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George Bernard Shaw on Calculation

George Bernard Shaw on Calculation

My wife alerted me to this surprising passage from An Unsocial Socialist. Did Mises read Shaw? (This came out in 1883.) The whole opening of Chapter X is funny, but here’s the best excerpt:

Trefusis now encountered a difficulty. He wished to pay the mason the just value of his work, no more and no less. But this he could not ascertain. The only available standard was the market price, and this he rejected as being fixed by competition among capitalists who could only secure profit by obtaining from their workmen more products than they paid them for, and could only tempt customers by offering a share of the unpaid-for part of the products as a reduction in price.

Thus he found that the system of withholding the indispensable materials for production and subsistence from the laborers, except on condition of their supporting an idle class whilst accepting a lower standard of comfort for themselves than for that idle class, rendered the determination of just ratios of exchange, and consequently the practice of honest dealing, impossible.

He had at last to ask the mason what he would consider fair payment for the execution of the design, though he knew that the man could no more solve the problem than he, and that, though he would certainly ask as much as he thought he could get, his demand must be limited by his poverty and by the competition of the monumental tradesman.

Trefusis settled the matter by giving double what was asked, only imposing such conditions as were necessary to compel the mason to execute the work himself, and not make a profit by hiring other men at the market rate of wages to do it.

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