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
So soon as all this load of money which formerly was continually going
backwards and forwards, without almost penetrating, as one may say, into
the country, is taken out of foreign trade, and thrown into domestic
circulation, a new scene opens.
Every one now begins to appear rich. That wealth which formerly made the
admiration of foreigners, now astonishes the proprietors themselves. The
use of money, formerly, was to make more of it: the use of money now, is
to give it in exchange for those or such like commodities, which were
then consumed by strangers only.
It is this revolution in the spirit of a people, which renders the
consideration of the balance of their wealth an object of the greatest
political concern; because the constant fluctuation of it, among the
several classes of inhabitants, is what lays the foundation of public
opulence.
A government must always be respected, feared, and obeyed by the people
governed; consequently, it must be powerful, and its power must be of a
nature analogous to that of the subjects. If you suppose a great
authority vested in the grandees of a kingdom, in consequence of the
number and dependence of their vassals, the crown must have still a more
powerful vassalage at its command: if they are powerful by riches, the
crown must be rich. Without preserving this just balance, no government
can subsist. All power consists in men, or in money.
If therefore we suppose a vast quantity of wealth thrown into domestic
circulation, the statesman must follow new maxims. He must promote the
circulation of it so as to fill up the blank of foreign consumption, and
preserve all the industrious who have enriched him. The quicker the
circulation is found to be, the better opportunity will the industrious
have of becoming rich speedily; and the idle and extravagant will become
the more quickly poor. Another consequence equally certain, is, that the
quicker the circulation, the sooner will wealth become equally divided;
and the more equality there is found in wealth, the more equality will
be found in power. From these principles it will follow, that upon such
a revolution of national circumstances, a popular government may very
probably take place, if the statesman do not take proper care to prevent
it.
This is done by the imposition of taxes, and these are differently laid
on, according to the spirit of the government.
By taxes a statesman is enriched, and by means of his wealth, he is
enabled to keep his subjects in awe, and to preserve his dignity and
consideration.
Public-domain text, read in full here on John Shaqi.
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