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
This is the reason why man is constantly stimulated to exercise
foresight, in order to turn it to account. He has always in [p177]
perspective a possible rise or fall of value,—a recompense for just
and sagacious prevision, and chastisement when it is erroneous. And,
observe, his success or failure coincides with the public good or the
public detriment. If his foresight has been well directed, if he has
made preparations beforehand to give society the benefit of services
which are more in request, more appreciated, more efficacious,
which supply more adequately wants which are deeply felt, he has
contributed to diminish the scarcity, to augment the abundance, of
that description of service, and to bring it within the reach of a
greater number of persons at less expense. If, on the other hand, he
is mistaken in his calculations for the future, he contributes, by
his competition, to depress still farther those services for which
there is little demand. He only effects, and at his own expense, a
negative good,—he advertises the public that a certain description of
wants no longer call for the exertion of much social activity, which
activity must now take another direction, or go without recompense.
This remarkable fact—that ‹value›, ‹incorporated› in a product,
depends on the value of the kind of service to which it owes its
origin—is of the very highest importance, not only because it
demonstrates more and more clearly the theory that the principle of
value resides in the service, but because it explains, easily and
satisfactorily, phenomena which other systems regard as abnormal and
exceptional.
When once the product has been thrown upon the market of the world,
do the general tendencies of society operate towards elevating or
towards depressing its ‹value›? This is to ask whether the particular
kind of services which have engendered this value are liable to
become more or less appreciated, and better or worse remunerated.
The one is as possible as the other, and it is this which opens an
unlimited field to human foresight.
Public-domain text, read in full here on John Shaqi.
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