Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
It should never be lost sight of, that the public economy of a people
should be considered an organism, which, when its growth is healthy,
always develops more varied organs, but always in a due proportion, which
are not only carried by the body, but also in turn serve to carry it. The
aggregate of the wants of the entire public economy etc., is satisfied by
the aggregate activity of the people. Every individual who employs his
lands, labor or capital for the whole, receives his share of the aggregate
produce, whether he contributed or not to the creation of the kind of
produce in which he is paid. Thus, in a pin-manufactory, the workman who
is occupied solely in making the heads of pins is not paid in pins or
pin-heads, but in a part of the aggregate result of the manufacture, in
money. Every department of business, therefore, for the achievements of
which there is a rational demand, and which are remunerated in proportion
to their deserts, has labored productively. It is unproductive only when
no one will need what it has brought forth, or when no one will pay for
it; but, in this case, what is true of the writer without readers—that he
is unproductive—and of the singer without hearers, is equally true of the
peasant whose corn rots in his granary, because he can find no sale for
it.(331)
Section LIII.
The Same Subject Continued.
In this matter, again, there is an important difference to be observed
between private or individual economy and economy in its widest sense, in
the sense of a world-economy. The productiveness of labor is estimated in
the case of the former, according to the value in exchange of its result;
in the case of the latter, according to its value in use. There is a great
number of employments which are very remunerative to private individuals,
but which are entirely unproductive, and even injurious, so far as mankind
is concerned; for the reason that they take from others as much as, or
even more than they procure to those engaged in them. Here belong, besides
formal crimes against property, games of chance,(332) usurious
speculations (§ 113) and measures taken to entice customers away from
other competitors. Again, scientific experiments, means of communication
etc., may be entirely unproductive in the individual economy of the
undertaker, and yet be of more profit to mankind in general, than they
have cost the former.(333) In this respect the nation’s economy holds a
middle place between individual economy and the world’s economy.(334)
Strictly speaking, only those employments should be called productive
which increase the world’s resources. Hence, the work of government should
be called so, only in so far as its expenses are covered by the taxes paid
willingly by the more reasonable portion of the citizens; and also only in
so far as its work is really necessary to the attainment of its end.(335)
The productiveness of an employment supposes, also, that it is not carried
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