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Ragan Microeconomics
Sixteenth Canadian Edition

Christopher T.S. Ragan

McGILL University
Pearson Canada Inc., 26 Prince Andrew Place, North York, Ontario M3C
2H4.

Copyright © 2020, 2017, 2014 Pearson Canada Inc. All rights reserved.

Printed in the United States of America. This publication is protected by

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Cover image: Serjio74/Shutterstock

Chapter-opening image: I viewfinder/Shutterstock

Applying Economic Concepts image: Krizde/Shutterstock

Lessons from History image: Yoshi0511/Shutterstock

Extensions in Theory image: Den Rise/Shutterstock

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978-0-13-483583-9

1 20

Library and Archives Canada Cataloguing in Publication

Ragan, Christopher T. S., author

Microeconomics / Christopher T.S. Ragan, McGill University. — Sixteenth

Canadian edition.

Includes index.

Issued in print and electronic formats.

ISBN 978-0-13-483583-9 (hardcover).—ISBN 978-0-13-523310-8

(looseleaf).— ISBN 978-0-13-523339-9 (HTML)

1. Microeconomics—Textbooks. 2. Microeconomics—Canada—
Textbooks. 3. Textbooks. I. Title. II. Title: Ragan microeconomics.

HB172.R35 2019 338.5 C2018-905866-8 C2018-905867-6

Brief Contents
Chapter 1 Economic Issues and Concepts 1 

Chapter 2 Economic Theories, Data, and Graphs 26 

Chapter 3 Demand, Supply, and Price 49 

Chapter 4 Elasticity 74 

Chapter 5 Price Controls and Market Efficiency 97 

Chapter 6 Consumer Behaviour 117 

Chapter 7 Producers in the Short Run 148 

Chapter 8 Producers in the Long Run 173 

Chapter 9 Competitive Markets 195 

Chapter 10 Monopoly, Cartels, and Price Discrimination 221 

Chapter 11 Imperfect Competition and Strategic Behaviour 248 

Chapter 12 Economic Efficiency and Public Policy 272 

Chapter 13 How Factor Markets Work 299 

Chapter 14 Labour Markets and Income Inequality 324 

Chapter 15 Interest Rates and the Capital Market 354 

Chapter 16 Market Failures and Government Intervention 377 

Chapter 17 The Economics of Environmental Protection 407 

Chapter 18 Taxation and Public Expenditure 434 

Chapter 32 The Gains from International Trade 377 

Chapter 33 Trade Policy 828 

Mathematical Notes M-1 

Timeline of Great Economists T-1 

Contents
List of Boxes ix 

To the Instructor x 

To the Student xiv 

Acknowledgements xv 

About the Author xvi 

Chapter 1 Economic Issues and Concepts 1 

1.1 What Is Economics? 3 
Resources 4 

Scarcity and Choice 4 

Four Key Economic Problems 8 

Microeconomics and Macroeconomics 9 

Economics and Government Policy 9 

1.2 The Complexity of Modern Economies 10 

The Nature of Market Economies 11 

The Decision Makers and Their Choices 13 

Production and Trade 15 

1.3 Is There an Alternative to the Market Economy? 17 

 Types of Economic Systems 17 

The Great Debate 19 

Government in the Modern Mixed Economy 20 

Summary 21 

Key Concepts 22 

Study Exercises 22 

Chapter 2 Economic Theories, Data, and Graphs 26 

2.1 Positive and Normative Statements 27 
Disagreements Among Economists 28 

2.2 Building and Testing Economic Theories 30 

What Are Theories? 30 

Testing Theories 31 

2.3 Economic Data 34 

Index Numbers 34 

Graphing Economic Data 37 

2.4 Graphing Economic Theories 38 

Functions 38 

Graphing Functions 39 

A Final Word 44 

Summary 44 
 Key Concepts 45 

Study Exercises 45 

Chapter 3 Demand, Supply, and Price 49 

3.1 Demand 50 
Quantity Demanded 50 

Quantity Demanded and Price 51 

Demand Schedules and Demand Curves 52 

3.2 Supply 57 
Quantity Supplied 57 

Quantity Supplied and Price 58 

Supply Schedules and Supply Curves 58 

3.3 The Determination of Price 62 

The Concept of a Market 62 

Market Equilibrium 63 

Changes in Market Equilibrium 65 

A Numerical Example 67 

Relative Prices 68 

Summary 69 

Key Concepts 70 
 Study Exercises 70 

Chapter 4 Elasticity 74 
4.1 Price Elasticity of Demand 75 
The Measurement of Price Elasticity 76 

What Determines Elasticity of Demand? 79 

Elasticity and Total Expenditure 82 

4.2 Price Elasticity of Supply 83 

Determinants of Supply Elasticity 84 

4.3 Elasticity Matters for Excise Taxes 86 

4.4 Other Demand Elasticities 88 

Income Elasticity of Demand 88 

Cross Elasticity of Demand 90 

Summary 92 

Key Concepts 93 

Study Exercises 93 

Chapter 5 Price Controls and Market Efficiency 97 

5.1 Government-Controlled Prices 98 
Disequilibrium Prices 98 

Price Floors 98 

Price Ceilings 99 
 5.2 Rent Controls: A Case Study of Price Ceilings 102 
The Predicted Effects of Rent Controls 103 

Who Gains and Who Loses? 105 

Policy Alternatives 105 

5.3 An Introduction to Market Efficiency 106 

Demand as “Value” and Supply as “Cost” 106 

Economic Surplus and Market Efficiency 108 

Market Efficiency and Price Controls 109 

One Final Application: Output Quotas 110 

A Cautionary Word 111 

Summary 112 

Key Concepts 113 

Study Exercises 113 

Chapter 6 Consumer Behaviour 117 

6.1 Marginal Utility and Consumer Choice 118 
Diminishing Marginal Utility 118 

Utility Schedules and Graphs 119 

Maximizing Utility 119 

The Consumer’s Demand Curve 123 

 Market Demand Curves 123 

6.2 Income and Substitution Effects of Price Changes 124 

The Substitution Effect 124 

The Income Effect 125 

The Slope of the Demand Curve 126 

6.3 Consumer Surplus 128 

The Concept 128 

The Paradox of Value 130 

Summary 132 

Key Concepts 132 

Study Exercises 133 

Appendix to Chapter 6 Indifference Curves 138 

Chapter 7 Producers in the Short Run 148 

7.1 What Are Firms? 149 
Organization of Firms 149 

Financing of Firms 150 

Goals of Firms 150 

7.2 Production, Costs, and Profits 151 

Production 151 

Costs and Profits 153 

 Profit-Maximizing Output 155 

Time Horizons for Decision Making 155 

7.3 Production in the Short Run 157 

Total, Average, and Marginal Products 157 

Diminishing Marginal Product 159 

The Average–Marginal Relationship 160 

7.4 Costs in the Short Run 161 

Defining Short Run Costs 161 

Short-Run Cost Curves 162 

Capacity 165 

Shifts in Short-Run Cost Curves 165 

Summary 167 

Key Concepts 168 

Study Exercises 168 

Chapter 8 Producers in the Long Run 173 

8.1 The Long Run: No Fixed Factors 174 
Profit Maximization and Cost Minimization 174 

Long-Run Cost Curves 177 

8.2 The Very Long Run: Changes in Technology 181 

 Technological Change 182 

Firms’ Choices in the Very Long Run 185 

Summary 186 

Key Concepts 186 

Study Exercises 187 

Appendix to Chapter 8 Isoquant Analysis 190 

Chapter 9 Competitive Markets 195 

9.1 Market Structure and Firm Behaviour 196 
Competitive Markets 196 

Competitive Behaviour 196 

9.2 The Theory of Perfect Competition 197 

The Assumptions of Perfect Competition 197 

The Demand Curve for a Perfectly Competitive Firm 198 

Total, Average, and Marginal Revenue 199 

9.3 Short-Run Decisions 200 

Should the Firm Produce at All? 201 

How Much Should the Firm Produce? 202 

Short-Run Supply Curves 204 

Short-Run Equilibrium in a Competitive Market 205 

 9.4 Long-Run Decisions 208 
Entry and Exit 208 

Long-Run Equilibrium 212 

Changes in Technology 213 

Declining Industries 215 

Summary 216 

Key Concepts 217 

Study Exercises 217 

Chapter 10 Monopoly, Cartels, and Price Discrimination 221 

10.1 A Single-Price Monopolist 222 
Revenue Concepts for a Monopolist 222 

Short-Run Profit Maximization 225 

Why Are Monopolies Rare? 227 

Entry Barriers 227 

The Very Long Run and Creative Destruction 229 

10.2 Cartels and Monopoly Power 230 

The Effects of Cartelization 232 

Problems That Cartels Face 232 

10.3 Price Discrimination 235 

When Is Price Discrimination Possible? 236 
 Different Forms of Price Discrimination 237 

The Consequences of Price Discrimination 241 

Summary 243 

Key Concepts 243 

Study Exercises 244 

Chapter 11 Imperfect Competition and Strategic Behaviour 248 

11.1 Imperfect Competition 249 
Between the Two Extremes 249 

Defining Imperfect Competition 251 

11.2 Monopolistic Competition 253 

The Assumptions of Monopolistic Competition 254 

Predictions of the Theory 254 

11.3 Oligopoly and Game Theory 256 

Profit Maximization Is Complicated 256 

The Basic Dilemma of Oligopoly 257 

Some Simple Game Theory 258 

Extensions in Game Theory 260 

11.4 Oligopoly in Practice 261 

Cooperative Behaviour 261 
 Competitive Behaviour 262 

The Importance of Entry Barriers 263 

Oligopoly and the Economy 265 

Summary 267 

Key Concepts 268 

Study Exercises 268 

Chapter 12 Economic Efficiency and Public Policy 272 

12.1 Productive and Allocative Efficiency 273 
Productive Efficiency 274 

Allocative Efficiency 276 

Which Market Structures Are Efficient? 277 

Allocative Efficiency and Total Surplus 279 

Allocative Efficiency and Market Failure 282 

12.2 Economic Regulation to Promote Efficiency 283 

Regulation of Natural Monopolies 284 

Regulation of Oligopolies 287 

12.3 Canadian Competition Policy 289 

The Canadian Competition Act of 1986 289 

The Reforms of 2009 292 

 Future Challenges 293 

Summary 294 

Key Concepts 294 

Study Exercises 295 

Chapter 13 How Factor Markets Work 299 

13.1 The Demand for Factors 300 
Marginal Revenue Product 300 

The Firm’s Demand Curve for a Factor 301 

The Market Demand Curve for a Factor 303 

13.2 The Supply of Factors 305 

The Supply of Factors to the Economy 305 

The Supply of Factors to a Particular Industry 307 

The Supply of Factors to a Particular Firm 309 

13.3 Factor Markets in Action 310 

Differentials in Factor Prices 311 

Economic Rent 314 

A Final Word 318 

Summary 319 

Key Concepts 320 

 Study Exercises 320 

Chapter 14 Labour Markets and Income Inequality 324 

14.1 Wage Differentials 326 
Wage Differentials in Competitive Labour Markets 326 

Wage Differentials in Non-competitive Labour Markets 330 

Legislated Minimum Wages 333 

14.2 Labour Unions 335 

Collective Bargaining 336 

14.3 Income Inequality 339 

Measuring Income Inequality 339 

Causes of Rising Income Inequality 343 

Policy Implications 347 

Summary 349 

Key Concepts 349 

Study Exercises 349 

Chapter 15 Interest Rates and the Capital Market 354 

15.1 A Brief Overview of the Capital Market 355 

15.2 Present Value 356 

The Present Value of a Single Future Sum 357 

The Present Value of a Stream of Future Sums 359 

 Summary 359 

15.3 The Demand for Capital 361 

The Firm’s Demand for Capital 361 

The Economy’s Demand for Investment 365 

15.4 The Supply of Capital 365 

Households’ Supply of Saving 365 

The Economy’s Supply of Saving 367 

15.5 Equilibrium in the Capital Market 367 

The Equilibrium Interest Rate 367 

Changes in the Market Equilibrium 368 

Long-Run Trends in the Capital Market 371 

Summary 373 

Key Concepts 374 

Study Exercises 374 

Chapter 16 Market Failures and Government Intervention 377 

16.1 Basic Functions of Government 378 

16.2 The Case for Free Markets 379 

Automatic Coordination 380 

Innovation and Growth 381 

Decentralization of Power 382 

16.3 Market Failures 382 
Market Power 383 

Externalities 383 

Non-Rivalrous and Non-Excludable Goods 386 

Asymmetric Information 390 

Summary 391 

16.4 Broader Social Goals 393 

Income Distribution 393 

Preferences for Public Provision 394 

Protecting Individuals from Others 395 

Paternalism 395 

Social Responsibility 396 

A General Principle 396 

16.5 Government Intervention 396 

The Tools of Government Intervention 397 

The Costs of Government Intervention 398 

Government Failure 399 

How Much Should Government Intervene? 401 

Summary 402 
 Key Concepts 403 

Study Exercises 403 

Chapter 17 The Economics of Environmental Protection 407 

17.1 The Economic Rationale for Reducing Pollution 408 
Pollution as an Externality 408 

The Optimal Amount of Pollution Abatement 409 

17.2 Pollution-Reduction Policies 411 

Direct Regulatory Controls 411 

Emissions Taxes 413 

Tradable Pollution Permits: “Cap and Trade” 415 

Pricing Pollution 417 

17.3 The Challenge of Global Climate Change 418 

Greenhouse-Gas Emissions 418 

The Case for Global Collective Action 420 

Energy Use, GDP, and Greenhouse-Gas Emissions 422 

Significant Policy Challenges 425 

Summary 427 

Summary 428 

Key Concepts 429 

 Study Exercises 429 

Chapter 18 Taxation and Public Expenditure 434 

18.1 Taxation in Canada 435 
Progressive Taxes 435 

The Canadian Tax System 436 

18.2 Evaluating the Tax System 440 

Taxation and Equity 440 

Taxation and Efficiency 442 

18.3 Public Expenditure in Canada 445 

Government Purchases and Transfers 446 

Canadian “Fiscal Federalism” 446 

Canadian Social Programs 449 

18.4 Evaluating the Role of Government 454 

Public Versus Private Sector 455 

Scope of Government Activity 455 

Evolution of Policy 456 

Summary 456 

Key Concepts 457 

Study Exercises 457 

Chapter 32 The Gains from International Trade 803 

 32.1 The Gains from Trade 804 
Interpersonal, Interregional, and International Trade 805 

Illustrating the Gains from Trade 806 

The Gains from Trade with Variable Costs 811 

Sources of Comparative Advantage 814 

32.2 The Determination of Trade Patterns 816 

The Law of One Price 817 

The Pattern of Foreign Trade 818 

Is Comparative Advantage Obsolete? 819 

The Terms of Trade 821 

Summary 824 

Key Concepts 824 

Study Exercises 825 

Chapter 33 Trade Policy 828 

33.1 Free Trade or Protection? 829 
The Case for Free Trade 829 

The Case for Protection 830 

Invalid Arguments for Protection 833 

33.2 Methods of Protection 836 

Tariffs 837 
 Import Quotas 839 

Tariffs Versus Quotas: An Application 839 

Trade-Remedy Laws and Non-Tariff Barriers 840 

33.3 Current Trade Policy 842 

The GATT and the WTO 842 

Regional Trade Agreements 842 

Trade Creation and Trade Diversion 843 

The North American Free Trade Agreement 844 

Summary 848 

Key Concepts 849 

Study Exercises 849 

Mathematical Notes M-1 

Timeline of Great Economists T-1 

List of Boxes

Applying Economic Concepts

1-1 The Opportunity Cost of Your University Degree 6 

2-1 Where Economists Work 29 

3-1 Why Apples but Not iPhones? 63 

5-1 Minimum Wages and Unemployment 100 

6-1 Rationality, Nudges, and Behavioural Economics 122 

7-1 Is It Socially Responsible to Maximize Profits? 152 

7-2 Three Examples of Diminishing Returns 160 

7-3 The Digital World: When Diminishing Returns Disappear

Altogether 166 

8-1 The Significance of Productivity Growth 183 

9-1 Why Small Firms Are Price Takers 199 

9-2 The Parable of the Seaside Inn 209 

10-1 Network Effects as Entry Barriers 228 

12-1 Are Google and Facebook the Standard Oil of the Twenty-First
Century? 290 

14-1 The Rise of the “Gig” Economy 345 

15-1 Inflation and Interest Rates 369 

16-1 The World’s Endangered Fish 388 

16-2 Used Cars and the Market for “Lemons” 392 

18-1 Poverty Traps and the Negative Income Tax 453 

Lessons from History

4-1 Economic Development and Income Elasticities 90 

8-1 Jacob Viner and the Clever Draftsman 181 

10-1 Disruptive Technologies and Creative Destruction 231 

13-1 David Ricardo and “Economic Rent” 316 

Extensions in Theory
3-1 The Distinction Between Stocks and Flows 51 

11-1 The Prisoners’ Dilemma 260 

16-1 Arthur Okun’s “Leaky Bucket” 394 

18-1 Who Really Pays the Corporate Income Tax? 438 

To the Instructor
Economics is a living discipline, changing and evolving in response to
developments in the world economy and in response to the research of
many thousands of economists throughout the world. Through sixteen

editions, Microeconomics has evolved with the discipline. Our purpose in

this edition, as in the previous fifteen, is to provide students with an
introduction to the major issues facing the world’s economies, to the
methods that economists use to study those issues, and to the policy
problems that those issues create. Our treatment is everywhere guided by

three important principles:

1. Economics is scientific, in the sense that it progresses through the

systematic confrontation of theory by evidence. Neither theory
nor data alone can tell us much about the world, but combined
they tell us a great deal.

2. Economics is relevant, and it should be seen by students to be so.

An understanding of economic theory combined with knowledge
about the economy produces many important insights about
economic policy. Although we stress these insights, we are also
careful to point out cases in which too little is known to support
strong statements about public policy. Appreciating what is not
known is as important as learning what is known.
3. We strive always to be honest with our readers. Although we
know that economics is not always easy, we do not approve of
 glossing over difficult bits of analysis without letting readers see
what is happening and what has been assumed. We take
whatever space is needed to explain why economists draw their
conclusions, rather than just asserting the conclusions. We also
take pains to avoid simplifying matters so much that students
would have to unlearn what they have been taught if they
continue their study beyond the introductory course. In short, we

have tried to follow Albert Einstein’s advice:

Everything should be made as simple as possible, but not simpler.

Current Economic Issues

In writing the sixteenth edition of Microeconomics, we have tried to reflect
the major economic issues that we face in the early twenty-first century.

Living Standards and Economic Growth

One of the most fundamental economic issues is the determination of
overall living standards. Adam Smith wondered why some countries
become wealthy while others remain poor. Though we have learned
much about this topic in the 240 years since Adam Smith’s landmark
work, economists recognize that there is still much we do not know.

The importance of technological change in determining increases in

overall living standards is a theme that permeates both the
microeconomics and macroeconomics halves of this book. Chapter 8
explores how firms deal with technological change at the micro level, and
how changes in their economic environment lead them to create new
products and new production processes. Chapters 11  and 12  discuss
how imperfectly competitive firms often compete through their
innovative practices, and the importance for policymakers of designing
competition policy to keep these practices as energetic as possible.

We are convinced that no other introductory economics textbook places

as much emphasis on technological change and economic growth as we
do in this book. Given the importance of continuing growth in living
standards and understanding where that growth comes from, we believe
this emphasis is appropriate. We hope you agree.

Financial Crisis, Recession, and Recovery

The collapse of U.S. housing prices in 2007 led to a global financial crisis
the likes of which had not been witnessed in a century, and perhaps
longer. A deep recession, experienced in many countries, followed
quickly on its heels. These dramatic events reawakened many people to
two essential facts about economics. First, modern economies can and do
go into recession. This essential fact had perhaps been forgotten by many
who had become complacent after more than two decades of economic
prosperity. Second, financial markets are crucial to the operation of
modern economies. Like an electricity system, the details of financial
markets are a mystery to most people, and the system itself is often
ignored when it is functioning properly. But when financial markets cease
to work smoothly and interest rates rise while credit flows decline, we are
all reminded of their importance. In this sense, the financial crisis of
2007–2008 was like a global power failure for the world economy.

The financial crisis had micro causes and macro consequences. The
challenges of appropriate regulation for financial and nonfinancial firms
are explored in Chapters 12  and 16 . The market for financial capital

and the determination of interest rates are examined in Chapter 15 

debates regarding the appropriate role of the government in a market
economy occur throughout the book, including in Chapters 1 , 5 ,
17 , and 18 .

Globalization
Enormous changes have occurred throughout the world over the last few
decades. Flows of trade and investment between countries have risen so
dramatically that it is now common to speak of the “globalization” of the
world economy. Today it is no longer possible to study any economy
without taking into account developments in the rest of the world.

Throughout its history, Canada has been a trading nation, and our
policies relating to international trade have often been at the centre of
political debates. International trade shows up in many parts of this
textbook, but it is the exclusive focus of two chapters. Chapter 32 
discusses the theory of the gains from trade; Chapter 33  explores trade
policy, with an emphasis on NAFTA and the WTO.
The forces of globalization are with us to stay. In this sixteenth edition of
Microeconomics, we have done our best to ensure that students are made
aware of the world outside Canada and how events elsewhere in the
world affect the Canadian economy.

The Role of Government

Between 1980 and 2008, the political winds shifted in Canada, the United
States, and many other countries. Political parties that previously

advocated a greater role for government in the economy argued the

benefits of limited government. But the political winds shifted again with
the arrival of the financial crisis and global recession in 2008, which led
governments the world over to take some unprecedented actions. Many
soon argued that we were observing the “end of laissez-faire” and
witnessing the return of “big government.” But was that really true?

Has the fundamental role of government changed significantly over the

past 35 years? In order to understand the role of government in the
economy, students must understand the benefits of free markets as well
as the situations that cause markets to fail. They must also understand
that governments often intervene in the economy for reasons related
more to equity than to efficiency.

In this sixteenth edition of Microeconomics, we continue to incorporate the

discussion of government policy as often as possible. Here are but a few
of the many examples that we explore:
Other documents randomly have
different content
 The Project Gutenberg eBook of The
Delinquent (Vol. IV, No. 4), April, 1914
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
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eBook.

Title: The Delinquent (Vol. IV, No. 4), April, 1914

Author: Various

Publisher: National Prisoners' Aid Association

Release date: November 11, 2018 [eBook #58267]

Language: English

Credits: Produced by Larry B. Harrison, Craig Kirkwood, and the

Online Distributed Proofreading Team at
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*** START OF THE PROJECT GUTENBERG EBOOK THE

DELINQUENT (VOL. IV, NO. 4), APRIL, 1914 ***
 CONTENTS
What is a Criminal?
The Principe Prison in
Cuba.
The Prison of the Future.
Pass a Law!
Book Reviews.
Events in Brief.
 VOLUME IV, No. 4. APRIL, 1914

THE DELINQUENT
(FORMERLY THE REVIEW)
A MONTHLY PERIODICAL, PUBLISHED BY THE
NATIONAL PRISONERS’ AID ASSOCIATION
AT 135 EAST 15th STREET, NEW YORK CITY.

THIS COPY TEN CENTS. ONE DOLLAR A YEAR

T. F. Garver, President.
Wm. M. R. French, Vice-President.
O. F. Lewis, Secretary, Treasurer and
Editor The Delinquent.
Edward Fielding, Chairman Ex.
Committee.
F. Emory Lyon, Member Ex. Committee.
W. G. McLaren, Member Ex. Committee.
A. H. Votaw, Member Ex. Committee.
E. A. Fredenhagen, Member Ex.
Committee.
Joseph P. Byers, Member Ex.
Committee.
R. B. McCord, Member Ex. Committee.

Entered as second-class mail matter at New York.

 WHAT IS A CRIMINAL?
By A Man in Prison
[The American Magazine recently offered prizes for the best replies.
Here is one of the winning answers.]
What is a criminal? To-night I pace the narrow confines of my steel-
barred cell and ask myself for the hundredth time—What is a
criminal? Is he, as Lombroso claims, a moral degenerate? Is he the
mental imbecile that metaphysicians in learned verbiage assert? Is
he the hardened, desperate malefactor, the sinking, murderous beast
that penologists would have us believe? Is he the victim of adverse
circumstances, unsavory environment, and changing social
conditions? Or does he wage war on organized society for
adventure’s sake? Why is he a criminal?
Garbed in the vestment of dishonor and disgrace, I myself am what
the world terms a criminal. Should I not know the meaning of the
appellation far better than the casual observer? For many years my
life has been the life of an habitue of the underworld. Criminals, so
called, have been my associates and my friends. I have known them
in the moments of their success, I have known them in the hours of
their failure. Failure that spells oblivion, the oblivion of cold gray
walls and heart-breaking, monotonous, man-killing routine. I have
seen how recklessly they can live, and I have also seen how gamely
they can die. I have known them intimately, and well, and never
have I been able to discover any difference between them and their
more fortunate brethren. They entertain in their hearts the same
ideas, the same hopes, and the same ambitions as do average men.
Those who commit crime as a matter of choice are few indeed.
Many follow it as a means of livelihood because it is the only
vocation open to them; and they must be men of stamina, courage,
and brains, if they would survive. Those who match their wits
against the vast resources of the Powers Who Rule must be clever
rogues indeed. They are, in short, just such men as those who attain
success in other walks of life—no different. The same ability to think
and plan, the same nerve and determination, the same unswerving
loyalty, the same persistent application that diverted into legitimate
channels would have won for them recognition in any sphere of
endeavor. These are the men who have chosen crime as a vocation,
because their talent and training equipped them for that career, just
as you may have chosen the law or the field of high finance for
similar reasons. And these men in some degree succeed as law
breakers, but even they must pay the cost of their success. And the
toll is not light, my friend.
There are others, men who were born a hundred years too late. Men
who live as their kind has always lived—by the strength of their own
right arms. To them might is right, and they know no other code.
They, too, are criminals, are they not? These are the men who have
never learned to turn the other cheek. These are the men who strike
back. Society tramples them under its feet, and they arise from the
dust with grim murder in their hearts. They cannot forget; they
cannot forgive; and so they fight to the bitter end with the blind
courage of their breed.
Some, the very machinery of the courts has converted into criminals.
I see them every day in the chrysalis stage. They commit some
minor infraction of the law, some petty offense, and for that they go
to jail. In jail they receive scant consideration and little courtesy
from either their fellow prisoners or from the police. They are neither
fish nor fowl. They note the fact that the “good thief” is respected
and feared by one, and extended the hand of good fellowship by the
other. Straightway they determine to become criminals—and some
few succeed. Many more fill our prisons.
Others are accidentally criminals. Under the influence of liquor,
drugs, sudden passion, and sometimes actual hunger, they commit
crimes. They are not really criminals, however; they are “accidents.”
Sometimes serious accidents no doubt, but still accidents. Surely you
would not call them criminals!
You ask what is a criminal? In the last analysis the question is
unanswerable. You could as readily ask, “What is a man?” and the
definition would be as undefinable as this. What is a criminal? Out of
the depths of my experience I would say that a criminal is a
thousand changing moods, a thousand inherited tendencies, a
thousand mistakes, a thousand injustices, wedded into a thousand
different personalities; and from the furnace of the melting pot you
could perhaps find the answer. What is a criminal?—A Man in Prison.
 THE PRINCIPE PRISON IN CUBA.
[From the Galveston News we take the following interesting account
of General Castillo’s main prison.]
Cuba boasts that Principe Prison, its national penitentiary, is one of
the model prisons of the world. Officials of foreign governments who
have made lifelong studies of prison conditions have declared it to
be as near a model prison as one can be made. It is ten years old
and within that time only one prisoner has ever escaped, and he,
after a few days’ liberty, voluntarily gave himself up and asked to be
returned to his section. Within it have been confined desperate
criminals of world-wide reputation, but they have never succeeded in
getting by prison vigilance.
Principe Prison, or Castillo de Principe, Castle or Fort of the Prince, is
one of the historic points of Havana, and its history is closely
interwoven with that of the city. It was built in 1774 and completed
in 1794, and was then considered one of the strongest fortresses on
the Western Hemisphere. There is a legend that it was built chiefly
by French and Spanish engineers, who upon its completion were put
to death lest they might divulge some of the secret tunnels and
defenses.
It is situated on Principe Hill, about two miles west of the national
palace, and overlooks the entire city. It has five bastions and is
surrounded by a moat fifty feet wide, twenty feet deep and
loopholed for rifle fire upon both sides. There is an ancient
drawbridge at the main entrance, but it has been out of use many
years. The scarp walls are about forty feet above the moat and are
crowned with medieval sentry boxes and lookout stations. There are
many secret passages leading from Principe to various other
fortifications, but these were hermetically sealed during the
provisional administration of General Leonard Wood. The principal
one extends to Morro and Cabanas castles across the bay, a distance
of two and one-half miles. The governor of the prison is General
Demetrio del Castillo, and Lieutenant Colonel Tomas Garzon is
assistant.
Cuba is thoroughly modern in her treatment of prisoners. The
terrible “third degree” is an unknown quantity. There is no whipping
post nor “chamber of horrors” at Principe. Solitary confinement in a
well ventilated cell, equipped with toilet and shower bath and a wall
berth is the usual punishment. The prisoners are not only taught
industrial trades, but are given the elementary branches of
schooling. Even some study music, painting and sculpturing. The
government employs twenty instructors, most of them being
graduates, to teach the 400 “pupils.” There is a prison library, an
orchestra and a brass band. The band is the pride of the prisoners
and is composed of forty musicians and taught by a professional
teacher. Several “lifers” are members, who took up the study of
music after they were sentenced, and are now what might be
considered tip-top musicians.
Of the 1,380 prisoners, 36 are politicians who took part in the
Estonez negro uprising in 1912. There are twenty-six “lifers” sent up
for assassination and highway robbery. The majority are robbers and
thieves, with a scattering of murderers. The race percentages are:
White 64, black 37 and mulatto 17 per cent.
The prison guard consists of eighty-two men and a small clerical
force in charge of the office. The prisoners are not put in stripes, but
instead wear a cool uniform of white duck, which is changed twice a
week. When working they wear a brand of overalls made from palm
thatches.
The big court yard, which covers more than an acre, has a flower
garden, neatly trimmed and laid off in beautiful squares and walks
and dotted with shrubbery and royal palms. The proceeds from the
sale of flowers go to a prison fund. Prisoners who can not do manual
labor make hammocks and other grass products. These they are
allowed to sell and the proceeds go to their families. If single, a fund
is kept by the warden against their release. Six hours is a day’s
work.
During the evening the band gives a concert in the court yard, and
all prisoners are allowed to attend, notwithstanding the facts that
the music can be heard perfectly from the casemates.
Workmen in the shops are allowed 25 cents plata per day, while
those outside receive 35 cents. This is also either sent to their
families or kept in the release fund. They receive no pay for
government work.
The men in the clothing and shoe shops are worked on contract
goods which are sold to Havana mercantile establishments, and they
also make clothing for the prisoners. Shoes run in price from $1.10
to $5 per pair. Were it not for the heavy import on leather these
prices could be nearly cut in half. The higher grade of shoes sell in
the retail market for $6 and $7. Clothing is made from 50c. to $15 a
suit. Beautiful white duck and linen and other tropical garments are
turned out that look about as well as suits made by many first-class
tailoring establishments. There has been some trouble with the labor
unions, who complain against competing with “convict labor,” but
these complaints have never assumed serious proportions. Ordinarily
the casemates are used for workrooms, but the shoe and clothing
factories are ramparts “hollowed” out and remodeled. An effort has
been made to work the Principe prisoners in road building, but for
some reason or other Congress has never allowed it. General Castillo
built a sample road near the prison and invited members of congress
to test it, but they continue to refuse to allow the government to be
saved thousands of dollars annually by employing the convicts upon
the public roads. Another feature that meant an annual saving of
thousands was a proposed printing establishment, where the
government printing could be done. This scheme progressed finely
for awhile, and floor space was made by changing several casemates
into a large hall and machinery ordered, but at the last moment the
newspapers and printing establishments began to hammer the
proposition and the government abandoned it.
“But how would you get prisoners competent to do the work?” was
asked Colonel Garzon.
“Well,” he replied, “we would be compelled to hire experts at first
and keep an eye for printers in other prisons, and also inform the
police to be extra vigilant. It wouldn’t be long before we would have
a competent force.”
The sanitary conditions of Principe are perfect or as nearly perfect as
a medical staff of fifteen physicians can make them. The floors, walls
and roofs of the entire prison are of Cuban stone and are “sluiced”
twice a day. The “dormitories” are large, airy casemates and both
ends are covered by steel bars which make a window fifteen feet
square. A continuous sea breeze blows through them. The berths or
bunks extend in one tier on each side of the casemate and are made
to fold up against the wall. The “bed clothes” consist of two duck
sheets and a blanket for cool weather, which are changed twice a
week. A row of shower baths completes the furniture and the
inmates are required to take at least two baths a day.
There are three hospitals—the tuberculosis, contagious diseases and
the “public” ward. They are upon the roof of the south bastion and
face the sea. Their sanitation, according to the physicians, can not
be improved upon. The “lungers” sleep practically out of doors, or
rather with just enough overhead to protect them from the heavy
tropical dews. So healthy and sanitary is the prison that very few
cases of sickness occur. The majority of the inmates of the hospitals
are those sick, principally with consumption, when they arrive.
There has never been an insurrection or mutiny in Principe. In fact,
scores of prisoners when released at the end of their terms have
asked Colonel Garzon to save their “cup and pan,” and invariably
they return to use them. They really fare better “inside” than
“outside.” The average Cuban of the criminal type has but few
necessities of life, and these of the barest.
“How do you manage to keep the prisoners so orderly and
apparently well satisfied?” was asked General Castillo.
“We try to make them contented,” he replied. “We have a band that
gives concerts in the court yard. We let them study, work them, feed
them well, keep them sanitary, study each one personally and let
them know they must obey the regulations. Each man knows he will
get fair and impartial treatment. If one gets into trouble (and fist
fighting is the only trouble we have), we simply put him in solitary
confinement. There is nothing that hurts a Cuban prisoner as badly
as to keep him from talking and away from his associates, and
besides, those in solitary confinement are not allowed tobacco. We
never prevent them from talking with one another, and besides, each
man gets two months off of each year for good behavior. We hope
to put the prison upon a self-supporting basis during the present
administration.”
In 1905, Juan Jose Garcia, serving a ten-year sentence for highway
robbery and holding a rich farmer for ransom, escaped. He, with a
squad of prisoners, was working outside the walls, and during a
severe rainstorm, he made a successful dash for liberty. He had four
years to serve. His escape was reported to the warden and the usual
reward offered for his arrest.
Some days later General Castillo was going into Havana by
automobile, when a man stepped into the road in front of the
machine and held up his hand for it to stop. “What do you want?”
inquired the general. “I am Juan Jose Garcia. I ran away from the
prison last week, but want to return. I have been dogged and
chased by the officers and am worn out and starving.”
“It serves you right,” said General Castillo. “You have been a very,
very bad prisoner, and moreover, I can’t keep such men as you in my
prison. You ruin discipline and break the rules.”
“But,” Garcia pleaded, “if you will just give me one more trial I’ll
promise never to run away again.”
“I am very busy to-day, but go up to the prison and if Colonel
Garzon will take you back I suppose it will be all right.”
That occurrence is one of General Castillo’s pet anecdotes and he
tells it with much enthusiasm and never fails to impress one that it is
the only case on record in Cuba that an escaped convict begged to
be readmitted to jail.
“General Castillo,” “gobernador del presido de la republica de Cuba,”
is a noted soldier of the Cuban war of independence, and one of the
island’s foremost men of affairs. He was educated in the United
States and later graduated with high honors from the Royal French
School of Engineers and he is what might be termed thoroughly
“Americanized” from a modern business point of view. He has made
a special study of foreign prisoners and is perhaps as thoroughly
conversant with prison conditions as any official in the world.
He arose to the rank of general, commanding a division during the
war of independence and took part as such in the Santiago
campaign. After the surrender he was selected by General Brook as
the civil governor of Santiago. He was appointed to his present
position by Governor Magoon. His son, Demetrio, Jr., is a graduate of
the United States Military Academy.
Lieutenant Colonel Thomas Garzon is also a veteran in the war of
independence and commanded a regiment of regular troops. He
keeps in close touch with prison affairs and makes a personal study
of each convict. He goes through the prison at all hours unarmed,
and some two years ago disarmed a coterie of prisoners who were
planning trouble by walking into the casemate where they were
confined and ordering them to turn over their crude weapons. That
was the first and only time anything that savored of an insurrection
has ever occurred.
 THE PRISON OF THE FUTURE.
By William H. Venn, Detroit, Mich.
[Detroit Journal, March 2nd, 1914.]
The prisons of the future will be vastly smaller than the larger ones
of the present time. Not alone because of the fact that better results
can be achieved by the penologist who is at the head of the
institution where fewer men are confined, but also because of the
added reason that various other institutions will be in vogue to care
for many unfortunates (not criminals) who are now sent to our
penitentiaries.
The feeble-minded class in our prisons in the United States is said to
number between 25,000 and 35,000 individuals, or about one-fourth
of the prison population. These will be cared for in other institutions
than prisons, confinement in which is a greater crime upon the part
of society towards these poor unfortunates than were the offenses
for commission of which these feebleminded individuals were sent to
prison. According to the general statistics, the farm for epileptics in
Michigan should care for about 200 persons now confined in the
prisons of this state.
The wider extension of the system of probation will save thousands
of men from a prison experience, thereby protecting the taxpayer
and reclaiming the individual himself, the latter occurring in between
75 and 85 per cent. of the cases. This saving to taxpayers is most
evident to-day, for were the two recorders of Wayne county to bring
to court and sentence those who now enjoy a probationary relation
to their courts, there would not be empty cells enough in our State
penal institutions to receive them. It is much better to build up
homes than to erect more prisons.
Undoubtedly the physician, the surgeon, the alienist and the
psychologist will serve as greater factors to relieve our crime
problem than in the past. It is well known that a nervous condition
occasioned by affections of the eyes, nose and ears has played a
large part in the delinquency of boys and girls, of young men and
young women. The splendid results achieved in Chicago and in
Rahway, N. J., as well as in other localities, have already warranted a
great deal more of investigation and effort along the same lines.
The prison of the future will be located miles away from the city,
upon a tract of sufficient acreage to insure outdoor employment for
a large number of men during the larger portion of the year. Work
under such conditions will not only be more lucrative for the State,
but, better still, the means of building up physically and mentally, as
well as morally, these wards of the commonwealth.
The warden of our prison at Jackson already is planning to divide
some of the acreage into small tracts to be “gardened” by “trusties”;
a record being kept of the cost of care and seeding of these little
farms, as well as the value of the products thereof, thus encouraging
a healthy rivalry among those responsible for these sections of the
prison farm. How much this will accrue to the benefit of the men will
be best understood by those who have worked among paroled or
discharged prisoners.
The prevailing style of prison architecture will be superseded by one
which will admit of the greatest possible amount of sunlight and
circulating air in the cells. Most cellhouses are constructed with the
corridors running along the outer walls of the building, while the
cells are arranged in the center, end to end, a thick wall separating
them. In the effort to reduce the possibility of escapes, the health of
the inmates has not always been properly considered.
The United States can well afford to turn backward for improvement
in cell construction. In Richmond, Va., to-day stands a building
erected from plans drawn by Thomas Jefferson in the year 1797.
This cellhouse, still in use, and esteemed by the inmates as better
than the steel cell-block of very recent construction, is erected in the