A history of economic doctrines : $b from the time of the physiocrats to the present day — John Shaqi
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
It may be pointed out, on the other hand, that the “gains,” both in
industry and commerce, are far in excess of those of agriculture. All
this was immaterial to the Physiocrats, for “they were gained, not
produced.”[31] Such gains simply represented wealth transferred from
the agricultural to the industrial classes.[32] The agricultural classes
furnished the artisans not only with raw material, but also with the
necessaries of life. The artisans were simply the domestic servants, or,
to use Turgot’s phrase, the hirelings of the agriculturists.[33] Strictly
speaking, the latter could keep the whole net product to themselves, but
finding it more convenient they entrust the making of their clothes, the
erection of their houses, and the production of their implements to the
artisans, giving them a portion of the net product as remuneration.[34]
It is possible, of course, that, like many servants in fine houses, the
latter manage to make a very good living at their masters’ expense.
The “sterile classes” in Physiocratic parlance simply signifies those who
draw their incomes second-hand. The Physiocrats had the good sense to
try to give an explanation of this unfortunate term, which threatened to
discredit their system altogether, and which it seemed unfair to apply
to a whole class that had done more than any other towards enriching the
nation.
It is a debatable point whether the Physiocrats attributed this virtue of
furnishing a net product solely to agriculture or whether they intended
it to apply to extractive industries, such as mining and fishing. They
seem to apply it in a general way to mines, but the references are rare
and not infrequently contradictory. We can understand their hesitating,
for, on the one hand, mines undoubtedly give us new wealth in the form
of raw materials, just as the land or sea does; on the other hand, the
fruits of the earth and the treasures of the deep are not so easily
exhausted as mines. Turgot put it excellently when he said, “The land
produces fruit annually, but a mine produces no fruit. The mine itself
is the garnered fruit,” and he concludes that mines, like industrial
undertakings, give no net product, that if any one had any claim to that
product it would be the owner of the soil, but that in any case the
surplus would be almost insignificant.[35]
Public-domain text, read in full here on John Shaqi.
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