Le Nord : revue internationale des Pays de Nord - 01.06.1939, Page 386
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LE NORD
a more serious one, when the go-
vernments, in well-meant but short-
sighted attempts to avoid unem-
ployment, accept and support car-
tels and make it illegal practice to
compete or to reduce prices.
The opinion of the author on
these questions is quite clear. He
writes:
“The thesis of this book is that, for a
small country at least, it is fatal to allow
increasing State intervention to take the
form of buttressing and succouring those
economic activities which do not offer
reasonable possibilities of adaptation to
the changes of economic climate that are
inevitable in the circumstances*’. (p. 243)
“If the Government at the same time
through its economic policy tried to facili-
tate the transfer of the economic resources
from the industries rendered unprofitable
by the dynamic economic development to
these which had been ascertained to be
the strategically right ones the opportuni-
ty to increase national income through in-
crease in production and sale would quick-
ly materiaiise”. (p. 267).
The author claims in several
place State intervention. As will be
seen, it is a special kind of inter-
vention the author wants, viz. in-
tervention to combat monopolistic
elements. Considering that the con-
cept “State-Intervention”, in the
economic, as well as in the political,
discussion, has got a very definitive
meaning, viz. intervention that re-
duces the opportunity for free com-
petition, the author’s use of the
term appears somewhat unfortunate
and is liable to create some confu-
sion. However, this confusion is not
due only to the choice of words.
The germ is to be found in the old
dilemma of liberalism: on one hand
is claimed free markets and elimina-
tion of state intervention and on
the other hand state intervention
is claimed to secure free markets.
It may seem farfetched, but the
reviewer misses, in a treatise like
this, a reference to the fact that the
degree and form of the adaptation
of a national unit will depend on
the aim of the economic activity of
that unit. The need for adaptation
will be another — and an easier to
meet in a society, where “war-eco-
nomy” or “defence-economy” is the
main goal, than in a society where
the aim is to satisfy the changing
needs and desires of consumers. It
will also make a great difference
whether these needs are to be deter-
mined by a central authority (or
paternalistic government) or by the
consumers themselves. These ques-
tions are non-economic ones, but
they have a deciding importance
for determining to what extent eco-
nomic adaptation is required in any
society.
The bibliography of the book is
extensive and valuable. The book
has also a good index, though it
does not contain references to all
the interesting subjects treated. The
book has been printed in big and
distinct letters which makes it easy
and agreeable reading.
Trygve ]. B. Hoff.