Production
Say proposes a new definition of production: it is not a creation of matter, but of utility. It is not measured in physical units, but in utility degrees (Say 1803 [2006]: 78). The Physiocrats maintained that craftsmen were unproductive because they did not produce any surplus, the value of their products being equal to that of their consumption.
Say disagrees: craftsmen produce at least the interest of the capital used. For Smith (1776 [1976]: 330) the labour not embodied in some material object does not produce any value and is unproductive. For Say, instead, this labour renders useful services and produces an “immaterial product”. He admits however that this labour cannot be accumulated and cannot increase the national capital. Charles Dunoyer (1827: 68) accused him of being inconsequent: the fact that a product is immaterial does not imply that it cannot be accumulated, as the example of knowledge clearly shows.Say, moreover, does not think that the division of labour can alone explain the progress of wealth - well-being augmented because men learned how to better exploit natural resources. Sciences are the basis of industry and wealth, but this is not enough: it is necessary to know how to exploit its discoveries in order to satisfy the human needs. This task is performed by industry. Invention and innovation lie at the heart of the development process, of which scientists and entrepreneurs are the deciding agents.
More on the topic Production:
- Agricultural production
- THE THEORY OF PRODUCTION
- Production, capitalization and money
- Production
- Organization of production and the second social question
- 1. MODES OF PRODUCTION
- The production of security must be submitted to competition
- THE MALTHUSIAN ANALYSIS OF THE LAWS OF PRODUCTION IN AGRICULTURE
- Georges Sorel and the proper context for production
- Transition rates