Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
In times when calm prevails (not, however, in transition-crises such as
are referred to in § 24), there is a public opinion concerning merit and
reward, we might say a public conscience, by which a definite relation
of the three branches of income to one another is declared equitable.
Every "fair-minded man" feels satisfied when this relation is realized,
and this feeling of satisfaction is one of the principal conditions
precedent to the prosperity of production; inasmuch as upon it depends
the participation (_Theilnahme_) of all owners of funds and forces.
Every deviation from this relation or proportion is, of course, a
misfortune,[202-6] but never so great as when it takes place at the
expense of the wages of labor. It should never be forgotten that rent is
an appropriation of the gifts of nature, and that interest is a further
fruit obtained by frugality from older labor already remunerated.
Besides, the rate of wages when high, generally adds to the efficiency
of labor, which cannot be claimed for interest or rent.[202-7] The best
means to preserve the harmony of the three branches of income is,
however, universal activity. "Rich or poor, strong or weak, the idler is
a knave." (_J. J. Rousseau._)
[Footnote 202-1: The contrast between _Adam Smith_, at the
end of the first book, and _Ricardo_, ch. 24, in regard to
this point, is very characteristic of the times of those two
authors. According to _Smith_, the private interests of the
landowners and laborers run entirely parallel; only both
classes are easily deceived as to their own interests.
Capitalists understand their own interest very well, and
represent it with great energy; but their interest is in
opposition to the common good, in so far as their profit
among a poor and declining people is higher than among a
rich and flourishing one. _Ricardo_, on the other hand,
thinks that the interest of the landowners is opposed to
that of all others for the reason that they desire that the
cost of the production of wheat etc. should be as high as
possible.
Related to this is the fact that, in _Adam Smith's_ time,
the new theory of rent remained almost unnoticed, but that
after 1815, it became rapidly popular. In a similar way, the
socialists of the present time are wont to charge the
undertaking class with opposing their own interests to those
of the whole people, meaning by the whole the majority. (§
196 a.)]
[Footnote 202-2: Towards the end of the 14th century the
great Flemish merchants always sided with the absolutism of
France in opposition to their own _Artevelde_.]
[Footnote 202-3: Hence it is, that in so many constitutions,
charters of cities, etc., the exercise of the higher rights
of citizenship is conditioned by the possession of a certain
quantity of land, and that landownership is considered as a
species of public function.
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