Capitalism; Imperialism; Saving and investment; Socialism
He, like Sismondi, had to defend himself against the suspicion that he
is opposing technical progress, but, less ruthless, he compromises with
the evasion that the evil emerges only gradually. 'To elucidate the
principle, I have been supposing, that improved machinery is _suddenly_
discovered, and extensively used; but the truth is, that these
discoveries are gradual, and rather operate in determining the
employment of the capital which is saved and accumulated, than in
diverting capital from its actual employment.'[197]
Yet the problem of crises and accumulation continued to worry Ricardo
also. In 1823, the last year of his life, he spent some days in Geneva
in order to talk the problem over face to face with Sismondi. The result
of these talks is Sismondi's essay 'On the Balance Between Consumption
and Production', published in the _Revue Encyclopédique_ of May
1824.[198]
In his _Principles_, Ricardo had at the crucial points completely
accepted Say's trite doctrine of harmony in the relations between
production and consumption. In chapter xxi he had declared: 'M. Say has,
however, most satisfactorily shown, that there is no amount of capital
which may not be employed in a country, because demand is only limited
by production. No man produces, but with a view to consume or sell, and
he never sells, but with an intention to purchase some other commodity,
which may be immediately useful to him, or which may contribute to
future production. By producing, then, he necessarily becomes either
the consumer of his own goods, or the purchaser and consumer of the
goods of some other person.'[199]
Public-domain text, read in full here on John Shaqi.
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