System of Economical Contradictions; or, the Philosophy of Misery Part 5

System of Economical Contradictions; or, the Philosophy of Misery Part 5

A man who is born into a world already occupied, his family unable to support him, and society not requiring his labor,--such a man, I say, has not the least right to claim any nourishment whatever: he is really one too many on the earth. At the great banquet of Nature there is no plate laid for him. Nature commands him to take himself away, and she will not be slow to put her order into execution.[6]

[6 The pa.s.sage quoted may not be given in the exact words used by Malthus, it having reached its present shape through the medium of a French rendering--Translator.

This then is the necessary, the fatal, conclusion of political economy,--a conclusion which I shall demonstrate by evidence hitherto unknown in this field of inquiry,--Death to him who does not possess!

In order better to grasp the thought of Malthus, let us translate it into philosophical propositions by stripping it of its rhetorical gloss:--

"Individual liberty, and property, which is its expression, are economical data; equality and solidarity are not.

"Under this system, each one by himself, each one for himself: labor, like all merchandise, is subject to fluctuation: hence the risks of the proletariat.

"Whoever has neither income nor wages has no right to demand anything of others: his misfortune falls on his own head; in the game of fortune, luck has been against him."

From the point of view of political economy these propositions are irrefutable; and Malthus, who has formulated them with such alarming exactness, is secure against all reproach. From the point of view of the conditions of social science, these same propositions are radically false, and even contradictory.

The error of Malthus, or rather of political economy, does not consist in saying that a man who has nothing to eat must die; or in maintaining that, under the system of individual appropriation, there is no course for him who has neither labor nor income but to withdraw from life by suicide, unless he prefers to be driven from it by starvation: such is, on the one hand, the law of our existence; such is, on the other, the consequence of property; and M. Rossi has taken altogether too much trouble to justify the good sense of Malthus on this point.

I suspect, indeed, that M. Rossi, in making so lengthy and loving an apology for Malthus, intended to recommend political economy in the same way that his fellow-countryman Machiavel, in his book ent.i.tled "The Prince," recommended despotism to the admiration of the world. In pointing out misery as the necessary condition of industrial and commercial absolutism, M. Rossi seems to say to us: There is your law, your justice, your political economy; there is property.

But Gallic simplicity does not understand artifice; and it would have been better to have said to France, in her immaculate tongue: The error of Malthus, the radical vice of political economy, consists, in general terms, in affirming as a definitive state a transitory condition,-- namely, the division of society into patricians and proletaires; and, particularly, in saying that in an organized, and consequently solidaire, society, there may be some who possess, labor, and consume, while others have neither possession, nor labor, nor bread. Finally Malthus, or political economy, reasons erroneously when seeing in the faculty of indefinite reproduction--which the human race enjoys in neither greater nor less degree than all animal and vegetable species--a permanent danger of famine; whereas it is only necessary to show the necessity, and consequently the existence, of a law of equilibrium between population and production.

In short, the theory of Malthus--and herein lies the great merit of this writer, a merit which none of his colleagues has dreamed of attributing to him--is a reductio ad absurdum of all political economy.

As for socialism, that was summed up long since by Plato and Thomas More in a single word, UTOPIA,--that is, NO-PLACE, a chimera.

Nevertheless, for the honor of the human mind and that justice may be done to all, this must be said: neither could economic and legislative science have had any other beginning than they did have, nor can society remain in this original position.

Every science must first define its domain, produce and collect its materials: before system, facts; before the age of art, the age of learning. The economic science, subject like every other to the law of time and the conditions of experience, before seeking to ascertain how things OUGHT TO TAKE PLACE in society, had to tell us how things DO TAKE PLACE; and all these processes which the authors speak of so pompously in their books as LAWS, PRINCIPLES, and THEORIES, in spite of their incoherence and inconsistency, had to be gathered up with scrupulous diligence, and described with strict impartiality. The fulfilment of this task called for more genius perhaps, certainly for more self-sacrifice, than will be demanded by the future progress of the science.

If, then, social economy is even yet rather an aspiration towards the future than a knowledge of reality, it must be admitted that the elements of this study are all included in political economy; and I believe that I express the general sentiment in saying that this opinion has become that of the vast majority of minds. The present finds few defenders, it is true; but the disgust with utopia is no less universal: and everybody understands that the truth lies in a formula which shall reconcile these two terms: CONSERVATION and MOTION.

Thus, thanks to Adam Smith, J. B. Say, Ricardo, and Malthus, as well as their rash opponents, the mysteries of fortune, atria Ditis, are uncovered; the power of capital, the oppression of the laborer, the machinations of monopoly, illumined at all points, shun the public gaze. Concerning the facts observed and described by the economists, we reason and conjecture: abusive laws, iniquitous customs, respected so long as the obscurity which sustained their life lasted, with difficulty dragged to the daylight, are expiring beneath the general reprobation; it is suspected that the government of society must be learned no longer from an empty ideology, after the fashion of the Contrat social, but, as Montesquieu foresaw, from the RELATION OF THINGS; and already a Left of eminently socialistic tendencies, composed of savants, magistrates, legists, professors, and even capitalists and manufacturers,--all born representatives and defenders of privilege,--and of a million of adepts, is forming in the nation above and outside of PARLIAMENTARY opinions, and seeking, by an a.n.a.lysis of economic facts, to capture the secrets of the life of societies.

Let us represent political economy, then, as an immense plain, strewn with materials prepared for an edifice. The laborers await the signal, full of ardor, and burning to commence the work: but the architect has disappeared without leaving the plan.

The economists have stored their memories with many things: unhappily they have not the shadow of an estimate. They know the origin and history of each piece; what it cost to make it; what wood makes the best joists, and what clay the best bricks; what has been expended in tools and carts; how much the carpenters earned, and how much the stone-cutters: they do not know the destination and the place of anything. The economists cannot deny that they have before them the fragments, scattered pell-mell, of a chef-d'oeuvre, disjecti membra poetae; but it has been impossible for them as yet to recover the general design, and, whenever they have attempted any comparisons, they have met only with incoherence. Driven to despair at last by their fruitless combinations, they have erected as a dogma the architectural incongruity of the science, or, as they say, the INCONVENIENCES of its principles; in a word, they have denied the science.[7]

[7] "The principle which governs the life of nations is not pure science: it is the total of the complex data which depend on the state of enlightenment, on needs and interests." Thus expressed itself, in December, 1844, one of the clearest minds that France contained, M. Leon Faucher. Explain, if you can, how a man of this stamp was led by his economic convictions to declare that the COMPLEX DATA of society are opposed to PURE SCIENCE.

Thus the division of labor, without which production would be almost nothing, is subject to a thousand inconveniences, the worst of which is the demoralization of the laborer; machinery causes, not only cheapness, but obstruction of the market and stoppage of business; compet.i.tion ends in oppression; taxation, the material bond of society, is generally a scourge dreaded equally with fire and hail; credit is necessarily accompanied by bankruptcy; property is a swarm of abuses; commerce degenerates into a game of chance, in which it is sometimes allowable even to cheat: in short, disorder existing everywhere to an equal extent with order, and no one knowing how the latter is to banish the former, taxis ataxien diokein, the economists have decided that all is for the best, and regard every reformatory proposition as hostile to political economy.

The social edifice, then, has been abandoned; the crowd has burst into the wood-yard; columns, capitals, and plinths, wood, stone, and metal, have been distributed in portions and drawn by lot: and, of all these materials collected for a magnificent temple, property, ignorant and barbarous, has built huts. The work before us, then, is not only to recover the plan of the edifice, but to dislodge the occupants, who maintain that their city is superb, and, at the very mention of restoration, appear in battle-array at their gates. Such confusion was not seen of old at Babel: happily we speak French, and are more courageous than the companions of Nimrod.

But enough of allegory: the historical and descriptive method, successfully employed so long as the work was one of examination only, is henceforth useless: after thousands of monographs and tables, we are no further advanced than in the age of Xenophon and Hesiod. The Phenicians, the Greeks, the Italians, labored in their day as we do in ours: they invested their money, paid their laborers, extended their domains, made their expeditions and recoveries, kept their books, speculated, dabbled in stocks, and ruined themselves according to all the rules of economic art; knowing as well as ourselves how to gain monopolies and fleece the consumer and laborer. Of all this accounts are only too numerous; and, though we should rehea.r.s.e forever our statistics and our figures, we should always have before our eyes only chaos,--chaos constant and uniform.

It is thought, indeed, that from the era of mythology to the present year 57 of our great revolution, the general welfare has improved: Christianity has long been regarded as the chief cause of this amelioration, but now the economists claim all the honor for their own principles. For after all, they say, what has been the influence of Christianity upon society? Thoroughly utopian at its birth, it has been able to maintain and extend itself only by gradually adopting all the economic categories,--labor, capital, farm-rent, usury, traffic, property; in short, by consecrating the Roman law, the highest expression of political economy.

Christianity, a stranger in its theological aspect to the theories of production and consumption, has been to European civilization what the trades-unions and free-masons were not long since to itinerant workmen,--a sort of insurance company and mutual aid society; in this respect, it owes nothing to political economy, and the good which it has done cannot be invoked by the latter in its own support. The effects of charity and self-sacrifice are outside of the domain of economy, which must bring about social happiness through justice and the organization of labor. For the rest, I am ready to admit the beneficial effects of the system of property; but I observe that these effects are entirely balanced by the misery which it is the nature of this system to produce; so that, as an ill.u.s.trious minister recently confessed before the English Parliament, and as we shall soon show, the increase of misery in the present state of society is parallel and equal to the increase of wealth,--which completely annuls the merits of political economy.

Thus political economy is justified neither by its maxims nor by its works; and, as for socialism, its whole value consists in having established this fact. We are forced, then, to resume the examination of political economy, since it alone contains, at least in part, the materials of social science; and to ascertain whether its theories do not conceal some error, the correction of which would reconcile fact and right, reveal the organic law of humanity, and give the positive conception of order.

CHAPTER II.

OF VALUE.

% 1.--Opposition of value in USE and value in EXCHANGE.

Value is the corner-stone of the economic edifice. The divine artist who has intrusted us with the continuation of his work has explained himself on this point to no one; but the few indications given may serve as a basis of conjecture. Value, in fact, presents two faces: one, which the economists call value in USE, or intrinsic value; another, value in EXCHANGE, or of opinion. The effects which are produced by value under this double aspect, and which are very irregular so long as it is not established,--or, to use a more philosophical expression, so long as it is not const.i.tuted,--are changed totally by this const.i.tution.

Now, in what consists the correlation between USEFUL value and value in EXCHANGE? What is meant by CONSt.i.tUTED value, and by what sudden change is this const.i.tution effected? To answer these questions is the object and end of political economy. I beg the reader to give his whole attention to what is to follow, this chapter being the only one in the work which will tax his patience. For my part, I will endeavor to be more and more simple and clear.

Everything which can be of any service to me is of value to me, and the more abundant the useful thing is the richer I am: so far there is no difficulty. Milk and flesh, fruits and grains, wool, sugar, cotton, wine, metals, marble; in fact, land, water, air, fire, and sunlight,-- are, relatively to me, values of use, values by nature and function. If all the things which serve to sustain my life were as abundant as certain of them are, light for instance,--in other words, if the quant.i.ty of every valuable thing was inexhaustible,--my welfare would be forever a.s.sured: I should not have to labor; I should not even think. In such a state, things would always be USEFUL, but it would be no longer true to say that they ARE VALUABLE; for value, as we shall soon see, indicates an essentially social relation; and it is solely through exchange, reverting as it were from society to Nature, that we have acquired the idea of utility. The whole development of civilization originates, then, in the necessity which the human race is under of continually causing the creation of new values; just as the evils of society are primarily caused by the perpetual struggle which we maintain against our own inertia.

Take away from man that desire which leads him to think and fits him for a life of contemplation, and the lord of creation stands on a level with the highest of the beasts.

But how does value in use become value in exchange? For it should be noticed that the two kinds of value, although coexisting in thought (since the former becomes apparent only in the presence of the latter), nevertheless maintain a relation of succession: exchangeable value is a sort of reflex of useful value; just as the theologians teach that in the Trinity the Father, contemplating himself through all eternity, begets the Son. This generation of the idea of value has not been noted by the economists with sufficient care: it is important that we should tarry over it.

Since, then, of the objects which I need, a very large number exist in Nature only in moderate quant.i.ties, or even not at all, I am forced to a.s.sist in the production of that which I lack; and, as I cannot turn my hand to so many things, I propose to other men, my collaborators in various functions, to yield me a portion of their products in exchange for mine. I shall then always have in my possession more of my own special product than I consume; just as my fellows will always have in their possession more of their respective products than they use. This tacit agreement is fulfilled by COMMERCE. Here we may observe that the logical succession of the two kinds of value is even more apparent in history than in theory, men having spent thousands of years in disputing over natural wealth (this being what is called PRIMITIVE COMMUNISM) before their industry afforded opportunity for exchange.

Now, the capacity possessed by all products, whether natural or the result of labor, of serving to maintain man, is called distinctively value in use; their capacity of purchasing each other, value in exchange. At bottom this is the same thing, since the second case only adds to the first the idea of subst.i.tution, which may seem an idle subtlety; practically, the consequences are surprising, and beneficial or fatal by turns.

Consequently, the distinction established in value is based on facts, and is not at all arbitrary: it is for man, in submitting to this law, to use it to increase his welfare and liberty.

Labor, as an author (M. Walras) has beautifully expressed it, is a war declared against the parsimony of Nature; by it wealth and society are simultaneously created. Not only does labor produce incomparably more wealth than Nature gives us,--for instance, it has been remarked that the shoemakers alone in France produce ten times more than the mines of Peru, Brazil, and Mexico combined,--but, labor infinitely extending and multiplying its rights by the changes which it makes in natural values, it gradually comes about that all wealth, in running the gauntlet of labor, falls wholly into the hands of him who creates it, and that nothing, or almost nothing, is left for the possessor of the original material.

Such, then, is the path of economic progress: at first, appropriation of the land and natural values; then, a.s.sociation and distribution through labor until complete equality is attained. Chasms are scattered along our road, the sword is suspended over our heads; but, to avert all dangers, we have reason, and reason is omnipotence.

It results from the relation of useful value to exchangeable value that if, by accident or from malice, exchange should be forbidden to a single producer, or if the utility of his product should suddenly cease, though his storehouses were full, he would possess nothing. The more sacrifices he had made and the more courage he had displayed in producing, the greater would be his misery. If the utility of the product, instead of wholly disappearing, should only diminish,--a thing which may happen in a hundred ways,--the laborer, instead of being struck down and ruined by a sudden catastrophe, would be impoverished only; obliged to give a large quant.i.ty of his own value for a small quant.i.ty of the values of others, his means of subsistence would be reduced by an amount equal to the deficit in his sale: which would lead by degrees from competency to want. If, finally, the utility of the product should increase, or else if its production should become less costly, the balance of exchange would turn to the advantage of the producer, whose condition would thus be raised from fatiguing mediocrity to idle opulence. This phenomenon of depreciation and enrichment is manifested under a thousand forms and by a thousand combinations; it is the essence of the pa.s.sional and intriguing game of commerce and industry.

And this is the lottery, full of traps, which the economists think ought to last forever, and whose suppression the Academy of Moral and Political Sciences unwittingly demands, when, under the names of profit and wages, it asks us to reconcile value in use and value in exchange; that is, to find the method of rendering all useful values equally exchangeable, and, vice versa, all exchangeable values equally useful.

The economists have very clearly shown the double character of value, but what they have not made equally plain is its contradictory nature. Here begins our criticism.

Utility is the necessary condition of exchange; but take away exchange, and utility vanishes: these two things are indissolubly connected. Where, then, is the contradiction?

Since all of us live only by labor and exchange, and grow richer as production and exchange increase, each of us produces as much useful value as possible, in order to increase by that amount his exchanges, and consequently his enjoyments. Well, the first effect, the inevitable effect, of the multiplication of values is to LOWER them: the more abundant is an article of merchandise, the more it loses in exchange and depreciates commercially. Is it not true that there is a contradiction between the necessity of labor and its results?

I adjure the reader, before rushing ahead for the explanation, to arrest his attention upon the fact.

A peasant who has harvested twenty sacks of wheat, which he with his family proposes to consume, deems himself twice as rich as if he had harvested only ten; likewise a housewife who has spun fifty yards of linen believes that she is twice as rich as if she had spun but twenty- five. Relatively to the household, both are right; looked at in their external relations, they may be utterly mistaken. If the crop of wheat is double throughout the whole country, twenty sacks will sell for less than ten would have sold for if it had been but half as great; so, under similar circ.u.mstances, fifty yards of linen will be worth less than twenty-five: so that value decreases as the production of utility increases, and a producer may arrive at poverty by continually enriching himself. And this seems unalterable, inasmuch as there is no way of escape except all the products of industry become infinite in quant.i.ty, like air and light, which is absurd. G.o.d of my reason! Jean Jacques would have said: it is not the economists who are irrational; it is political economy itself which is false to its definitions. Ment.i.ta est iniquitas sibi.

In the preceding examples the useful value exceeds the exchangeable value: in other cases it is less. Then the same phenomenon is produced, but in the opposite direction: the balance is in favor of the producer, while the consumer suffers.

This is notably the case in seasons of scarcity, when the high price of provisions is always more or less fact.i.tious. There are also professions whose whole art consists in giving to an article of minor usefulness, which could easily be dispensed with, an exaggerated value of opinion: such, in general, are the arts of luxury. Man, through his aesthetic pa.s.sion, is eager for the trifles the possession of which would highly satisfy his vanity, his innate desire for luxury, and his more n.o.ble and more respectable love of the beautiful: upon this the dealers in this cla.s.s of articles speculate. To tax fancy and elegance is no less odious or absurd than to tax circulation: but such a tax is collected by a few fashionable merchants, whom general infatuation protects, and whose whole merit generally consists in warping taste and generating fickleness. Hence no one complains; and all the maledictions of opinion are reserved for the monopolists who, through genius, succeed in raising by a few cents the price of linen and bread.