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
This psychological balance which every individual was supposed to carry
within himself, and which, as the basis of the Neo-Classical school, is
known as the Hedonistic principle, is admirably described by Quesnay.[24]
“To secure the greatest amount of pleasure with the least possible
outlay should be the aim of all economic effort.” And this was what the
“order” aimed at. “When every one does this the natural order, instead
of being endangered, will be all the better assured.” It is of the very
essence of that order that the particular interest of the individual can
never be separated from the common interest of all, but this happens
only under a free system. “The movements of society are spontaneous and
not artificial, and the desire for joy which manifests itself in all its
activities unwittingly drives it towards the realisation of the ideal
type of State.”[25] This is _laissez-faire_ pure and simple.[26]
These famous formulæ have been so often repeated and criticised since
that they appear somewhat trite to-day. But it is certain that they were
not so at the time. It is easy to laugh at their social philosophy, to
mock at its _naïveté_ and simplicity, and to show that such supposed
harmony of interests between men does not exist, that the interests of
individuals do not always coincide with those of the community, and
that the private citizen is not always the best judge even of his own
interests. It was perhaps necessary that the science should be born of
such extreme optimism. No science can be constructed without some amount
of faith in a pre-established order.
Moreover, _laissez-faire_ does not of necessity mean that nothing will
be done. It is not a doctrine of passivity or fatalism. There will be
ample scope for individual effort, for it simply means leaving an open
field and securing fair play for everyone, free from all fear lest his
own interests should injure other people’s or in any way prejudice
those of the State. It is true that there will not be much work for
the Government, but the task of that body will by no means be a light
one, especially if it intends carrying out the Physiocratic programme.
This included upholding the rights of private property and individual
liberty by removing all artificial barriers, and punishing all those who
threatened the existence of any of these rights; while, most important
of all, there was the duty of giving instruction in the laws of the
“natural order.”
II: THE NET PRODUCT
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