Elements of Political Economy
There are few things of which I have occasion to advertize the reader, before he enters upon the perusal of the following work.
My object has been to compose a school-book of Political Economy, to detach the essential principles of the science from all extraneous topics, to state the propositions clearly and in their logical order, and to subjoin its demonstration to each. I am, myself, persuaded, that nothing more is necessary for understanding every part of the book, than to read it with attention; such attention as persons of either sex, of ordinary understanding, are capable of bestowing.
They who are commencing the study ought to proceed slowly, and to familiarize themselves with the new combinations of ideas, as they are successively presented to them. If they proceed to a subsequent proposition before they are sufficiently imbued with the first, they will of course experience a difficulty, only because they have not present to their memory the truth which is calculated to remove it. If they who begin the study of mathematics were to content themselves with merely reading and assenting to the demonstrations, they would soon arrive at doctrines, which they would be unable to comprehend, solely because they had not, by frequent repetition, established in their minds those previous propositions, on which the evidence of the subsequent ones depends.
In a work of this description I have thought it adviseable not to quote any authorities, because I am anxious that the learner should fix his mind upon the doctrine and its evidence, without any extraneous consideration. I cannot fear an imputation of plagiarism, because I profess to have made no discovery; and those men who have contributed to the progress of the science need no testimony of mine to establish their fame.
In this third edition, the only alterations, not merely verbal, will be found, in the section on Profits, where the different modes of expressing the relation of profits to wages is more fully expounded; in the section which treats of "what determines the quantity in which commodities exchange for one another," where I have added something in illustration of the analysis of what regulates value; in the section, which explains the "occasions on which it is the interest of nations to exchange commodities with one another," where I have corrected an error of the former editions; and in the section, which treats of a tax per acre on the land, where I have thought it necessary to explain a case to which I had not before adverted.
The Subject—Its Limits—and Division
Political Economy is to the State, what domestic economy is to the family.
The family consumes; and, in order to consume, it must supply.
Domestic economy has, therefore, two grand objects; the consumption and supply of the family. The consumption being a quantity always indefinite, for there is no end to the desire of enjoyment, the grand concern is, to increase the supply.
Those things, which are produced, in sufficient abundance for the satisfaction of all, without the intervention of human labour; as air, the light of the sun, water, and so on; are not objects of care or providence; and therefore, accurately speaking, do not form part of the subject of domestic economy. The art of him, who manages a family, consists in regulating the supply and consumption of those things, which cannot be obtained but with cost; in other words, with human labour, "the original purchase-money, which is given for every thing."
The same is the case with Political Economy. It also has two grand objects, the Consumption of the Community, and that Supply upon which the consumption depends. Those things, which are supplied without the intervention of human labour, as nothing is required in order to obtain them, need not be taken into account. Had every thing, desired for consumption, existed without human labour, there would have been no place for Political Economy. Science is not implied in putting forth the hand, and using. But when labour is to be employed, and the objects of desire can be multiplied only by a preconcerted plan of operations, it becomes an object of importance to ascertain completely the means of that multiplication, and to frame a system of rules for applying them with greatest advantage to the end.
It is not pretended, that writers on Political Economy have always limited their disquisitions to this object. It seems, however, important to detach the science from all considerations not essential to it. The Reader is therefore requested to observe that, in the following pages, I have it merely in view, to ascertain the laws, according to which the production and consumption are regulated of those commodities, which the intervention of human labour is necessary to procure.
The Science of Political Economy, thus defined, divides itself into two grand inquiries; that which relates to Production, and that which relates to Consumption.
But, after things are produced, it is evident, that, before they are consumed, they must be distributed. The laws of distribution, therefore, constitute an intermediate inquiry.
When commodities are produced, and distributed, it is highly convenient, for the sake both of reproduction and consumption, that portions of them should be exchanged for one another. To ascertain, therefore, the laws, according to which commodities are exchanged for one another, is a second inquiry, preceding that which relates to the last great topic of Political Economy, Consumption.
It thus appears, that four inquiries are comprehended in this science.
1st. What are the laws, which regulate the production of commodities:
2dly. What are the laws, according to which the commodities, produced by the labour of the community, are distributed:
3dly. What are the laws, according to which commodities are exchanged for one another:
4thly. What are the laws, which regulate consumption.
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