Blackwood's Edinburgh Magazine, Vol. 64 No. 396 October 1848. Various
of things, but there is a necessity in the moral nature of man for a certain portion of this unproductive consumption. The good of others is not a motive sufficiently strong to stimulate a man to any of the steady pursuits of industry. When, therefore, his real wants are satisfied, it must be the gratification of fictitious wants that induces him to toil and accumulate, or to part with any thing he has, by way of barter or exchange. From the time when the rude possessor of the soil consents to surrender a portion of his surplus produce for some trinket or piece of gaudy apparel, to the present epoch, when men consent to live frugally and toil hard during the first period of life, in order that they or their children may afterwards live idly, luxuriously, and ostentatiously, this same unproductive expenditure has performed the part of essential stimulant to human industry. It is not enough, therefore, to say, that it gives the direction to a certain portion of labour: it affords the stimulant that converts idleness into industry, and saving into capital. A very much more dignified being would man undoubtedly be, if desire for the general good could replace, as a motive of industry, a selfish desire, which is often no better than what we ridicule in the savage when he manifests a most disproportionate anxiety, as it seems to us, for the possession of glass beads, or a piece of painted calico. But to this point in the cultivation of human reason we have, at all events, not yet arrived. And let this be always borne in mind – in order that the class of society designated as unproductive consumers may not fall into unmerited odium – that others, who are using their wealth in the direct and profitable employment of labour, are themselves desirous, above all things, of taking their place in the class of unproductive consumers, and are working for that very end.
"Every one can see," writes Mr Mill, "that if a benevolent government possessed all the food, and all the implements and materials of the community, it could exact productive labour from all to whom it allowed a share in the food, and could be in no danger of wanting a field for the employment of this productive labour, since, as long as there was a single want unsaturated (which material objects could supply) of any one individual, the labour of the community could be turned to the production of something capable of satisfying that want. Now, the individual possessors of capital, when they add to it by fresh accumulations, are doing precisely the same thing which we suppose to be done by our benevolent government." – (Vol. i. p. 83.) Certainly the individual capitalists could do the same as the benevolent government, if they had its benevolence. If there are any political economists who teach otherwise, we hold them in error. We wish only to add to the statement the old moral truth long ago recognised, before political economy had a distinct place or name in the world, that as man is constituted, or rather, as he has hitherto demeaned himself, (for who knows what moral as well as other reformations may take place? – the civilised man, such as we have him at this day, postponing habitually the present enjoyment to the future, is a creature of cultivation; and who can tell but that advanced cultivation may make of man a being habitually acting for the general good, in which general good he finds his own particular interest sufficiently represented and provided for?) – that, as man has hitherto acted, this same unproductive selfish expenditure is indispensable as the motive to set that industry to work, which ultimately distributes the real necessaries and rational comforts of life to so many thousands.
Having, in justice to the class of unproductive consumers, brought out this homely truth, which, in the scientific exposition of Mr Mill, seemed in danger of being overlooked, we proceed to a branch of the subject which, if it appears at first of a very technical and abstruse description, is yet capable of very important applications. One of the most striking facts relating to the nature of capital is the tendency of profits, in wealthy and populous countries, to diminish as the amount of capital increases – a tendency to arrive at a certain minimum beyond which there would be no motive for saving, and little possibility of accumulating. This tendency Mr Mill explains as being the result, not of what has been somewhat vaguely called the competition of capital, over-production, or general glut in the market, but, in reality, of the physical laws of nature – of the simple fact that the products of the soil cannot be indefinitely multiplied. Manufacturing industry must be ultimately limited by the supply of the raw material it fashions, which is furnished by the soil, and the supply of food for the artisan, furnished also by the soil; it therefore is subjected, as well as agricultural industry, to the limits which have been set to the productiveness of the earth. Now, without seeking for any definite ratio, such as might be expressed in numbers, between the labour and ingenuity of man and the products of the soil, it may be stated as a simple fact, which admits of no dispute, that after the land has been fairly cultivated, additional labour and additional cost yield but a small proportionate return.
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