Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 219-3: The Journal des Economistes for March,
1854, very clearly shows, in opposition to the
state-sophists who recommended extravagant balls, etc. as a
means of advancing industry, and who even advocated the
paying officials higher salaries on this account, and making
greater outlays by them compulsory, that such luxury when it
comes of itself may be a symptom of national wealth, but
that it is a very bad means to produce prosperity
artificially.]
SECTION CCXX.
WHEN SAVING IS INJURIOUS.
The act of saving, if the consumption omitted was a productive one, is
detrimental to the common good; because now a real want of the national
economy remains unsatisfied.[220-1] The effecting of savings by
curtailing unproductive consumption may embarrass those who had
calculated on its continuance. But its utility or damage to the whole
national economy will depend on the application or employment of what is
saved. Here two different cases are possible.
A. It is stored up and remains idle. If this happens to a sum of money,
the number of instruments of exchange in commerce is diminished. Hence,
in consequence, there may be either a general fall in the price of
commodities, or some commodities may remain unsold; that is, according
to § 217, a commercial crisis of greater or smaller extent.[220-2] If it
be objects of immediate consumption that are stored up and lie idle,
articles of food or clothing, for instance, the price of such
commodities is wont to be raised by the new and unusual demand for them,
precisely as it is lowered afterwards when the stores are suddenly
opened and thrown upon the market.[220-3]
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