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
Besides, unless the quantity of food be increased, if strangers are
imported to eat part of it, natives must in some degree starve; and if
you augment the quantity of food, and keep it at a little lower price
than in neighbouring nations, your own inhabitants will multiply; the
state may take great numbers of them into their service when young; they
soon come to be able to do something in the manufacturing way; they may
be bound for a number of years, sufficient to indemnify the public for
the first expence; and the encouragement alone of having bread cheaper
than elsewhere, will bring you as many strangers as you incline to
receive, provided a continual supply of food can be procured in
proportion to the increase of the people.
But I imagine that it is always better for a state to multiply by means
of its own inhabitants, than by that of strangers; for many reasons
which to me appear obvious.
We come now to the second cause of high prices, to wit, a rise in the
value of the articles of the first necessity, which we have said
proceeds from the progress of industry having outstripped the progress
of agriculture. Let me set this idea in a clearer light; for here it is
shut up in too general terms to be rightly viewed on all sides.
The idea of inhabitants being multiplied beyond the proportion of
subsistence, seems to imply that there are too many already; and the
demand for their industry having been the cause of their multiplication,
proves that formerly there were too few. Add to this, that if,
notwithstanding the rise upon the price of work proceeding from the
scarcity of subsistence, the scale of home demand is found to
preponderate, at the expence of foreign trade, this circumstance proves
farther, that however the inhabitants may be already multiplied above
the proportion of subsistence, their numbers are still too few for what
is demanded of them at home; and for what is required of them towards
promoting the prosperity of their country, in supporting their trade
abroad.
From this exposition of the matter, the remedy appears evident: both
inhabitants and subsistence must be augmented. The question comes to be,
in what manner, and with what precautions, must these operations be
performed?
Inhabitants are multiplied by reducing the price of subsistence, to the
value which demand has fixed upon the work of those who are to consume
it. This is only to be accomplished by augmenting the quantity, by
importation from foreign parts, when the country cannot be made to
produce more of itself.
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