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
In so far therefore, as the statesman finds his country still capable of
improvement, in so far he may encourage a demand for work, and even
countenance new branches of superfluous consumption; since the
equivalent to be given for them must of necessity prove an encouragement
to agriculture. But whenever the country becomes thoroughly cultivated
and peopled to the full proportion of its own produce, a check must be
put to multiplication, that is, to luxury, or misery and depopulation
will follow; unless indeed, we suppose that numbers are to be supported
at the expence of national wealth, the fatal consequences of which we
have already pointed out.
_3tio._ He should regulate the distribution of the classes of his
people, according to the political situation of the country.
This is the most complicated case of all. It would be imprudent, for
example, in a very small state situated on the continent, to distribute
all its inhabitants into producers and consumers, as we have called them
on several occasions; that is, into those who live upon a revenue
already acquired, and those who are constantly employed in acquiring one
by supplying the wants of the other. There must be a third class; to
wit, those who are maintained and taken care of at the expence of the
whole community, to serve as a defence. This set of men give no real
equivalent for what they receive; that is to say, none which can
circulate or pass from hand to hand; but still they are usefully
employed as members of a society mutually tied together by the band of
reciprocal dependence. Here is no vice implied; but at the same time,
the statesman must attend to the consequences of such a distribution of
classes.
The richer any state is, the more it has to fear from its neighbours:
consequently, the greater proportion of the inhabitants must be
maintained for its defence, at the expence of the industry of the other
inhabitants. This must diminish the number of free hands employed in
manufactures, and in supplying articles of consumption: consequently, it
would be imprudent to encourage the progress of luxury, while public
safety calls for a diminution of the hands which must supply it. If in
such circumstances luxury do not suffer a check, demand will rise above
the proper standard; living will become dearer daily, prices will rise,
and they will prove an obstacle to the recovery of foreign trade; an
object of which a prudent statesman will never lose sight for a moment.
Public-domain text, read in full here on John Shaqi.
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