Capitalism; Imperialism; Saving and investment; Socialism
'Objection may be made that, because of man's intelligence, because of
the advantage he can draw from the means provided by nature and
artifice, every human society can produce _all_ the things fit to
satisfy its needs and increase its enjoyment in far larger quantities
than it can itself consume. But there I would ask how it is possible
that we know of no nation that is supplied with everything. Even in what
rank as prospering nations seven-eighths of the population are lacking
in a multitude of things considered necessities in ... I will not say a
wealthy family, but in a modest establishment. The village I live in at
present lies in one of the richest parts of France; yet in 19 out of 20
houses I enter here, I see but the coarsest fare and nothing that makes
for the well-being of the people, none of the things the English call
comforts.'[212]
There is something to admire about the effrontery of the excellent Say.
It was he who had maintained that in a capitalist economy there could be
no difficulties, no surplus, no crises and no misery; since goods can be
bought one for the other, we need only go on producing more and more and
everything in the garden will be lovely. It was in Say's hands that this
postulate had become a tenet of the doctrine of harmony, that doctrine
so typical of vulgar economics, which had evoked a sharp protest from
Sismondi who proved this view untenable. The latter had shown that goods
cannot be sold in any quantity you like, but that a limit is set to the
realisation of goods by the income of society in each case, by _v + s_;
inasmuch as the wages of the workers are depressed to a mere subsistence
level, and inasmuch as there is also a natural limit to the consumptive
capacity of the capitalist class, an expansion of production, Sismondi
says, must inevitably lead to slumps, crises and ever greater misery for
the great masses. Say's come-back to this is masterly in its ingenuity:
If you will insist that over-production is possible, how can it happen
that there are so many people in our society who are naked, hungry and
in want? Pray, explain this contradiction if you can. Say, whose own
position excels by contriving blithely to shrug off the circulation of
money altogether by operating with a system of barter, now censures his
critic for speaking of an over-abundance of products in relation not
only to purchasing power but to the real needs of society, and that
although Sismondi had left no doubt at all about this very salient point
of his deductions. 'Even if there is a very great number of badly fed,
badly clothed and badly housed people in a society, the society can only
sell what it buys, and, as we have seen, it can only buy with its
income.'[213]
Public-domain text, read in full here on John Shaqi.
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