one of his. This, then, is the sum and substance of Trade in Economics—adjustments of compensation for specialized Production through division of Labor. ”

“ The corporation employing thousands of men and supplying millions of people with some necessary service or commodity may reduce the cost of production only for its own profit. The state may use its great authority chiefly for the benefit of special interests. ”

“ How Unlike Services may be rendered by One Good at the Same Time.—What people want of any useful thing is an effect in themselves,—a pleasure or a benefit which they expect to get,—and apart from this subjective result they would not want the thing at all. The power to confer a particular benefit is a utility. Men buy goods solely for their utilities, and they measure these service-rendering powers in the things offered to them and pay for them accordingly. ”

“ While the responsibility of such a lessor should be a commensurately heavy one, and the matter of how to define and limit it is certainly not an easy question, it ought to be approached, as a policy matter, from the standpoint of balancing all the interests involved. Not to be overlooked is the obvious economic impact on this particular service industry in the light of the important function it has come to serve in today's society. ”

“ The dominant conception operating in this economic community is that of public service. The theory expressed in the book, however, is subordinated to a description of actual facts—the administrative treatment of labour conditions, unemployment, commerce and finance, which will be found valuable even by those who do not agree with the theory, since the description is the only one which covers contemporary post-war administration. ”

“ A third group of functions embraces the direct participation in industry by the Government itself, as the post-office, gas, electric, and water works, canals, roads, sewers, parks, etc. In other countries, when the functions of government are more extended than in the United States, it conducts railroads, telegraph and telephone systems, tenements, pawn shops, theaters, industrial insurance, or various other activities. The line which divides public from private enterprise varies greatly in different countries. ”