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
What is true of industrial employees is no less true of the toilers
of the field. In this connection Sismondi introduces the celebrated
distinction between net and gross production which has occupied the
attention of many economists since then. If the peasants collectively
owned all the land they would at least of a certainty find both the
security and the support of their life in the soil. They would never let
the gross produce fall below what was sufficient to support them.[412]
But with great landed proprietors, and with the peasant transformed into
the agricultural labourer, things have changed. The large proprietors
have the net product only in view—that is, the difference between the
cost of production and the sale price. It matters little to them if the
gross produce is sacrificed for the sake of increasing the net produce.
Here you have land which, when well cultivated, brings gross produce of
the value of 1000 shillings to the farmer and yields 100 shillings in
rent to the proprietor. But the proprietor thinks that he would gain
110 shillings if he left it fallow or let it as unprofitable pasture.
“His gardener or vinedresser is dismissed, but he gains 10 shillings
and the nation loses 890. By and by the capital employed in producing
this plentiful supply will no longer be so employed, and there will
be no profit. The workers whose former toil produced these products
will no longer be employed and no wages will be paid.”[413] Examples
are plentiful enough. A number of the great Scotch proprietors, in
order to replace the ancient system of cultivation by the open pasture
system, sent the tenants from their dwellings and drove them into the
towns or huddled them on board ships for America. In Italy a handful of
speculators called the _Mercanti di tenute_, animated by similar motives,
have hindered the repopulation and cultivation of the Roman Campagna,
“that territory formerly so very fertile that five acres were sufficient
to provide sustenance for a whole family as well as sending a recruit
to the army. To-day its scattered homesteads, its villages, the whole
population, together with the farm enclosures, the vineyards, and the
olive plantations—products that require the continual loving attention
of mankind—have all disappeared, giving place to a few flocks of sheep
tended by a few miserable shepherds.”[414] The criticism is just, but is
directed rather against the abuse of private property than against the
principle of the net product, for this principle is incident to peasant
proprietorship as well. It is inevitable wherever production for a market
takes place.[415]
It is just this opposition between proprietorship and labour that
supplies an explanation of economic crises.
Public-domain text, read in full here on John Shaqi.
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