Germany's Economic Power of Resistance, By Prof. Gustav Cassel
Germany's Economic Power of Resistance, By Prof. Gustav Cassel
Gustav Cassel
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It may be useful to devote here a moment to an analysis of what is really involved by this problem. Under normal condi- tions, prices have the social-economic function of restricting the demand for any kind of serviceable articles, so as to bring the demand in harmony with the available resources. Under the abnormal conditions caused by the war, prices cannot per- form this task without rising to unreasonable heights. The popular remedy is the fixing of prices by law. But people forget that thi...s will not give any solution to the chief prob- lem — the necessary limitation of the demand. This problem must be solved, and it is not before it is seen that this task is the vital one that people begin to find the right means of solving the food supply problem. This means is the direct limitation of individual consumption by regulations which, of whatever nature they may be, have this in common, that in cooperation with the prices, charged, they bring about the neces- Digitized by VjUU*^IC 44 Germany's economic power of resistance sary restriction of the demand.
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