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
In that hierarchy of activities which Smith had drawn up according to
the varying degree of utility each possessed for the nation, Smith had
placed agriculture first. Say preserved the order, but placed alongside
of agriculture “all capital employed in utilising any of the productive
forces of nature. An ingenious machine may produce more than the
equivalent of the interest on the capital it has cost to produce, and
society enjoys the benefit in lower prices.”[268] This sentence is not
found in the edition of 1803, and appears only in the second edition.
Say in the meantime had been managing his factory at Auchy-les-Hesdins,
and he had profited by his experience. This question of machinery, which
was merely touched on by Smith in a short passage, finds a larger place
in every successive edition of Say’s work. The general adoption of
machinery by manufacturers both in England and France frequently incited
the workers to riot. Say does not fail to demonstrate its advantages.
At first he admits that the Government might mitigate the resulting
evils by confining the employment of machinery at the outset to certain
districts where labour is scarce or is employed in other branches of
production.[269] But by the beginning of the fifth edition he changed his
advice and declared that such intervention involved interference with the
inventor’s property,[270] admitting only that the Government might set up
works of public utility in order to employ those men who are thrown out
of employment on account of the introduction of machinery.
Public-domain text, read in full here on John Shaqi.
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