It should be noticed that by (2) this expression for W may also be regarded as the sum of T different powers PR, PR2, etc., each working during one and only one generation; if we divided this sum by T, the quotient would be a power that would have to act through T generations to produce W. The reader should not fail to notice very carefully that the expression (4) for W is an expression for the total progress made—the total work done—the total wealth produced—in the course of T generations and he should especially note how the expression involves the exponential function of time (T), namely PRT.
The formula makes mathematically evident the time-binding capacity characteristic of the human class of life. Properly understood, wealth consists of the fruits or products of this time-binding capacity of man. Animals do not produce wealth; it is produced by Man and only Man. The foregoing basic formulation should lead to further similar developments throwing much light upon the process of civilization and serving to eliminate "private opinion" from the conduct of human affairs. (In this writing it is not important to look deeper into these proposed series. The fact remains that P, as well as R, are peculiarly increasing series of a geometrical character—the precise form will be developed in another writing.)
Human achievements and progress, because cumulative, are knocking out the barriers of time. This fact is the vital and dynamic difference between animal life and human life. As plants gather in and store up solar energy into sheaves for the use and growth of animal and man—so humans are gathering and binding the knowledge of past centuries into sheaves for the use and development of generations yet unborn.
We have seen that the term wealth, rightly understood, means the fruit of the time-binding work of humanity. Wealth is of two kinds: one is material; the other is knowledge. Both kinds have use-value. The first kind perishes—the commodities composing it deteriorate and become useless. The other is permanent in character; it is imperishable; it may be lost or forgotten but it does not wear out.
The one is limited in time; the other, unlimited in time; the former I call potential use-value; the latter, kinetic use-value. Analysis will justify the names. The energy of a body which is due to its position, is called potential energy. The energy of a body which is due to its motion, is called kinetic energy. Here the material use-value has value through its position, shape and so forth; it is immobile if not used, and has not the capacity to progress. Mental use-values are not static but permanently dynamic; one thought, one discovery, is the impulse [pg 115] to others; they follow the law of an increasing potential function of time. (See [app. II].) This is why these names correspond to the two names of the two mentioned classes of energy.
Here I must return to the current conceptions of wealth and capital, before cited. “Wealth,” we are told, “is any useful or agreeable thing which possesses exchangeable value.” And we are told that “Capital is that part of wealth which is devoted to obtaining further wealth.” I have said that such conceptions—such definitions—of wealth and capital are childish—they belong to the period of humanity's childhood. That they are indeed childish conceptions the reader can not fail to see if he will reflect upon them and especially if he will compare them with the scientific conception according to which wealth consists of those things—whether they be material commodities or forms of knowledge and understanding—that have been produced by the time-binding energies of humanity, and according to which nearly all the wealth of the world at any given time is the accumulated fruit of the toil of past generations—the living work of the dead. It seems unnecessary to warn the reader against confusing the “making” of money by hook or crook, by trick or trade, with the creating of wealth, by the product of labor. In calling the old conceptions childish, I do not mean that they contain no element of truth [pg 116] whatever; I mean that they are shallow, scientifically or spiritually meagre, narrow in their vision, wrong in their accent; I especially mean that they are dumb, because they are blind, regarding the central matter that wealth is the natural offspring of Time and Human Toil. The old conceptions do indeed imply that wealth and capital involve both potential and kinetic use-values, and in so far they are right. But how do such use-values arise?
The potential use-values in wealth are created by human work operating in time upon raw material given by nature. The use-values are produced by time-taking transformations of the raw materials; these transformations are wrought by human brain labor and human muscular labor directed by the human brain acting in time. The kinetic use-values of wealth are also created by human toil—mainly by the intellectual labor of observation, experimentation, imagination, deduction and invention, all consuming the precious time of short human lives. It is obvious that in the creation of use-values whether potential or kinetic, the element of time enters as an absolutely essential factor. The fundamental importance of time as a factor in the production of wealth—the fact that wealth and the use-values of wealth are literally the natural offspring of the spiritual union of time with toil—has been completely overlooked, not only by the economics, but by the [pg 117] ethics, the jurisprudence and the other branches of speculative reasoning, throughout the long period of humanity's childhood. In the course of the ages there has indeed been much “talk” about time, but there has been no recognition of the basic significance of time as essential in the conception and in the very constitution of human values.
It is often said that “Time is Money”; the statement is often false; but the proposition that Money is Time is always true. It is always true in the profound sense that Money is the measure and symbol of Wealth—the product of Time and Toil—the crystallization of the time-binding human capacity. it is thus true that money is a very precious thing, the measure and symbol of work—in part the work of the living but, in the main, the living work of the dead.
Nature's laws are supreme; we cannot change them; we can deviate from them for a while, but the end is evil. That is the lesson we must learn from the history of Humanity's childhood. False conceptions of Man—ignorance of the laws of human nature—have given us unscientific economies, unscientific ethics, unscientific law, unscientific politics, unscientific government. These have made human history the history of social cataclysms—insurrections, wars, revolutions—sad tokens not so much of human lust as of human ignorance of the laws of [pg 118] human nature. There is but one remedy, one hope—a science and art of Human Engineering based upon the just conception of humanity as the time-binding class of life and conforming to the laws of nature including the laws of human nature.