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
Finally, the theory of rent seems to give colour to certain theories
which predict an extremely dark future for the race, corroborating the
gloomy forebodings of Malthus. As society grows and advances it will be
forced to employ lands that are less fertile and means of production that
are more onerous. It seems as if the curse uttered in Genesis has been
scientifically verified. “Thorns also and thistles shall it bring forth
to thee; … in the sweat of thy face shalt thou eat bread.”
True, he did not carry his pessimism so far as to say that as the result
of this fatal exhaustion of this most precious instrument of production
the progress of mankind would for ever be arrested by the ravages of
famine. Other beneficent forces, the progress of agricultural science and
a larger employment of capital, would surmount the difficulty. “Although
the lands that are actually being cultivated may be inferior to those
which were in cultivation some years ago, and consequently production is
becoming more difficult, can anyone doubt that the quantity of products
does not greatly exceed that formerly produced?”
Ricardo’s theory does not involve a denial of progress. But it shows
how the struggle is becoming more and more difficult, and how scarcity
and want, if not actual famine, must lie in the path along which we are
advancing. Suppose Great Britain were now to attempt to feed her 45
million inhabitants from her own soil, would there be much doubt as to
the correctness of Ricardo’s prophecy?
It is an easy matter to reproach Ricardo[344] with his failure to
foresee the remarkable development in the methods of transport and cheap
importation which resulted in the arrest, if not the reversal, of the
upward movement of the rent curve. The complaints of landlords both in
England and Europe seem to belie the Ricardian theory.[345] But who can
tell whether the peril is finally removed or not? The inevitable day will
arrive when new countries will consume the corn which to-day they export.
This may not come about in the history of England and Europe for some
centuries yet, but when it does happen, rent, instead of being stationary
and retrogressive, as it has been so long, will again resume its upward
trend.
It is true that we may reckon upon the aid of agricultural science even
if foreign importation should fail us. Ricardo was ever mindful of the
great possibilities of human industry. Other economists, notably Carey
and Fontenay, one of Bastiat’s disciples, have propounded a theory which
is the exact antithesis of the Ricardian, namely, that human industry
in its utilisation of natural forces always begins with the feeblest as
being more easily tamed, the more powerful and recalcitrant forces only
coming in for attention later on. The earth is no exception to the rule,
and agricultural industry might well become not less but more productive.
This thesis, which implies a negation of the law of diminishing returns,
is based upon a very debatable analogy.
Public-domain text, read in full here on John Shaqi.
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