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
Here let me observe, that although it be true in general, that the
greatest part of exportable manufactures do yield but very middling
profits, from the extension of industry in different countries, yet
sundry exceptions may be found; especially in nations renowned for their
elegance of taste. But how quickly do we see these lucrative branches of
foreign trade cut off, from the very inconvenience we here seek a remedy
for. The reason is plain. When strangers demand such manufactures, they
only share in the instruments of foreign luxury, which bring every where
considerable profits to the manufacturer. These high profits easily
establish a rivalship in favour of the nation to whom they are supplied;
because a hint is sufficient to enable such as exercise a similar
profession in that country, to supply their own inhabitants. This being
the case, an able statesman should be constantly attentive to every
growing taste in foreign nations for the inventions of his people; and
so soon as his luxurious workmen have set any one on foot, he may throw
that branch into the hands of the most frugal, in order to support it,
and give them such encouragement as to prevent, at least, the rivalship
of those strangers who are accustomed to work for large profits. This is
one method of turning a branch of luxury into an article of foreign
trade. Let me illustrate this by an example.
What great advantages do not the French reap from the exportation of
their modes? But we quickly find their varnishes, gauzes, ribbands, and
colifichets, imitated by other nations, for no other reason but because
of the large, or at least consolidated profits enjoyed by the French
workmen themselves, who, fertile in new inventions, and supported by
their reputation for elegance of dress, have got into possession of the
right of prescribing to all Europe the standard of taste in articles of
mere superfluity. This however is no permanent prerogative; and that
elegant people, by long setting the example, and determining the
standard of refinement in some luxurious arts, will at last inspire a
similar taste into their scholars, who will thereby be enabled to
supplant them. Whereas were they careful to supply all their inventions
at the lowest prices possible, they would ever continue to be the only
furnishers.
The method therefore of reducing consolidated profits, whether upon
articles of exportation, or home consumption, is to increase the number
of hands employed in supplying them; and the more gradually this
revolution is made to take place, the fewer inconveniencies will result
to those who will thereby be forced to renounce them.
Public-domain text, read in full here on John Shaqi.
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