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
When Exchange is thus arrested from ceasing to be advantageous, the
slightest improvement in the ‹commercial apparatus› gives it a new
activity. Between Orleans and Angoulême a certain [p113] number of
transactions take place. These towns effect an Exchange as often
as they can obtain a greater amount of enjoyments by that means
than by direct production. They stop short the moment the cost of
obtaining commodities by means of exchange, aggravated by the cost
of effecting the exchange itself, surpasses, or reaches, that of
obtaining them by means of direct production. In these circumstances,
if we improve the conditions under which Exchanges are effected—if
the merchants’ profits are diminished, or the means of transport
facilitated—if roads and railways are made, mountains levelled, and
bridges thrown over rivers—in a word, if obstacles are removed, the
number of Exchanges will be increased; for men are always desirous
to avail themselves of the great advantages which we have ascribed
to Exchange, and to substitute gratuitous for onerous utility. The
improvement of the ‹commercial apparatus›, then, is equivalent
to bringing two cities locally nearer to each other. Whence it
follows that bringing men physically, locally, nearer each other is
equivalent to improving the conditions of exchange. This is very
important. It is, in fact, the solution of the problem of population;
and this is precisely the element in that great problem that Malthus
has neglected. Where Malthus saw Discordance, attention to this
element enables us to discover ‹Harmony›.
When men effect an exchange, it is because they succeed by that means
in obtaining an equal amount of ‹satisfaction› at a less expense of
‹effort›; and the reason of this is, that on both sides services are
rendered which are the means of procuring a greater proportion of
what we have termed ‹gratuitous utility›.
Now, you have always a greater number of exchanges in proportion as
you remove the ‹obstacles› which impede exchanges, and diminish the
‹efforts› which these exchanges exact.
And Exchange encounters fewer obstacles, and exacts fewer efforts,
just in proportion as you bring men nearer each other, and mass them
more together. A greater density of population, then, is accompanied
by a greater proportion of ‹gratuitous utility›. That density imparts
greater power to the machinery of exchange; it sets free and renders
disposable a portion of human efforts; it is a cause of progress.
Now, if you please, let us leave generalities and look at facts.
Public-domain text, read in full here on John Shaqi.
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