Harmonies of Political Economy: Translated from the Third French Edition, with a Notice of the Life and Writings of the AuthorBastiat, Frédéric
Philosophy
Harmonies of Political Economy: Translated from the Third French Edition, with a Notice of the Life and Writings of the Author
Bastiat, Frédéric
Economics
Only admit that exchange is at once the cause and the effect of the
division of labour and the separation of employments; only admit
that the separation of occupations multiplies ‹satisfactions› in
proportion to ‹efforts›, for the reasons explained at the beginning
of this chapter, and you will comprehend at once the services which
Money has rendered to mankind, by the simple fact that it facilitates
Exchanges. By means of Money, Exchange is indefinitely extended
and developed. Each man casts his services into the common fund,
without knowing who is to enjoy the satisfactions which they are
calculated to procure. In the same way he obtains from society, not
immediate services, but money with which he can afterwards purchase
services, where, when, and how it may best suit him. In this way the
ultimate transactions occur at various times and places, between
people totally unacquainted with each other, and in the greater
number of cases no one knows by whose ‹efforts› his ‹wants› will be
‹satisfied›, or to the ‹satisfaction› of whose ‹desires› his own
‹efforts› will contribute. Exchange, by the intervention of Money,
resolves itself into innumerable acts of ‹barter›, of which the
contracting parties themselves are ignorant.
Exchange, however, confers so great a benefit on society (is it not
society itself?) that it facilitates and extends it by other means
besides the introduction of money. In logical order, after Want and
Satisfaction united in the same individual with isolated Effort—after
simple barter—after barter ‹à deux facteurs›, or Exchange composed
of ‹sale› and ‹purchase›—come other transactions, extended farther
over time and space by means of credit, mortgages, bills of exchange,
bank notes, etc. By means of this wondrous machinery, the result of
civilisation, the improver of civilisation, and itself becoming more
perfect at the same time, an exertion made at the present hour in
Paris may contribute to the satisfaction and enjoyment of an unknown
stranger, separated from us by oceans and centuries; and he who makes
the exertion will not the less receive for it a present recompense,
through the intervention of persons who advance the remuneration,
and wait to be reimbursed in a distant country or at a future day.
Marvellous and astonishing complication! which, when subjected to
analysis, shows us finally the accomplishment of the entire economic
cycle—‹want›, ‹effort›, ‹satisfaction›, taking place in each
individual, according to a just law.
Public-domain text, read in full here on John Shaqi.
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