Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
The question frequently discussed, whether it is more advantageous to
increase the gross income or the net income[147-1] of a people, may be
readily answered with the assistance of our tripartite division. Since
economic production has no other object than the satisfaction of human
wants, the mere increase of the gross income of a people is a matter of
indifference. An increase of the net income puts a people in a condition
to increase either their numbers or their enjoyments. (See §§ 163 and
239.) The most desirable condition is where both these results are
produced. It is fortunate for a people when the _free_ income of the
nation increases by reason of the absolute or relative decrease of the
cost of production, which adds nothing to enjoyment. But it is
politically and morally to be lamented when it increases at the expense
of the satisfaction of man's necessary wants, especially if the majority
of the people deny themselves in this respect to produce that end. Sir
Thomas More called the sheep of his time, to make place for which so
many farm houses were razed to the ground, ravenous beasts, which
devoured men and laid waste city and country.[147-2]
[Footnote 147-1: The greater number of writers, at bottom,
understand by this question only whether greater efforts
should be made to increase the wages of the lower classes or
the rent and rate of interest on capital paid to the higher.
(_Schmoller_, in the Tüb. Zeitschrift, 1863, 22.)]
[Footnote 147-2: The difference between gross and net income
was introduced into the science principally by the
Physiocrates. _Vauban_ (1707) had no conception of it, and
thirty years later a French minister, in his instructions
concerning the levy of the _vingtièmes_, dimly seeing that
the aggregate amount of the harvest was not clear gain,
ordered, to obtain the latter, that the cost of reaping and
threshing should be deducted. (_Dupont_, Correspondence of
_J. B. Say_, 404, éd. Daire.) By _produit net_, _Quesnay_
means the excess of original production over its cost,
considered from the personal point of view of the individual
landowner. This excess, it is claimed, can alone increase
the national wealth and alone support the "steril" class.
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