Elementary Principles of Economics

Cover Elementary Principles of Economics
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Many things are to-day easily obtainable by the poorest which two centuries ago could be enjoyed only by the most wealthy and powerful. Such things are never thought of as luxuries in modern days, but if their possession in the olden time required the exploitation of the poor and did not render their possessors able and willing to confer great social service in return, we must hold that they were then luxuries. To the illiterate man, a library is a luxiu-y; to the scientist, it may be a necessi
...ty for complete efficiency. These illustra- tions may serve to show the difficulty of reaching any simple and clear definition of luxury, and the equally great difficulty of establishing any universal principles by which we may always judge such expenditure. Yet it is possible to lay down a definition which at the same time implies a principle of social economy in expenditure and suggests an ethical pre- cept : Luxury consists in any consumption of commodities and services which is seriously out of proportion to the service that it enables the consumer to return to society, but which is not of necessity directly injurious to the consumer.

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