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The Wheel Of Wealth: Being A Reconstruction Of The Science And Art Of Political Economy On The Lines Of Modern Evolution | By John Beattie Crozier



The Spectator says: The book of a very able man. The testimony which we are compelled to give to the high ability of this ambitious work is completely impartial. Full of original criticism. Great literary faculty. A book far less superficial than Mr. Buckle's.

TitleThe Wheel Of Wealth: Being A Reconstruction Of The Science And Art Of Political Economy On The Lines Of Modern Evolution
AuthorJohn Beattie Crozier
PublisherLogmans, Green, And Co.
Year1906
Copyright1906, Logmans, Green, And Co.
AmazonThe Wheel Of Wealth: Being A Reconstruction Of The Science And Art Of Political Economy On The Lines Of Modern Evolution
-Preface
IN the ordinary way this volume would not have required a preface, as the title-page speaks for itself, but a word or two is due to the reader in explanation of its disconnection from the series to wh...
-Part I. Reconstruction. Chapter I. General Introductory. On The Dangers Of Specialism
IN the present volume I propose to make the attempt to reconstruct the science and art of Political Economy on a new foundation, namely on the basis of Modern Evolution -a reconstruction which will in...
-On The Dangers Of Specialism. Part 2
Now as I am neither a specialist nor the professor of a specialism, it is evident that unless I can succeed in breaking the back of this superstition on the subject of specialisms on the threshold, th...
-On The Dangers Of Specialism. Part 3
Now it is important to observe in passing that this rich harvest of fruit is primarily due to the genius of Bacon, who was himself not a specialist. In his day, scientific specialists were still in th...
-On The Dangers Of Specialism. Part 4
As a young man 1 was, like the rest, immensely attracted by the doctrine of Natural Selection, and with the high reverence for my old masters, Darwin and Spencer, which was their just due, I strove fo...
-On The Dangers Of Specialism. Part 5
And yet if the medical man were to tell his patient this, he would be incontinently shown the door! But the intellectuals are quite as bad as the commonalty in their disparagement of the knowledge of ...
-On The Dangers Of Specialism. Part 6
Between them they have, for that matter, excavated enough material to found a Science of Civilisation as true as gravitation, and as solid in its principles as the theory of the tides; but each is sti...
-On The Dangers Of Specialism. Part 7
My first serious concern was to find some organon, method, or standpoint of interpretation, which should be coextensive with the full breadth of these different specialisms, and with the field of Civi...
-Chapter II. The Orthodox Political Economy
IN the present and following volumes accordingly, I am to make an attempt to reconstruct these distinctively human specialisms, in so far at least as their leading principles arc concerned, from the p...
-The Orthodox Political Economy. Continued
And it was to the limited body of doctrine bound up with this regime that the orthodox economy attempted to give the semblance of a pure science, by postulating it as made up of a world of 'economic m...
-Chapter III. The Pure Science Of Political Economy
THE aim of a pure science of Political Economy, as distinct from the mixed form of it which is the subject-matter of the existing orthodox treatises, is to find such a formula, symbol, or abstract exp...
-The Pure Science Of Political Economy. Continued
On the other hand, again, when the consumption side of the wheel is stimulated for any reason, as from good harvests, easy credit, high wages, or business prosperity generally, the production side of ...
-Chapter IV. The Applied Science Of Political Economy
BUT there is one essential difference between the laws of movement of a running wheel and the laws involved in the production and reproduction of wealth, and before we can satisfy ourselves that this ...
-The Applied Science Of Political Economy. Part 2
The truth is that if Production and Consumption keep pace with each other, as indeed they do, and must do, in the continuous movements of a wheel of wealth reproduction, it is not because - consumptio...
-The Applied Science Of Political Economy. Part 3
He says definitively that 'to popular apprehension it seems that demand, customers, a market for the commodity, are the cause of the gain of capitalists.' But he hastens to add that this is an error a...
-The Applied Science Of Political Economy. Part 4
If then the first principle of our Applied Science is that Consumption and the extent of its market is not only the self-moving but the controlling factor in the wheel of wealth-reproduction and incre...
-The Applied Science Of Political Economy. Part 5
But our single file illustration will have sufficed to show that savings can only come out of products after they are sold or consumed; in other words, only out of a continuous wheel of production and...
-Chapter V. On Fixed Capital As Savings
AND now for the exception which I have made to the general truth that it is only out of gold or its convertible credit equivalents that savings can arise. The reader will already have guessed where we...
-On Fixed Capital As Savings. Continued
If therefore all the consumable goods that are produced, circulated, and consumed on the wheel of wealth are but transformed 'fixed capital' and powers of Nature, it follows that the gold and silver c...
-Chapter VI. A Nation's Assets
IT is necessary at this point in our demonstration to pause for a moment to see if we can find some criterion for determining, in a short-hand kind of way, at what point in the scale of Production the...
-A Nation's Assets. Part 2
It follows therefore that the Orthodox Economists are logically bound to deny that the Working Population are an addition to the fixed capital of the nation, but on the contrary are bound to affirm th...
-A Nation's Assets. Part 3
It does not follow, for example, that because you can put a tax on a commodity or person - on landlords, or tenants, on capitalists or labourers, on luxuries or necessities, on drink, newspapers, cred...
-Chapter VII. On Money
IF only the orthodox Political Economy could be got rid of altogether, and could be laid on the shelf once and for all, like the theory and practice of perpetual motion scheming which, as we shall see...
-On Money. Part 2
It differs, again, from consumable goods inasmuch as although both circulate from hand to hand on the wheel, the consumable goods as such exist to be consumed and destroyed, whilst the money as such m...
-Chapter VIII. The Mechanism Of Credit
WE may begin this chapter by remarking that if all the world were absolutely honest, and each man in it could foresee with accuracy the quantity of economic wealth that would issue from the industrial...
-The Mechanism Of Credit. Part 2
Now the first effect of this displacement of gold and silver by paper credits is that the rapidity with which these pass from hand to hand sets up a corresponding rapidity in the circulation of the ma...
-The Mechanism Of Credit. Part 3
On the centre or axle of the wheel of wealth, from which every side and aspect of it can be surveyed, stand two groups of dealers, the one with their eyes fixed on the material commodities circling ar...
-The Mechanism Of Credit. Part 4
Either the enterprise proves successful and justifies by the commodities it produces, or the services] it renders, the expectations formed of it; in this case all will he well, the receipts will be us...
-The Mechanism Of Credit. Part 5
And the injustice of it all is, that many if not most of the firms involved in these disasters were, but for their sudden inability to meet their engagements, sound industrial and commercial concerns....
-Chapter IX. Civilization And The Paradox Of Saving
IN the opening chapter of this volume, the main reason I gave for my proposed attempt to reconstruct the Science of Political Economy on the lines of Evolution and Sociology was that none of the scien...
-Civilization And The Paradox Of Saving. Part 2
Here all the conditions are reversed, and Saving as a safeguard against future contingencies is an absolute necessity both of individuals and of nations. Instead of our economic unit being the world a...
-Civilization And The Paradox Of Saving. Part 3
They had observed that an individual increased his wealth by producing as much as he could and saving as much of the proceeds as possible, either in the money he received from his customers or in thei...
-Chapter X. Some Concrete Instances
WHEN Carlyle wrote his 'Past and Present' and his 'Latter Day Pamphlets' about the middle of the last century, the Orthodox Economists had already succeeded in persuading the Politicians, much to thei...
-Some Concrete Instances. Part 2
Indeed the reason that England was able to whip up her productive capacity to the point necessary to keep pace with this world-wide demand for consumption, was that she had practically a monopoly of a...
-Some Concrete Instances. Part 3
The consequence would have been that the country would have remained much in the condition of England in the Middle Ages before her shipping trade and the great mechanical inventions of the Eighteenth...
-Chapter XI. The Wheel Of Wealth As A Whole
IN our chapter on the Pure Science of Political Economy we found, it may be remembered, that the increase of wealth in general was to be measured by the number of revolutions of the wheel in a given t...
-The Wheel Of Wealth As A Whole. Part 2
In all these cases, at whatever point the mischief may happen to arise, it is quickly propagated all around the wheel until it involves every class in the community. It is the same when the general we...
-The Wheel Of Wealth As A Whole. Part 3
Another objection to our doctrine may take the form of the query; - How if each consumer on the wheel is not necessarily a producer as well, but if on the contrary great numbers of the population are ...
-Part II. Free Trade And Protection. Chapter I. General Considerations On Eighteenth Century Thought
IN opening this section of our subject the first general position which I desire to establish is this, that it would have been almost a miracle for any man living in the time of Adam Smith to lay even...
-General Considerations On Eighteenth Century Thought. Part 2
The wealth of England, accordingly, in those days was due rather to her carrying trade and to the extent of her foreign markets, than to her home trade or the actual surplus of her manufactures. It wa...
-General Considerations On Eighteenth Century Thought. Part 3
This was the system of the Physiocrats, as they were called, which was introduced by Quesnay, a French physician of the time of Louis XV.; and it numbered among its adherents, Turgot, Morellet, the el...
-Chapter II. The Mercantile System
THE doctrines of the Physiocrats which, as we shall presently see, Adam Smith adopted almost in their entirety, cannot be given their proper place in the evolution of our subject without some passing ...
-The Mercantile System. Part 2
What, then, were these difficulties? In the first place, nothing but the actual gold or silver coin was of any value in meeting the necessities of the State either for defence, aggression, or internal...
-The Mercantile System. Part 3
As for gold and silver themselves, their export was either altogether forbidden or was subject to heavy duties. By these different devices the Government was reasonably assured of being able to put it...
-The Mercantile System. Part 4
The consequence was that governments could now obtain all the gold they wanted for national purposes at practically a moment's notice by means of loans based on their national credits and assets. It w...
-Chapter III. The Physiocrats
FROM the time of Colbert the Government of France had strictly conformed to the universal maxims of the Mercantile System then in vogue, - namely of encouraging Manufactures at the expense of Agricult...
-The Physiocrats. Part 2
The proposed reforms of the Physiocrats accordingly, were ushered into the world under the form of an abstract intellectual system, which it was hoped would give to the movement at once its inspiratio...
-The Physiocrats. Part 3
And now we have to ask how the Physiocrats proposed to raise the revenue necessary for the defence and administration of the State, if all duties whatever, external and internal, were to be abolished?...
-Chapter IV. Adam Smith
THE important and commanding position occupied by Adam Smith not only in the history of Political Economy in genera] but in the evolution of the Orthodox Economy in particular, makes the question of t...
-Adam Smith. Part 2
Now the central doctrine of the Physiocrats, it will be remembered, was that the only source of the increase of wealth of a nation lay in its agriculture, inasmuch as in 'Agriculture alone did Nature ...
-Adam Smith. Part 3
The differences are all negative; differences of more or less: more or less production, more or less saving, or none at all. With the Physiocrats, for example, it would not disturb the financial statu...
-Adam Smith. Part 4
Now if we find Adam Smith tripping here, if we find him basing his arguments on the stick, and supporting them by mixing up temporary Politics and half truths of Political Economy in a confused conglo...
-Adam Smith. Part 5
Now I have dwelt on this hierarchy of wealth-producing employments in the system of Adam Smith, because it is on it that he mainly relies for the solution of the most important problem with which as a...
-Adam Smith. Part 6
And if we extend our analogy of the worm from the separate employments of a single nation to the world as a whole, - with each nation as a separate relatively independent segment, each segment in stru...
-Adam Smith. Part 7
And if so, why then should foreign or Colonial trade be necessarily postponed to the home trade, as Adam Smith demands, on the mere ground that, like the tail of the tapeworm, it occupies the lowest p...
-Adam Smith. Part 8
To take first the question of the order or hierarchy of wealth-producing employments. Now there can be little doubt that if each nation were regarded abstractly as a separate isolated economic unity, ...
-Adam Smith. Part 9
In a word, gold will have now become a 'measure of value,' and no longer remain in the economic category of a 'medium of exchange.' The same fallacy in identifying the economic interests of nations s...
-Adam Smith. Part 10
All this, of course, Adam Smith saw quite well, and the reason he denounced the Colonial trade was not so much because it was a monopoly, but because, as we have said, being a monopoly it drew capital...
-Adam Smith. Part 11
Now Adam Smith seems himself to have felt dimly conscious that there was something in this theory not quite convincing; and in his efforts to put it right, he was betrayed into the single instance of ...
-Chapter V. Adam Smith Versus The Modern Free Trader
AND this leads us to the last and most important of the principles of Adam Smith with which we have to deal, - and that is the principle of Free Trade itself. Now, the first thing we have to note is, ...
-Adam Smith Versus The Modern Free Trader. Part 2
They reject also, as being an infraction of their abstract ideal, his doctrine of the protection of 'infant industries,' - a measure which Mill also grudgingly allowed as a temporary expedient whereby...
-Adam Smith Versus The Modern Free Trader. Part 3
They would laugh, too, at his doctrine that difficulty and cost of transport - the barriers on which he relies for making nations safe from foreign competition under Free Trade, - were to-day any seri...
-Adam Smith Versus The Modern Free Trader. Part 4
And lastly, after thus rejecting all the special arguments by which Adam Smith defended his principle of Free Trade, the modern Free Traders reject his political remedy as well, - his proposal, namely...
-Adam Smith Versus The Modern Free Trader. Part 5
And hence, as we see, although the wealth of America as a whole is increased by the freedom of trade which exists between its component States, this wealth, far from diffusing itself evenly, like our ...
-Adam Smith Versus The Modern Free Trader. Part 6
In the same way, if all the products of a particular nation were obliged to find for themselves a market in that nation, owing to tariff 'barriers preventing them from finding their natural market els...
-Adam Smith Versus The Modern Free Trader. Part 7
For the same foreign trader whom you welcome to your door as a friend, bringing blessings with him in the shape of cheapness, will when his cowl is thrown back, be seen to be an enemy in disguise; and...
-Adam Smith Versus The Modern Free Trader. Part 8
And with result, what? This, namely, that your foreign competitors, having got hold of all the trump cards in the pack, now have you at their mercy, and can squeeze you in every business deal, wriggle...
-Chapter VI. Free Trade And Protection
FOR the diagnosis, then, of the economic condition of any particular nation, the following are the points that must be elicited. 1. To what extent have the powers of Nature, gratuitously given to man...
-Free Trade And Protection. Part 2
7. And lastly, we have to ask to what extent the protective tariffs imposed by nations as defences against each other, are calculated to forward or handicap ultimately any particular nation which, lik...
-Free Trade And Protection. Part 3
4. In all cases where the extent of a nation's market abroad is blocked by hostile tariffs, the principle of a quid pro quo should be rigorously applied by means of 'commercial treaties' special to ea...
-Free Trade And Protection. Part 4
The truth is, that Cromwell by leaving the landlords in possession of their instruments of production had, like Macbeth, scotched his snake but not killed it, and its brood remained; and after his dea...
-Free Trade And Protection. Part 5
And why, or for what? For a series of abstract propositions and so-called laws of Political Economy, not one of which, as we have seen, has the slightest validity. For they are not, be it observed, li...
-Free Trade And Protection. Part 6
And further, it is because the instruments of production of the other nations I have mentioned, - or that part of them which is devoted to foreign commerce, - are of less and less value compared with ...
-Free Trade And Protection. Part 7
Now, that I am doing the Free Traders no injustice in charging them with these absurdities, - and especially with their indifference to all other considerations whatever except the equality of the exp...
-Free Trade And Protection. Part 8
Nor does it matter to the Free Trader what qualities and degrees of technical skill, requiring generations of workmen to bring to efficiency, are being displaced by foreign competition; - whether it i...
-Free Trade And Protection. Part 9
Now as it was the Shipping Trade of England that originally made her fortunes, not only industrially but politically, I have no desire to minimise its significance as a weapon in the armoury of Free T...
-Chapter VII. Free Trade And Instruments Of Production
IF the Free Traders give themselves so little concern in face of the danger of the greatest of all our trades, - the Shipping trade, - passing to the foreigner, on the ground that we can always turn t...
-Free Trade And Instruments Of Production. Part 2
But that is not the game which is played by one nation politically independent, with other nations equally so; and the game not being the same, neither are its rules. For now the economic as well as ...
-Free Trade And Instruments Of Production. Part 3
Carrying then with us the following provisos; - first, that the political elements of the problem must be separated from purely economic ones; secondly, that the game that is being played is not how t...
-Free Trade And Instruments Of Production. Part 4
And as for the workmen, with the mills and workshops closed, they have neither a living for the present nor for the future, - and so they too pass on to starvation or charity. And now, if we still fur...
-Free Trade And Instruments Of Production. Part 5
Now this last doctrine of the common reservoir, to which I have already so often referred, is so serious a delusion, so real a piece of old perpetual-motion scheming which has come floating down like ...
-Free Trade And Instruments Of Production. Part 6
On the other hand, as for the really great men and guiding spirits of a nation in their various departments of thought, under this confused mixture of politics, economics, and philanthropy, it is stro...
-Free Trade And Instruments Of Production. Part 7
This simple consideration alone would be sufficient of itself to solve the whole problem of Free Trade and Protection, - so far, that is to say, as its purely economic aspect is concerned. For, as we ...
-Free Trade And Instruments Of Production. Part 8
And the practical conclusion of it all is, (and it might be inscribed as a maxim over a nation's ports in letters of gold), that in the game of commerce which is being played between nation and nation...
-Chapter VIII. Free Trade And Scientific Method
THE question we have to answer, then, in this chapter is: - why, on a burning subject like that of Free Trade and Protection, which not only divides the practice of the world into two hostile camps bu...
-Free Trade And Scientific Method. Part 2
Or, to put it in general terms before proceeding farther, we may say that when we find that in a problem depending entirely on the exports and imports of a country, none of the above particulars in re...
-Free Trade And Scientific Method. Part 3
And all this, in spite of the fact that the Free Traders not only freely admit, as we have said, that the trade between nations depends on precisely the same laws and principles as the trade between i...
-Free Trade And Scientific Method. Part 4
And the result has been, as we see, that some industries, - as for example the agriculture of the Eastern seaboard States, which was flourishing before facilities of transport brought it into competit...
-Free Trade And Scientific Method. Part 5
But enough of this for the present, and to proceed. Before we can bring our demonstration of the absurdity of Free Trade as an abstract economic doctrine to a close, we have still to remove one more o...
-Chapter IX. Free Trade And Perpetual Motion. On Gold And Banks
SOME years ago when a number of independent writers, each of whom had access to one or other of the leading Monthly Reviews, started the recent movement in the direction of Protection by putting the q...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 2
By the effect on prices of the gold that is sent across to pay for the goods that are being bought and sold, says Mr. Pigou. For, look you! he says, if one nation starts by being able to undersell the...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 3
Indeed one might know a priori that gold as a measure of value or medium of exchange, could have no more effect on the relations or movements of the things exchanged than a shadow on the substance whi...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 4
It does not act, for example, as an unusually plentiful harvest in all the great corn-producing countries does, which by making food cheaper for the great masses of a population leaves them more to sp...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 5
But why, we may ask, should not an excess of gold in the banks find its way into the hands of the general body of consumers of a nation, and so raise prices all round, instead of being sent abroad to ...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 6
I have purposely excluded such gambling speculations in futures, as wheat and cotton 'corners,' etc., as irrelevant to our issue, inasmuch as although they may affect prices profoundly, they do not co...
-Free Trade And Perpetual Motion. On Gold And Banks. Part 7
And thus we see - to come back to the point we started to demonstrate - that from every point of view the gold of the world, far from regulating the prices of commodities in different nations accordin...
-Chapter X. Free Trade And Perpetual Motion (Continued). The Foreign Exchanges
BUT before we can exhibit the way in which the orthodox academical economists utilize the mechanism of the Foreign Exchanges to support the perpetual-motion scheme which is so necessary for their defe...
-Free Trade And Perpetual Motion. The Foreign Exchanges. Part 2
Indeed it is precisely because the trade between nations is a purely individual affair, where each trader is left free to follow his own judgment or inclination without outside pressure, that we have ...
-Free Trade And Perpetual Motion. The Foreign Exchanges. Part 3
But to imagine that any conclusion drawn by thus emasculating the problem of its vital elements can possibly have any value, is as absurd as to imagine that the two rows of trees on opposite sides of ...
-Free Trade And Perpetual Motion. The Foreign Exchanges. Part 4
This function is performed for them by the bill brokers, who will take all the risk, and charge the traders little more for their services than the expense of sending the gold itself, plus their commi...
-Free Trade And Perpetual Motion. The Foreign Exchanges. Part 5
Having now passed under review the different arguments by which Free Trade is usually supported in the works of the Orthodox Economists, and the diluted echoes of them from the mouths of the parliamen...
-Chapter XI. Free Trade And Morality
IN the present chapter, and before proceeding to sum up the relative bearings of Free Trade and Protection on the interests of general Civilization, it is necessary to say a word or two on the moral a...
-Free Trade And Morality. Part 2
There is no reason whatever, why a nation should not follow a cosmopolitical ideal rather than a national one, any more than that for the sake of a universal peace, which would benefit the world econo...
-Free Trade And Morality. Part 3
But the incident suggested to me two things specially; - firstly, the large number of individuals there are in all Christian communities who, like Mr. Hobson, are sincerely prepared to carry out the m...
-Chapter XII. Free Trade Versus Protection. Politics And Civilization
THE first position I am anxious to advance in this important controversy is this, that the millennium of a universal Free Trade which is the ideal and consummation of economic powers and opportunities...
-Free Trade Versus Protection. Politics And Civilization. Part 2
And yet this stultification is what the politicians of all countries are engaged in promoting, or at best are not actively discouraging, to this very hour. Now it is the same with a Political Economy ...
-Free Trade Versus Protection. Politics And Civilization. Part 3
But either way, a universal Free Trade would bring nations to the death-grapple at once, and if inaugurated to-morrow would so quickly alter the industrial map, that many of them, prosperous and digni...
-Free Trade Versus Protection. Politics And Civilization. Part 4
And the only question is how is this to be done? Now as all instruments of production which can produce more wealth than is consumed in their making or working, are an addition to the 'use values' - ...
-Free Trade Versus Protection. Politics And Civilization. Part 5
This difficulty is in itself the standing proof that the evolution of economic policy must both begin and be continued by the protection of separate groups and areas, starting at innumerable points, a...
-Free Trade Versus Protection. Politics And Civilization. Part 6
When, after the failure of Free Trade, Bismarck returned to a policy of Protection for Germany, he found that the shipbuilding capabilities so necessary for her all-round industrial development, were ...
-Free Trade Versus Protection. Politics And Civilization. Part 7
If then, in summing up the results of this long enquiry into the question of Free Trade and Protection, we were called on to lay down some rough general rules to follow in deciding whether Free Trade ...
-Free Trade Versus Protection. Politics And Civilization. Part 8
5. But if, as is the case of England at present, the full natural industrial supremacy of a nation is impaired at all points, and robbed of its natural fruition by hostile tariff barriers on the part ...
-Free Trade Versus Protection. Politics And Civilization. Part 9
At the present day, on the other hand, Transport is so thoroughly organized and so complete, that Competition can never again be made the basis of any system of Political Economy. Never again will bus...
-Part III. Critical And Historical. Chapter I. John Stuart Mill
LEAVING Adam Smith and the problem of Free Trade and Protection behind us, we can now, without any essential interference with the historical evolution of our subject, jump at once to the revered name...
-John Stuart Mill. Part 2
For we have only to listen to some of the deductions drawn by Mill from this sentence as prologomena and first principles of his system of Political Economy, to judge of what kind of future a nation i...
-John Stuart Mill. Part 3
The first is his old fallacy that it is floating capital, or money bearing interest, that is the cause of profits, instead of the efficiency of the instruments of production, or fixed capital, in whic...
-John Stuart Mill. Part 4
For how, for example, can we imagine Population to be increasing and yet Capital and Invention stationary, when the effect of an increased population is to increase the capital drawn from their labour...
-John Stuart Mill. Part 5
So, too, Population has contradictory effects according to circumstances. When each labourer or wage-earner is dispersed and isolated, concentrated Capital can sweat them all alike down to a 'bare sub...
-Chapter II. On The Tendency To Inequality
IF we keep to our division of the economic instruments of Production into the powers of Nature and the powers of Man respectively, and if we assign their products to Rent, Profits, and Wages, and then...
-On The Tendency To Inequality. Part 2
Even the interest that has to be paid on the money required to finance industrial undertakings tends to inequality; inasmuch as it varies inversely with the security, whether you take individuals or n...
-On The Tendency To Inequality. Part 3
Now this method of 'splitting the difference ' in things that are by their very nature individual and personal, is the most crude of all scientific processes, and in using it the orthodox economists h...
-On The Tendency To Inequality. Part 4
But even if we admit that the products of industry, - say, wheat, copper, coal, etc., - tend to equality in the large central markets and exchanges, it is evident that the separate instruments of prod...
-On The Tendency To Inequality. Part 5
Again, if we turn to Wages, we shall find a number of considerations which have illegitimately held the orthodox economists fast to their doctrine that they too, like Profits and Interest, tend natura...
-On The Tendency To Inequality. Part 6
And as corroboration of this, we see that in all ages, kings and despots who have won for themselves supreme power, whether by the sword, or by usurpation, or as a free gift of their followers, have a...
-On The Tendency To Inequality. Part 7
And the consequence is, as we should expect, that Capitalism having now got a comparatively firm and level highway, and not a mere quagmire, beneath its feet, is everywhere running rampant with inequa...
-Chapter III. The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value
IN continuing our examination of the evolution of Political Economy from Mill to the present day, the task before us will, after our foregoing discussions, be a comparatively simple one. With Mill, Po...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 2
1. That they have ground down what are essentially matters of relative quantity and velocity, into individual psychological estimates of satisfaction or aversion; and so have been unable to construct ...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 3
For what, after all, is the distinction which Jevons wishes us to draw between a 'cause ' and a 'determining circumstance'? If he means that a 'cause' must be an ultimate mental thing, like desire or ...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 4
But in the meantime his announcement gives us a hint of the second reason why he should have persisted in so strange and patent a fallacy as that Value depends solely on 'final' or 'marginal ' utility...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 5
For in this problem of market-price, it is necessary to keep our sight 'dilated,' as Bacon would say, rather than contracted to a pin point, if we are to bring the subject into just relation and persp...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 6
For we have not forgotten that our perpetual-motion schemers, in spite of all their searchings and gropings among the wheels of their machines, always missed the all-important element of friction, whi...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 7
And, indeed, with all their refinements they have not, as we have seen, been able to solve the problem of Value after all; even when we allow them like duellists to select their own weapons. And this,...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 8
But the men on the axle, who are in touch at all points with both the Production or 'supply,' and the Consumption or 'demand,' side of the wheel, know quite well; and it is they who, by practically ga...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 9
In the first place then, it is evident that we shall never get the price out of a relation between the cost and the satisfaction, so far as an individual at any given point of time, is concerned, inas...
-The Academical Economists - Jevons, Bohm-Bawerk, Marshall On Value. Part 10
In other words, the problem of Value or Market price, like all other problems of Political Economy, is a dynamical problem and not a statical one, and must be solved by dynamical methods and symbols f...
-Chapter IV. The Academical Economists. (Continued). On Interest
IF, as we have endeavoured to show, Jevons and Bohm-Bawerk have failed to solve the problem of Value by resting it on a single factor, Utility, much more will their failure be apparent in their soluti...
-The Academical Economists. On Interest. Part 2
Now if there is one thing which in our discussion of the Free Trade problem we have attempted to demonstrate more fully than another, it is that there is something more in an engine or a machine than ...
-The Academical Economists. On Interest. Part 3
Formally he was quite right, inasmuch as the capitalist is the owner of the machine, and therefore of its gratuitous productive powers; but if anyone has a right to complain, it is the inventor of the...
-The Academical Economists. On Interest. Part 4
He has proceeded, besides, on the statical fallacy of the divided stick, whereby if interest falls, wages must rise, and vice versa, instead of on the dynamical principle of the wheel, where both must...
-The Academical Economists. On Interest. Part 5
Stripped of all its technical jargon and long-windedness, this, in brief, is Bohm-Bawerk's complete solution of the problem of Interest. And what we have chiefly to remark about it in its general aspe...
-The Academical Economists. On Interest. Part 6
Thus far, then, Jevons and Bohm-Bawerk. But now let us put the problem of Interest on our wheel, as we have already done that of Value, and see whether the solution it yields will prove any more satis...
-The Academical Economists. On Interest. Part 7
But the most important practical point which we have now to determine is, whether the actual rate of interest is a natural rate flowing from free competition, or whether, like other values, it contain...
-The Academical Economists. On Interest. Part 8
To sum up, then, we may say that the fluctuations of Interest or the value of Money, like that of the value of all other commodities that are put on the wheel to be ground into definite market-prices,...
-Chapter V. The Academical Economists. (Continued). On Rent And The Statical Fallacy
T'HE earlier orthodox economists were so intent on measuring with their divided stick the relations of the dead products of industry, that it is little wonder they altogether overlooked those great bl...
-The Academical Economists. On Rent And The Statical Fallacy. Part 2
But General Walker, believing with all the orthodox economists that profits tend to equality - instead of rolling themselves up like snowballs as the capital increases, - figures each particular coup ...
-The Academical Economists. On Rent And The Statical Fallacy. Part 3
But as regards these impossible conditions of Walker and Marshall, what are we to say! In the first place they are right in trying to simplify their problem by reducing all its factors to a common den...
-The Academical Economists. On Rent And The Statical Fallacy. Part 4
If, for example, we imagine that the capitalists have a 'pull' over their labourers, inasmuch as they own the instruments of production, Professor Marshall will reply; - Not at all, for men can be sub...
-The Academical Economists. On Rent And The Statical Fallacy. Part 5
In a word, these no-rent pieces of land, no-profit-producing machines, no-profit-earning labourers, have no economic existence at all; and if they happen to be actually on the wheel - as in the case o...
-The Academical Economists. On Rent And The Statical Fallacy. Part 6
10 per cent., say, the margin of no-rent land would have to be fixed at a different point from what it would have been if profits stood at 5 per cent.; - and therefore it may be said the economists di...
-The Academical Economists. On Rent And The Statical Fallacy. Part 7
And this leads us to our second, but indirect, proof that Kent as well as Profits and Wages enters into price. For just as in a thermometer there are degrees of frost below the freezing point - which ...
-The Academical Economists. On Rent And The Statical Fallacy. Part 8
As for our second problem, namely as to how the price of the products of Land, Capital, and Labour, is to be apportioned between the landlords, capitalists, and wage-earners, respectively, and by what...
-Chapter VI. The Academical Economists. (Continued). Grammar And Mathematics
IN the preceding chapters of this work I have endeavoured to follow the evolution of the orthodox academical Economy from the time of the Mercantilists down to our own day, and have discussed in more ...
-The Academical Economists. Grammar And Mathematics. Part 2
The reader is informed, for example, in carefully expressed phrases, of the considerations which decide a farmer to sow oats instead of wheat; as to whether he shall concentrate his operations on the ...
-The Academical Economists. Grammar And Mathematics. Part 3
But Professor Marshall, having thrown out Consumption as a definite factor altogether, that is to say, having cut away half of the wheel, can no more get a 'law' out of Production alone, by merely sub...
-Chapter VII. The Outside Economists
A MONG the Economists from outside the orthodox and academic ranks who have either pointed out particular fallacies in the old system, or have added fresh considerations from a wider range of thought ...
-The Outside Economists. Part 2
Had he done otherwise, I feel sure that by the majority of us young men of the time, in whose eyes he had something of that 'mystic sublime reputation 'which he himself attributed to Coleridge, his ev...
-The Outside Economists. Part 3
And yet, as I have said, I am convinced that had Carlyle thrown off his prophetic mantle, and instead of alternately railing and denouncing, like some old Hebrew Prophet, had set himself down quietly ...
-The Outside Economists. Part 4
In other words, he would have permitted no merely statical elements to form any part of his solution, except in so far as they were obstructions to be got out of the way, but would have struck at once...
-The Outside Economists. Part 5
It is not the rule of the game, answer the capitalists. Precisely so, and they too are right. But when we wait to see how Ruskin is going to alter it, like all the economic moralists he can give no pr...
-The Outside Economists. Part 6
But as in a moving world, where all the elements and forces engaged must keep time and pace with each other, no mere statical immoveable ideal of what all men would like to see realized, has any real ...
-The Outside Economists. Part 7
For it is the units of product in a given time which alone the capitalist who is entering on any industrial enterprise has to consider in framing his estimates; and it is precisely what the labourers ...
-The Outside Economists. Part 8
And why? Because of their own base admirations, and their secret belief that these magnates were really their 'great men.' They think of nothing else, talk of nothing else, dream of nothing else, but ...
-The Outside Economists. Part 9
What Government, for example, would ever venture to propose to a nation to endow its acknowledged greatest inventors, greatest scientists, greatest chemists, greatest electricians, or what not, on any...
-The Outside Economists. Part 10
And so he played his part. But if the reader asks what, if any, was his definite contribution to the Science, we may answer that it was a real, although a negative and destructive, rather than a posit...
-The Outside Economists. Part 11
Their very existence is at once an indictment and a reproach to the world of mediocrities who live and fatten on their labours; and although they are the real kings, yet being expatriated and disinher...
-The Outside Economists. Part 12
Now all this, not only Mr. Hobson, but the Fabian Socialists with Mr. Bernard Shaw, Mr. Sidney Webb, and Mr. Macrosty at their head, also see quite clearly; but where Mr. Gunton goes off the track, in...
-The Outside Economists. Part 13
In the second place it does not lend itself so readily to the separation of what is a purely statical mechanical product from what is a dynamical instrument of production, as does the symbol of the me...









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