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Show s I:NTRODUCTION. terly an air to a proposition as to be obliged to make adrnissions of this kind; yet there is no truth of 'vhich I feel a stronger conviction than that there are many irnportant propositions in political economy which absolutely require lin1itations and exceptions; and it may be confidently stated that the fre_quent combination of complicated causes, the action and reaction of cause and effect on each o_ther,. and the. necessity of limitations and except~ o.ns 1n a considerable number of important propositions, form the main difficulties of the science and . ' occasion those frequent mistakes which it must be allo\ved are made in the prediction of results. , To explain tnyself by an instance. Adam Sn1ith has stated, that capitals are increased by parsimony, that every frugal man is a public benefactor,* and that the increase of wealth depends upon the balance of produce above consun1ption.t That these propositions are true to a great extent is perfectly nnqnestionahle. No considerable and continu~d increase of \Vealth could possibly take P.lace without that degree of frugality which occa- . s1ons, annually, the coi1 version of some revenue into capit~l, and creates a balance of produce abov~ consun1pt1on.; but i.t is quite obvious that t~1ey a:re ~ot tr~e to an Indefinite extent, and that the principle o_f saving, push~d to excess, 'vould destroy the n1otive to production. If every person were satisfied with the sin1plest food, the poorest clothincr, and the meanest houses, it is certain that no oth:r sort *- Wealth of Nations, Book II. c. iii. pp·. 15-=--Is. 6th edit~ t Book IV. c. iii. p. 250. . . INTRODUCTION. of food, c1othing, · and lodging would be in exist~ ence; and as there would be no adequate motive to the proprietors of land to cultivate well, not only the '\Vealth derived from conveniences and luxuries would be quite at an end, bu.t if the satne divisions of land continued, the production of food 'vould be prematurely checked, and population 'vould cotne to a stand long before the soil had been \Vell cultivated. If consumption exceed production, the capital of the country must be dimi- · nished, and its \tvealth n1ust be gradually destroyed from its 'vant of po,ver to produce; if production be in a great excess above cons~1mption, the 1notive to accumulate and produce must cease from the want of will to consurr1e. The two extren1es are obvious; and it follo\vs that there must be sotne intermediate point, though the resources .of politi .. cal econon1y may not be able to ascertain it, \vhere, taking into· consideration both the p,ower to produce and the will to consume, the encouragen1ent to the increase of 'vealth is the greatest. The division of landed property presents another obvious instance of the same kind. No person has ever for a moment doubted that the division of such immense tracts of land as were forn1erly in possession of the great feudal proprietors tnust be favourable to industry and production. It is equally difficult to doubt that a division of landed property n1ay be carried to such an extent as to destroy all the benefits to be derived from the accun1ulation of capital and the division of labour, and to· occasion th~ most extended poverty. 1.,here is here |
