Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
B. If the saving effected be used to create fixed capital, there is as
much consumption of goods, the same support of employed workmen, the
same sale for industrial articles as in the previous unproductive
consumption; only, there the stream is usually conducted into other
channels. If a rich man now employs in house-building what he formerly
paid out to mistresses; masons, carpenters, etc. earn what was formerly
claimed by hair-dressers, milliners, etc.: there is less spent for
truffles and champagne and more for bread and meat. The last result is a
house which adds permanently either to personal enjoyment, or
permanently increases the material products of the nation's
economy.[220-4] And it is just so when the wealth saved is used as
circulating capital. Here, the wealth saved is consumed in a shorter or
longer time; and to superficial observers, this saving might seem like
destruction; but it is distinguished from the last by this, that it
always reproduces its full equivalent and more. However, the whole
quantity of goods brought into the market by such new capital cannot be
called its product. Only the use (_Nützung_) of the new capital can be
so called; that is the holding together or the development in some other
way of other forces which were already in existence until their
achievements are perfected and ready for sale.[220-5] [220-6]
[Footnote 220-1: What evil influences such saving can have
may be seen from Prussian frugality in its military system
before 1806.]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account