Capitalism; Imperialism; Saving and investment; Socialism
v. Kirchmann does not agree with this explanation. He traces pauperism
back to the effects of a rising ground rent; crises, on the other hand,
to a lack of markets. About the latter especially he says: 'The greatest
part of social ills is caused not by defects of production but by a lack
of markets for the products ... the more a country can produce, the more
means it has for satisfying every need, the more it is exposed to the
danger of misery and want.'--The labour-problem is here included as
well, for 'the notorious right to work ultimately reduces to the
question of markets'. 'We see', he concludes, 'that the social problem
is almost identical with the problem of markets. Even the ills of
much-abused competition will vanish, once markets are secure; its
advantages alone will remain. There will remain a spirit of rivalry to
supply good and cheap commodities, but the life-and-death struggle will
disappear which is caused only by insufficient markets.'[236]
The difference between the points of view of Rodbertus and v. Kirchmann
is evident. Rodbertus sees the root of the evil in a faulty distribution
of the national product, and v. Kirchmann in the limitations of the
markets for capitalist production. Notwithstanding all the confusion in
his expositions, especially in his idealist vision of a capitalist
competition content with a laudable rivalry for better and cheaper
commodities, and also in his conception of the 'notorious right to work'
as a problem of markets, v. Kirchmann up to a point still shows more
understanding for the sore spot of capitalist production, i.e. the
limitations of its market, than Rodbertus who clings to distribution.
Thus it is v. Kirchmann who now takes up the problem which Sismondi had
originally put on the agenda. Nevertheless, he by no means agrees with
Sismondi's elucidation and solution of the problem, siding rather with
the opponents of the latter. Not only does he accept Ricardo's theory of
ground rent, and Adam Smith's dogma that 'the price of the commodity is
composed of two parts only, of the interests on capital and the wages of
labour' (v. Kirchmann transforms the surplus value into 'interest on
capital'); he also subscribes to the thesis of Say and Ricardo that
products are only bought with other products and that production creates
its own demand, so that if one side appears to have produced too much,
it only means there was not enough production on the other. v.
Kirchmann, we see, faithfully follows the classics, if in a somewhat
'German edition'. He begins by arguing, e.g., that Say's law of a
natural balance between production and demand 'still does not give a
comprehensive picture of reality', and adds:
Public-domain text, read in full here on John Shaqi.
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