Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
Among a highly civilized people, a great amount of capital in use, as
compared with the productive capital of the country, may be considered a
sure sign of great wealth. When this is the case, the people, without
losing the desire of further acquisition, think that they have enough to
richly enjoy the present. I need only call to mind the munificence
displayed by the middle classes in England, in their silver plate and
other domestic utensils. But the people of Russia, and Mexico also, can
make no mean display of silverware.(284) Here luxury is only a symptom of
the disinclination or inability of the inhabitants of the country to use
their capital in the production of wealth. How much richer would Spain be
to-day, if it had employed the idle capital spent in the ornamentation of
its churches in constructing roads and canals!(285) Most nations in a low
state of civilization suffer from the absence of legal guarantees. Each
one is compelled to turn his property into a shape in which it can be most
easily transferred from one place to another and hidden. This is the
principal reason why the Orientals possess, relatively speaking, so many
precious stones and so much of the precious metals. The same cause
accounts for the simplicity of their dwellings.(286) On the other hand,
productive capital is to be found in the greatest proportion among
civilized nations which are making very rapid strides towards wealth, the
people of the United States, for instance.
Section XLIV.
Capital.—Fixed Capital, And Circulating Capital.
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