Suppose now that the spring supplying the individual of the isolated economy with water is even further exhausted, to such an extent indeed, that only forty units of water are available to him daily. Now again, just as before, the maintenance of his life and well-being will depend on the availability of this whole quantity of water. But the situation has changed in an important respect. If earlier some one of his pleasures or comforts depended on the availability of each, in any way practically significant, part of the whole supply (one unit, for instance), now the question of a unit more or a unit less of water being available per day is, for our Crusoe, already a question of the more or less complete maintenance of his health or general well-being. In other words, if he should lose one unit, the effect would be that he could no longer satisfy one of the needs on whose satisfaction the preservation of his health and his continuing general well-being depend. If a single pail of water had no value whatsoever to our Crusoe as long as he had several hundred pails at his disposal daily, and if later, when he had only go units daily, each unit had only the importance of some particular enjoyment dependent upon it, now each part of the forty units still
available has the importance to him of much more important satisfactions. For now the satisfaction of needs whose non-satisfaction impairs his health and continuing well-being depends on each one of the forty units. But the value of each quantity of goods is equal to the importance of the satisfactions that depend on it. If the value of one unit of water to our Crusoe was at first equal to zero, and in the second case equal to one, it would now already be expressed numerically by something like the figure six.
Suppose, with continued drought, the spring should become more and more exhausted, and finally yield just the amount of water daily that is required barely to support the life of this isolated individual (hence in our case approximately 20 units, since he requires that much for himself and for those animals of his herd without whose milk and meat he cannot keep alive). In such a case, it is clear that each practically significant quantity of water available to him would have the full importance of the maintenance of his life. Hence a unit of water would have a still higher value than before, a value expressed numerically by the
figure 10.
Thus, in the first of our cases, we saw that as long as the individual had several thousand pails of water at his disposal daily, a small portion of this quantity, one pail for instance, had no value to him at all because no kind of satisfaction depended on any single pail. In the second case, we saw that a concrete unit of the go units available to him already had the importance of certain minor enjoyments, since the least important satisfactions that depended on go units were these enjoyments. In the third case, when only 40
units of water a day were at his disposal, we saw that more important satisfactions were dependent on each concrete unit. In the fourth case, still more important satisfactions became dependent on each concrete unit. In each succeeding case, we saw the value of the remaining units rising successively as more important satisfactions became dependent on them.
To pass on to more complicated (social) relationships, suppose that a sailing ship still has 20 days of sailing to reach land, that by some accident its stores of food are almost completely lost, and that only such a quantity of some one variety of food, biscuits for instance, is left for each of the shipmates as is just sufficient for the preservation of his life for the 20 days. This is a case in which given needs of the persons on the sailing ship stand opposite command of just the precise quantity of a given good that makes the satisfaction of these needs wholly dependent on the available quantity of the good. If it is assumed that the lives of the voyagers can be maintained only if each of them consumes a half pound of biscuits daily, and that each voyager has actual possession of 10 pounds of biscuits, then this quantity of food will have for each voyager the full importance of maintaining his life. Under such conditions, no one who prizes his own life at all could be prevailed upon to surrender this quantity of goods, or even any appreciable part of it, for any goods other than foodstuffs, even for the most valuable goods of ordinary life. If, for example, a rich man travelling on the boat should offer a pound of gold for the same weight of biscuits to alleviate the pangs of hunger inevitable with such scant rations, he would find none of his shipmates ready to accept such a bargain.
Suppose next that the voyagers on the ship have command of another five pounds of ship’s biscuits each, in addition to the 10 pounds already mentioned. In this case their lives would no longer depend on their command of a single pound of biscuits, since one pound could be withdrawn from their control, or exchanged by them for goods other than foodstuffs, without endangering their lives. Even though their very lives would no longer depend on one pound of the food, a pound of it would nevertheless constitute a protection against the pangs of hunger, as well as a means to the preservation of their health, since such
scanty nourishment, continued for twenty days, as would be the fare of all persons having only ten pounds of biscuits at their disposal, would unquestionably have an injurious effect on their wellbeing. Under such circumstances, although a single pound of biscuits would no longer have the importance to them of maintaining their lives, it would nevertheless have the importance everyone attaches to the preservation of his health and well-being, insofar as these depend on a single pound of biscuits.
Taken From : PRINCIPLES OF ECONOMICS
Taken From : PRINCIPLES OF ECONOMICS
