Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
But it is especially the freedom of circulation that increases with an
advance in civilization, and this advance, like the two preceding, first
affects the home or inland circulation. Freedom of competition, the
freedom of commerce and industry, technical expressions used to designate
freedom in general in the domain of a nation’s economy, is the natural
conclusion drawn from the principles of individual independence and of
private property. Hence its development is as slow as the development of
these, and attains its full growth only in highly cultivated nations,
their colonies and dependencies. In very low stages of economic
development, the circulation of goods is hampered by the absence of legal
security; later, by privileges accorded to a great number of families,
corporate bodies, municipalities, classes, etc., and later yet by the
mighty guardianship which the state exercises by its power of legislation
and even of education.(577) Each one of these epochs constitutes the end
of the preceding one, and is milder than it was. Finally comes the period
of complete freedom, when every man is permitted to manage his own affairs
even with injury to himself, provided the injury is confined to himself.
The later times of the Roman Empire are the best illustration of how, with
the decline of the conditions which must precede freedom of competition,
that freedom itself decays.(578)
Freedom of competition unchains all economic forces, good and bad. Hence,
when the former preponderate, it hastens the time of a people’s grandeur,
as it does their decline where the latter gain the upper hand.(579) We may
say of economic freedom what may be said of all other freedom, that the
removal of external constraint can be justified and produces the greater
good of the greater number only where a stern empire over self takes its
place. Without this it would not prevent or avoid idleness, usury or
over-population. Freedom must not be simply negative. It must be positive.
If on account of the immaturity or over-maturity of a people, there be no
sturdy middle class among them, unlimited competition may become what
Bazard calls a general _sauve-qui-peut_ (let the devil take the hindmost);
what Fourier designates as a _morcellement industriel_, and a _fraude
commerciale_; what M. Chevalier denominated “a battle-field on which the
little are devoured by the big;” and in such case, as Bodz-Reymond says,
the word competition, meaning simply that each one is permitted to run in
whatever direction he may see a door open to him, is but another and a new
expression for vagabondizing. But here the evil does not lie in too great
competition, but in this, that on one side there is too little
competition.(580) The opposing principle of competition is always
monopoly, that is, as John Stuart Mill says, the taxation of industry in
the interest of indolence and even rapacity; and protection against
competition is synonymous with a dispensation from the necessity to be as
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