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
Ricardo set out to demonstrate the antagonism,[340] and with what a
vigorous pen does he not picture it! The study of this question of
rent made of him a Free Trader stauncher than Adam Smith, more firmly
convinced than the Physiocrats. Free Trade was for them founded upon
the conception of a general harmony of interests, while Ricardo built
his faith upon one clearly demonstrated fact—the high price of corn
and its concomitant, high rents. Free Trade seemed to be the means of
checking this disastrous movement. The free importation of corn implied
the cultivation of distant lands as rich as or even richer than any in
Britain. All this meant avoiding the cultivation of inferior lands and
reducing the high price of corn.
He was also desirous of proving to the proprietors that the practice of
free exchange, even though it might involve some loss of revenue to them,
was really to their interest. Their opposition, he thought, was very
short-sighted. “They fail to see,” he writes, “that commerce everywhere
tends to increase production, and that as a result of this increased
production general well-being is also improved, although there may be
partial loss as the result of it. To be consistent with themselves they
ought to try to arrest all improvement in agriculture and manufacture and
all invention of machinery.”[341]
The theory of rent, in the second place, endangered the reputation of
landowners by showing that their income is not the product of labour,
and is consequently anti-social. No wonder that it has been so severely
criticised by conservative economists. Ricardo himself, however,
seemed quite unconscious of the nature of the blow thus aimed at the
institution of private property. His indifference, which appears to us
so surprising, is partly explained by the fact that the theory absolved
the proprietor from all responsibility in the matter. Unlike profits and
wages, rent does not figure in cost of production because it makes no
contribution to the price of corn, but is itself wholly determined by
that price.[342] The landed proprietor thus appears as the most innocent
of the co-partners, playing a purely passive _rôle_. He does not produce
rent, but simply accepts it.
That may be; but the fact that the proprietor plays no part in the
production of rent, whilst exonerating him from complicity in its
invidious consequences, spells ruin to his title of proprietor—that is,
if we consider labour to be the only title to proprietorship. It was
just this aspect of the question that drew the attention of Ricardo’s
contemporary James Mill. Mill advocated the confiscation of rent or its
socialisation by means of taxation.[343] He thus became a pioneer in the
movement for land nationalisation, a cause that has since been championed
by such writers as Colins, Gossen, Henry George, and Walras.
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