A Note Concerning Winthrop's “Conceptual Difficulties in Modern Economic Theory”

Extract

In the article referred to in the title of this note, Winthrop quotes a paragraph from a recent article by me with italics inserted by him, and then proceeds to “translate” it into the language of an economic theory. Winthrop thoughtfully adds in a following paragraph the phrase, “… if I have not mistranslated him [Hull] into marginal terms.” The purpose of the present note is to correct what appears to have been a fundamental misunderstanding of the meaning of the passage, rather than an error of translation; at all events, it is only with the original meaning of the passage that this note is concerned. The paragraph as it originally appeared is as follows (p. 135) :

“Economic value in one of its more obvious and primitive aspects involves the exchange of an amount of commodity X possessed by person No. 1 for an amount of commodity Y possessed by person No. 2. This type of behavior can come about voluntarily and continuously only on the condition that person No. 1 has a striving potential for Y which is greater than would be his striving potential for X when he no longer has X; and when person No. 2 has a striving potential for X which is greater than would be that for Y when he no longer has Y. Thus the total striving potential of both persons is reduced by the transaction.”