Page:Tales in Political Economy by Millicent Garrett Fawcett.djvu/80

 cent. poorer than he expected to be by his bargain; but Robert Williams is 10 per cent. richer, and therefore it may be said that on the whole no harm is done. It must however be remembered that when a bargain is made, both parties to it expect to gain by the transaction; if they did not they would have no motive for entering into the agreement. They not only both expect to gain, but if this expectation on either of their parts is disappointed, a blow is struck at the trade and prosperity of the community. The 10 per cent. lost by John Smith will probably take away all his profit or even convert it into a loss: it will be no consolation to him to know that Robert Williams has made 10 per cent. more profit than he expected. The burnt child dreads the fire; and after suffering this unexpected loss John Smith will be very timid in entering into bargains in future; and his loss will also produce a similar timidity in others; and as bargaining is a game which two must play at, a blow will thus be struck at the development of trade.