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Essentials of Economics
A BRIEF SURVEY OF PRINCIPLES AND POLICIESby
FAUSTINO BALLVE
Translated from the Spanish and Edited byARTHUR GODDARD
D.
VAN NOSTRAND COMPANY, INC.
PRINCETON, NEW JERSEYTORONTO LONDONNEW YORK
 
D.
VAN NOSTRAND COMPANY, INC.120 Alexander St., Princeton, New Jersey
(Principal office)
24 West 40 Street, New York 18, New York
D.
VAN
NOSTRAND COMPANY
(Canada),
LTD.358,
Kensington High Street, London, W.14, England
D.
VAN
NOSTRAND COMPANY,
LTD.
25 Hollinger Road, Toronto 16, Canada
Copyright,
© 1963 by
WILLIAM VOLKER FUNDPublished simultaneously
in
Canada
by
D. VAN
NOSTRAND COMPANY
(Canada),
LTD.
No reproduction
in any
form
of
this book,
in
whole
or in
part
(except
for
brief quotation
in
critical articles
or
reviews),may
be
made without written authorization from
the
publishers.
1st edition, Mexico, 1956—10,000 copies2nd edition, Mexico, 1961—5,000 copies3rd edition, Mexico, 1961—5,000 copiesFrench translation, Paris,
S&Iif,
1957
Spanish editions
in
Buenos Aires
and
Guatemalaand
in
preparation
in
ColombiaTranslations
in
preparation
in
Germany, Brazil,
and Japan
PRINTED
IN
THE
UNITED STATES
OF
AMERICA
 
Foreword
Faustino Ballve* was one of those rare scholars who in-stinctively avoid the pitfalls of specialization; who have the giftof integrating the divisions of learning simply, yet without over-simplification. This was the talent that gave the leaders of theRenaissance their stature. Of Professor Ballve it could be said,as in the characterization that gives a contemporary play aboutSir Thomas More its title, that he was indeed "a Man for AllSeasons."Like Erasmus before him, Professor Ballve spoke not for anynarrow, nationalistic culture, but for the spirit of Western Civili-zation as a whole. Born in Barcelona, in 1887, he trained firstas a lawyer, took his doctorate in Madrid, and then proceededfor further study first to Berlin and then to London. It was inEngland that, with a seasoned juristic background, he first spe-cialized in the study of economics.The practitioners of that science, whether of the left or theright, have done all too much to justify the adjective "dismal"that was applied to it in Ballve's youth. The more credit to himfor bringing to the subject not only the clarity and precision ofa first-class legal mind, but also the spiritual warmth of a politicalidealist.While still in his 'teens the young Ballve had edited a repub-lican paper, and in the stormy thirties, as the clouds of civil warclosed over Spain, he was elected a deputy of that party. Butthere was no place for this true liberal when the struggle de-generated into a power contest between Fascism and Communism.Leaving his native land forever, Ballve went first to France and
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