Essay Introduction

In this striking allegory, C. L. Dickinson strips away the complexities of modern civilization to reveal the bare bones of economics. Imagine a world reduced to rubble, where survivors must rebuild from scratch. In such a setting, the illusion that money itself constitutes wealth vanishes instantly. Dickinson uses this stark scenario to demonstrate a timeless truth often forgotten in the age of central banking and welfare states: production must always precede consumption. Printing money (or government checks) creates nothing if no one is working to produce the food, clothing, and shelter that the money is supposed to buy.

Dollars Make Poor Eating

by C. L. Dickinson

IN America today, we are surrendering our basic liberties. The complexity of the daily affairs of 150 million Americans baffles us. Perhaps we can more clearly appraise the danger of economic suicide under the "welfare state" if we think in terms of our own small group.

Imagine, if you can, that those of us gathered here are the only survivors of a thoroughly destructive hydrogen bomb explosion. Gone are our factories, offices, homes. Every product of civilization has been reduced to the natural state which prevailed when Adam first set foot on earth. How shall we proceed under these conditions to solve the problem of survival?

We know, of course, that we must put our minds and our hands to producing food, clothing, shelter-the things we use in our daily living. Represented here in this pile are the raw materials-wood, soil, ore, rocks-from which we may produce finished consumer goods. If each of us were to attack this pile of materials, molding them into finished goods, we could soon demonstrate to our own satisfaction that the supply of finished goods depends entirely upon how hard and how long and how efficiently we work. The more finished goods a person produces, the more there is for him to eat, wear, and enjoy. By hard work, our standard of living can improve; there is no other way.

We know, also, that we face a problem of distribution of these finished goods among ourselves, once they have been produced. Shall each of us retain what he produces for use or exchange or disposal according to his own choice? Or is there a better system?

Few persons enjoy work. Some downright abhor it, and they envy the hard workers who are enjoying a better and better living, and who by saving some of it, have more and more. Suppose these drones call a meeting. Since it is mainly their kind who would attend the meeting, while the others are working, they might vote-in a purely democratic way, among those present-to set a limit of 32 hours of work per week, and to compel a minimum wage of $100 per week. And they might also vote unemployment benefits of $98 a week, and vote every citizen a $200 per month pension beginning at age 45. "Why wait," they would argue, "to enjoy old age until you're too old?" All payments would be made in paper money, which they would make the legal and lawful currency.

Under this plan it would be necessary for some of the workers to watch the other workers, and see that they don't do too much work, or accept pay below the legal minimum, or retire too late; and some must handle the pension scheme. The remaining producers will discover the futility of their efforts under these conditions, and the pile of goods will dwindle toward nothing. Why work to produce more if the results of your efforts are taken from you against your will?

Despite little or no production, leaving the pile of wood and soil and rocks untouched, the unemployed and the pensioners could continue to get their weekly checks just the same. They would receive pieces of paper on which the dollar sign is printed, offered with the kindly words: "There you are, my good man; use this to buy things you need to eat, wear, amuse yourself-in fact, do anything you wish with it."

Dollars make poor eating.

About the Author

C. L. Dickinson assists the General Manager of the farmers' Cooperative G.L.F. Exchange. "Dollars Make Poor Eating" is extracted from a 1950 address.

Attribution

Dickinson, C. L. "Dollars Make Poor Eating." In Essays on Liberty, Vol. 1, 125-127. Irvington-on-Hudson, NY: The Foundation for Economic Education, Inc., 1952.