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
If this want of employment for manufacturers do not proceed from the
high prices of living, but for want of commissions from the merchants,
the causes of this diminution of demand must be examined into. It may be
accidental, and happen from causes which may cease in a little time, and
trade return to flourish as before. It may also happen upon the
establishment of new undertakings in different places of the country,
from which, by reason of some natural advantage, or a more frugal
disposition in the workmen, or from the proximity of place, markets may
be supplied, which formerly were furnished by those industrious people
who are found without employment. In these last suppositions, the
distress of the manufacturers does not prove any decay of trade in
general, but, on the contrary, may contribute to destroy the bad effects
of consolidated profits, by obliging those who formerly shared them, to
abandon the ease of their circumstances, and submit a-new to a painful
industry, in order to procure subsistence. When such revolutions are
sudden, they prove hard to bear, and throw people into great distress.
It is partly to prevent such inconveniencies, that we have recommended
the lowest standard possible, upon articles of exportation.
Two causes there are, which very commonly mark a decline of trade, to
wit; 1. When foreign markets, usually supplied by a trading nation,
begin to be furnished, let it be in the most trifling article, by
others, not in use to supply them. Or, 2. When the country itself is
furnished from abroad with such manufactures as were formerly made at
home.
These circumstances prove one of two things, either that there are
workmen in other countries, who, from advantages which they have
acquired by nature, or by industry and frugality, finding a demand for
their work, take the bread out of the mouths of those formerly employed,
and deprive them of certain branches of their foreign trade: or, that
these foreign workmen, having profited of the increased luxury and
dissipation of the former traders, have begun to supply the markets with
certain articles of consumption, the profits upon which being small,
are, without much rivalship, insensibly yielded up to them by the
workmen of the other trading nation, who find better bread in serving
their own wealthy countrymen.
Against the first cause of decline, I see no better remedy than
patience, as I have said already, and a perseverance in frugality and
oeconomy, until the unwary beginners shall fall into the inconveniencies
generally attending upon wealth and ease.
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