The Project Gutenberg eBook ofPolitical economyThis ebook is for the use of anyone anywhere in the United States and most other parts of the world at no cost and with almost no restrictions whatsoever. You may copy it, give it away or re-use it under the terms of the Project Gutenberg License included with this ebook or online atwww.gutenberg.org. If you are not located in the United States, you will have to check the laws of the country where you are located before using this eBook.Title: Political economyAuthor: William Stanley JevonsRelease date: July 22, 2010 [eBook #33219]Language: EnglishCredits: Produced by Graeme Mackreth and The Online DistributedProofreading Team at http://www.pgdp.net (This file wasproduced from images generously made available by TheInternet Archive/Canadian Libraries)*** START OF THE PROJECT GUTENBERG EBOOK POLITICAL ECONOMY ***
This ebook is for the use of anyone anywhere in the United States and most other parts of the world at no cost and with almost no restrictions whatsoever. You may copy it, give it away or re-use it under the terms of the Project Gutenberg License included with this ebook or online atwww.gutenberg.org. If you are not located in the United States, you will have to check the laws of the country where you are located before using this eBook.
Title: Political economyAuthor: William Stanley JevonsRelease date: July 22, 2010 [eBook #33219]Language: EnglishCredits: Produced by Graeme Mackreth and The Online DistributedProofreading Team at http://www.pgdp.net (This file wasproduced from images generously made available by TheInternet Archive/Canadian Libraries)
Title: Political economy
Author: William Stanley Jevons
Author: William Stanley Jevons
Release date: July 22, 2010 [eBook #33219]
Language: English
Credits: Produced by Graeme Mackreth and The Online DistributedProofreading Team at http://www.pgdp.net (This file wasproduced from images generously made available by TheInternet Archive/Canadian Libraries)
*** START OF THE PROJECT GUTENBERG EBOOK POLITICAL ECONOMY ***
PROFESSOR OF POLITICAL ECONOMY IN UNIVERSITY COLLEGE, LONDON; EXAMINER IN LOGIC AND MORAL PHILOSOPHY IN THE UNIVERSITY OF LONDON.
NEW YORK:D. APPLETON AND COMPANY,549 AND 551 BROADWAY.1880.
In preparing this little treatise, I have tried to put the truths of Political Economy into a form suitable for elementary instruction. While connected with Owens College, it was my duty, as Cobden Lecturer on Political Economy, to instruct a class of pupil-teachers, in order that they might afterwards introduce the teaching of this important subject into elementary schools. There can be no doubt that it is most desirable to disseminate knowledge of the truths of political economy through all classes of the population by any means which may be available. From ignorance of these truths arise many of the worst social evils—disastrous strikes and lockouts, opposition to improvements, improvidence, destitution, misguided charity, and discouraging failure in many well-intended measures. More than forty years ago Miss Martineau successfully popularised the truths of political economy in her admirable tales. About the same time, Archbishop Whately was much struck with the need of inculcating knowledge of these matters at an early age. With this view he prepared his "Easy Lessons on Money Matters," of which many editions have been printed. In early boyhood I learned my first ideas of political economy from a copy of these lessons, from the preface to which I quote these remarks of Whately: "The rudiments of sound knowledge concerning these (subjects) may, it has been found by experience, be communicated at a very early age.... Those, therefore, who are engaged in conducting, or in patronising or promoting education,should consider it a matter of no small moment to instil, betimes, just notions on subjects with which all must in after-life be practically conversant, and in which no class of men, from the highest to the lowest, can, in such a country as this at least, be safely left in ignorance or in error." In later years like opinions have been held and efforts made by Mr. William Ellis, Professor W.B. Hodgson, Dr. John Watts, Mr. Templar, and others, and experience seems to confirm both the need and the practicability of the teaching advocated by Whately. But it is evident that one condition of success in such efforts is the possession of a small text-book exactly suited to the purposes in view. Relying upon my experience of ten years in the instruction of pupil-teachers at Manchester, I have now put my lessons into the simplest form which the nature of the subject seems to render advisable.
It is hoped that this little treatise may also serve as a stepping-stone to a knowledge of the science among general readers of maturer age, who have hitherto neglected the study of political economy.
Owing to the narrow limits of the space at my disposal, it was impossible to treat the whole of the science in a satisfactory way. I have, therefore, omitted some parts of political economy altogether, and have passed over other parts very briefly. Thus the larger portion of my space has been reserved for such subjects as Production, Division of Labour, Capital and Labour, Trades-Unions, and Commercial Crises, which are most likely to be interesting and useful to readers of this Primer.
University College,Gower Street, London, W.C.31st January, 1878.
1. What is Political Economy?Political Economy treats ofthe wealth of nations; it inquires into the causes which make one nation more rich and prosperous than another. It aims at teaching what should be done in order that poor people may be as few as possible, and that everybody may, as a general rule, be well paid for his work. Other sciences, no doubt, assist us in reaching the same end. The science of mechanics shows how to obtain force, and how to use it in working machines. Chemistry teaches how useful substances may be produced—how beautiful dyes and odours and oils, for instance, may be extracted from the disagreeable refuse of the gasworks. Astronomy is necessary for the navigation of the oceans. Geology guides in the search for coal and metals.
Various social sciences, also, are needed to promote the welfare of mankind. Jurisprudence treats of the legal rights of persons, and how they may be best defined and secured by just laws. Political Philosophy inquires into the different forms of government and their relative advantages. Sanitary Science ascertains the causes of disease. The science of Statistics collects all manner of facts relating to the state or community. All these sciences are useful in showing how we may be made more healthy, wealthy, and wise.
ButPolitical Economyis distinct from all these other sciences, and treats ofwealthitself; it inquires what wealth is; how we can best consume it when we have got it; and how we may take advantage of the other sciences to get it. People are fond of finding fault with political economy, becauseit treats only of wealth; they say that there are many better things than wealth, such as virtue, affection, generosity. They would have us study these good qualities rather than mere wealth. A man may grow rich by making hard bargains, and saving up his money like a miser. Now as this is not nearly so good as if he were to spend his wealth for the benefit of his relatives, friends, and the public generally, they proceed to condemn the science of wealth.
But these complainers misunderstand the purpose of a science like political economy. They do not see that in learning we must do one thing at a time. We cannot learn the social sciences all at the same time. No one objects to astronomy that it treats only of the stars, or to mathematics that it treats only of numbers and quantities. It would be a very curious Science Primer which should treat of astronomy, geology, chemistry, physics, physiology, &c., all at once. There must be many physical sciences, and there must be also many social sciences, and each of these sciences must treat of its own proper subject, and not of things in general.
2. Mistakes about Political Economy.A great many mistakes are made about the science we are going to consider by people who ought to know better. These mistakes often arise from people thinking that they understand all about political economy without studying it. No ordinary person of sense ventures to contradict a chemist about chemistry, or an astronomer about eclipses, or even a geologist about rocks and fossils. But everybody has his opinion one way or another about bad trade, or the effect of high wages, or the harm of being underbid by cheap labour, or any one of hundreds of questions of social importance. It does not occur to such people that these matters are really more difficult to understand than chemistry, or astronomy, or geology, and that a lifetime of study is not sufficient to enableus to speak confidently about them. Yet, they who have never studied political economy at all, are usually the most confident.
The fact is that, just as physical science was formerly hated, so now there is a kind of ignorant dislike and impatience of political economy. People wish to follow their own impulses and prejudices, and are vexed when told that they are doing just what will have the opposite effect to that which they intend. Take the case ofso-called charity. There are many good-hearted people who think that it is virtuous to give alms to poor people who ask for them, without considering the effect produced upon the people. They see the pleasure of the beggar on getting the alms, but they do not see the after effects, namely, that beggars become more numerous than before. Much of the poverty and crime which now exist have been caused by mistaken charity in past times, which has caused a large part of the population to grow up careless, and improvident, and idle. Political economy proves that, instead of giving casual ill-considered alms, we should educate people, teach them to work and earn their own livings, and save up something to live upon in old age. If they continue idle and improvident, they must suffer the results of it. But as this seems hard-hearted treatment, political economists are condemned by soft-hearted and mistaken people. The science is said to be a dismal, cold-blooded one, and it is implied that the object of the science is to make the rich richer, and to leave the poor to perish. All this is quite mistaken.
The political economist, when he inquires how people may most easily acquire riches, does not teach that the rich man should keep his wealth like a miser, nor spend it in luxurious living like a spendthrift. There is absolutely nothing in the science to dissuade the rich man from spending his wealth generously and yet wisely. He may prudently help his relatives and friends; he may establish useful public institutions,such as free public libraries, museums, public parks, dispensaries, &c.; he may assist in educating the poor, or promoting institutions for higher education; he may relieve any who are suffering from misfortunes which could not have been provided against; cripples, blind people, and all who are absolutely disabled from helping themselves, are proper objects of the rich man's charity. All that the political economist insists upon is thatcharity shall be really charity, and shall not injure those whom it is intended to aid. It is sad to think that hitherto much harm has been done by those who wished only to do good.
It is sad, again, to see thousands of persons trying to improve their positions by means which have just the opposite effect, I mean by strikes, by refusing to use machinery, and by trying, in various ways, to resist the production of wealth. Working men have made a political economy of their own: they want to make themselves rich by taking care not to produce too much riches. They, again, see an immediate effect of what they do, but they do not see what happens as the after result. It is the same with the question of Free Trade. In England we have at length learned the wisdom of leaving commerce free. In other countries, and even in the Australian Colonies, laws are yet passed to make people richer by preventing them from using the abundant products of other lands. People actually refuse to see that wealth must be increased by producing it where it can be produced most easily and plentifully. Each trade, each town, each nation must furnish what it can yield most cheaply, and other goods must be bought from the places where they also can be raised most easily.
Political economy teaches us to look beyond the immediate effect of what we do, and to seek the good of the whole community, and even of the whole of mankind. The present prosperity of England is greatly due to the science which Adam Smith gave to the world in his "Wealth of Nations." He taught usthe value ofFree Labour and Free Trade, and now, a hundred years after the publication of his great book, there ought not to be so many mistaken people vainly acting in opposition to his lessons. It is certain thatif people do not understand a true political economy, they will make a false one of their own. Hence the imperative need that no one, neither man nor woman, should grow up without acquiring some comprehension of the science which we are going to study.
3. Divisions of the Science.I will begin by stating the order in which the several branches or divisions of the science of economy are to be considered in this little treatise. Firstly, we must learn what wealth, the subject of the science, consists of. Secondly, we proceed to inquire how wealth is used or consumed; nothing, we shall see, can be wealth, unless it be put to some use, and before we make wealth we must know what we want to use. Thirdly, we can go on to consider how wealth is produced or brought into existence; and how, in the fourth place, having been produced, it is shared among the different classes of people who have had a hand in producing it. Briefly, we may say that political economy treats of (1)The Nature, (2)The Consumption, (3)The Production, and (4)The Distribution of Wealth. It will also be necessary to say a little aboutTaxation. A part of the wealth of every country must be taken by the government, in order to pay the expenses of defending and governing the nation. But taxation may come, perhaps, under the head of distribution.
4. Wealth and Natural Riches.We do not learn anything by reading thatpolitical economy is the science of wealth, unless we know what science is, and what wealth is. When one term is defined by means of other terms, we must understand these other terms, in order to get any light upon the subject. In the Primer of Logic I have alreadyattempted to explain what science is, and I will now attempt to make plain what wealth is.
Doubtless many people think that there is no difficulty in knowing whatwealthis; the real difficulty is to get it. But in this they are mistaken. There are a great many people in this country who have made themselves rich, and few or none of them would be able to explain clearly what wealth is. In fact it is not at all easy to decide the question. The popular idea is that wealth consists of money, and money consists of gold and silver; the wealthy man, then, would be one who has an iron safe full of bags of gold and silver money. But this is far from being the case; rich men, as a general rule, have very little money in their possession. Instead of bags of money they keep good balances at their bankers. But this again does not tell us what wealth is, because it is difficult to say what a bank balance consists of; the balance is shown by a few figures in the bankers' books. As a general rule the banker has not got in his possession the money which he owes to his customers.
Perhaps some one will say that he is beyond question rich, who owns a great deal of land. But this depends entirely upon where and what the land is. A man who owns an English county is very wealthy; a man might own an equal extent of land in Australia, without being remarkably rich. The savages of Australia, who held the land before the English took it, had enormous quantities of land, but they were nevertheless miserably poor. Thus it is plain that land alone is not wealth.
It may be urged that, in order to form wealth, the land should be fertile, the soil should be good, the rivers and lakes abounding in fish, and the forests full of good timber. Under the ground there should be plenty of coal, iron, copper, reefs of gold, &c. If, in addition to these, there is a good climate, plenty of sunlight, and enough, but not too much, water, thenthe country is certainly rich. It is true that these things have been callednatural riches; but I mention them in order to point out that they are not in themselves wealth. People may live upon land full of natural riches, as the North American Indians lived upon the country which now forms the United States; nevertheless they may be very poor, because they cannot, or they will not labour, in such a way asto turn the natural riches into wealth. On the other hand, people like the Dutch live upon very poor bits of land, and yet become wealthy by skill, industry and providence. The fact is that wealth is more due to labour and ingenuity than to a good soil or climate; but all these things are needed in order that people shall become as rich as the inhabitants of England, France, the United States, or Australia.
5. What is Wealth?Nassau Senior, one of the best writers on political economy, definedwealthin these words:Under that term we comprehend all those things, and those things only, which are transferable, are limited in supply, and are directly or indirectly productive of pleasure, or preventive of pain.It is necessary to understand, in the first place, exactly what Senior meant. According to him, whatever is comprehended under wealth must have three distinct qualities, and whatever has these three qualities must be a part of wealth. If these qualities are rightly chosen, we get a correct definition, which, as explained in theLogic Primer(section 44), is a precise statement of the qualities which are just sufficient to make out a class, and to tell us what things belong to it and what do not. Instead, however, of the long phrase "directly or indirectly productive of pleasure or preventive of pain," we may substitute the single worduseful, and we may then state the definition in this simple way:—
We still need to learn exactly what is meant by the three qualities of wealth; we must learn what it is to be transferable, limited in supply, and useful.
6. Wealth is transferable.By beingtransferable, we mean that a thing can be passed over (Latin,trans, across, andfero, I carry) from one person to another. Sometimes things can be literally handed over, like a watch or a book; sometimes they can be transferred by a written deed, or by legal possession, as in the case of land and houses; services, also, can be transferred, as when a footman hires himself to a master. Even a musician or a preacher transfers his services, when his auditors have the benefit of hearing him. But there are many desirable things which cannot be transferred from one person to another; a rich man can hire a footman, but he cannot buy the footman's good health; he can hire the services of the best physician, but if these services fail to restore health, there is no help. So, too, it is impossible really to buy or sell the love of relatives, the esteem of friends, the happiness of a good conscience. Wealth may do a great deal, but it cannot really ensure those things which are more precious than pearls and rubies. Political economy does not pretend to examine all the causes of happiness, and those moral riches which cannot be bought and sold are no part of wealth in our present use of the word. The poor man who has a good conscience, affectionate friends, and good health, may really be much happier than the rich man, who is deprived of such blessings; but, on the other hand, a man need not lose his good conscience, and his other sources of happiness when he becomes rich and enjoys all the interesting occupations and amusements which wealth can give.Wealth, then, is far from being the only good thing: nevertheless it is good, because it saves us from too severe labour, from the fear of actual want, and enables us to buy such pleasant things and services as are transferable.
7. Wealth is limited in Supply.In the second place, things cannot be called wealth unless they belimited in supply; if we have just as much of any substance as we want, then we shall not esteem a new supply of it. Thus the air around us is not wealth in ordinary circumstances, because we have only to open our mouths and we get as much as we can use. What air we do actually breathe is exceedingly useful, because it keeps us alive; but we usually pay nothing for it, because there is plenty for all. In a diving bell, or a deep mine, however, air becomes limited in supply, and then may be considered a part of wealth. When the tunnel under the English Channel is completed, it will be a great question how to get air to breathe in the middle of it. Even in the Metropolitan Railway tunnel a little more fresh air would be very valuable.
On the other hand diamonds, though much valued, are used for few purposes; they make beautiful ornaments and they serve to cut glass or to bore rocks. Their high value chiefly arises from the fact that they are scarce. Of course scarcity alone will not create value. There are many scarce metals, or minerals, of which only a few little bits have ever yet been seen; but such substances are not valuable, unless some special use has been found for them. The metal iridium is sold at a very high price because it is wanted for making the tips of gold pens, and can be got only in small quantities.
8. Wealth is useful.In the third place, we can easily see that everything which forms a part of wealth must beuseful, or haveutility, that is, it must serve some purpose, or be agreeable and desirable in some way or other. Senior said correctly thatuseful things are those which directly or indirectly produce pleasure or prevent pain. A well tuned and well played musical instrument produces pleasure; a dose of medicine prevents pain to one who is in need of it But it is often impossible to decidewhether things give more pleasure or prevent more pain; dinner saves us from the pain of hunger and gives us the pleasure of eating good things. There is utility so far as pleasure is increased and pain decreased; nor does it matter, as far as political economy is concerned, what is the nature of the pleasure.
Then, again, we need not be particular as to whether thingsdirectly produce pleasure, like the clothes we wear, or whether theyindirectlydo so, as in the cases of the machines employed to make the clothes. Things are indirectly useful when, like tools, machines, materials, &c., they are only wanted to make other things, which shall be actually consumed and enjoyed by some person. The carriage in which a person takes a pleasant drive is directly useful; the baker's cart which brings him food is indirectly useful. But sometimes we can hardly distinguish. Shall we say that the meat put into the mouth is directly, but the fork which puts it in is indirectly, useful?
9. Commodity.We now know exactly what is wealth; but instead of speaking continually of wealth, it will often be convenient to speak of commodities, or goods.A commodity is any portion of wealth—anything, therefore, which is useful, and transferable, and limited in supply. Wool, cotton, iron, tea, books, boots, pianos, &c., are all commodities in certain circumstances, but not in all circumstances. Wool on a stray sheep lost in the mountains is not a commodity, nor iron in a mine which cannot be worked.A commodity, in short, is anything which is really useful and wanted, so that people will buy or sell it.But, instead of the long word commodity, I shall often use the shorter word goods, and the reader should remember that
goods = commodities = portion of wealth.
10. Our Wants are various.After a little reflection, we shall see that we generally want but little of any one kind of commodity, and prefer to have a portion of one kind and a portion of another kind. Nobody likes to make his dinner off potatoes only, or bread only, or even beef only; he prefers to have some beef, some bread, some potatoes, besides, perhaps, beer, pudding, &c. Similarly, a man would not care to have many suits of clothes all alike; he may wish to have several suits, no doubt, but then some should be warmer, others thinner; some for evening dress, others for travelling, and so on. A library all made of copies of the same book would be absurd; to keep several exact duplicates of any work would be generally useless. A collector of engravings would not care to have many identical copies of the same engraving. In all these, and many other cases, we learn thathuman wants tend towards variety;each separate want is soon satisfied, or made full(Latin,satis, enough, andfacere, to make), and then some other want begins to be felt. This was called by Seniorthe law of variety, and it is the most important law in the whole of political economy.
It is easy to see, too, that there is a natural order in which our wants follow each other as regards importance; we must have food to eat, and if we cannot get anything else we are glad to get bread; next we want meat, vegetables, fruit, and other delicacies. Clothing is not on the whole as necessary as food; but, when a man has plenty to eat, he begins to think of dressing himself well. Next comes the question of a house to live in; a mere cabin is better than nothing, but the richer a man is the larger the househe likes to have. When he has got a good house he wants to fill it with furniture, books, pictures, musical instruments, articles of vertu, and so forth. Thus we can lay down very roughlya law of succession of wants, somewhat in this order: air, food, clothing, lodging, literature, articles of adornment and amusement.
It is very important to observe that there is no end nor limit to the number of various things which a rich man will like to have, if he can get them. He who has got one good house begins to wish for another: he likes to have one house in town, another in the country. Some dukes and other very rich people have four, five, or more houses. From these observations we learn that there can never be, among civilised nations, so much wealth, that people would cease to wish for any more. However much we manage to produce, there are still many other things which we want to acquire. When people are well fed, they begin to want good clothing; when they are well clothed, they want good houses, and furniture, and objects of art. If, then, too much wealth were ever produced, it would betoo much of one sort, not too much of all sorts. Farmers might be ruined if they grew so much corn that nobody could eat it all; then, instead of producing so much corn, they ought to produce more beef and milk. Thus there is no fear that, by machinery or other improvements, things will be made so plentifully that workmen would be thrown out of employment, and not wanted any more. If men were not required at one trade, they would only need to learn a new trade.
11. When things are useful.The chief question to consider, then, is when things are useful and when they are not.This entirely depends upon whether we want them or not.Most things about us, the air, rain water, stones, soil, &c., are not wealth, because we do not want them, or want so littlethat we can readily get what we need. Let us consider carefully whether we can say thatwater is useful, or in what sense we may say so. It is common to hear people say that water is the most useful substance in the world, and so it is—in the right place, and at the right time. But if water is too plentiful and flows into your cellars, it is not useful there; if it soaks through the walls and produces rheumatism, it is hurtful, not useful. If a man wanting pure good water, digs a well and the water comes, it is useful. But if, in digging a coal pit, water rushes in and prevents the miners reaching the coal seam, it is clear that the water is the opposite of useful. In some countries rain comes very irregularly and uncertainly. In Australia the droughts last for one or two or even three years, and in the interior of the continent the rivers sometimes dry up altogether. The dirtiest pools then become very valuable for keeping the flocks of sheep alive. In New South Wales water has been sold for three shillings a bucketful. When a drought breaks up, sudden floods come down the rivers, destroying the dams and bridges, sweeping away houses, and often drowning men and animals. It is quite plain that we cannot say water is always useful; it is often so hurtful as to ruin and drown people. All that we can really say is thatwater is useful when and where we want it, and in such quantity as we want, and not otherwise. We must not say that all water is useful, but only that such water is useful as we can actually use.
It is now easy to see why things, in order to be wealth, must belimited in supply; for we never want an unlimited quantity of anything. A man cannot drink more than two or three quarts of water in the day, nor eat more than a few pounds of food. Thus we can understand why in South America, where there are great herds of cattle, the best beef is not wealth, namely, because there is so much that thereare not people enough to eat it. The beef which is eaten there is just as useful in nourishing people as beef eaten in England, but it is not so valuable because there is plenty of beef to spare, that is, plenty of beef not wanted by the people.
12. What we must aim at.Now we can see precisely what it is that we have to learn in political economy. It ishow to supply our various wants as fully as possible. To do this we must, first of all, ascertain what things are wanted. There is no use making things unless, when made, they are useful, and the quantities of things must be proportioned to what are wanted. The cabinetmaker must not make a great many tables, and few chairs; he must make some tables and more chairs. Similarly, every kind of commodity must be supplied when it is most wanted; and nothing must be over-supplied, that is manufactured in such large quantities that it would have been better to spend the labour in manufacturing other things.
Secondly, we must always try to produce things with the least possible labour; for labour is painful exertion, and we wish to undergo as little pain and trouble as we can. Thus, as Professor Hearn, of the University of Melbourne, well described it,political economy is the science of efforts to satisfy wants; it teaches us how to find the shortest way to what we wish for. The object which we aim at isto obtain the most riches at the cost of the least labour.
13. When to consume wealth.To consume a commodity is to destroy its utility, as when coal is burnt, or bread eaten, or a jug broken, or a piano worn out. Things lose their utility in various ways, as when they go bad, like meat and fish; when the fashion changes, as with ladies' attire; or when they merely grow old, as in the case of an almanack, or a directory. Again, houses fall into bad repair; ricks of corn may be burnt down; ships may founder. Inall these cases utility is destroyed, slowly or quickly, and the commodities may be said to be consumed. It is obvious that we must use things while they are fit to be used, if we are to use them at all.
It is evident, too, that we ought to try to get the utmost possible use out of things which we are happy enough to possess. If an object is not injured nor destroyed by use, as in the case of reading a book, or looking at a picture, then the more often we use it the greater is the utility. Such things become more useful if they are passed on from one person to another, like books in a circulating library. In this case there arises what we may callthe multiplication of utility. Public libraries, museums, picture galleries and like institutions all multiply utility, and the cost of such institutions is little or nothing compared with their usefulness.
When a commodity is destroyed at once by use, as in the case of food, it is obvious that only one person can use the same portion of commodity. Our object must then be to consume it when it is most useful. If a man lost in the bush find himself with a short supply of food, it would be foolish of him to eat it all up at once, when he might starve for several days afterwards. He should spread out his supply, so as to eat each bit of food when it will support his strength the most. So we ought to do with the earnings of a life time. The working man should not spend all his wages when trade is brisk, because he will want some of it much more when trade becomes slack, and he is out of employment. Similarly, that which is spent in early life upon mere luxuries and frivolities, might be much more useful in old age, when even necessaries and ordinary comforts may be difficult to obtain.All wealth is produced in order that it may be consumed, but then it must be consumed when it best fulfils its purpose; that is, when it is most useful.
14. The Fallacy of Consumption.It is notuncommon to hear people say that they ought to spend money freely in order to encourage trade. If every person were to save his money instead of spending it, trade, they think, would languish and workmen would be out of employment. Tradespeople favour these notions, because it is obvious that, the more a milliner or draper can persuade his customer to buy, the more profit he makes thereby. The customers, too, are quite inclined to think the argument a good one, because they enjoy buying new dresses, and other pleasant things. Neverthelessthe argument is a bad fallacy.
The fact is, that a person who has riches cannot help employing labour of some kind or other. If he saves up his money he probably puts it into a bank; but the banker does not keep it idle. The banker lends it out again to merchants, manufacturers and builders, who use it to increase their business and employ more hands. If he buy railway shares or government funds, those who receive the money put it to some other profitable use. If the rich man actually hoards up his money in the form of gold or silver, he gets no advantage from it, but he creates so much more demand for gold or silver. If many rich people were to take to hoarding up gold, the result would be to make gold mining more profitable, and there would be so many more gold miners, instead of railway navvies, or other workmen.
We see then that, when a rich person decides how to spend his money he is deciding not how many more workpeople shall be set to work, but what kind of work they shall do. If he decide to give a grand fancy ball, then in the end there will be so many more milliners, costumiers, lacemakers, confectioners, &c. A single ball indeed will have no great effect; but, if many people were to do the same, there would soon be more tradespeople attracted to these trades. If, on the other hand, rich people invest their money in a new railway, there will be so many more surveyors,engineers, foremen, navvies, iron puddlers, iron rollers, engine mechanics, carriage builders, &c.
The question really comes to this, whether people are made happier by more fancy balls, or by more railways. A fancy ball creates amusement at the time, but it costs a great deal of money, especially to the guests who buy expensive costumes. When it is over there is no permanent result, and no one is much the better for it. The railway, on the other hand, is no immediate cause of pleasure, but it cheapens goods by enabling them to be carried more easily: it allows people to live in the country, instead of the crowded town, or it carries them on pleasant and wholesome excursions.
We see, then, that it is simple folly to approve of consumption for its own sake, or because it benefits trade. In spending our wealth we ought to think solely of the advantage which people get out of that spending.
15. The Fallacy of Non-consumption.Some people fall into the opposite fallacy of thinking that all spending is an evil. The best thing to do with wealth is to keep it and let it grow by interest, or even to neglect the interest and keep the gold itself. Thus they become what we call misers, and there are always a certain number of people, who deprive themselves of the ordinary pleasures of life, in order that they may have the pleasure of feeling rich. Now these kind of people do no positive harm to their fellow-men; on the contrary they increase the wealth of the country, and some one or other will sooner or later benefit by it. Moreover, if they put their wealth into banks and other good investments, they do great service in increasing the capital of the nation, and thus enabling so many more factories, docks, railways, and other important works to be constructed. Most people are so fond of spending their money on passing amusements, entertainments, eating and drinking, and fine dressing, that it is a distinct advantage to have otherpeople who will put their wealth into a more permanently useful form.
Nevertheless, there could be no use in abstaining from all enjoyment in order that we might lay up a store of wealth. Things are not wealth unless they are useful and pleasant to us. If everybody invested his savings in railway shares, we should have so many railways that they could not be all used, and they would become rather a nuisance than a benefit. Similarly, there could be no good in building docks unless there were ships to load in them, nor ships unless there were goods or passengers to convey. It would be equally absurd to make cotton mills if there were already enough to manufacture as much cotton goods as people could consume.
Thus we come to see that wealth must be fitted for use and consumption in some way or other. What we have to do is to endeavour to spend our means so as to get the greatest real happiness for ourselves, our relatives, friends, and all other people whom we ought to consider.
16. The Requisites of Production.The first thing in industry, as we now see, is to decide what we want; the next thing is to get it, or make it, or, as we shall say,produce it, and we ought obviously to produce it with the least possible labour. To learn how this may be done, we must inquire what is needful for the production of wealth. There are, as is commonly and correctly said,three requisites of production; before we can, in the present state of society, undertake to produce wealth, we must have the three following things:—
(1)Land,(2)Labour,(3)Capital.
In production we bring these things together; we apply labour to the land, and we employ the capital in assisting the labourer with tools, and feeding him while he is engaged on the work. We must now proceed to consider each of the three requisites in succession.
17. Land or Source of Materials.The wordproductionis a very good one; it meansdrawing forth(Latin,pro, before, andducere, to draw), and it thus exactly expresses the fact that, when we want to create wealth, we have to go to some piece of land, or to some lake, river, or sea, and draw forth the substance which is to be made into wealth. It does not matter whether the material comes from the surface of the earth, or from mines and quarries sunk into the earth, or from seas and oceans. Our food mostly grows upon the land, as in the case of corn, potatoes, cattle, game, &c.; our clothes are chiefly made of cotton, flax, wool, skins, raised in like manner. Minerals and metals are obtained by sinking pits and mines into the crust of the earth. Rivers, lakes, seas, and oceans are no slight source of wealth: they yield food, oil, whalebone, sealskin, &c. We cannot manufacture any goods unless we have some matter to work upon; to make a pin we must get copper, zinc, and tin out of mines; a ribbon requires the silk and the dye materials; everything that we touch, and use, and eat, and drink, contains substance, so that we must always begin by finding a supply of the right sort of materials.
Commonly, too, we want something more than matter; we want force which shall help us to carry and work the raw material. People naturally wish to avoid tiring themselves by labouring with their own arms and legs, and so they make windmills to grind corn, ships to carry goods, steam-engines to pump water and to do all sorts of hard work. From the earth, or, as we say, from Nature, we obtain both the materials of wealth and the force which helps us toturn the materials into wealth. Whatever thus furnishes us with the first requisite of production is called anatural agent, that is, something which acts for us and assists us (Latin,agens, acting). Among natural agentslandis by far the most important, because, when supplied with abundant sunlight and, moisture, it may be cultivated and made to yield all kinds of crops. Accordingly, economists often speak of land, when their remarks would really apply as well to rocks and rivers. Three-quarters of the whole surface of the globe is covered with seas; but this vast extent of salt water furnishes little wealth, except whales, seals, sea-weed, and a few other kinds of animals and plants. Hence, when we speak of land, we really mean any source of materials—any natural agent, and we may say that
land = source of materials = natural agent.
18. Labour.Nothing is more plain, however, than that natural agents alone do not make wealth. A man would perish in the most fertile spot if he did not take some trouble in appropriating the things around him. Fruit growing wild on the trees must be plucked before it becomes wealth, and wild game must be caught before it can be cooked and eaten. We must spend a great deal of labour if we wish to have comfortable clothes and houses and regular supplies of food; the proper sorts of materials must be gradually got together, and shaped and manufactured. Thus the amount of wealth which people can obtain depends far more upon their activity and skill in labouring than upon the abundance of materials around them.
As already remarked, North America is a very rich land, containing plenty of fine soil, seams of coal, veins of metal, rivers full of fish, and forests of fine timber, everything, in short, needed in the way of materials; yet the American Indians lived in this land for thousands of years in great poverty, because they had not the knowledge and perseverance to enablethem to labour properly and produce wealth out of natural agents. Thus we see clearly that skilful and intelligent and regular labour is requisite to the production of wealth.
19. Capital.In order that we may produce much wealth, we require something further, namely, thecapital, which supports labourers while they are engaged in their work. Men must have food once a day, not to say two or three times; if then they have no stock of food on hand, they must go at once and get it in the best way they can, for fear of starving. They must grub up roots, or gather grass seeds, or catch wild animals—if they can. When working in this way, they usually spend a great deal of labour for very little result; Australian natives sometimes have to cut down a large tree with stone axes, which is very hard work, in order to catch an opossum or two. Men who live in this way from hand to mouth have no time nor strength to make arrangements so as to get food and clothes in the easiest way. It requires much labour to plough the ground, to harrow it, and sow it with corn, besides fencing it in; when all this is done it is requisite to wait six months before the crop can be gathered. Certainly, the amount of food thus obtained is large compared with the labour: but wild Indians and other ignorant tribes of men cannot wait while the corn is growing; the poor Australian natives have to gather grass seeds or find worms and opossums every day.
There is a good Japanese maxim which says, "Dig a well before you are thirsty," and it is evidently very desirable to do so. But you must have capital to live upon while you are digging the well. In the same way, almost every mode of getting wealth without extreme labour requires that we shall have a stock of food to subsist upon while we are working and waiting, andthis stock is called capital. In the absence of capital people find themselves continually in difficulties, and in danger of starvation. In thefirst of her tales on political economy, called "Life in the Wilds," Miss Martineau has beautifully described the position of settlers at the Cape of Good Hope, who are imagined to have been attacked by Bushmen and robbed of their stock of capital. She shows us how difficult it is to get any food or to do any useful work, because something else is wanted beforehand—some tool, or material, or at any rate time to make it. But there is no time to make anything, because all attention has to be given to finding shelter for the night, and something for supper. Everybody who wishes to understand the necessity for capital, and the way capital serves us, should read this tale of Miss Martineau, and then go on to her other tales about Political Economy.
We can hardly say that capital is as requisite to production as land and labour, for the reason that capital must have been the produce of land and labour. There must always, indeed, be a little capital in possession, even though it be only the last meal in the stomach, before we can produce more. But there is no good attempting to say exactly how capital began to be collected, because it began in the childhood of the world, when men and women lived more like wild animals than as we live now. Certain it is that we cannot have loaves of bread, and knives and forks, and keep ourselves warm with clothes and brick houses, unless we have a stock of capital to live upon while we are making all these things.Capital is requisite, then, not so much that we shall labour, but that we shall labour economically and with great success.We may call it a secondary requisite, and it would be best to state the requisites of production in this way—
20. How to make Labour most Productive.The great object must be to make labour as productiveas possible, that is, to get as much wealth as we can with a reasonable amount of labour. In order to do this we must take care to labour in the most favourable way, and there is no difficulty in seeing that we ought to labour
(1)At the best time;(2)At the best place;(3)In the best manner.
21. Work at the best Time.Of course we ought to do things when it is most easy to do them, and when we are likely to get most produce for our labour. The angler goes to the river in the early morning or the evening, when the fish will bite; the farmer makes hay while the sun shines; the miller grinds corn when the breeze is fresh, or the stream full; and the skipper starts when wind and tide are in his favour. By long experience farmers have found out the best time of year for doing every kind of work: seed is sown in autumn or spring; manure is carried in winter when the ground is frozen; hedges and ditches are mended when there is nothing else to do, and the harvest is gathered just when it is ripe, and the weather is fine. Norwegian peasants work hard all day in July and August to cut as much grass, and make as much hay as possible. They never think of timber then, because they know that there will be plenty of time during the long winter to cut down trees; and when the snow fills up all the hollows in the mountain side, they can easily drag the trees down to the rivers, which rise high with floods after the melting of the snow, and carry the logs away, without further labour, to the towns and ports. It is a good rule not to do to-day what we can probably do more easily to-morrow: but it is a still better rule not to put off till to-morrow what we can do more easily to-day. In order, however, that we may be able to wait and to do each kind of work at the best time, we must have enoughcapitalto live upon in the meantime.
22. Work at the Best Place.Again, weshould carry on every kind of work at the place best suited for it, that we can get possession of. In many cases this is so obvious that the remark seems absurd. Does any one plant fruit trees on the sea sands, or sow corn among rocks? Of course not, because there would be no result. No one is so foolish as to spend his labour in a place where it would be wasted altogether. In other cases it is a question of degree; there may be some produce here, but there would be more produce there. In the south of England vines can be made to grow in the open air, and, in former days, wine used to be made from grapes grown in England. But vines grow much better on the sunny hills of France, Spain, and Germany, and the wine which can there be made with the same labour is far more plentiful and immensely better in quality. Those, then, who want to make wine had much better remove to the continent, or, still better, let the French, Spaniards, and Germans produce wine for us. In England we have good soil and a moist climate fitted for growing grass, and the best thing which our farmers can do is to raise cattle and produce plenty of milk, butter, and cheese.
In order that the world may grow as rich as possible, each country should give its attention to producing what it can produce most easily in its present circumstances, getting other things in exchange by foreign trade. The United States can raise endless quantities of cotton, corn, bacon, meat, fruit, petroleum, besides plenty of gold, silver, copper, iron, &c. Australia, New Zealand, and South Africa will furnish much wool, hides, sugar, preserved meats, besides gold, copper, and diamonds. Tropical Africa has palm oil, ivory, teak wood, gum, &c. South America abounds in cattle from which we get tallow, hides, bones, horns, essence of beef, &c. China supplies us with vast quantities of tea, in addition to silk, ginger, and many minor commodities. India sends cotton, indigo, jute, rice, seeds, sugar, spices, and all kinds ofother products. Every part of the world has some commodities which it can produce better than other countries, and if men and governments were wise, they would allow trade to be as free as possible, in order that each thing shall be produced where it costs the least labour to produce it.
23. Work in the Best Manner.Whatever the kind of industry carried on in a place, we ought to take care, thirdly, that each labourer works in the best manner, so as not to waste his labour or to make mistakes. There are many different ways of setting about the same work, and, in order that he may choose the best, the labourer must be intelligent and skilful, or else he must be directed by some person who has knowledge and skill. Moreover, there must be, as we shall see, great division of labour, so that each man shall do the kind of work he can do best. We need, then—
(1)Science,(2)Division of labour.
24. The Need of Science.In order that he may employ his labour to the best advantage, it is requisite that the labourer should be not merely skilful, that is, clever, and practised in handiwork, but that he should also be guided by a scientific knowledge of the things with which he is dealing. Knowledge of nature consists, to a great extent, in understanding thecauses of things, that is, in knowing what things must be put together in order that certain other things shall be produced. Thus the steam-engine is due to the discovery that if heat be applied to water, the result is steam expanding with much force, so that a firebox, coal, boiler, and water are causes of force. Whenever we want to do any work, then, we must begin by learning, if possible, what are the causes which will produce it most easily and abundantly. By knowledge we shall often be saved from much needless labour.
As Sir John Herschel has explained, science sometimes shows us thatthings which we wish to do are really impossible, as, for instance, to invent a perpetual motion, that is, a machine which moves itself. At other times science teaches us that theway in which we are trying to make something is altogether the wrong way. Thus, iron-masters used to think that the best way of smelting iron in the blast-furnace was to blow the furnace with cold air; science, however, showed that, instead of being cold, the air sent into the furnace should be made as hot as possible. Then, again, science often enables usto do our work with a great saving of labour. The boatman or bargeman takes care to learn the state of the tide, so that he may have the tide in his favour in making any journey. Meteorologists have now prepared maps of the oceans showing the sea-captain where he will find winds and currents most favourable to a rapid voyage. Lastly,science sometimes leads us to discover wonderful things which we should not have otherwise thought it possible to do; it is sufficient to mention the discovery of photography and the invention of the telegraph and the telephone. No doubt it may be said that all the greatest improvements in industry—most of what tends to raise man above the condition of the brute animals—proceed from science. The poet Virgil was right when he said, "Happy is he who knows the causes of things."
25. How Division of Labour Arises.When a number of workmen are engaged on any work, we find that each man usually takes one part of the work, and leaves other parts of the work to his mates. People by degrees arrange themselves into differenttrades, so that the whole work done in any place is divided into many employments or crafts. This division of labour is found in all civilised countries, and more or less in all states of society, which are not merely barbarous. In every village there is the butcher and the baker, and the blacksmith and the carpenter. Even in a single family there is division of labour: the husband ploughs, or cuts timber; the wife cooks, manages the house, and spins or weaves; the sons hunt or tend sheep; the daughters employ themselves as milkmaids. There is a popular couplet which says—
"When Adam delved and Eve span,Who was then the gentleman?"
It seems to express the fact that this division of labour existed in very early times, before there were any gentlemen.
In modern times the division of labour is immensely complicated: not only has every town and village its different tradespeople, and artisans and men in different posts and employments, but each district has its peculiar manufactures. In one place cotton goods are produced; in another, woollen goods; in other parts of the country flax, jute, silk are manufactured. Iron is made in Staffordshire, Cleveland, South Wales, and Scotland; copper is smelted in South Wales; crockery is baked in the potteries; hosiery is manufactured in Nottingham and Leicester; linens are sewed in the North of Ireland; and so on. In every separate factory, again, there is division of labour; there is the manager, the chief clerk, the assistant clerks; the foremen of different departments, the timekeeper, the engine-tenter, and stokers, the common labourers, the carters, errand boys, porters, &c., all in addition to the actual mechanics of different kinds and ranks who do the principal work. Thus the division of labour spreads itself throughout the whole of society, from the Queen and her Ministers, down to the errand boy, or the street scavenger.
26. Adam Smith on the Division of Labour.There are many ways in which we gain by the division of labour, but Adam Smith has treated the subject so excellently that we had better, in the first place, consider his view of the matter. There are, as he thought, three ways in which advantage arises from the division of labour, namely—
(1.) Increase of dexterity in every particular workman.
(2.) Saving of the time which is commonly lost in passing from one kind of work to another.
(3.) The invention of a great number of machines, which facilitate and abridge labour, and enable one man to do the work of many.
There can be no doubt as to theincrease of dexterity, which arises from practice. Any one who has tried to imitate a juggler, or to play the piano, without having learned to do it, knows how absurdly he fails. Nobody could possibly do the work of a glass-blower without long practice. Even when a man can do a job in some sort of way, he will do it much more quickly if he does it often. Adam Smith states that if a blacksmith had to make nails without having been accustomed to the work, he would not make above 200 or 300 bad nails in a day. With practice he might learn to make 800 or 1000 nails in a day; but boys who are brought up to the nailer's trade can turn out 2300 nails of the same kind in the same time. But there is no need of many examples: everything that we see well or quickly made has been made by men who have spent a great deal of time and trouble in learning and practising the work.
Secondly, there isa great deal of time lost when a man changes from one kind of work to anothermany times in the day. Before you can make a thing you must get all the right tools and materials around you; when you have finished one box, for instance, you are all ready to make another with less trouble than thefirst; but if you have to go off and do something quite different, such as to mend a pair of shoes or write a letter, a different set of implements have to be got ready. A man, as Adam Smith thought, saunters a little in turning his hand from one kind of employment to another, and if this happens frequently, he is likely to become lazy.
In the third place, Smith asserted thatthe division of labour leads to the invention of machineswhich abridge labour, because men, he thought, were much more likely to discover easy methods of attaining an object when their whole attention is directed to that object. But it seems doubtful how far this is correct. Workmen do occasionally invent some mode of lessening their labour, and a few important inventions have been made in this way. But, as a general rule, the division of labour leads to invention, because it enables ingenious men to make invention their profession. The greatest inventors, such as James Watt, Bramah, Fulton, Roberts, Nasmyth, Howe, Fairbairn, Whitworth, the Stephensons, Wheatstone, Bessemer, Siemens, have not been led to invention in the way described by Adam Smith, but have cultivated an original genius by careful study and long practice in mechanical construction. But the division of labour greatly assists invention, because it enables each factory to adopt particular kinds of machinery. In England the division of labour is continually becoming more and more minute, and it is not uncommon to find that the whole supply of some commodity is furnished from a single manufactory, which can then afford to have a set of machines invented on purpose to produce this one commodity. Such is even more the case in the large manufactories of the United States.
I will now describe four other ways in which great saving of labour arises from the division of labour, as follows:—
27. The Multiplication of Services.A greatdeal of labour is often saved by arranging work so that a labourer may serve many persons as easily as one. If a messenger is going to carry a letter to the post-office, he can as readily carry a score. Instead of twenty people each carrying their own letters, one messenger can do the whole work without more trouble. This explains why the post-office is able to forward a letter from any part of the kingdom to any other part for a penny or even a halfpenny. There are so many people sending and receiving letters, that a postman usually carries a great many, and often delivers half-a-dozen at once. But it would be quite impossible to send telegrams so cheaply, because every message has to be separately telegraphed along the wires, and then delivered at once by a special messenger, who can seldom carry more than one message at a time. Archbishop Whately pointed out that when a party of travellers exploring a new country camp out at night, they naturally divide the work: one attends to the horses, another unpacks the stores, a third makes a fire and cooks the supper, a fourth goes for water, and so on. It would be quite absurd if a dozen travellers in one party were to light a dozen separate fires, and cook a dozen separate meals. The labour of lighting a fire and cooking for twelve persons is not much greater than doing the same for one or two. There are many things which, if once done, will serve for thousands or millions of people. If a person gets important information, as, for instance, that a storm is coming across the Atlantic Ocean, he can warn a whole nation by means of the newspapers. It is a great benefit to have a meteorological office in London, where two or three men spend their labour in learning the weather all over the country by means of the telegraph, and thus enable us to judge, as far as possible, of the weather which is coming. This is a good case of themultiplication of services.
28. The Multiplication of Copiesis also ameans of increasing immensely the produce of labour. When the proper tools and models for making a thing are once provided, it is sometimes possible to go on multiplying copies with little further trouble. To cut the dies for striking a medal or coin is a very slow and costly work; but, when once good dies are finished, it is easy to strike a great many coins with them, and the cost of the striking is very small. The printing press, however, is the best case of multiplication of copies. To have the whole of Shakespeare's Plays copied out by a law stationer would cost more than two hundred pounds, and every new copy would cost as much as the first. Before the invention of printing, books used to be thus copied out, and manuscript books were therefore very expensive, besides being full of mistakes. The whole of Shakespeare's Plays can now be bought for a shilling; and any one of the Waverley Novels can be had for sixpence. It may cost several hundred pounds to set up the type for a large book and stereotype it; but when this is once done, hundreds of thousands of copies can be struck off, and the cost of each copy is little more than that of the paper and the binding.
Almost all the common things we use now, such as ordinary chairs and tables, cups and saucers, teapots, spoons and forks, &c., are made by machinery, and are copies of an original pattern. A good chair can be bought for five shillings or less, but if you wanted to have a chair made of a new pattern, it would cost perhaps five or ten times as much.
29. Personal Adaptation.A further advantage of the division of labour is that, when there are many different trades, every person can choose that trade for which he is best suited—the strong healthy man becomes a blacksmith; the weaker one works a loom or makes shoes; the skilful man learns to be a watchmaker; the most ignorant and unskilful can find work in breaking stones or mending the hedges. Each man will generally work at the trade in which he can getthe best wages, and it is an evident loss of skill if the artisan should break stones or sweep the streets. Now, the greater the division of labour and the more extensive factories become, the better chance there is for finding an employment just suited to each person's powers; clever workmen do the work which no one else can do; they have common labourers to help them in things which require no skill; foremen plan out the work, and allot it to the artisans; clerks, who are quick at accounts, keep the books, and pay and receive money; the manager of the factory is an ingenious experienced man, who can give his whole attention to directing the work, to making good bargains, or to inventing improvements in the business. Every one is thus occupied in the way in which his labour will be most productive and useful to other people, and at the same time most profitable to himself.
30. Local Adaptation.Lastly, the division of labour allows of local adaptation—that is, it allows every kind of work to be done in the place most suitable for it. We have already learnt (sec. 22, p. 29) that each kind of labour should be carried on where it is most productive; but this cannot be done unless there be division of labour—so that while the French grow wine, weave silk, or makearticles de Paris, they buy the cottons of Manchester, the beer of Burton-on-Trent, or the coals of Newcastle. When trade is free, and the division of labour is perfect, each town or district learns to make some commodity better than other places: watches are made in Clerkenwell; steel pens in Birmingham; needles at Redditch; cutlery at Sheffield; pottery at Stoke; ribbons at Coventry; glass at St. Helen's; straw bonnets at Luton; and so forth.
It is not always possible to say exactly why certain goods are made better in one place—for instance, silks in Lyons—than anywhere else; but so it often is, and people should be left as free as possible to buy the goods they like best. Commodities are manufacturedin order that they may produce pleasure and be useful, not, as we shall see, in order that labourers may be kept hard at work. Now, when trade is left free it gives rise to division of labour, not only between town and town, county and county, but between the most distant nations of the earth. Thus is created what may be calledthe territorial division of labour. Commerce between nation and nation is not only one of the best means of increasing wealth and saving labour, but it brings us nearer to the time when all nations will live in harmony, as if they were but one nation.
31. The Combination of Labour.We now see what great advantages arise from each man learning a single trade thoroughly. This is called the division of labour, because it divides up the work into a great many different operations; nevertheless, it leads men to assist each other, and to work together in manufacturing the same goods. Thus, in producing a book, a great many trades must assist each other: type-founders cast the type; mechanics make the printing press; the paper is manufactured at the paper works; printers' ink is prepared at other works; the publishers arrange the business; the author supplies the copy; the compositors set up the type; the reader corrects the proofs; the pressmen work off the printed sheets; then there are still the bookbinders, and the booksellers, besides a great many other small trades which supply the tools wanted by the principal trades. Thus, society is like a very complicated machine, in which there is a great number of wheels, and wheels within wheels; each part goes on attending to its own business, and doing the same work over and over again. There is what we should call acomplex organization(Greek,ὁργανον, instrument), that is to say, different people and different trades work as instruments of each other, all assisting in the ultimate result.
But it is to be observed that nobody plans out these systems of divided labour; indeed few people ever know how many trades there are, and how they areconnected together. There are said to be about thirty-six distinct kinds of employment in making and putting together the parts of a piano; there are about forty trades engaged in watchmaking; in the cotton business there are more than a hundred occupations. But new trades are frequently created, especially when any new discovery takes place; thus, there are at least sixteen different trades occupied in photography, or in making the things required by photographers; and railways have produced whole series of employments which did not exist fifty years ago. These trades arise without any Act of Parliament to make them or allow them. There is no law to say how many trades there shall be, nor how many people shall go into each trade, because nobody can tell what will be wanted in future years. These things are arranged by a kind ofsocial instinct. Each person takes up the kind of work which seems to suit him and to pay him best at the time.