An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
History
An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
Whenever, therefore, this perfect balance of work and demand is
overturned by the force of a simple competition, or by one of the scales
preponderating, one of two things must happen; either a part of the
demand is not answered, or a part of the goods is not sold.
These are the immediate effects of the overturning of the balance.
Let me next point out the object of the statesman’s care, relatively to
such effects, and shew the consequences of their being neglected.
We may now simplify our ideas, and instead of the former combinations,
make use of other expressions which may convey them.
Let us therefore say, that the _fall_ or _rise_ upon either side of the
balance, is _positive_, or _relative_. _Positive_, when the side we talk
of really augments beyond, or diminishes below the usual standard.
_Relative_, when there is no alteration upon the side we speak of, and
that the subversion of the balance is owing to an alteration on the
other side. As for example:
Instead of saying demand diminishes, and work remains the same, let us
say, demand diminishes _positively_, or work increases _relatively_;
according as the subject may lead us to speak either of the one or of
the other. This being premised,
If the scale of work shall preponderate _positively_, it should be
inquired, whether the quantity furnished has really swelled, in all
respects, beyond the proportion of the consumption, (in which case the
statesman should diminish the number of hands, by throwing a part of
them into a new channel) or whether the imprudence of the workmen has
only made them produce their work unseasonably; in which case, proper
information, and even assistance should be given them, to prevent
merchants from taking the advantage of their want of experience: but
these last precautions are necessary only in the infancy of industry.
Public-domain text, read in full here on John Shaqi.
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