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 Classical school regarded the miseries created by large-scale
production with that sang-froid which was to characterise the followers
of Marx amid the throes of the “inevitable Revolution.” Among many
similarities which may be pointed out between the writings of Marx
and the doctrines of the Classical school, this is one of the most
characteristic. The grandeur of the new _régime_ is worthy of some
sacrifice. But Sismondi was an historian. His interest lay primarily in
those periods of transition which formed the exit from one _régime_ and
the entrance into another, and which involved so much suffering for the
innocent. He was anxious to mitigate the hardships in order that the
process of transition might be eased. Nothing can be more legitimate than
a claim of this kind. J. B. Say recognised its validity to a certain
extent, and this is precisely the _rôle_ of social economics.
Sismondi makes another remark which is no less just. What disgusted him
was not merely that workmen should be driven out by machinery, but that
the workers who were retained only had a limited share of the benefits
which they procured.[392] For the Classical school it was enough that
workers and consumers should have a share in the general cheapening of
production. But Sismondi demanded more. So long as toil is as laborious
as it is to-day, is it not just that the workman should benefit by the
introduction of machinery in the way of increased leisure? In the social
system as at present existing, owing to the competition among workers as
the result of excessive population, machinery does not increase leisure,
but it rather strengthens competition, diminishes wages, provokes a more
intense effort on the part of the workman, and forces him to extend his
working day. Here again Sismondi appears correct. We cannot see why the
consumer alone should reap all the profit of improved machinery, which
never benefits the workman unless it affects articles which enter into
his consumption. There would be nothing very striking if the benefits
of progress, at least during a short time, were to be shared between
consumer and worker just as to-day they are shared between inventor,
_entrepreneur_, and society. This idea is the inspiring motive of certain
trade unions to-day, which only accept a new machine in exchange for less
work and more pay.
Sismondi’s method when applied to production and machinery leads to
conclusions very different from those of the Classics. This is also true
of his treatment of competition.
Adam Smith had written: “In general, if any branch of trade, or any
division of labour, be advantageous to the public, the freer and more
general the competition it will always be the more so.”[393] Sismondi
considered this doctrine false, and invoked two reasons of unequal value
in support of his view.
Public-domain text, read in full here on John Shaqi.
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