Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
The political and military bearing of this very clearly
recognized. (102 ff., éd Daire.) Hence _Quesnay_, favors it
in every way; by large farming instead of small, by stock
raising on a large scale, supplanting home labor by cheaper
foreign labor, by machinery and the employment of manual
labor, etc.; 91 ff., 200 ff., 274 ff. The elder _Mirabeau_
teaches even that the goodness of a government or of a
constitution, and even national morality may be inferred
from the amount of the _produit net_. (Ph. rurale, ch. 5.)
_Stewart_, Principles, I, ch. 20. _Adam Smith_ gives greater
prominence to the gross income, and grades the principal
branches of national labor according as they increase the
gross product of the nation's economy. (II, chs. 1, 5.)
Similarly, _J. B. Say_, Traité, ch. 8, § 3; _Lauderdale_,
Inquiry, 142.
_Ricardo_ thoroughly reacts against this view, and considers
it a matter of indifference whether a net product (interest
on capital and rent) of a given amount be obtained by the
labor of five or seven million other men, so long as only
five million can live on it. (Principles, ch. 26.) Similarly
_Ganilh_, Systèmes, I, 218 ff.; Théorie, II, 96.
Controverted by _Malthus_, Principles, II, § 6. _Buquoy_,
Theorie der Nat. Wirthsch., 1815, 310 ff. _Sismondi_ has
ridiculed this predilection for the net product which in
_Ricardo_ corresponds with what the Germans call free
product (_freien Ertrage_), and which, contrary to Ricardo's
own opinion, he calls Ricardo's ideal, saying that according
to him, nothing more was to be desired but that "the king
should remain alone on the island and, by turning a crank
forever, do all the work of England through the
instrumentality of automata." (N. P., II, 330 ff.) An entire
people should value only gross product. (I, 183.) In his
Etudes, Essai, II: Du Revenu Social, _Sismondi_
distinguishes as elements of the gross national income: a,
pure capital, the return of outlay; b, that which is at once
both capital and income, and serves as family support
(capital as a necessarily remaining supply, income as the
product of the preceding year); c, net income, the excess of
production over consumption.
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