Comma for either/or — dharma, courage. Spelling forgiving — corage finds courage.

    An Inquiry into the Principles of Political Economy

    Chap. VI How the Wants of Mankind promote their Multiplication

    James Steuart

    7 min

    If the country we were treating of in the former chapter be supposed of a considerable extent and fruitfulness, and if the inhabitants have turn for industry, in a short time luxury, and the use of money (or of something participating of the nature of money), will infallibly be introduced.

    By LUXURY, I understand the consumption of any thing produced by the labour or ingenuity of man, which flatters our senses or taste of living, and which is neither necessary for our being well fed, well clothed, well defended against the injuries of the weather, or for securing us against every thing which can hurt us.

    By MONEY, I understand any commodity, which purely in itself is of no material use to man for the purposes above-mentioned, but which acquires such an estimation from his opinion of it, as to become the universal measure of what is called value, and an adequate equivalent for any thing alienable.

    Here a new scene opens. This money must be found in the hands of some of the inhabitants; naturally, of such as have had the wit to invent it, and the address to make their countrymen fond of it, by representing it as an equivalent value for food and necessaries; that is to say, the means of procuring, without work or toil, not only the labour of others, but food itself.

    Here then is produced a new object of want. Every person becomes fond of having money; but how to get it is the question. The proprietors will not give it for nothing, and, by our former supposition, every one within the society was understood to be abundantly supplied with food and necessaries; the farmers, from their labouring the ground; the free hands, by the return of their own ingenuity, in furnishing necessaries. The proprietors therefore of this money have all their wants supplied, and still are possessors of this new kind of riches, which we now suppose to be coveted by all.

    The natural consequence here will be, that those who have the money will cease to labour, and yet will consume; and they will not consume for nothing, for they will pay with money.

    Here then is a number of inhabitants, who live and consume the produce of the earth without labouring; food will soon become scarce; demand for it will rise, and that will be paid with money, this is the best equivalent of all; many will run to the plough; the superfluity of the farmers will augment; the rich will call for superfluities; the free hands will supply them, and demand food in their turn. These will, the rich, who not be found a burden on the husbandman, as formerly hired of them their labour or service, must pay them with money, and this money in their hands will serve as an equivalent for the superfluity of nourishment produced by additional agriculture.

    When once this imaginary wealth (money) becomes well introduced into a country, luxury will very naturally follow; and when money becomes the object of our wants, mankind become industrious, in turning their labour towards every object which may engage the rich to part with it; and thus the inhabitants of any country may increase in numbers, until the ground refuses farther nourishment. The consequences of this will make the subject of another chapter.

    Before we proceed, something must be said, in order a little to restrain these general assertions.

    We have supposed a very rapid progress of industry, and a very sudden augmentation of inhabitants, from the introduction of money. But it must be observed, that many circumstances have concurred with the money to produce this effect.

    We have supposed a country capable of improvement, a laborious people, a taste for refinement and luxury in the rich, an ambition to become so, and an application to labour and ingenuity in the lower classes of men. According to the greater or less degree of force, or concurrence of these and like circumstances, will the country in question become more or less cultivated, and consequently peopled.

    If the soil be vastly rich, situated in a warm climate, and naturally watered, the productions of the earth will be almost spontaneous: this will make the inhabitants lazy. Laziness is the greatest of all obstacles to labour and industry. Manufactures will never flourish here. The rich, with all their money, will not become luxurious with delicacy and refinement; for I do not mean by luxury the gratification of the animal appetites, nor the abuse of riches, but an elegance of taste and in living, which has for its object the labour and ingenuity of man; and as the ingenuity of workmen begets a taste in the rich, so the allurement of riches kindles an ambition, and encourages an application to works of ingenuity, in the poor.

    Riches therefore will here be adored as a god, but not made subservient to the uses of man; and it is by the means of swift circulation only (as shall be observed in its proper place) that they become productive of the effects mentioned above.

    When money does not circulate, it is the same thing as if it did not exist; and as the treasures found in countries where the inhabitants are lazy do not circulate, they are rather ornamental than useful.

    It is not therefore in the most fruitful countries of the world, nor in those which are the best calculated for nourishing great multitudes, that we find the most inhabitants. It is in climates less favoured by nature, and where the soil produces to those only who labour, and in proportion to the industry of every one, where we may expect to find great multitudes; and even these multitudes will be found greater or less, in proportion as the turn of the inhabitants is directed to ingenuity and industry.

    In such countries where industry is made to flourish, the free hands (of whom we have spoken above) will be employed in useful manufactures, which, being refined upon by the ingenious, will determine what is called the standard of taste; this taste will increase consumption, which again will multiply workmen, and these will encourage the production of food for their nourishment.

    Let it therefore never be said, that there are too many manufacturers employed in a country; it is the same as if it were said, there are too few idle persons, too few beggars, and too many husbandmen.

    We have more than once endeavoured to shew, that these manufacturers never can be fed but out of the superfluity of the farmers. It is a contradiction, I think, to say, that those who are fed upon the surplus of those who cultivate the soil are necessary for producing a sufficiency to themselves. For if even this surplus were to diminish, the manufacturers, not the labourers, would be the first to be extinguished for want of nourishment.

    The importance of the distributive proportion of mankind into labourers and free hands appears so great, and has so intimate a connection with this subject, that it engages me to seek for an illustration of the principles I have been laying down, in an example drawn from facts, as they are found to stand in one of the greatest and most flourishing nations in Europe. But before I proceed farther in this part of my subject, I must examine the consequences of slavery with regard to the subject we are now upon. Relations here are so many and so various, that it is necessary to have sometimes recourse to transitions, of which I give notice to my reader, that he may not lose the connection.