Blackwood's Edinburgh Magazine, Vol. 64 No. 396 October 1848. Various
and elevating the universal lot." – (Vol. ii. p. 311.)
These are not the times when truth is to be withheld because it is disagreeable. There is a morality connected with wealth, its uses and abuses, not enough taught, certainly not enough understood. The rich man, who will not learn that there is a duty inseparable from his riches, is no better fitted for the times that are coming down upon us, than the poor man who has not learned that patience is a duty peculiarly imposed upon him, and that the ruin of others, and the general panic which his violence may create, will inevitably add to the hardships and privations he already has to endure. If society demands of the poor man that he endure these evils of his lot, rather than desperately bring down ruin upon all, himself included; surely society must also demand of the rich man that he make the best use possible of his wealth, so that his weaker brother be not driven to madness and despair. It demands of him that he exert himself manfully for that safety of the whole in which he has so much more evident an interest. For, be it known – prescribe whatever remedies you will, political, moral, or religious – that it is by securing a certain indispensable amount of wellbeing to the multitude of mankind that the only security can be found for the social fabric, for life, and property, and civilisation. If men are allowed to sink into a wretchedness that savours of despair, it is in vain that you show them the ruins of the nation, and themselves involved in those ruins. What interest have they any longer in the preservation of your boasted state of civilisation? What to them how soon it be all a ruin? You have lost all hold of them as reasonable beings. As well preach to the winds as to men thoroughly and bitterly discontented. Those, therefore, to whom wealth, or station, or intelligence, has given power of any kind, must do their utmost to prevent large masses of mankind from sinking into this condition. If they will not learn this duty from the Christian teaching of their church, they must learn it from the stern exposition of the economist and the politician.
Political economists have some of them wasted much time, and produced no little ennui, by unprofitable discussions on the definition of terms. These Mr Mill wisely spares us: an accurate writer, by a cautious use of ordinary expressions, will make his meaning more evident and precise than he will be able to do by any laboured definitions, or the introduction of purely technical terms. Such have been the discussions on the strict limits of the science of political economy, and the propriety of the title it has so long borne; whether intellectual efforts shall be classed amongst productive or unproductive labour, and the precise and invariable meaning to be given to such terms as wealth, value, and the like. These will generally be found to be unprofitable controversies, tending more to confusion of ideas than to precision of language. Let a writer think steadily and clearly upon his subject, and ordinary language will be faithful to him; distinctions between the several meanings of the same term will be made as they are wanted. He who begins by making such distinctions is only laying a snare for his own feet; he will hamper himself and perplex his reader. And with regard especially to the range of topics which an author thinks fit to embrace in his treatise upon this science, surely he may permit himself some liberty of choice, without resolving to mete out new boundaries to which all who follow him are to conform. If M. Dunoyer, for instance, in his able and, in many respects, valuable work, De la Liberté du Travail, chooses to write a treatise which embraces in fact the whole of human life, all the energies and activities of man, mental as well as physical, he could surely have done this without assailing old distinctions and old titles with so needless a violence. Of what avail to call in the etymologist at this time of day, to determine the meaning, or criticise the application of so familiar a term as political economy?5
But there is another class of discussions which, although to the general reader, who is mostly an impatient one, they will appear at first sight to be of a purely technical character, must not be so hastily dismissed. These will be often found to have a direct bearing on the most important questions that can occupy the mind of the statesman. They are in fact explanatory of that great machine, a commercial society, upon which he has to practise – which he has to keep in order, or to learn to leave alone – and therefore as necessary a branch of knowledge to him as anatomy or physiology to one who undertakes to medicine the body. Such are some of the intricate discussions which concern the nature of capital– a subject to which we shall in the first place and at once turn our attention. It is a subject which Mr Mill has treated throughout in a most masterly manner. We may safely say, that there is now no other work to which a student could be properly directed for obtaining a complete insight into all the intricacies of this great branch of political economy. The exposition lies scattered, indeed, through the two volumes; he must read the entire work to obtain it. This scattering of the several parts of a subject is inevitable in treating such a science as political economy, where every topic has to be discussed in relation to every other topic. We do not think that Mr Mill has been particularly happy in his arrangement of topics, but, aware as we are of the extreme difficulty, under such circumstances, of making any arrangement at all, we forbear from any criticism. A man must write himself out the best way he can; and the reader, after obtaining all the materials put at his disposition, may pack them up in what bundles may best suit his own convenience.
We must premise that on this subject – the nature and employment of capital – there appears to be in one part of Mr Mill's exposition – not an error – but a temporary forgetfulness of an old and familiar truth, which ought to have found its place there. Its very familiarity has occasioned it to be overlooked, in the keen inquiry after truth of a more recondite nature. The part which the economists call "unproductive consumption," the self-indulgent luxurious expenditure of the rich – the part this plays in a system of society based on individual effort and individual possession, is not fully stated.
He who spends his money, and lives to do little else, however idle he may be himself, has always had the consolation that he was, at least, setting other people to work. Mr Mill seems to deny him utterly this species of consolation; for in contending against a statement, made by political economists as well as others, that unproductive consumption is necessary, in a strictly economical sense, to the employment of the workmen, and as the indispensable relative to productive consumption, or capital spent in industrial pursuits, he has overlooked that moral necessity there is, in the present system of things, that there should be those who spend to enjoy, as well as those who lay out their money for profit. "What supports and employs productive labour," says Mr Mill, (Vol. i. p. 97,) "is the capital expended in setting it to work, and not the demand of purchases for the produce of the labour when completed. Demand for commodities is not demand for labour. The demand for commodities determines in what particular branch of production the labour and capital shall be employed; it determines the direction of the labour, but not the more or less of the labour itself, or of the maintenance and payment of the labour. That depends on the amount of the capital, or other funds directly devoted to the sustenance and remuneration of labour." Now, without a doubt, the man who purchases an article of luxury when it is manufactured, does not employ labour in the same sense as the manufacturer, who spends his wealth in supporting the artisan, and finding him the requisites of his art, and who, after selling the products of this industry, continues to spend the capital returned to him, together with the profit he has made, in the further sustenance of workmen. But it has been always understood, and the truth appears to be almost too trite to insist on, that unless the unproductive consumer were there to purchase, the capitalist would have had no motive to employ his wealth in this manner; and, what is of equal importance to bear in mind, unless the capitalist also calculated on being, some future day, an unproductive consumer himself, he would have no motive, by saving and toiling, to increase his wealth.
The necessity for a certain amount of unproductive consumption is not a necessity in the nature of things. All men might, if they chose, be saving, might spend upon themselves only what is needful for comfort, and set apart the residue of their funds for the employment of labour, not, of course, in the production of articles of luxury, for which there would be no purchasers, but for such articles as the labourers themselves, now paid from such ample stores, might be consumers of. The social machine might still go on under such a regime, and much to the benefit of the labourer. The capitalists would find their profits diminishing, it is true – they would be more rapidly approaching that minimum of profit, that stationary state, of which we shall by-and-by have to speak; but this diminution of profits
"Mais d'abord va-t-on désigner cet ordre particulier d'investigations par le nom d'économie politique? Quoi donc! Économie politique, économie de la société, – c'est à dire – production, distribution, consommation des richesses? Mais c'est se moquer; on ne traduit pas avec une liberté pareille. Il ne faut qu'ouvrir le premier dictionnaire venu pour voir," &c. – Dunoyer,