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 a combination of several causes to operate these effects, which
we shall examine separately; leaving to the reader to judge, how far the
combination of them may extend profits beyond the physical-necessary.
I. We have said (chap. 9.) that the value of a workman’s labour is
determined from the quantity performed, in general, by those of his
profession, neither supposing them the best nor the worst, nor as having
any advantage or disadvantage, from the place of their abode. A workman
therefore, who, to an extraordinary dexterity, joins the advantages of
place, must gain more than another.
II. We have often remarked, that competition between workmen of the same
profession, diminishes the profits upon labour. From this it follows,
that in such arts where the least competition is found, there must be
the largest profits. Now several circumstances prevent competition.
First. An extraordinary dexterity in any art, and especially in those
where the whole excellency depends upon great exactness, such as
watch-making, painting of all kinds, making mathematical instruments,
and the like; all which set a celebrated artist in a manner above a
possibility of rivalship, and make him the master of his price, as
experience shews. 2d. The difficulty of acquiring the dexterity
requisite, resulting both from the time and money necessary to be spent
in apprenticeship, proves a plain obstacle to a numerous competition.
Few there are, who having the stock sufficient to defray the loss of
several years fruitless application, have also the turn necessary to
lead them to that particular branch of ingenuity. 3d. Many there are,
who have skill and capacity sufficient to enter into competition, but
are obliged to work for others, because of the expensive apparatus of
instruments, machines, lodging, and many other things necessary for
setting out as a master in the art. These, and similar causes, prevent
competition, and support large profits. 4th. Masters increase their
profits greatly by sharing that of their journeymen: this share, the
first have a just title to from the constant employment they procure for
the latter; and the certainty these have of gaining their
_physical-necessary_, together with a profit proportional to their
dexterity, makes them willing to share with their master. The 5th cause
of considerable gains, and the last I shall mention, is the most
effectual of all, viz. great oeconomy, and parsimonious living. In
proportion to the concurrence and combination of these circumstances,
the fortune of the artist will increase, which is the answer to the
first part of the question proposed.
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