Blackwood's Edinburgh Magazine, Vol. 64 No. 396 October 1848

"That the energies of mankind should be kept in employment by the struggle for riches, as they were formerly by the struggle of war, until the better minds succeed in educating the others into better things, is undoubtedly more desirable than that they should rust and stagnate. While minds are coarse, they require coarse stimuli, and let them have them. In the mean time, those who do not accept the present very early stage of human improvement as its ultimate type, may be excused for being comparatively indifferent to the kind of economical progress which usually excites the congratulations of politicians – the mere increase of production and accumulation. For the safety of national independence, it is essential that a country should not fall much behind its neighbours in these things. But in themselves they are of little importance, so long as either the increase of population, or any thing else, prevents the mass of the people from reaping any part of the benefit of them. I know not why it should be matter of congratulation, that persons who are already richer than any one needs to be, should have doubled their means of consuming things which give little or no pleasure, except as representative of wealth; or that numbers of individuals should pass over every year from the middle classes into a richer class, or from the class of the occupied rich to that of the unoccupied. It is only in the backward countries of the world that increased production is still an important object; in those most advanced, what is economically needed is a better distribution, of which an indispensable means is a stricter restraint on population. Levelling institutions, either of a just or an unjust kind, cannot alone accomplish it; they may lower the heights of society, but they cannot raise the depths." – (Vol. ii. p. 308.)

It will be already seen, from even this brief extract, that the too rapid increase of population presents itself to Mr Mill as the chief, or one of the chief obstacles to human improvement. Without attempting to repeat all that we have at different times urged upon this head, we may at once say here that, in the first place, we never denied, or dreamt of denying, that it was one of the first and most imperative duties of every human being, to be assured that he could provide for a family before he called one into existence. This has been at all times a plain, unquestionable duty, though it has not at all times been clearly understood as such. But, in the second place, we have combated the Malthusian alarm, precisely because we believe that the moral checks to population will be found a sufficient balance to the physical law of increase. We have repudiated the idea that there is, in the shape of the law of population, a constant enemy to human improvement, convinced that this law will be found to be in perfect harmony with all other laws that regulate the destiny of man. A certain pressure of population on the means of subsistence has been always recognised as an element necessary to the progress of society – especially at that early stage when bare subsistence is the sole motive for industry. When not only to live, but to live well, becomes the ruling motive of men, then come into play the various moral checks arising from prudence, vanity, and duty. But the mere thinness of population will not, in the first place, induce a high standard of comfortable subsistence. It is a delusion to suppose that the low standard of comfort and enjoyment prevailing amongst the multitude is the result of excessive population. If Neapolitan lazzaroni are contented with macaroni and sunshine, it matters not whether their numbers are five hundred or five thousand, they will labour for nothing beyond their macaroni. We would challenge the political economist to prove that in England, at this present time, or in any country of Europe, the prevailing standard of comfort amongst the working classes has been permanently determined by the amount of population. This standard is slowly rising, from better education, mechanical inventions, and other causes, and it will ultimately control the increase of population. That wages occasionally suffer a lamentable depression, owing to the numbers of any one class of workmen, is a fact which does not touch the point at issue. We say that, whether a population be dense or rare, you must first excite, by education and the example of a higher class, a certain taste for comfort, for a cleanly and orderly mode of life, amongst the mass of labouring men; that until this taste is called forth, it would be in vain to offer high wages, for men would only work one half the week, and spend the other half in idleness and coarse intemperance; and that, this taste once called forth, there will be no fear of the class of men who possess it being permanently degraded by over-population, unless the excess of population were derived from some neighbouring country, unhappily far behind it in the race of civilisation.

We now continue our quotation.

"There is room in the world, no doubt, and even in old countries, for an immense increase of population, supposing the arts of life to go on improving and capital to increase. But, although it may be innocuous, I confess I see very little reason for desiring it. The density of population necessary to enable mankind to obtain, in the greatest degree, all the advantages both of co-operation and of social intercourse, has, in all the more populous countries, been attained. A population may be too crowded, though all be amply supplied with food and raiment. It is not good for man to be kept perforce at all times in the presence of his species. A world from which solitude is extirpated is a very poor ideal. Solitude, in the sense of being often alone, is essential to any depth of meditation or of character; and solitude, in the presence of natural beauty and grandeur, is the cradle of thoughts and aspirations which are not only good for the individual, but which society could ill do without. Nor is there much satisfaction in contemplating the world, with nothing left to the spontaneous activity of nature – with every rood of land brought into cultivation which is capable of growing food for human beings – every flowery waste or natural pasture ploughed up – all quadrupeds or birds, which are not domesticated for man's use, exterminated as his rivals for food – every hedgerow or superfluous tree rooted out, and scarcely a place left where a shrub or flower could grow, without being eradicated as a weed in the name of improved agriculture. If the earth must lose that great portion of its pleasantness which it owes to things that the unlimited increase of wealth and population would extirpate from it, for the mere purpose of enabling it to support a larger, but not a better or a happier population, I sincerely hope, for the sake of posterity, that they will be content to be stationary long before necessity compels them to it.

"It is scarcely necessary to remark, that a stationary condition of capital and population implies no stationary state of human improvement. There would be as much scope as ever for all kinds of mental culture, and moral and social progress; as much room for improving the Art of Living, and much more likelihood of its being improved, when minds ceased to be engrossed by the art of getting on. Even the industrial arts might be as earnestly and as successfully cultivated, with this sole difference – that, instead of serving no purpose but the increase of wealth, industrial improvements would produce their legitimate effect, that of abridging labour. Hitherto it is questionable if all the mechanical inventions yet made have lightened the daily toil of any human being. They have enabled a greater population to live the same life of drudgery and imprisonment, and an increased number of manufacturers and others to make large fortunes. They have increased the comforts of the middle classes; but they have not yet begun to effect those great changes in human destiny which it is in their nature and in their futurity to accomplish. Only when, in addition to just institutions, the increase of mankind shall be under the deliberate guidance of a judicious foresight, can the conquests made from the powers of nature, by the intellect and energy of scientific discoverers, become the common property of the species, and the means of improving 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 must, at all events, sooner or later, take place, and depends ultimately, as we shall have occasion to show, on higher laws, over which man has no control. Men might, if they chose, be all saving, and all convert superfluous wealth into capital; but need we add, men would never choose any such thing. There is no necessity in the nature 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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1

The anaglyph was peculiar to the Egyptian priests – the hieroglyph generally known to the well educated.

2

Lucian, The Dream of Micyllus.

3

Remains of the Rev. Richard Cecil, p. 349.

4

Principles of Political Economy, with some of their applications to Social Philosophy. By John Stuart Mill. 2 vols.

5

"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, De la Liberté du Travail.