|The Moving Finger of Price in the Holy Grail of Economics|
We have now seen how the economic system as a whole takes its course; we have seen how purchase or sale, loan, and gift act as impelling factors, motive factors, within this system. Let us realize at once that there can be no economic system without this interplay of loan, gift, and purchase. The influences which create the economic values (of which we have already spoken from one aspect) and lead to the forming of price will therefore proceed from these three factors: purchase, loan, and gift. The important thing is to understand how the three factors work in the forming of price. Only by perceiving this shall we succeed in any degree in formulating the price problem.
Industrial Capital is altogether implicated in the free activity of the Spirit; hence it is constantly being devalued; and we may say, on this side (Diagram 4), there is inherent in the economic process a tendency, while we create rents, to lower industrial Capital, to make it lower and lower in value. Just as things become more and more expensive on the one side, on the side of ground-rent, so do they become cheaper and cheaper on the other side, on the side of Capital. Capital has a permanent tendency to go down in its economic value, or rather in its economic price. Rents have a permanent tendency to rise in price.
are, as it were, Nature grasped by the Spirit. Nature can be elaborated and sent on in this direction, in which case it becomes Capital; or it can be sent in the other direction, in which case it becomes means of production.