Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 212-2: So far _Senior_, Outlines, 66, is right:
the richer a nation or a man becomes, the greater does the
national or personal productive consumption become.]
[Footnote 212-3: Such gigantic constructions as the palaces,
pyramids, etc. of Egypt, Mexico or Peru are a certain sign
of the oppression of the people by rulers, priests or
nobles. One of the Egyptian pyramids is said to have
occupied 360,000 men for twenty years. (_Diodor._, I, 63;
_Herodot._, II, 175; _Prescott_, History of Mexico, I, 153,
History of Peru, I, 18.)]
[Footnote 212-4: Edinburg Rev., Apr., 1873, 399.]
[Footnote 212-5: _Berkeley_, Querist, 168, 175, says that
the national wants should be the guiding rule of commerce,
and that besides, the most pressing wants of the majority
should be first considered.]
[Footnote 212-6: _Ricardo_, Principles, p. 475, was of
opinion that an outlay of the national or of private income
in the payment of personal services increased the demand for
labor and the wages of labor in a higher degree than an
equal outlay for material things. The error at the
foundation of this is well refuted by _Senior_, Outlines,
160 ff.
The first to zealously advocate and treat the theory of
productive consumption was _J. B. Say_, Traité, III, ch. 2,
seq.; Cours pratique, II, 265. But the germs of the doctrine
are to be found in _Dutot_, Réflexions politiques sur le
Commerce et les Finances, 1738, 974, _éd_. Daire. His
distinctions are in part drawn with great accuracy. Thus he
says that, among others, a manufacturer of cloth,
productively consumes the results of his workmen, but that
the workmen themselves who exchange these results for bread,
consume the latter unproductively. _Say_ is guilty of the
inconsistency of claiming that only that consumption is
productive which contributes directly to the creation of
material exchangeable goods, spite of the fact that he gave
the productiveness of labor a much wider scope. _Rau_,
Lehrbuch, I, § 102 ff., 323 seq., is more consistent in so
far as he applies the same limitation in both cases.
(Compare also § 333, 336.) _Hermann_, Staatsw.
Untersuchungen, 170 seq., 231 ff., would prefer to see the
idea of productive consumption banished from the science,
for the reason that if the value of the thing alleged to be
consumed continues, there can be no such thing as its
consumption. But, I would rejoin: in a good national
economy, there would be, according to this, scarcely any
consumption whatever, because the aggregate value of that
which I have called above productive consumption is
unquestionably preserved, and continues in the aggregate
value of the national products.
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