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
There is one necessary augmentation upon the prices of industry, brought
about by a very natural cause, viz. the increase of population, which
may imply a more expensive improvement of the soil; that is, an
extension of agriculture. This augmentation may very probably put a stop
to the augmentation of demand for many branches of manufactures,
consequently may stop the progress of industry; and if the same causes
continue to operate in a greater degree, it may also cut off a part of
the former demand, may discredit the market, open a door to foreign
consumption, and produce the inconveniencies of poverty and distress, in
proportion to the degree of negligence in the statesman.
I shall now give another example, of a very natural augmentation upon
the intrinsic value of work, which does not proceed from the increase of
population, but from the progress of industry itself; which implies no
internal vice in a state, but which is the necessary consequence of the
reformation of a very great one. This augmentation must be felt less or
more in every country, in proportion as industry becomes extended.
We have said, that the introduction of manufactures naturally tends to
purge the lands of superfluous mouths: now this is a very slow and
gradual operation. A consequence of it was said to be (Book I. Chap.
xx.) an augmentation of the price of labour, because those who have been
purged off, must begin to gain their whole subsistence at the expence of
those who employ them.
If therefore, in the infancy of industry, any branch of it shall find
itself assisted in a particular province, by the cheap labour of those
mouths superfluously fed by the land, examples of which are very
frequent, this advantage must diminish, in proportion as the cause of it
ceases; that is, in proportion as industry is extended, and as the
superfluous mouths are of consequence purged off.
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