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
But here, as elsewhere in his work, the sense of the positive and the
concrete, so remarkable in Smith, prevents his being content with a
general demonstration. He is not satisfied with proving the inefficiency
of intervention as compared with the efficiency of those institutions
which are spontaneously created by society itself, but he attempts
to show that the State, by its very nature, is unfitted for economic
functions. His arguments have been the arsenal from which the opponents
of State intervention have been supplied with ammunition ever since.
Let us briefly recall them.
“No two characters seem more inconsistent than those of trader and
sovereign.”[215] Governments are “always, and without any exception, the
greatest spendthrifts in the society.”[216] The reasons for this are
numerous. In the first place, they employ money which has been gained by
others, and one is always more prodigal of the wealth of others than of
one’s own. Moreover, the Government is too far removed from the centres
of particular industries to give them that minute attention which they
deserve if they are going to prosper. “The attention of the sovereign
can be at best but a very general and vague consideration of what is
likely to contribute to the better cultivation of the greater part of
his dominions. The attention of the landlord is a particular and minute
consideration of what is likely to be the most advantageous application
of every inch of ground upon his estate.”[217]
This necessity for a thorough cultivation of the soil and for the best
employment of capital, for direct and careful superintendence, is an idea
to which he continually reverts. He regrets, among other things, that
the growth of public debts causes a portion of the land and the national
capital to pass into the hands of fund-holders, who are doubtless
interested in the good administration of a country, but “are not
interested in the good condition of any particular portion of land, or in
the good management of any particular portion of capital stock.”[218]
Public-domain text, read in full here on John Shaqi.
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