A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
The work of demolition was not altogether useless. In France there
were many who still clung to the “sect.” Even Germain Garnier, Smith’s
translator, considered the arguments of the Physiocrats theoretically
irrefutable. The superiority of the Scotch economist was entirely in the
realm of practice.[257] “We may,” says he, “reject the _Economistes’_
theory [meaning the Physiocrats’] because it is less useful, although
it is not altogether erroneous.” Smith himself, as we know, was never
quite rid of this idea, for he recognised a special productiveness of
land as a result of the co-operation of nature, and doctors, judges,
advocates, and artists were regarded as unproductive. But Say’s admission
was the last straw. Not in agriculture alone, but everywhere, “nature is
forced to work along with man,”[258] and by the funds of nature was to
be understood in future all the help that a nation draws directly from
nature, be it the force of wind or rush of water.[259] As to the doctors,
lawyers, etc., how are we to prove that they take no part in production?
Garnier had already protested against their exclusion. Such services must
no doubt be classed as immaterial products, but products none the less,
seeing that they possess exchange value and are the outcome[260] of the
co-operation of capital and industry. In other respects also—_e.g._, in
the pleasure and utility which they yield—services are not very unlike
commodities. Say’s doctrine meets with some opposition on this point,
for the English economists were unwilling to consider a simple service
as wealth because of its unendurable character, and the consequent fact
that it could not be considered as adding to the aggregate amount of
capital. But he soon wins over the majority of writers.[261] Finally
Say, like Condillac, discovered a decisive argument against Physiocracy
in the fact that the production of material objects does not imply
their creation. Man never can create, but must be content with mere
transformation of matter. Production is merely a creation of utilities, a
furthering of that capacity of responding to our needs and of satisfying
our wants which is possessed by commodities; and all work is productive
which achieves this result, whether it be industry, commerce, or
agriculture.[262] The Physiocratic distinction falls to the ground, and
Say refutes what Smith, owing to his intimacy with his adversaries, had
failed to disprove.
(2) On another point Say carries forward Smith’s ideas, although at the
same time superseding them. He subjects the whole conception of political
economy and the _rôle_ of the economist to a most thorough examination.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account