Capitalism; Imperialism; Saving and investment; Socialism
'For seven years I have indicated this malady of the social organism,
and for seven years it has continuously increased. I cannot regard such
prolonged suffering as the mere frictions which always accompany a
change. Going back to the origin of income, I believe to have shown the
ills we experience to be the consequence of a flaw in our organisation,
to have shown that they are not likely to come to an end.'[157]
The disproportion between capitalist production and the distribution of
incomes determined by the former appears to him the source of all evil.
This is the point from which he comes to the problem of accumulation
with which we are now concerned.
The main thread of his criticism against classical economics is this:
capitalist production is encouraged to expand indefinitely without any
regard to consumption; consumption, however, is determined by income.
'All the modern economists, in fact, have allowed that the fortune of
the public, being only the aggregation of private fortunes, has its
origin, is augmented, distributed and destroyed by the same means as the
fortune of each individual. They all know perfectly well, that in a
private fortune, the most important fact to consider is the income, and
that by the income must be regulated consumption or expenditure, or the
capital will be destroyed. But as, in the fortune of the public, the
capital of one becomes the income of another, they have been perplexed
to decide what was capital, and what income, and they have therefore
found it more simple to leave the latter entirely out of their
calculations. By neglecting a quality so essential to be determined, Say
and Ricardo have arrived at the conclusion, that consumption is an
unlimited power, or at least having no limits but those of production,
whilst it is in fact limited by income.... They announced that whatever
abundance might be produced, it would always find consumers, and they
have encouraged the producers to cause that glut in the markets, which
at this time occasions the distress of the civilised world; whereas they
should have forewarned the producers that they could only reckon on
those consumers who possessed income.'[158]
Public-domain text, read in full here on John Shaqi.
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