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Principles of Political Economy: CHAPTER VI: Of the Stationary State

Principles of Political Economy
CHAPTER VI: Of the Stationary State
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table of contents
  1. Front Matter
    1. Table of Contents
    2. About
    3. Introduction
    4. Preface (1848 ed.)
      1. Addition to the Preface (1849 ed.)
    5. Preface (1852 ed.)
      1. Addition to the Preface (1857 ed.)
      2. Addition to the Preface (1862 ed.)
      3. Addition to the Preface (1865 ed.)
      4. Addition to the Preface: “The People's Edition,” (1865)
    6. Preface (1871 ed.)
  2. Preliminary Remarks
  3. BOOK I: PRODUCTION
    1. CHAPTER I: Of the Requisites of Production
    2. CHAPTER II: Of Labour as an Agent of Production
    3. CHAPTER III: Of Unproductive Labour
    4. CHAPTER IV: Of Capital
    5. CHAPTER V: Fundamental Propositions Respecting Capital
    6. CHAPTER VI: On Circulating and Fixed Capital
    7. CHAPTER VII: On What Depends the Degree of Productiveness of Productive Agents
    8. CHAPTER VIII: Of Co-Operation, or the Combination of Labour
    9. CHAPTER IX: Of Production on a Large, and Production on a Small Scale
    10. CHAPTER X: Of the Law of the Increase of Labour
    11. CHAPTER XI: Of the Law of the Increase of Capital
    12. CHAPTER XII: Of the Law of the Increase of Production From Land
    13. CHAPTER XIII: Consequences of the Foregoing Laws
  4. BOOK II: DISTRIBUTION
    1. CHAPTER I.: Of Property
    2. CHAPTER II.: The Same Subject Continued
    3. Chapter III.: Of the Classes Among Whom the Produce Is Distributed
    4. CHAPTER IV.: Of Competition and Custom
    5. CHAPTER V.: Of Slavery
    6. CHAPTER VI.: Of Peasant Proprietors
    7. CHAPTER VII.: Continuation of the Same Subject
    8. CHAPTER VIII.: Of Metayers
    9. CHAPTER IX.: Of Cottiers
    10. CHAPTER X.: Means of Abolishing Cottier Tenancy
    11. CHAPTER XI.: Of Wages
    12. CHAPTER XII.: Of Popular Remedies for Low Wages
    13. CHAPTER XIII.: The Remedies for Low Wages Further Considered
    14. CHAPTER XIV.: Of the Differences of Wages in Different Employments
    15. CHAPTER XV.: Of Profits
    16. CHAPTER XVI.: Of Rent
  5. BOOK III: EXCHANGE
    1. Chapter I: Of Value
    2. CHAPTER II: Of Demand and Supply in Their Relation to Value
    3. CHAPTER III: Of Cost of Production, in Its Relation to Value
    4. CHAPTER IV: Ultimate Analysis of Cost of Production
    5. CHAPTER V: Of Rent, in Its Relation to Value
    6. CHAPTER VI: Summary of the Theory of Value
    7. CHAPTER VII: Of Money
    8. CHAPTER VIII: Of the Value of Money, as Dependent on Demand and Supply
    9. CHAPTER IX: Of the Value of Money, as Dependent on Cost of Production
    10. CHAPTER X: Of a Double Standard, and Subsidiary Coins
    11. CHAPTER XI: Of Credit, as a Substitute for Money
    12. CHAPTER XII: Influence of Credit on Prices
    13. CHAPTER XIII: Of an Inconvertible Paper Currency
    14. CHAPTER XIV: Of Excess of Supply
    15. CHAPTER XV: Of a Measure of Value
    16. CHAPTER XVI: Of Some Peculiar Cases of Value
    17. CHAPTER XVII.: On International Trade
    18. CHAPTER XVIII: Of International Values
    19. CHAPTER XIX: Of Money, Considered as an Imported Commodity
    20. CHAPTER XX: Of the Foreign Exchanges
    21. CHAPTER XXI: Of the Distribution of the Precious Metals Through the Commercial World
    22. CHAPTER XXII: Influence of the Currency on the Exchanges and on Foreign Trade
    23. CHAPTER XXIII: Of the Rate of Interest
    24. CHAPTER XXIV: Of the Regulation of a Convertible Paper Currency
    25. CHAPTER XXV: Of the Competition of Different Countries in the Same Market
    26. CHAPTER XXVI: Of Distribution, as Affected by Exchange
  6. BOOK IV: INFLUENCE OF THE PROGRESS OF SOCIETY ON PRODUCTION AND DISTRIBUTION
    1. CHAPTER I: General Characteristics of a Progressive State of Wealth
    2. CHAPTER II: Influence of the Progress of Industry and Population on Values and Prices
    3. CHAPTER III: Influence of the Progress of Industry and Population, on Rents, Profits, and Wages
    4. CHAPTER IV: Of the Tendency of Profits to a Minimum
    5. CHAPTER V: Consequences of the Tendency of Profits to a Minimum
    6. CHAPTER VI: Of the Stationary State
    7. CHAPTER VII: On the Probable Futurity of the Labouring Classes
  7. BOOK V: ON THE INFLUENCE OF GOVERNMENT
    1. CHAPTER I: Of the Functions of Government in General
    2. CHAPTER II: On the General Principles of Taxation
    3. CHAPTER III: Of Direct Taxes
    4. CHAPTER IV: Of Taxes on Commodities
    5. CHAPTER V: Of Some Other Taxes
    6. CHAPTER VI: Comparison Between Direct and Indirect Taxation
    7. CHAPTER VII: Of a National Debt
    8. CHAPTER VIII: Of the Ordinary Functions of Government, Considered as to Their Economical Effects
    9. CHAPTER IX: The Same Subject Continued
    10. CHAPTER X: Of Interferences of Government Grounded on Erroneous Theories
    11. CHAPTER XI: Of the Grounds and Limits of the Laisser-Faire or Non-Interference Principle
  8. Bibliographical Appendix
    1. A.—: The Mercantile System (p. 6)
    2. B.—: The Definition of Wealth (p. 9)
    3. C.—: The Types of Society (p. 20)
    4. D.—: Productive and Unproductive Labour (p. 53)
    5. E.—: The Definition of Capital (p. 62)
    6. F.—: Fundamental Propositions on Capital (p. 90)
    7. G.—: Division and Combination of Labour (p. 131)
    8. H.—: Large and Small Farming (p. 154)
    9. I.—: Population (p. 162)
    10. J.—: The Law of Diminishing Return (p. 188)
    11. K.—: Mill's Earlier and Later Writings on Socialism (p. 204)
    12. L.—: The Later History of Socialism (p. 217)
    13. M.—: Indian Tenures (p. 328)
    14. N.—: Irish Agrarian Development (p. 342)
    15. O.—: The Wages Fund Doctrine (p. 344)
    16. P.—: The Movement of Population (p. 360)
    17. Q.—: Profits (p. 421)
    18. R.—: Rent (p. 434)
    19. S.—: The Theory of Value (p. 482)
    20. T.—: The Value of Money (p. 506)
    21. U.—: Bimetallism (p. 510)
    22. V.—: International Values (p. 606)
    23. W.—: The Regulation of Currency (p. 677)
    24. X.—: Prices in the Nineteenth Century (p. 704)
    25. Y.—: Commercial Cycles (p. 709)
    26. Z.—: Rents in the Nineteenth Century (p. 724)
    27. AA.—: Wages in the Nineteenth Century (p. 724)
    28. BB.—: The Importation of Food (p. 738)
    29. CC.—: The Tendency of Profits to a Minimum (p. 739)
    30. DD.—: The Subsequent History of Co-Operation (p. 794)
    31. EE.—: The Subsequent History of Income Tax (pp. 806, 817)
    32. FF.—: The Taxation of Land (p. 819)
    33. GG.—: The Incidence of Taxation (p. 863)
    34. HH.—: Company and Partnership Law (p. 904)
    35. II.—: Protection (p. 926)
    36. JJ.—: Usury Laws (p. 930.)
    37. KK.—: The Factory Acts (p. 759)
    38. LL.—: The Poor Law (p. 969)
    39. MM.—: The Province or Government (p. 979)
  9. Index

CHAPTER VI: of the stationary state

§ 1. The preceding chapters comprise the general theory of the economical progress of society, in the sense in which those terms are commonly understood; the progress of capital, of population, and of the productive arts. But in contemplating any progressive movement, not in its nature unlimited, the mind is not satisfied with merely tracing the laws of the movement; it cannot but ask the further question, to what goal? Towards what ultimate point is society tending by its industrial progress? When the progress ceases, in what condition are we to expect that it will leave mankind?

It must always have been seen, more or less distinctly, by political economists, that the increase of wealth is not boundless: that at the end of what they term the progressive state lies the stationary state, that all progress in wealth is but a postponement of this, and that each step in advance is an approach to it. We have now been led to recognize that this ultimate goal is at all times near enough to be fully in view; that we are always on the verge of it, and that if we have not reached it long ago, it is because the goal itself flies before us. The richest and most prosperous countries would very soon attain the stationary state, if no further improvements were made in the productive arts, and if there were a suspension of the overflow of capital from those countries into the uncultivated or ill-cultivated regions of the earth.

This impossibility of ultimately avoiding the stationary state—this irresistible necessity that the stream of human industry should finally spread itself out into an apparently stagnant sea—must have been, to the political economists of the last two generations, an unpleasing and discouraging prospect; for the tone and tendency of their speculations goes completely to identify all that is economically desirable with the progressive state, and with that alone. Edition: current; Page: [747] With Mr. M'Culloch, for example, prosperity does not mean a large production and a good distribution of wealth, but a rapid increase of it; his test of prosperity is high profits; and as the tendency of that very increase of wealth, which he calls prosperity, is towards low profits, economical progress, according to him, must tend to the extinction of prosperity. Adam Smith always assumes that the condition of the mass of the people, though it may not be positively distressed, must be pinched and stinted in a stationary condition of wealth, and can only be satisfactory in a progressive state. The doctrine that, to however distant a time incessant struggling may put off our doom, the progress of society must “end in shallows and in miseries,” far from being, as many people still believe, a wicked invention of Mr. Malthus, was either expressly or tacitly affirmed by his most distinguished predecessors, and can only be successfully combated on his principles. Before attention had been directed to the principle of population as the active force in determining the remuneration of labour, the increase of mankind was virtually treated as a constant quantity; it was, at all events, assumed that in the natural and normal state of human affairs population must constantly increase, from which it followed that a constant increase of the means of support was essential to the physical comfort of the mass of mankind. The publication of Mr. Malthus' Essay is the era from which better views of this subject must be dated; and notwithstanding the acknowledged errors of his first edition, few writers have done more than himself, in the subsequent editions, to promote these juster and more hopeful anticipations.

Even in a progressive state of capital, in old countries, a conscientious or prudential restraint on population is indispensable, to prevent the increase of numbers from outstripping the increase of capital, and the condition of the classes who are at the bottom of society from being deteriorated. Where there is not, in the people, or in some very large proportion of them, a resolute resistance to this deterioration—a determination to preserve an established standard of comfort—the condition of the poorest class sinks, even in a progressive state, to the lowest point which they will consent to endure. The same determination would be equally effectual to keep up their condition in the stationary state, and would be quite as likely to exist. Indeed, even now, the countries in which the greatest prudence is manifested in the regulating of population are often those in which capital increases least rapidly. Where there is an indefinite prospect of employment for increased Edition: current; Page: [748] numbers, there is apt to appear less necessity for prudential restraint. If it were evident that a new hand could not obtain employment but by displacing, or succeeding to, one already employed, the combined influences of prudence and public opinion might in some measure be relied on for restricting the coming generation within the numbers necessary for replacing the present.

§ 2. I cannot, therefore, regard the stationary state of capital and wealth with the unaffected aversion so generally manifested towards it by political economists of the old school. I am inclined to believe that it would be, on the whole, a very considerable improvement on our present condition. I confess I am not charmed with the ideal of life held out by those who think that the normal state of human beings is that of struggling to get on; that the trampling, crushing, elbowing, and treading on each other's heels, which form the existing type of social life, are the most desirable lot of human kind, or anything but the disagreeable symptoms of one of the phases of industrial progress. It may be a necessary stage in the progress of civilization, and those European nations which have hitherto been so fortunate as to be preserved from it, may have it yet to undergo. It is an incident of growth, not a mark of decline, for it is not necessarily destructive of the higher aspirations and the heroic virtues; as America, in her great civil war, has proved to the world, both by her conduct as a people and by numerous splendid individual examples, and as England, it is to be hoped, would also prove, on an equally trying and exciting occasion.1 But it is not a kind of social perfection which philanthropists to come will feel any very eager desire to assist in realizing. Most fitting, indeed, is it, that while riches are power, and to grow as rich as possible the universal object of ambition, the path to its attainment should be open to all, without favour or partiality. But the best state for human nature is that Edition: current; Page: [749] in which, while no one is poor, no one desires to be richer, nor has any reason to fear being thrust back by the efforts of others to push themselves forward.

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 meantime, 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 excites the congratulations of ordinary 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 anything 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 one indispensable means is a stricter restraint on population. Levelling institutions, either of a just or of an unjust kind, cannot alone accomplish it; they may lower the heights of society, but they cannot, of themselves, permanently1 raise the depths.

On the other hand, we may suppose this better distribution of property attained, by the joint effect of the prudence and frugality of individuals, and of a system of legislation favouring equality of fortunes, so far as is consistent with the just claim of the individual to the fruits, whether great or small, of his or her own industry. We may suppose, for instance (according to the suggestion thrown out in a former chapter∗), a limitation of the sum which any one person Edition: current; Page: [750] may acquire by gift or inheritance to the amount sufficient to constitute a moderate independence. Under this twofold influence society would exhibit these leading features: a well-paid and affluent body of labourers; no enormous fortunes, except what were earned and accumulated during a single lifetime; but a much larger body of persons than at present, not only exempt from the coarser toils, but with sufficient leisure, both physical and mental, from mechanical details, to cultivate freely the graces of life, and afford examples of them to the classes less favourably circumstanced for their growth. This condition of society, so greatly preferable to the present, is not only perfectly compatible with the stationary state, but, it would seem, more naturally allied with that state than with any other.

There is room in the world, no doubt, and even in old countries, for a great increase of population, supposing the arts of life to go on improving, and capital to increase. But even if 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 most 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 wild 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 Edition: current; Page: [751] 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 [1848] it is questionable if all the mechanical inventions yet made have lightened the day's 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 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 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.

Edition: current; Page: [752]

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