But if the depreciation of money is a source of gain to the business
man, it is also the occasion of opprobrium. To the consumer the
business man’s exceptional profits appear as the cause (instead of the
consequence) of the hated rise of prices. Amidst the rapid fluctuations
of his fortunes he himself loses his conservative instincts, and begins
to think more of the large gains of the moment than of the lesser, but
permanent, profits of normal business. The welfare of his enterprise
in the relatively distant future weighs less with him than before,
and thoughts are excited of a quick fortune and clearing out. His
excessive gains have come to him unsought and without fault or design
on his part, but once acquired he does not lightly surrender them, and
will struggle to retain his booty. With such impulses and so placed,
the business man is himself not free from a suppressed uneasiness.
In his heart he loses his former self-confidence in his relation to
society, in his utility and necessity in the economic scheme. He fears
the future of his business and his class, and the less secure he feels
his fortune to be the tighter he clings to it. The business man, the
prop of society and the builder of the future, to whose activities and
rewards there had been accorded, not long ago, an almost religious
sanction, he of all men and classes most respectable, praiseworthy and
necessary, with whom interference was not only disastrous but almost
impious, was now to suffer sidelong glances, to feel himself suspected
and attacked, the victim of unjust and injurious laws,--to become, and
know himself half-guilty, a profiteer.
No man of spirit will consent to remain poor if he believes his betters
to have gained their goods by lucky gambling. To convert the business
man into the profiteer is to strike a blow at capitalism, because it
destroys the psychological equilibrium which permits the perpetuance
of unequal rewards. The economic doctrine of normal profits,
vaguely apprehended by every one, is a necessary condition for the
justification of capitalism. The business man is only tolerable so long
as his gains can be held to bear some relation to what, roughly and in
some sense, his activities have contributed to society.
This, then, is the second disturbance to the existing economic order
for which the depreciation of money is responsible. If the fall in the
value of money discourages investment, it also discredits enterprise.
Not that the business man was allowed, even during the period of boom,
to retain the whole of his exceptional profits. A host of popular
remedies vainly attempted to cure the evils of the day; which remedies
themselves--subsidies, price and rent fixing, profiteer hunting, and
excess profits duties--eventually became not the least part of the
evils.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account