Beaumont on Economies of Scale

I will not here discuss the great controversy about small and large farms. [Note: and then he goes on to discuss it. – RTL] I know it has been maintained that a large farm produces more proportionally, than several small farms of the same extent; Gustave de Beamont because the large proprietor has the command of capital and processes which are not within the reach of the small proprietors; but I am not sure whether it might not be answered, that the petty occupants, in the absence of monied capital, expend on the parcels of which they are the proprietors an amount of activity and personal energy which could not be obtained from a hired labourer; that all labouring thus for themselves, and under the influence of a fruitful selfishness, may, by the force of zeal and industry, succeed in obtaining from the lands as much, if not more, than a single proprietor, compelled to hire the labour of others, could procure … The experience of modern times has shown what a difference in value there is between the work of the free labourer and the slave; but we do not yet know how much the labour of the cultivating proprietor is better than that of the hired labourer.

— Gustave de Beaumont, Ireland: Social, Political, and Religious, vol. 2 (1842)

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One Response to Beaumont on Economies of Scale

  1. Keith March 24, 2013 at 4:57 pm #

    Roderick, this is very much in line with Lin Ostrom’s work on the design principles for robust institutions.

    http://en.wikipedia.org/wiki/Elinor_Ostrom#Design_Principles_for_CPR_Institutions

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