You are on page 1of 452


Economic Harmonies Frdric Bastiat --------------------------------------------------------------------------------

About the Author Frederic Bastiat (1801-1850) was a French economist, statesman, and author. He was the eader o! the !ree-trade mo"ement in France !rom its ince#tion in 18$0 unti his untime % death in 1850. &he !irst $5 %ears o! his i!e were s#ent in #re#aration !or !i"e tremendous % #roducti"e %ears writin' in !a"or o! !reedom. Bastiat was the !ounder o! the wee( % news#a#er, )e )ibre *chan'e, a contributor to numerous #eriodica s, and the author o! sundr% #am#h ets and s#eeches dea in' with the #ressin' issues o! his da%. +ost o! his writin' was done in the %ears direct % be!ore and a!ter the ,e"o ution o! 18$8 -a time when France was ra#id % embracin' socia ism. As a de#ut% in the )e'is ati"e Assemb %, Bastiat !ou'ht "a iant % !or the #ri"ate #ro#ert% order, but un!ortunate % the ma.orit% o! his co ea'ues chose to i'nore him. Frederic Bastiat remains one o! the 'reat cham#ions o! !reedom whose writin's retain their re e"ance as we continue to con!ront the o d ad"ersar%. A.1 -------------------------------------------------------------------------------/re!ace to the En' ish-)an'ua'e Edition b% 0eor'e B. de Hus1ar Frdric Bastiat has said that the Harmonies is a counter#art to Economic 2o#hisms, and, whi e the atter #u s down, the Harmonies bui ds u#. 3har es 0ide and 3har es ,ist in a standard treatise, A Histor% o! Economic 4octrines, ha"e re!erred to 5the beauti!u unit% o! conce#tion o! the Harmonies,5 and added, 5we are b% no means certain that the Harmonies and the /am#h ets are not sti the best boo(s that a %oun' student o! #o itica econom% can #ossib % read.5

8 /.1 6n!ortunate % the Harmonies a!ter cha#ter 10 are un!inished !ra'ments and there!ore are !i ed with re#etitions which Bastiat wou d ha"e corrected had he i"ed. 7t is a so im#ortant to (ee# in mind that #arts o! the Harmonies were !irst 'i"en as s#eeches. /.8 &his trans ation !o ows as !aith!u % as #ossib e the ori'ina French standard edition o! the com# ete wor(s o! Bastiat. 3ross re!erences ha"e been inc uded amon' the three "o umes o! the #resent trans ation. /.9 &hree t%#es o! notes are inc uded: &rans ator;s notes are directed at the 'enera reader and are main % about #ersons and terms. Editor;s notes re!er to notes b% the editor o! the French edition< Bastiat;s notes stand without such notations. =n % the &rans ator;s notes are at the bottom o! the #a'e< the Editor;s notes and Bastiat;s notes are at the end o! the "o ume. &he atter two are more im#ortant but were #ut in the bac( to a"oid c utterin' the #a'es and to #romote readabi it%. >here the French editor has indicated a cross re!erence to a cha#ter or #assa'e in Economic 2o#hisms or to an% o! the #am#h ets or s#eeches inc uded in 2e ected Essa%s on /o itica Econom%, the ori'ina re!erence to the French edition has been re# aced b% one directin' the reader to the En' ish trans ation. /.$ A thou'h these three "o umes o! En' ish trans ations o! Bastiat are #ub ished simu taneous %, there is some re#etition o! the &rans ator;s notes and the editoria /re!aces. &his is necessar% because some ma% obtain on % one "o ume o! this three"o ume series, and there!ore each "o ume has been made as se !-su!!icient as #ossib e. /.5 &he Editor wishes to e?#ress his a##reciation to >. Ha%den Bo%ers, to 4ean ,usse !or writin' the 7ntroduction, to Arthur 0oddard, and to the >i iam @o (er Fund. 0eor'e B. de Hus1ar /.A -------------------------------------------------------------------------------Bib io'ra#hica Botice b% >. Ha%den Bo%ers )es Harmonies conomiCues, #ar Frdric Bastiat, /aris, 0ui aumin, 1850, $A9 ##.

9 &his was the !irst edition. 7t was #ub ished .ust a !ew months be!ore Bastiat died, and was incom# ete, containin' on % the !irst ten cha#ters. B.1 )es Harmonies conomiCues, #ar Frdric Bastiat, 8Dme dition au'mente des manuscrits aisss #ar ;auteur, #ub ie #ar a 2ocit des Amis de Bastiat (sous a direction de /. /ai ottet et ,. de Fontena%), /aris, 0ui aumin, 1851, ?i, 5AE ##. &his was the !irst com# ete edition, and no chan'es o! an% im#ortance were subseCuent % made in it. /ai ottet brou'ht bac( !rom ,ome (where Bastiat had died) the manuscri#t o! the Harmonies and had Bastiat;s commission to edit and #ub ish the entire wor(. B.8 =eu"res com# Dtes de Frdric Bastiat, mises en ordre, re"ues et annotes d;a#rDs es manuscrits de ;auteur (#ar /. /ai ottet et ,. de Fontena%), /aris, 0ui aumin, 185$-55, A "o s. &he Harmonies were incor#orated into this as @o ume @7. B.9 =eu"res com# Dtes, etc., 8Dme dition, in the series 5)a Bib iothDCue des sciences mora es et #o itiCues,5 /aris, 0ui aumin, 18A8-A$, E "o s. &he Harmonies remains the si?th "o ume, and a se"enth (+D an'es) is added. &his has remained the standard edition. ,e#rints o! "arious "o umes, 'i"en s#ecia 5edition5 numbers, and sometimes with s i'ht di!!erences in #a'ination, a##eared at "arious times throu'h 18F9. B.$ &he edition o! the Harmonies used b% the trans ator is )es Harmonies DconomiCues, #ar FrDdDric Bastiat, ADme dition, /aris, 0ui aumin, 18E0. 7t is sti isted as @o ume @7 in the =eu"res com# Dtes, 8Dme edition. &he trans ator a so consu ted the 18A8 and 188$ editions o! the Harmonies and !ound no si'ni!icant "ariants. &he A##endi? etter, entit ed 5A &entati"e /re!ace to the Harmonies,5 was consu ted in the =eu"res com# Dtes, 8Dme edition, @o . @77, 18A1, ##. 909 !!. >. Ha%den Bo%ers

B.5 -------------------------------------------------------------------------------7ntroduction b% 4ean ,usse Frdric Bastiat, 1801-1850, is 'enera % c assi!ied as an economist. But, as 7 showed in m% boo( on his i!e, wor(s, and in! uence, his rea c aim to !ame #ro#er % be on's in the !ie d o! 'o"ernment-both in its or'ani1ation and in its #hi oso#h%.G1 E"en so, his contribution to the !ie d o! economics was considerab e, es#ecia % in the area o! !ree trade. 7.1 Bastiat was a contem#orar% o! ,ichard 3obden, the man most res#onsib e !or brin'in' !ree trade to 0reat Britain in 18$A. &he two men became c ose !riends when Bastiat attem#ted to do in France what 3obden had accom# ished in En' and. >hi e Bastiat was unsuccess!u in brin'in' !ree trade to France durin' his i!etime, his disci# e, +iche 3he"a ier, was the co-author with 3obden o! the An' o-French &reat% o! 3ommerce that !ina % accom# ished the ob.ecti"e in 18A0. 7.8 Bastiat;s interest in !ree trade, howe"er, was sti incidenta to his #assion !or !reedom in 'enera . As he wrote in one o! his numerous etters to 3obden, 5,ather than the !act o! !ree trade a one, 7 desire !or m% countr% the 'enera #hi oso#h% o! !ree trade. >hi e !ree trade itse ! wi brin' more wea th to us, the acce#tance o! the 'enera #hi oso#h% that under ies !ree trade wi ins#ire a needed re!orms.5 7.9 Bastiat s#e ed out that #hi oso#h% in considerab e detai in his ma.or wor(, /rinci# es o! /o itica Econom%. 7n the 7ntroduction to that boo(, he made the statement, 57t wou d be nonsense !or me to sa% that socia ists ha"e ne"er ad"anced a truth, and that economists Hthose who ad"ocate a !ree mar(etI ha"e ne"er su##orted an error.5G8 As we sha see, one o! Bastiat;s ma.or ideas in his Harmonies-his theor% and de!inition o! "a ue, o! which he was es#ecia % #roud-is now 'enera % he d to be somewhat #oint ess. &hat !act, o! course, does not den% the soundness o! his !undamenta #rinci# e that the interests o! man(ind are essentia % harmonious and can best be rea i1ed in a !ree societ% where 'o"ernment con!ines its actions mere % to su##ressin' the robbers, murderers, !a si!iers, and others who wish to i"e at the e?#ense o! their !e ow men. 7.$ &he !irst economic harmon% that Bastiat i ustrated was the idea that, as the ca#ita em# o%ed in a nation increases, the share o! the resu tin' #roduction 'oin' to the wor(ers

5 tends to increase both in #ercenta'e and in tota amount. &he share 'oin' to the owners o! the ca#ita tends to increase in tota amount but to decrease #ercenta'ewise. Bastiat used h%#othetica !i'ures mere % to indicate the direction o! this re ationshi# that occurs when ca#ita accumu ation increases, with its resu tin' increase in #roduction. 4istribution o! 2hares o! 7ncreased /roduction &o =wners &o Em# o%ees &ota 6nits /er 3ent 6nits /er 3ent 6nits >hen tota nationa #roduct is 50 80 10 80 $0 >hen tota nationa #roduct is E5 15 18 85 A9 >hen tota nationa #roduct is 100 1$ 1$ 8A 8A 7.5 &hat theor% was o!!ered to re!ute the ' oom% 5iron aw o! wa'es5 ad"anced b% ,icardo, as we as +a thus; eCua % horrib e #rediction that an increasin' #o#u ation must necessari % !ace star"ation. Bastiat reco'ni1ed the !act that, in this di"ision o! nationa income, the amounts and #ercenta'es 'oin' to ca#ita and abor wou d, !or a "ariet% o! reasons, "ar% wide % !rom industr% to industr%, !rom countr% to countr%, and !rom time to time. But he was Cuite #ositi"e that the tendenc% wou d be in the direction indicated b% his !i'ures !or the nation that encoura'es the #ri"ate accumu ation o! ca#ita . 7.A &his trend that Bastiat #redicted in the di"ision o! the tota #roduction o! the nation is .ust what did ha##en under increased ca#ita !ormation in the 6nited 2tates and other countries that more or ess !o ow the conce#ts o! a mar(et econom%. 7.E Bastiat arri"ed at his theor% b% obser"in' that new too s and new methods are more #roducti"e than o der too s and !ormer methods, and that com#etition tends to cause most o! the resu tin' bene!its to be #assed a on' in hi'her wa'es or ower #rices, or both. 7n either instance, rea wa'es are thereb% increased. )i(e man% o! his #redecessors, Bastiat a so noted that interest on ca#ita is i(e % to dec ine as ca#ita becomes more # enti!u . (Histor% does not record the !irst #erson who disco"ered this #rimar% aw o! su## % and demand.) At an% rate, the "erdict o! the &wentieth 3entur% to date re!utes the ' oom% #redictions o! ,icardo, who ar'ued that wa'es a wa%s tend toward the owest e"e needed to sustain the reCuired wor(in' !orce at a minimum standard o! hea th. Bastiat;s o#timistic theor% that rea wa'es tend to rise constant % in a !ree mar(et is more in accord with rea it%. 7.8 &hus, accordin' to Bastiat, the interests o! ca#ita and abor are harmonious, not anta'onistic. Each is de#endent on the other. Both 'ain b% wor(in' harmonious % to'ether to increase both ca#ita and #roduction, e"en thou'h the em# o%ees tend to 'et the ion;s share o! the increased #roduction. 0o"ernment inter!erence in the on' run wi in.ure the interests o! both owners and wor(ers, but most es#ecia % the wor(ers.

7.F 7n his ma.or wor(, Bastiat discussed the 5harmon% o! ca#ita 5 in a most e"er% cha#ter, and !rom "arious "iew#oints. His treatment o! the sub.ect is, b% !ar, the most con"incin' #art o! his boo(. >hi e it is doubt ess correct to obser"e that Bastiat contributed nothin' new to the actua theor% o! ca#ita , it is #erha#s eCua % correct to su''est that his #resentation and de"e o#ment o! se"era !acets o! the sub.ect are su#erior to those o! his #redecessors and teachers-2mith, 2a%, and others. 7.10 >e ha"e a read% noted one o! his 5harmonies o! ca#ita 5 abo"e. Here is another. 7! the mar(et is !ree, said Bastiat, no one can accumu ate ca#ita (e?c udin' 'i!ts) un ess he renders a ser"ice to someone e se. &he #eo# e who ha"e the ca#ita (inc udin' the #erson who has on % one do ar) won;t #art with it un ess the% are o!!ered a #roduct or ser"ice that the% "a ue as hi'h % as the ca#ita . 7n rea it%, said Bastiat, ca#ita is a wa%s #ut at the ser"ice o! other #eo# e who do not own it, and it is a wa%s used to satis!% a desire ('ood or bad) that other #eo# e want satis!ied. 7n that im#ortant sense, a ca#ita is tru % owned in common b% the entire communit%-and the 'reater the accumu ation o! ca#ita , the more its bene!its are shared in common. 7.11 5Here is a wor(er whose dai % wa'es is !our !rancs. >ith two o! them, he can #urchase a #air o! stoc(in's. 7! he a one had to manu!acture those stoc(in's com# ete %-!rom the 'rowin' o! the cotton to the trans#ortin' o! it to the !actor% and to the s#innin' o! the threads into materia o! the #ro#er Cua it% and sha#e-7 sus#ect that he wou d ne"er accom# ish the tas( in a i!etime.5 Bastiat o!!ered se"era other simi ar stories and #arab es based on that same idea o! the bene!its that come to a !rom the increasin' di"ision o! abor that automatica % !o ows the accumu ation o! ca#ita . 7.18 3ontrar% to most o! his c assica #redecessors, Bastiat was a most tota % concerned with the interests o! the consumer. >hi e he wished to render .ustice to the #roducer (the ca#ita ist and the entre#reneur), he seemed concerned with him on % in #assin'. /erha#s that can be e?# ained b% the !act that the socia ists o! Bastiat;s da% were in the ascendanc% -and Bastiat desired to beat them at their own 'ame b% showin' that the wor(ers and consumers (rather than the owners o! ca#ita ) are the chie! bene!iciaries o! #ri"ate ownershi#, com#etition, !ree trade, interest, #ro!its, rent, ca#ita accumu ation, and so on. 7.19 &he harmon% that Bastiat !ound in a this was the same as that demonstrated b% Adam 2mith and the #h%siocrats: 7n ser"in' his own se !ish interests, the #roducer has no choice but to ser"e !irst the interests o! the consumer, i! the mar(et is !ree. Each #erson ma% be wor(in' on % to bene!it himse ! but, doubt ess un(nown to himse !, he is rea % wor(in' #rimari % to satis!% the needs and desires o! others. 7.1$

E B% both obser"ation and reason, Bastiat was ed to the conc usion that man tends to satis!% his wants with the east #ossib e e!!ort. &hat wou d seem se !-e"ident, but Bastiat used that sim# e a?iom to show that a #o#u ar wa% to satis!% one;s wants with minimum e!!ort is to "ote !or subsidies and #rotection. Bastiat #ointed out the aw(ward !act that such a so ution is contrar% to the wants and actions o! the #ersons who must #a% the resu tin' hi'her ta?es and hi'her #rices. &his 'o"ernment #ath to satis!%in' one;s wants is anta'onistic, rather than harmonious, and is thus se !-de!eatin' in the on' run. 7t wi resu t in ess than ma?imum #roduction b% both those who must #a% the subsid% and those who recei"e it. >hen the 'o"ernment inter!eres, said Bastiat, the natura harmon% o! the !ree and #roducti"e mar(et is destro%ed, and the #eo# e waste their ener'ies in attem#tin' to win #o itica #ower in order to e?# oit each other. 5E"er%bod% wishes to i"e at the e?#ense o! the state, but the% !or'et that the state i"es at the e?#ense o! e"er%bod%.5 7n another boo(, Bastiat a so stated that idea in this wa%: 5&he state is the 'reat !iction b% which e"er%bod% tries to i"e at the e?#ense o! e"er%bod% e se.5 7.15 7n his Harmonies, Bastiat !e t that he had made a ma.or contribution to #o itica econom% b% his de!inition o! "a ue. He !e t that his conce#t shou d reconci e the con! ictin' o#inions o! a economists-inc udin' e"en the socia ists and communistsJ He introduced the sub.ect b% ma(in' a shar# distinction between uti it% and "a ue. 6nder uti it%, he isted the sun, water, and unde"e o#ed and. Accordin' to him, none o! the 'i!ts o! Bature ha"e an% "a ue-unti human e!!ort has been a## ied to them. >hi e he s#eci!ica % re.ected the abor theor% o! "a ue, he ma% we ha"e endorsed it un(nowin' % under another name-ser"ice. 7.1A Accordin' to Bastiat, ser"ice is the source o! a "a ue, and an% e?chan'e im# ies eCua "a ue. >ater has no "a ue in its nati"e state. But the bui din' o! a we and the hau in' o! the water to the consumers (ser"ices) ha"e "a ue. And the #urchaser #a%s !or it with eCua ser"ices, e"en thou'h it ma% be in the intermediate !orm o! mone% that !aci itates the trans!errin' o! #ast, #resent, and !uture ser"ices. 7.1E Bastiat !e t com#e ed to de!end the ri'htness and .ustice o! e"er% "o untar% e?chan'e. &hus, he was most ha##% with his idea that the ser"ice su## ied b% the man who accidenta % disco"ers a "a uab e diamond is worth a ar'e #rice (other ser"ices) because it sa"es the #urchaser !rom the e!!ort that is usua % connected with the securin' o! such a 'em. 7.18 Bastiat .ust i'nored the !act that the "a ue to the #urchaser wou d be the same, whether the se er had !ound the diamond, inherited it, or wor(ed !or se"era %ears di''in' it out o! the 'round. &hus, the "a ue o! an artic e is c ear % not direct % re ated to the 5ser"ice5 su## ied b% the se er himse !, and Bastiat;s e!!ort to reconci e that !act with his 'enera theor% ed him com# ete % astra% in this area.

8 7.1F 7n his cha#ters on 5E?chan'e5 and 5@a ue,5 Bastiat Cuoted two men who c ear % (and #erha#s !irst) saw the true re ationshi# between e?chan'e and "a ue-and he then sco!!ed at both o! them. &he !irst was *tienne Bonnot de 3ondi ac, 1E1$-1E80: 5From the "er% !act that an e?chan'e is made, it !o ows that there must be a #ro!it !or each o! the contractin' #arties< otherwise the e?chan'e wou d not ta(e # ace. &hus, each e?chan'e re#resents two 'ains !or humanit%.5 7.80 &he second Cuotation cited b% Bastiat was b% Heinrich Friedrich "on 2torch, 1EAA-1895: 5=ur .ud'ment enab es us to disco"er the re ation that e?ists between our wants and the uti it% o! thin's. &he determination that our .ud'ment !orms u#on the uti it% o! thin's a so determines their "a ue.5 7.81 &hese two statements combined are #erha#s the basic conce#ts o! e?chan'e and "a ue ater de"e o#ed so bri iant % b% the Austrian schoo o! economists. &hat is, the "a ue o! a #roduct or ser"ice is #ure % sub.ecti"e on the #art o! the #urchaser< neither se er nor bu%er wi ma(e the e?chan'e un ess each "a ues what he recei"es more than what he 'i"es u#< there is no automatic re ationshi# between "a ue and the abor or ca#ita that 'oes into the #roduct or ser"ice< no one can determine the "a ue o! an% #roduct or ser"ice !or another #erson. 7.88 &hus, Bastiat had !u o##ortunit% to ma(e a "ita contribution to economic thou'ht b% de"e o#in' these two ideas, with which he was ob"ious % !ami iar. +ost un!ortunate %, he missed the o##ortunit%. 7.89 E"en so, #erha#s Bastiat su## ies the connectin' in( between the En' ish c assicists, with their ob.ecti"e theor% o! "a ue, and the Austrians, with their sub.ecti"e theor% based on the uni"ersa actions o! men in rea i!e. At east, the !o owin' series o! Cuotations e?tracted !rom "arious #a'es o! his Harmonies indicates c ear % that he had ad"anced !ar be%ond the !ormer and was ma(in' e?ce ent #ro'ress toward the atter. 7.8$ 5&he sub.ect o! #o itica econom% is +AB.... Hwho isI endowed with the abi it% to com#are, .ud'e, choose, and act< which im# ies that men ma% !orm ri'ht and wron' .ud'ments, and ma(e 'ood and bad choices..... &his !acu t%, 'i"en to men and to men a one, to wor( !or each other, to transmit their e!!orts, and to e?chan'e their ser"ices throu'h time and s#ace, with a the in!inite and "aried combinations thereb% in"o "ed, is #recise % what constitutes economic science, identi!ies its ori'in, and determines its imits..... &he ob.ects o! #o itica econom% Hthe actions o! men in the e?chan'e o! their 'oods and ser"icesI cannot be wei'hed or measured..... E?chan'e is necessar% in order to determine "a ue..... =win' to i'norance, what one man "a ues ma% be des#ised b% another..... A man;s ha##iness and we -bein' are not measured b% his e!!orts, but b% his

F satis!actions, and this a so ho ds true !or societ% at ar'e..... 7t ma% ha##en, and !reCuent % does, that the ser"ice we esteem hi'h % is in rea it% harm!u to us< "a ue de#ends on the .ud'ment we !orm o! it..... 7n an e?chan'e societ%, man see(s to rea i1e "a ue irres#ecti"e o! uti it%. &he commodit% he #roduces is not intended to satis!% his own wants, and he has itt e interest in how use!u it ma% be. 7t is !or the #urchaser to .ud'e that. >hat concerns the #roducer is that it shou d ha"e ma?imum "a ue in the mar(et..... 7t is in "ain that we attem#t to se#arate choice and res#onsibi it%.5 7.85 7n addition to the ideas e?#ressed abo"e, Bastiat a so de"e o#ed in 'reat detai the theor% that com#etition wi cause a o! the 'i!ts o! Bature to become wides#read-inc udin', o! course, and and a other natura resources. 7.8A )i(e a most a economists o! his time, Bastiat was obsessed with this #rob em o! rent on and. 7! it cou d not be .usti!ied and harmoni1ed, he said, then the Cuestion as(ed b% the socia ist /roudhon was correct: 5>ho is entit ed to the rent on andK >h%, o! course, the one who made the and. &hen who made itK 0od. 7n that case, wou d-be owner, 'et o!!.5 7.8E Bastiat;s de!ense o! rent co"ers man% #a'es, but it adds u# to this: )and rent is .usti!ied because the owners o! the and (current and #ast) ha"e rendered a "a uab e ser"ice. &he% ha"e c eared the and, drained it, and made it suitab e !or # antin'. &he% ha"e #aid ta?es to ha"e roads bui t to it. 7! the amount o! abor and ca#ita that has been e?#ended on the a'ricu tura ands o! France were ca#ita i1ed, Bastiat contended, the current return in the !orm o! rent wou d be considered a most unattracti"e in"estment toda%. &here!ore, the owners o! and do not en.o% an unearned income-or, at east, the% wou d not i! the mar(et were !ree. Bastiat ar'ued that an% 5unearned5 rent was, i(e #rotected #rices !or manu!actured #roducts, the resu t o! 'o"ernment inter!erence with domestic and !orei'n trade. =n the sub.ect o! rent, Bastiat was a #h%siocrat, #ure and sim# e. He a so used this same idea to de!end the necessit% and .ustice o! a return on ca#ita in 'enera < a current ca#ita , he said, mere % re#resents #ast abor that has been sa"ed and is renderin' a ser"ice toda%. 7.88 >hi e Bastiat;s ar'uments on and rent are most #ersuasi"e-and were doubt ess true in the conte?t #resented-the% were too care!u % se ected to #ro"e an% o"er-a #rinci# e. For it is undeniab % true that and ( i(e other #roducts and ser"ices) can and does "ar% wide % in #rice !or a "ariet% o! reasons, and that the owner o! the and can rea# a #ro!it (or su!!er a oss) e"en thou'h he has done no wor( at a on it. But, once a'ain, it does not !o ow that Bastiat was wron' in ima'inin' that harmon% can be !ound in the #ri"ate ownershi# o! and and the char'in' o! a !ree-mar(et rent !or its use. 7.8F Bastiat was #articu ar % an?ious to re!ute the ' oom% theories o! ,icardo and +a thus in re'ard to wa'es, rent, #o#u ation, and star"ation. He !e t that his theor% that abor

10 recei"es an increasin' share !rom additiona ca#ita accumu ation was an answer to ,icardo on wa'es and to +a thus on star"ation. He answered ,icardo direct % on the sub.ect o! and and rent. Fina %, he o!!ered the o#inion that i! man were !ree-tru % !ree -with 0od;s he # he wou d disco"er harmonious wa%s to (ee# the #o#u ation !rom increasin' be%ond the abi it% o! science to disco"er new wa%s to !eed it. 7.90 Bastiat has no 'reat standin' amon' eadin' economists as an inno"ator or an ori'ina thin(er in the !ie d o! economic theor%. &hat "erdict ma% be .usti!ied. But his de"e o#ment o! his centra idea o! a uni"ersa harmon% in a areas o! human re ationshi#s ed 0ide and ,ist to write, 5&he !undamenta doctrines o! Hthe ibera or o#timistic schoo I were de!inite % !ormu ated about the same time, thou'h in "er% di!!erent !ashion o! course, in the /rinci# es o! 2tuart +i in En' and and the Harmonies o! Bastiat in France.5 4ean ,usse 7.91 -------------------------------------------------------------------------------&o the Louth o! France Ea'erness to earn, the need to be ie"e in somethin', minds sti immune to a'e-o d #re.udices, hearts untouched b% hatred, 1ea !or worth% causes, ardent a!!ections, unse !ishness, o%a t%, 'ood !aith, enthusiasm !or a that is 'ood, beauti!u , sincere, 'reat, who esome, and s#iritua -such are the #rice ess 'i!ts o! %outh. &hat is wh% 7 dedicate this boo( to the %outh o! France. &he seed that 7 now #ro#ose to sow must be steri e indeed i! it !ai s to Cuic(en into i!e u#on soi as #ro#itious as this. L.1 +% %oun' !riends, 7 had intended to #resent %ou with a !inished #aintin'< 7 'i"e %ou instead on % a rou'h s(etch. For'i"e me. For who in these times can com# ete a wor( o! an% 'reat sco#eK Here is the out ine. 2eein' it, ma% some one o! %ou e?c aim, i(e the 'reat artist: Anch;io son #ittore,G9 and, ta(in' u# the brush, im#art to m% un!inished can"as co or and ! esh, i'ht and shade, !ee in' and i!e. L.8 Lou wi thin( that the tit e o! this wor(, Economic Harmonies, is "er% ambitious. Ha"e 7 been #resum#tuous enou'h to #ro#ose to re"ea the #ro"identia # an within the socia order and the mechanism o! a the !orces with which /ro"idence has endowed humanit% to assure its #ro'ressK L.9

11 3ertain % not< but 7 ha"e #ro#osed to #ut %ou on the road to this truth: A men;s im#u ses, when moti"ated b% e'itimate se !-interest, !a into a harmonious socia #attern. &his is the centra idea o! this wor(, and its im#ortance cannot be o"erem#hasi1ed. L.$ 7t was !ashionab e, at one time, to au'h at what is ca ed the socia #rob em< and, it must be admitted, certain o! the #ro#osed so utions were on % too deser"in' o! derision. But there is sure % nothin' au'hab e about the #rob em itse !< it haunts us i(e BanCuo;s 'host at +acbeth;s banCuet, e?ce#t that, !ar !rom bein' si ent, it cries a oud to terrorstric(en societ%: Find a so ution or dieJ L.5 Bow the nature o! this so ution, as %ou readi % understand, wi de#end 'reat % u#on whether men;s interests are, in !act, harmonious or anta'onistic to one another. L.A 7! the% are harmonious, the answer to our #rob em is to be !ound in ibert%< i! the% are anta'onistic, in coercion. 7n the !irst case, it is enou'h not to inter!ere< in the second, we must, ine"itab %, inter!ere. L.E But ibert% can assume on % one !orm. >hen we are certain that each one o! the mo ecu es com#osin' a iCuid has within it e"er%thin' that is needed to determine the 'enera e"e , we conc ude that the sim# est and surest wa% to obtain this e"e is not to inter!ere with the mo ecu es. A those who acce#t as their startin' #oint the thesis that men;s interests are harmonious wi a'ree that the #ractica so ution to the socia #rob em is sim# % not to thwart these interests or to tr% to redirect them. L.8 3oercion, on the other hand, can assume count ess !orms in res#onse to count ess #oints o! "iew. &here!ore, those schoo s o! thou'ht that start with the assum#tion that men;s interests are anta'onistic to one another ha"e ne"er %et done an%thin' to so "e the #rob em e?ce#t to e iminate ibert%. &he% are sti tr%in' to ascertain which, out o! a the in!inite !orms that coercion can assume, is the ri'ht one, or indeed i! there is an% ri'ht one. And, i! the% e"er do reach an% a'reement as to which !orm o! coercion the% #re!er, there wi sti remain the !ina di!!icu t% o! 'ettin' a men e"er%where to acce#t it !ree %. L.F But, i! we acce#t the h%#othesis that men;s interests are b% their "er% nature ine"itab % bound to c ash, that this con! ict can be a"erted on % b% the ca#ricious in"ention o! an arti!icia socia order, then the condition o! man(ind is indeed #recarious, and we must !ear!u % as( ourse "es: 1. 2ha we be ab e to !ind someone who has in"ented a satis!actor% !orm o! coercionK


8. >i this man be ab e to win o"er to his # an the count ess schoo s o! thou'ht that ha"e concei"ed o! other !ormsK 9. >i man(ind submit to this !orm, which, accordin' to our h%#othesis, must run counter to e"er% man;s se !-interestK $. Assumin' that humanit% wi consent to bein' tri''ed out in this 'arment, what wi ha##en i! another in"entor arri"es with a better 'armentK Are men to #reser"e a bad socia order, (nowin' that it is bad< or are the% to chan'e their socia order e"er% mornin', accordin' to the whims o! !ashion and the in'eniousness o! the in"entorsK 5. >i not a the in"entors whose # ans ha"e been re.ected now unite a'ainst the acce#ted # an with a the better chance o! destro%in' it because, b% its "er% nature and desi'n, it runs counter to e"er% man;s se !-interestK A. And, in the ast ana %sis, is there an% one human !orce ca#ab e o! o"ercomin' the !undamenta anta'onism which is assumed to be characteristic o! a human !orcesK L.10 7 cou d 'o on inde!inite % as(in' such Cuestions and cou d, !or e?am# e, brin' u# this di!!icu t%: 7! %ou consider indi"idua se !-interest as anta'onistic to the 'enera interest, where do %ou #ro#ose to estab ish the actin' #rinci# e o! coercionK >here wi %ou #ut its !u crumK >i it be outside o! humanit%K 7t wou d ha"e to be, in order to esca#e the conseCuences o! %our aw. For i! %ou entrust men with arbitrar% #ower, %ou must !irst #ro"e that these men are mo ded o! a di!!erent c a% !rom the rest o! us< that the%, un i(e us, wi ne"er be mo"ed b% the ine"itab e #rinci# e o! se !-interest< and that when the% are # aced in a situation where there can be no #ossib e restraint u#on them or an% resistance to them, their minds wi be e?em#t !rom error, their hands !rom 'reed, and their hearts !rom co"etousness. L.11 >hat ma(es the "arious socia ist schoo s (7 mean here those schoo s that oo( to an arti!icia socia order !or the so ution o! the socia #rob em) radica % di!!erent !rom the economistG$ schoo is not some minor detai in "iew#oint or in #re!erred !orm o! 'o"ernment< it is to be !ound in their res#ecti"e #oints o! de#arture, in their answers to this #rimar% and centra Cuestion: Are men;s interests, when e!t to themse "es, harmonious or anta'onisticK L.18 7t is e"ident that the socia ists set out in Cuest o! an arti!icia socia order on % because the% deemed the natura order to be either bad or inadeCuate< and the% deemed it bad or inadeCuate on % because the% !e t that men;s interests are !undamenta % anta'onistic, !or otherwise the% wou d not ha"e had recourse to coercion. 7t is not necesar% to !orce into harmon% thin's that are inherent % harmonious.


L.19 &here!ore the% ha"e !ound !undamenta anta'onisms e"er%where: Between the #ro#ert% owner and the wor(er. Between ca#ita and abor. Between the common #eo# e and the bour'eoisie. Between a'ricu ture and industr%. Between the !armer and the cit%-dwe er. Between the nati"e-born and the !orei'ner. Between the #roducer and the consumer. Between ci"i i1ation and the socia order. L.1$ And, to sum it a u# in a sin' e #hrase: Between #ersona ibert% and a harmonious socia order. L.15 And this e?# ains how it ha##ens that, a thou'h the% ha"e a (ind o! sentimenta o"e !or humanit% in their hearts, hate ! ows !rom their i#s. Each o! them reser"es a his o"e !or the societ% that he has dreamed u#< but the natura societ% in which it is our ot to i"e cannot be destro%ed soon enou'h to suit them, so that !rom its ruins ma% rise the Bew Merusa em. L.1A 7 ha"e a read% stated that the economist schoo , on the contrar%, startin' !rom the assum#tion that there is a natura harmon% amon' men;s interests, reaches a conc usion in !a"or o! #ersona ibert%. L.1E 2ti , 7 must admit, i! economists, 'enera % s#ea(in', do ad"ocate #ersona ibert%, it is not, un!ortunate %, eCua % true that their #rinci# es !irm % estab ish their initia #remise that men;s interests are harmonious. L.18 Be!ore 'oin' !urther, and in order to !orewarn %ou a'ainst the conc usions that wi ine"itab % be drawn !rom this admission, 7 must sa% a word re'ardin' the res#ecti"e #ositions o! the socia ists and the #o itica economists. L.1F

1$ 7t wou d be sense ess !or me to sa% that the socia ists ha"e ne"er disco"ered truth, and that the #o itica economists ha"e ne"er !a en into error. L.80 >hat ma(es the 'reat di"ision between the two schoo s is the di!!erence in their methods. 2ocia ism, i(e astro o'% and a chem%, #roceeds b% wa% o! the ima'ination< #o itica econom%, i(e astronom% and chemistr%, #roceeds b% wa% o! obser"ation. L.81 &wo astronomers obser"in' the same #henomenon ma% not reach the same conc usion. 4es#ite this tem#orar% disa'reement the% !ee the bond o! a common method that sooner or ater wi brin' them to'ether. &he% reco'ni1e that the% be on' to the same communion. But between the astronomer who obser"es and the astro o'er who ima'ines, there stretches an unbrid'eab e 'u !, a thou'h at times some common understandin' ma% #erchance be reached. L.88 &he same is true o! #o itica econom% and socia ism. L.89 &he economists obser"e man, the aws o! his nature and the socia re ations that deri"e !rom these aws. &he socia ists con.ure u# a societ% out o! their ima'ination and then concei"e o! a human heart to !it this societ%. L.8$ Bow, i! science cannot be wron', scientists can be. 7 there!ore do not den% that the economists can ma(e !au t% obser"ations, and 7 sha e"en add that in the be'innin' the% ine"itab % did. L.85 But note what ha##ens. 7! men;s interests are actua % harmonious, it !o ows that an% obser"ation that wou d ead o'ica % to the o##osite conc usion-name %, that the% are anta'onistic-has been !au t%. >hat then are the socia ists; tacticsK &he% co ect a !ew !au t% obser"ations !rom the economists; wor(s, deduce a the conc usions to be deri"ed !rom them, and then #ro"e that the% are disastrous. 6# to this #oint the% are within their ri'hts. Be?t, the% raise their "oices in #rotest a'ainst the obser"er-+a thusG5 or ,icardo,GA !or e?am# e. &he% are sti within their ri'hts. But the% do not sto# here. &he% turn a'ainst the science o! #o itica econom% itse !< the% accuse it o! bein' heart ess and o! desirin' e"i . 7n so doin', the% 'o a'ainst reason and .ustice< !or science is not res#onsib e !or the scientist;s !au t% obser"ations. Fina %, the% 'o e"en !arther %et. &he% e"en accuse societ% itse ! and threaten to destro% it and rema(e it. And wh%K Because, the% sa%, science #ro"es that our #resent societ% is on the road to disaster. 7n this the% outra'e 'ood sense< !or, either science is not mista(en-and in that case wh% attac( itKor e se it is mista(en, and in that case the% had best ea"e societ% a one, since it is in no dan'er.

15 L.8A But these tactics, howe"er i o'ica , can nonethe ess be most harm!u to the science o! #o itica econom%, #articu ar % shou d those who es#ouse it 'i"e wa% to the understandab e but un!ortunate im#u se o! b ind % su##ortin' the o#inions o! one another and o! their #redecessors on a #oints. 2cience is a Cueen whose court etiCuette shou d be based on a !ree and eas% 'i"e-and-ta(e. An atmos#here o! bias and #artisanshi# is !ata to it. L.8E As 7 ha"e a read% said, in #o itica econom% e"er% erroneous #ro#osition un!ai in' % eads to the conc usion that there are anta'onistic e ements in the socia order. =n the other hand, the numerous writin's o! the economists, inc udin' e"en the most eminent, cannot !ai to contain a !ew !a se #ro#ositions. 7n the interest o! our science and o! societ% it is our dut% to #oint these out and to correct them. &o continue obstinate % to de!end them !or the sa(e o! #reser"in' the #resti'e o! the who e schoo wou d mean e?#osin' not on % ourse "es, which is unim#ortant, but the truth itse !, which is o! 'reater conseCuence, to the attac(s o! the socia ists. L.88 &o continue, then: 7 state that the #o itica economists ad"ocate ibert%. But !or the idea o! ibert% to win men;s minds and hearts, it must be !irm % based on the #remise that men;s interests, when e!t to themse "es, tend to !orm harmonious combinations and to wor( to'ether !or #ro'ress and the 'enera 'ood. L.8F Bow, some o! the economists, and amon' them some who carr% considerab e authorit%, ha"e ad"anced #ro#ositions that ste# b% ste# ead o'ica % to the o##osite conc usion, that abso ute e"i e?ists, that in.ustice is ine"itab e, that ineCua it% wi necessari % increase, that #au#erism is una"oidab e, etc. L.90 For e?am# e, there are, to m% (now ed'e, "er% !ew #o itica economists who ha"e not attributed "a ue to natura resources, to the 'i!ts that 0od has a"ished without cost on his creature, man. &he word 5"a ue5 im# ies that we surrender the thin's #ossessin' it on % in return !or #a%ment. &here!ore, we see men, es#ecia % the andowners, se in' 0od;s bount% in return !or other men;s toi , and recei"in' #a%ment !or uti ities, that is, !or the means o! satis!%in' human wants, without contributin' an% o! their own abor in returnan ob"ious, but necessar%, in.ustice, sa% these writers. L.91 &hen there is the !amous theor% o! ,icardo. 7t can be summari1ed in this !ashion: &he #rice o! !oodstu!!s is based on the amount o! abor reCuired to #roduce them on the #oorest soi s under cu ti"ation. Bow, as #o#u ation increases, it is necessar% to turn to ess and ess !erti e soi s. Hence, a humanit% (e?ce#t the andowner) is !orced to e?chan'e a constant % increasin' amount o! abor !or the same Cuantit% o! !oodstu!!s< or, what comes to the same thin', to recei"e a constant % decreasin' Cuantit% o! !oodstu!!s

1A !or the same amount o! abor< whereas the owners o! the soi see their income risin' with each new acre o! in!erior and that is #ut into cu ti"ation. 3onc usion: increasin' wea th !or the eisure c asses< increasin' #o"ert% !or the aborers: or, ine"itab e ineCua it%. L.98 &hen there is the e"en more !amous theor% o! +a thus. /o#u ation tends to increase more ra#id % than the means o! subsistence, and this trend is to be obser"ed at an% 'i"en moment in the histor% o! man(ind. Bow, men cannot i"e in #eace and ha##iness un ess the% ha"e enou'h to eat. &here are on % two chec(s to this constant threat o! e?cess #o#u ation: a decrease in the birth rate or an increase in the morta it% rate, with a its attendant horrors. +ora restraint, in order to be e!!ecti"e, must be obser"ed e"er%where, which is more than can be e?#ected. &here remains, then, on % the #ositi"e chec( o! "ice, #o"ert%, war, #esti ence, !amine, and death< that is, ine"itab e #au#erism. L.99 7 sha not mention other s%stems o! ess 'enera im#ort that a so ead to des#erate % discoura'in' conc usions. For e?am# e, +. de &ocCue"i eGE and man% others i(e him dec are that i! we admit the ri'ht o! #rimo'eniture, we end with a "er% sma and ri'id aristocrac%< i! we do not admit it, we end with the countr% di"ided into tin%, un#roducti"e indi"idua ho din's. L.9$ And the remar(ab e thin' is that these !our me ancho % theories do not in an% wa% come into direct con! ict with one another. 7! the% did, we cou d !ind conso ation in the !act that the% are mutua % destructi"e. But such is not the case< the% a'ree, the% !it into the same 'enera theor%, which, su##orted b% numerous and # ausib e !acts, a##arent % e?# ains the con"u si"e state o! modern societ% and, since it is endorsed b% a number o! eminent authorities, #resents itse ! to our discoura'ed and bewi dered minds with terri!%in' con"iction. L.95 7t remains to be seen how the e?#onents o! this ' oom% theor% ha"e at the same time been ab e to maintain the harmon% o! men;s interests as their #remise and deduce #ersona ibert% as their conc usion. For certain %, i! humanit% is ine"itab % im#e ed toward in.ustice b% the aws o! "a ue, toward ineCua it% b% the aws o! rent, toward #o"ert% b% the aws o! #o#u ation, and toward steri i1ation b% the aws o! heredit%, we cannot sa% that 0od;s handiwor( is harmonious in the socia order, as it is in the #h%sica uni"erse< we must instead admit, with heads bowed in 'rie!, that He has seen !it to estab ish His socia order on re"o tin' and irremediab e discord. L.9A Lou must not be ie"e, m% %oun' !riends, that the socia ists ha"e re!uted and re.ected the theor% that, in order to a"oid o!!endin' an%one, 7 sha ca the theor% o! discord. =n the contrar%: des#ite their #rotests, the% ha"e acce#ted it as true< and, !or the "er% reason that the% acce#t it as true, the% #ro#ose to substitute coercion !or !reedom, an arti!icia socia order !or the natura socia order, and a wor( o! their own contri"ance !or the handiwor(

1E o! 0od. &he% sa% to their o##onents (than whom, in this res#ect, 7 am not sure that the% are not more o'ica ): 7!, as %ou ha"e dec ared, men;s interests when e!t to themse "es did tend to combine harmonious %, we cou d on % we come and e?to !reedom as %ou do. But %ou ha"e #ro"ed irre!utab % that these interests, i! a owed to de"e o# !ree %, ead man(ind toward in.ustice, ineCua it%, #au#erism, and steri it%. &here!ore, we react a'ainst %our theor% #recise % because it is true. >e wish to destro% societ% as it now is #recise % because it does obe% the ine"itab e aws that %ou ha"e described< we wish to tr% what we can do, since 0od;s #ower has !ai ed. L.9E &hus, there is a'reement in re'ard to the #remises. =n % in re'ard to the conc usion is there disa'reement. L.98 &he economists to whom 7 ha"e re!erred sa%: &he 'reat aws o! /ro"idence are hastenin' societ% a on' the road to disaster< but we must be care!u not to inter!ere with their action, !or the% are !ortunate % counteracted b% other secondar% aws that #ost#one the !ina catastro#he, and an% arbitrar% inter!erence on our #art wou d on % wea(en the di(e without owerin' the 'reat tida wa"e that wi e"entua % en'u ! us. L.9F &he socia ists sa%: &he 'reat aws o! /ro"idence are hastenin' societ% a on' the road to disaster< we must abo ish them and choose in their # ace other aws !rom our ine?haustib e arsena . L.$0 &he 3atho ics sa%: &he 'reat aws o! /ro"idence are hastenin' societ% a on' the road to disaster< we must esca#e them b% renouncin' wor d % desires, ta(in' re!u'e in se !abne'ation, sacri!ice, asceticism, and resi'nation. L.$1 And, amid the tumu t, the cries o! an'uish and distress, the a##ea s to re"o t or to the resi'nation o! des#air, 7 raise m% "oice to ma(e men hear these words, which, i! true, must si ence a #rotestin' "oices: 7t is not true that the 'reat aws o! /ro"idence are hastenin' societ% a on' the road to disaster. L.$8 &hus, whi e a schoo s stand di"ided on the conc usions the% draw !rom their common #remise, 7 den% their #remise. 7s not this the best means o! endin' the di"ision and the contro"ers%K L.$9 &he centra idea o! this wor(, the harmon% o! men;s interests, is a sim# e one. And is not sim# icit% the touchstone o! truthK &he aws 'o"ernin' i'ht, sound, motion, seem to us a the more true because the% are sim# e. >h% shou d the same thin' not be true o! the aw o! men;s interestsK


L.$$ 7t is conci iator%. For what can be more conci iator% than to #oint out the ties that bind to'ether industries, c asses, nations, and e"en doctrinesK L.$5 7t is reassurin', since it e?#oses what is !a se in those s%stems that wou d ha"e us be ie"e that e"i must s#read and increase. L.$A 7t is re i'ious, !or it te s us that it is not on % the ce estia but a so the socia mechanism that re"ea s the wisdom and dec ares the ' or% o! 0od. L.$E 7t is #ractica , !or certain % no ma?im is easier to #ut into #ractice than this: )et men abor, e?chan'e, earn, band to'ether, act, and react u#on one another, since in this wa%, accordin' to the aws o! /ro"idence, there can resu t !rom their !ree and inte i'ent acti"it% on % order, harmon%, #ro'ress, and a thin's that are 'ood, and increasin' % 'ood, and sti better, and better %et, to in!inite de'ree. L.$8 Bow there, %ou wi sa%, is the o#timism o! the economists !or %ouJ &he% are so com# ete % the s a"es o! their own s%stems that the% shut their e%es to the !acts !or !ear o! seein' them. 7n the !ace o! a the #o"ert%, in.ustice, and o##ression that deso ate the human race, the% 'o on im#erturbab % den%in' the e?istence o! e"i . &he sme o! the 'un#owder burned in insurrections does not reach their indi!!erent senses< !or them the barricades in the streets are mute< and thou'h societ% shou d crumb e and !a , the% wi continue to re#eat: 5A is !or the best in the best o! a #ossib e wor ds.5 L.$F 3ertain % not. >e do not thin( that a is !or the best. L.50 7 ha"e com# ete !aith in the wisdom o! the aws o! /ro"idence, and !or that reason 7 ha"e !aith in ibert%. L.51 &he Cuestion is whether or not we ha"e ibert%. L.58 &he Cuestion to determine is whether these aws act with !u !orce, or whether their action is not #ro!ound % disru#ted b% the contrar% action o! institutions o! human ori'in. L.59 4en% e"i J 4en% #ainJ >ho cou dK >e shou d ha"e to !or'et that we are ta (in' about man(ind. >e shou d ha"e to !or'et that we ourse "es are men. For the aws o!

1F /ro"idence to be considered as harmonious, it is not necessar% that the% e?c ude e"i . 7t is enou'h that e"i ha"e its e?# anation and #ur#ose, that it be se !- imitin', and that e"er% #ain be the means o! #re"entin' 'reater #ain b% e iminatin' whate"er causes it. L.5$ 2ociet% is com#osed o! men, and e"er% man is a !ree a'ent. 2ince man is !ree, he can choose< since he can choose, he can err< since he can err, he can su!!er. L.55 7 'o !urther: He must err and he must su!!er< !or his startin' #oint is i'norance, and in his i'norance he sees be!ore him an in!inite number o! un(nown roads, a o! which sa"e one ead to error. L.5A Bow, a error breeds su!!erin'. And this su!!erin' either !a s u#on the one who has erred, in which case it sets in o#eration the aw o! res#onsibi it%< or e se it stri(es innocent #arties, in which case it sets in motion the mar"e ous rea'ent that is the aw o! so idarit%. L.5E &he action o! these aws, combined with the abi it% that has been 'i"en us o! seein' the connection between cause and e!!ect, must brin' us bac(, b% the "er% !act o! su!!erin', to the #ath o! ri'hteousness and truth. L.58 &hus, we not on % do not den% that e"i e?ists< we reco'ni1e that it has its #ur#ose in the socia order e"en as in the #h%sica uni"erse. L.5F But i! e"i is to !u !i this #ur#ose, the aw o! so idarit% must not be made to encroach arti!icia % u#on the aw o! res#onsibi it%< in other words, the !reedom o! the indi"idua must be res#ected. L.A0 Bow, i! man-made institutions inter"ene in these matters to nu i!% di"ine aw, e"i nonethe ess !o ows u#on error, but it !a s u#on the wron' #erson. 7t stri(es him whom it shou d not stri(e< it no on'er ser"es as a warnin' or a esson< it is no on'er se !- imitin'< it is no on'er destro%ed b% its own action< it #ersists, it 'rows worse, as wou d ha##en in the bio o'ica wor d i! the im#rudent acts and e?cesses committed b% the inhabitants o! one hemis#here too( their to on % u#on the inhabitants o! the other hemis#here. L.A1 Bow, this is e?act % the tendenc% not on % o! most o! our 'o"ernmenta institutions but a so and to an e"en 'reater de'ree o! those institutions that are desi'ned to ser"e as remedies !or the e"i s that a!! ict us. 6nder the #hi anthro#ic #rete?t o! !osterin' amon' men an arti!icia (ind o! so idarit%, the indi"idua ;s sense o! res#onsibi it% becomes more

80 and more a#athetic and ine!!ectua . &hrou'h im#ro#er use o! the #ub ic a##aratus o! aw en!orcement, the re ation between abor and wa'es is im#aired, the o#eration o! the aws o! industr% and e?chan'e is disturbed, the natura de"e o#ment o! education is distorted, ca#ita and man#ower are misdirected, minds are war#ed, absurd demands are in! amed, wi d ho#es are dan' ed be!ore men;s e%es, unheard o! Cuantities o! human ener'% are wasted, centers o! #o#u ation are re ocated, e?#erience itse ! is made ine!!ecti"e< in brie!, a interests are 'i"en arti!icia !oundations, the% c ash, and the #eo# e cr%: Lou see, a men;s interests are anta'onistic. /ersona ibert% causes a the troub e. )et us e?ecrate and sti! e #ersona ibert%. L.A8 And so, since ibert% is sti a sacred word and sti has the #ower to stir men;s hearts, her enemies wou d stri# her o! her name and her #resti'e and, rechristenin' her com#etition, wou d ead her !orth to sacri!ice whi e the a## audin' mu titudes e?tend their hands to recei"e their chains o! s a"er%. L.A9 7t is not enou'h, then, to set !orth the natura aws o! the socia order in a their ma.estic harmon%< it is a so necessar% to show the disturbin' !actors that nu i!% their action. &hat is the tas( 7 ha"e underta(en in the second #art o! this wor(. L.A$ 7 ha"e tried to a"oid contro"ers%. 7n so doin', 7 ha"e undoubted % missed the o##ortunit% o! #resentin' m% #rinci# es with the com#rehensi"eness that comes !rom thorou'h discussion. But b% drawin' the reader;s attention to the man% detai s o! m% di'ressions, wou d 7 not ha"e run the ris( o! con!usin' his "iew o! the who eK 7! 7 #resent the edi!ice as it actua % is, what does it matter how it has a##eared to others, e"en to those who tau'ht me how to "iew itK L.A5 And now 7 con!ident % a##ea to those men o! a #ersuasions who # ace .ustice, truth, and the 'enera we !are abo"e their own #articu ar s%stems. L.AA Economists, m% conc usion, i(e %ours, is in !a"or o! indi"idua ibert%< and i! 7 undermine some o! the #remises that ha"e saddened %our 'enerous hearts, %et %ou wi #erha#s disco"er in m% wor( additiona reason !or o"in' and ser"in' our sacred cause. L.AE 2ocia ists,G8 %ou # ace %our !aith in association. 7 ca u#on %ou, a!ter %ou ha"e read this wor(, to sa% whether the #resent socia order, !reed !rom its abuses and the obstac es that ha"e been #ut in its wa%-en.o%in', in other words, the condition o! !reedom-is not the most admirab e, the most com# ete, the most astin', the most uni"ersa , and the most eCuitab e o! a associations.

81 L.A8 E'a itarians,GF %ou reco'ni1e on % one #rinci# e, the reci#rocit% o! ser"ices. )et human transactions once be !ree, and 7 dec are that the% are, or can be, nothin' more nor ess than a reci#roca e?chan'e o! ser"ices, constant % decreasin' in cost, or "a ue, constant % increasin' in uti it%. L.AF 3ommunists,G10 %ou desire that men, as brothers, ma% en.o% in common the bene!its that /ro"idence has a"ished u#on them a . 7 #ro#ose to demonstrate that the #resent socia order has on % to achie"e !reedom in order to rea i1e and 'o be%ond %our !ondest ho#es and #ra%ers< !or in this socia order a thin's are common to a , #ro"ided on % that e"er% man either himse ! 'o to the troub e to 'ather in 0od;s 'i!ts (which is on % natura ), or e se that he render eCui"a ent ser"ice to those who 'o to this troub e !or him (which is on % .ust). L.E0 3hristians o! a communions, un ess %ou a one o! a man(ind doubt the di"ine wisdom as mani!ested in the most ma'ni!icent o! 0od;s wor(s that it is 'i"en us to (now, %ou wi not !ind one word in this boo( that contra"enes the strictest tenet o! %our mora code or the most m%stica o! %our do'mas. L.E1 /ro#ert% owners, howe"er "ast ma% be %our #ossessions, i! 7 #ro"e that %our ri'hts, which #eo# e toda% so "ehement % contest, are con!ined, as are those o! the sim# est manua wor(er, to recei"in' ser"ices in return !or rea ser"ices #er!ormed b% %ou or %our !ore!athers, then these ri'hts o! %ours wi hence!orth be be%ond cha en'e. L.E8 >or(ers, 7 #romise to #ro"e that %ou do en.o% the !ruits o! the and that %ou do not own, and with ess #ain and e!!ort on %our #art than %ou cou d cu ti"ate them b% %our own abor on and 'i"en %ou in its ori'ina state, unim#ro"ed b% other men;s abor. L.E9 3a#ita ists and aborers, 7 be ie"e that 7 can estab ish this aw: 57n #ro#ortion as ca#ita accumu ates, the abso ute share o! ca#ita in the tota returns o! #roduction increases, and its re ati"e share decreases< abor a so !inds that its re ati"e share increases and that its abso ute share increases e"en more shar# %. &he o##osite e!!ect is obser"ed when ca#ita is !rittered awa%.5GG1 7! this aw can be estab ished, it is c ear that we ma% conc ude that the interests o! wor(ers and em# o%ers are harmonious. L.E$ 4isci# es o! +a thus, sincere but mis.ud'ed o"ers o! %our !e ow man, %ou whose on % !au t is %our desire to #rotect humanit% a'ainst the !ata e!!ects o! a aw that %ou consider ine"itab e, 7 ha"e a more reassurin' aw to o!!er %ou in its # ace: 5=ther thin's bein' eCua , increased #o#u ation means increased e!!icienc% in the means o! #roduction.5 7!

88 such is the case, %ou wi certain % not be the ones to com# ain that the crown o! thorns has dro##ed !rom the brow o! our be o"ed science. L.E5 /redator% men, %ou who, b% !orce or !raud, in s#ite o! the aw or throu'h the a'enc% o! the aw, 'row !at on the #eo# e;s substance< %ou who i"e b% the errors %ou disseminate, b% the i'norance %ou !oster, b% the wars %ou !oment, b% the restraints %ou im#ose on trade< %ou who ta? the abor %ou ha"e made un#roducti"e, ma(in' it ose e"en more than %ou snatch awa%< %ou who char'e !or the obstac es %ou set u#, so as to char'e a'ain !or those %ou subseCuent % ta(e down< %ou who are the i"in' embodiment o! se !ishness in its bad sense< #arasitica e?crescences o! !au t% #o icies, #re#are the corrosi"e in( o! %our critiCue: to %ou a one 7 can ma(e no a##ea , !or the #ur#ose o! this boo( is to e iminate %ou, or rather to e iminate %our un.ust c aims. Howe"er much we ma% admire com#romise, there are two #rinci# es between which there can be no com#romise: ibert% and coercion. L.EA 7! the aws o! /ro"idence are harmonious, the% can be so on % when the% o#erate under conditions o! !reedom, !or otherwise harmon% is ac(in'. &here!ore, when we #ercei"e somethin' inharmonious in the wor d, it cannot !ai to corres#ond to some ac( o! !reedom or .ustice. =##ressors, # underers, %ou who ho d .ustice in contem#t, %ou cannot ta(e %our # ace in the uni"ersa harmon%, !or %ou are the ones who disru#t it. L.EE 4oes this mean that the e!!ect o! this boo( wou d be to wea(en the #ower o! 'o"ernment, endan'er its stabi it%, essen its authorit%K &he 'oa 7 ha"e in "iew is #recise % the o##osite. But et us understand one another. L.E8 &he !unction o! #o itica science is to determine what shou d and what shou d not !a under 'o"ernment contro < and in ma(in' this im#ortant distinction, we must not ose si'ht o! the !act that the state a wa%s acts throu'h the instrumenta it% o! !orce. Both the ser"ices it renders us and those it ma(es us render in return are im#osed u#on us in the !orm o! ta?es. L.EF &he Cuestion then amounts to this: >hat are the thin's that men ha"e the ri'ht to im#ose u#on one another b% !orceK Bow, 7 (now o! on % one, and that is .ustice. 7 ha"e no ri'ht to !orce an%one to be re i'ious, charitab e, we educated, or industrious< but 7 ha"e the ri'ht to !orce him to be .ust: this is a case o! e'itimate se !-de!ense. L.80 Bow, there cannot e?ist !or a 'rou# o! indi"idua s an% new ri'hts o"er and abo"e those that the% a read% #ossessed as indi"idua s. 7!, there!ore, the use o! !orce b% the indi"idua is .usti!ied so e % on 'rounds o! e'itimate se !-de!ense, we need on % reco'ni1e that

89 'o"ernment action a wa%s ta(es the !orm o! !orce to conc ude that b% its "er% nature it can be e?erted so e % !or the maintenance o! order, securit%, and .ustice. L.81 A 'o"ernment action be%ond this imit is an encroachment u#on the indi"idua ;s conscience, inte i'ence, and industr%-in a word, u#on human ibert%. L.88 Accordin' %, we must set ourse "es unceasin' % and re ent ess % to the tas( o! !reein' the who e domain o! #ri"ate acti"it% !rom the encroachments o! 'o"ernment. =n % on this condition sha we succeed in winnin' our ibert% or assurin' the !ree # a% o! the harmonious aws that 0od has decreed !or the de"e o#ment and #ro'ress o! the human race. L.89 >i the #ower o! 'o"ernment be wea(ened b% these restrictionsK >i it ose stabi it% as it oses some o! its "astnessK >i it ha"e ess authorit% because it wi ha"e !ewer !unctionsK >i it be the ob.ect o! ess res#ect because it wi be the ob.ect o! !ewer 'rie"ancesK >i it become more the #u##et o! s#ecia interests when it has reduced the enormous bud'ets and the co"eted #atrona'e that are the s#ecia interests; ureK >i it be e?#osed to 'reater dan'ers when it has ess res#onsibi it%K L.8$ =n the contrar%: it seems e"ident to me that to restrict the #ub ic #o ice !orce to its one and on % ri'ht!u !unction, but a !unction that is essentia , uncha en'ed, constructi"e, desired and acce#ted b% a , is the wa% to win it uni"ersa res#ect and co-o#eration. =nce this is accom# ished, 7 cannot see !rom what source cou d come a our #resent i s o! s%stematic obstructionism, #ar iamentar% bic(erin', street insurrections, re"o utions, crises, !actions, wi d notions, demands ad"anced b% a men to 'o"ern under a #ossib e !orms, new s%stems, as dan'erous as the% are absurd, which teach the #eo# e to oo( to the 'o"ernment !or e"er%thin'. >e shou d ha"e an end a so to com#romisin' di# omac%, to the constant threat o! war, and the armed #eace that is near % as disastrous, to crushin' and ine"itab % ineCuitab e ta?ation, to the e"er increasin' and unnatura medd in' o! #o itics in a thin's, and to that ar'e-sca e and who % arti!icia redistribution o! ca#ita and abor which is the source o! need ess irritation, o! constant u#s and downs, o! economic crises and setbac(s. A these and a thousand other causes o! disturbances, !riction, disa!!ection, en"%, and disorder wou d no on'er e?ist< and those entrusted with the res#onsibi it% o! 'o"ernin' wou d wor( to'ether !or, and not a'ainst, the uni"ersa harmon%. Harmon% does not e?c ude e"i , but it reduces e"i to the sma er and sma er area e!t o#en to it b% the i'norance and #er"ersit% o! our human !rai t%, which it is the !unction o! harmon% to #re"ent or chastise. L.85 Loun' men, in these times when a amentab e s(e#ticism a##ears to be the e!!ect and the #unishment o! our inte ectua anarch%, 7 shou d deem m%se ! ha##% i! the readin' o! this boo( wou d stir %ou to utter those reassurin' words, so sweet to the i#s, which are not

8$ on % a re!u'e !rom des#air but a #ositi"e !orce, stron' enou'h, we are to d, to remo"e mountains, those words that be'in the 3hristian;s #ro!ession o! !aith: 7 be ie"e. 7 be ie"e, not with b ind and submissi"e !aith, !or we are not here concerned with the m%steries o! re"e ation< but with reasoned scienti!ic !aith, as is #ro#er in matters e!t to man;s own inCuir% and in"esti'ation. 7 be ie"e that He who desi'ned the #h%sica wor d has not seen !it to remain a stran'er to the socia wor d. 7 be ie"e that His wisdom e?tends to human a'ents #ossessed o! !ree wi , that He has been ab e to brin' them to'ether and cause them to mo"e in harmon%, e"en as He has done with inert mo ecu es. 7 be ie"e that His #ro"idence shines !orth at east as c ear % in the aws to which men;s wi s and men;s interests are sub.ect as in the aws that He has decreed !or mass or "e ocit%. 7 be ie"e that e"er%thin' in societ%, e"en that which in! icts #ain, is a source o! im#ro"ement and #ro'ress. 7 be ie"e that e"i ends in 'ood and hastens its comin', whereas the 'ood can ne"er end in e"i , and there!ore must e"entua % trium#h. 7 be ie"e that the ine"itab e trend o! societ% is toward a constant % risin' #h%sica , inte ectua , and mora e"e shared b% a man(ind. 7 be ie"e, i! on % man can win bac( his !reedom o! action and be a owed to !o ow his natura bent without inter!erence, that his 'radua , #eace!u de"e o#ment is assured. 7 be ie"e these thin's, not because 7 desire them or because the% satis!% the on'in's o! m% heart, but because a!ter mature re! ection m% inte ect 'i"es them its !u consent. L.8A AhJ i! e"er %ou utter these words, 7 be ie"e, %ou wi be ea'er to carr% them to others, and the socia #rob em wi soon be so "ed, !or des#ite a that is said, its so ution is sim# e. +en;s interests are harmonious< there!ore, the answer ies entire % in this one word: !reedom. L.8E


3ha#ter 1 1 Batura and Arti!icia 2ocia =rderGG8 Are we rea % certain that the mechanism o! societ%, i(e the mechanism o! the hea"en % bodies or the mechanism o! the human bod%, is sub.ect to 'enera awsK Are we rea % certain that it is a harmonious % or'ani1ed who eK =r is it not true that what is most notab e in societ% is the absence o! a orderK And is it not true that a socia order is the "er% thin' that a men o! 'ood wi and concern !or the !uture are searchin' !or most a"id %, the thin' most in the minds o! a !orward- oo(in' commentators on #ub ic a!!airs, and o! a the #ioneers o! the inte ectua wor dK Are we not but a mere con!used a''re'ation o! indi"idua s actin' disconcerted % in res#onse to the ca#rices o! our anarchica ibert%K Are our count ess masses, now that the% ha"e #ain!u % reco"ered their iberties one b% one, not e?#ectin' some 'reat 'enius to come and arran'e them into a harmonious who eK Bow that we ha"e torn down, must we not be'in to bui d anewKG11 1.1 7! the im#ort o! these Cuestions were sim# % whether societ% can dis#ense with written aws, with re'u ations, with re#ressi"e measures, whether each man can ma(e un imited use o! his !acu ties, e"en when he mi'ht in!rin'e on another;s iberties or do dama'e to the communit% as a who e-whether, in a word, we must see in the doctrine o! aisse1 !aire, aisse1 #asser,G18 the abso ute !ormu a o! #o itica econom%< the answer cou d be doubt!u to no one. /o itica economists do not sa% that a man ma% (i , #i a'e, burn, that societ% has on % to et him a one< the% sa% that societ%;s resistance to such acts wou d mani!est itse ! in !act e"en i! s#eci!ic aws a'ainst them were ac(in'< that, conseCuent %, this resistance is a 'enera aw o! humanit%. &he% sa% that ci"i or crimina aws must re'u ari1e, not contra"ene, these 'enera aws on which the% are #redicated. 7t is a !ar cr% !rom a socia order !ounded on the 'enera aws o! humanit% to an arti!icia , contri"ed, and in"ented order that does not ta(e these aws into account or denies them or scorns them-an order, in a word, such as some o! our modern schoo s o! thou'ht wou d, it seems, im#ose u#on us. 1.8 For i! there are 'enera aws that act inde#endent % o! written aws, and whose action needs mere % to be re'u ari1ed b% the atter, we must stud% these 'enera aws< the% can be the ob.ect o! scienti!ic in"esti'ation, and there!ore there is such a thin' as the science o! #o itica econom%. 7!, on the contrar%, societ% is a human in"ention, i! men are on % inert matter to which a 'reat 'enius, as ,ousseau sa%s, must im#art !ee in' and wi , mo"ement and i!e, then there is no such science as #o itica econom%: there is on % an inde!inite number o! #ossib e and contin'ent arran'ements, and the !ate o! nations de#ends on the !oundin' !ather to whom chance has entrusted their destin%.

8A 1.9 7 sha not indu 'e in en'th% dissertations to #ro"e that societ% is sub.ect to 'enera aws. 7 sha con!ine m%se ! to #ointin' out certain !acts that, thou'h somewhat common# ace, are nonethe ess im#ortant. 1.$ ,ousseau said, 57t reCuires a 'reat dea o! scienti!ic insi'ht to discern the !acts that are c ose to us.5G19 1.5 2uch is the case with the socia #henomena in the midst o! which we i"e and mo"e. Habit has so !ami iari1ed us with these #henomena that we ne"er notice them unti , so to s#ea(, somethin' shar# % discordant and abnorma about them !orces them to our attention. 1.A )et us ta(e a man be on'in' to a modest c ass in societ%, a "i a'e cabinetma(er, !or e?am# e, and et us obser"e the ser"ices he renders to societ% and recei"es in return. &his man s#ends his da% # anin' boards, ma(in' tab es and cabinets< he com# ains o! his status in societ%, and %et what, in !act, does he recei"e !rom this societ% in e?chan'e !or his aborK &he dis#ro#ortion between the two is tremendous. 1.E E"er% da%, when he 'ets u#, he dresses< and he has not himse ! made an% o! the numerous artic es he #uts on. Bow, !or a these artic es o! c othin', sim# e as the% are, to be a"ai ab e to him, an enormous amount o! abor, industr%, trans#ortation, and in'enious in"ention has been necessar%. Americans ha"e had to #roduce the cotton< 7ndians, the d%e< Frenchmen, the woo and the ! a?< Bra1i ians, the eather< and a these materia s ha"e had to be shi##ed to "arious cities to be #rocessed, s#un, wo"en, d%ed, etc. 1.8 Be?t, he brea(!asts. For his bread to arri"e e"er% mornin', !arm ands ha"e had to be c eared, !enced in, # ou'hed, !erti i1ed, # anted< the cro#s ha"e had to be #rotected !rom the!t< a certain de'ree o! aw and order has had to rei'n o"er a "ast mu titude o! #eo# e< wheat has had to be har"ested, 'round, (neaded, and #re#ared< iron, stee , wood, stone ha"e had to be con"erted b% industr% into too s o! #roduction< certain men ha"e had to e?# oit the stren'th o! anima s, others the #ower o! a water!a , etc.-a thin's o! which each one b% itse ! a one #resu##oses an inca cu ab e out#ut o! abor not on % in s#ace, but in time as we . 1.F 7n the course o! the da% this man consumes a itt e su'ar and a itt e o i"e oi , and uses a !ew utensi s. 1.10

8E He sends his son to schoo to recei"e instruction, which, thou'h imited, sti #resu##oses on the #art o! his teachers research, #re"ious stud%, and a store o! (now ed'e that start es one;s ima'ination. 1.11 He ea"es his house: he !inds his street #a"ed and i'hted. 1.18 His ownershi# o! a #iece o! #ro#ert% is contested: he !inds aw%ers to # ead his ri'hts, .ud'es to rea!!irm them, o!!icers o! the aw to e?ecute the .ud'ment. &hese men, too, ha"e had to acCuire e?tensi"e and cost % (now ed'e in order to de!end and #rotect him. 1.19 He 'oes to church: it is a #rodi'ious monument, and the boo( that he brin's with him is #erha#s an e"en more #rodi'ious monument o! human inte i'ence. He is tau'ht mora s, his mind is en i'htened, his sou is e e"ated< and !or a this to be done, sti another man has had to ha"e #ro!essiona trainin', to ha"e !reCuented ibraries and seminaries, to ha"e drawn (now ed'e !rom a the sources o! human tradition, and to ha"e i"ed the whi e without concernin' himse ! direct % with his bodi % needs. 1.1$ 7! our artisan ta(es a tri#, he !inds that, to sa"e him time and essen his discom!ort, other men ha"e smoothed and e"e ed the 'round, !i ed in the "a e%s, owered the mountains, s#anned the ri"ers, and, to reduce their !riction, # aced whee ed cars on b oc(s o! sandstone or iron rai s, tamed horses or steam, etc. 1.15 7t is im#ossib e not to be struc( b% the dis#ro#ortion, tru % incommensurab e, that e?ists between the satis!actions this man deri"es !rom societ% and the satis!actions that he cou d #ro"ide !or himse ! i! he were reduced to his own resources. 7 ma(e bo d to sa% that in one da% he consumes more thin's than he cou d #roduce himse ! in ten centuries. 1.1A >hat ma(es the #henomenon stran'er sti is that the same thin' ho ds true !or a other men. E"er% one o! the members o! societ% has consumed a mi ion times more than he cou d ha"e #roduced< %et no one has robbed an%one e se. 7! we e?amine matters c ose %, we #ercei"e that our cabinetma(er has #aid in ser"ices !or a the ser"ices he has recei"ed. He has, in !act, recei"ed nothin' that he did not #a% !or out o! his modest industr%< a those e"er em# o%ed in ser"in' him, at an% time or in an% # ace, ha"e recei"ed or wi recei"e their remuneration. 1.1E 2o in'enious, so #ower!u , then, is the socia mechanism that e"er% man, e"en the humb est, obtains in one da% more satis!actions than he cou d #roduce !or himse ! in se"era centuries.

88 1.18 Bor is this a . &his socia mechanism wi seem sti more in'enious i! the reader wi consider his own case. 1.1F 7 sha assume that he is sim# % a student. >hat is he doin' in /arisK How does he i"eK Bo one can den% that societ% #uts at his dis#osa !ood, c othin', od'in', amusements, boo(s, instruction-such a host o! thin's, in a word, that it wou d ta(e a on' time .ust to te how the% were #roduced, to sa% nothin' o! actua % #roducin' them. And in return !or a these thin's that ha"e demanded so much wor(, the sweat o! so man% brows, so much #ain!u toi , so much #h%sica or menta e!!ort, such #rodi'ies o! trans#ortation, so man% in"entions, transactions, what ser"ices has our student rendered societ%K Bone< but he is 'ettin' read% to render them. How, then, can these mi ions o! men who are en'a'ed in #ositi"e, e!!ecti"e, and #roducti"e wor( turn o"er to him the !ruit o! their aborK Here is the e?# anation: &his student;s !ather, who was a doctor or a aw%er or a businessman, had a read% rendered ser"ices-#erha#s to 3hinese societ%-and had recei"ed in return, not immediate ser"ices, but certi!icates !or ser"ices due him on which he cou d demand #a%ment at the time and # ace and in the !orm that he saw !it. &oda% societ% is #a%in' !or those distant and #ast ser"ices< and, ama1in' %, i! we were to !o ow in our minds the chain o! end ess transactions that had to ta(e # ace be!ore the !ina resu t was reached, we shou d see that each one was #aid !or his #ains< that these certi!icates #assed !rom hand to hand, sometimes s# it u# into !ractions, sometimes combined into ar'er sums, unti b% our student;s consum#tion the !u account was ba anced. 7s not this indeed a most remar(ab e #henomenonK 1.80 >e shou d be shuttin' our e%es to the !acts i! we re!used to reco'ni1e that societ% cannot #resent such com# icated combinations in which ci"i and crimina aw # a% so itt e #art without bein' sub.ect to a #rodi'ious % in'enious mechanism. &his mechanism is the ob.ect o! stud% o! #o itica econom%. 1.81 =ne other thin' worth% o! notice is that in this rea % inca cu ab e number o! transactions that ha"e resu ted in maintainin' a student !or a da%, not one mi ionth #art, #erha#s, was done direct %. &he thin's he has en.o%ed toda%, and the% are innumerab e, are the wor( o! men man% o! whom ha"e on' since disa##eared !rom the !ace o! the earth. And %et the% ha"e been #aid as the% intended to be, a thou'h the one who #ro!its !rom their wor( toda% did nothin' !or them. He did not (now them< he wi ne"er (now them. &he #erson who is readin' this #a'e, at the "er% moment he reads it, has the #ower, thou'h #erha#s he is unaware o! it, to set in motion men o! a ands, a races, and, 7 cou d a most sa%, o! a times, whites, b ac(s, reds(ins, men o! the %e ow race< he ma(es 'enerations dead and 'one and 'enerations sti unborn wor( !or his #resent satis!actions< and this e?traordinar% #ower he owes to the !act that his !ather once rendered ser"ices to other men who a##arent % ha"e nothin' in common with those whose abor is bein' #er!ormed toda%. Let such ba ance was e!!ected in time and s#ace that each was remunerated, and each recei"ed what he had ca cu ated he shou d recei"e.


1.88 7n truth, cou d a this ha"e ha##ened, cou d such e?traordinar% #henomena ha"e occurred, un ess there were in societ% a natura and wise order that o#erates without our (now ed'eK 1.89 7n our da% #eo# e ta ( a 'reat dea about in"entin' a new order. 7s it certain that an% thin(er, re'ard ess o! the 'enius we 'rant him and the authorit% we 'i"e him, cou d in"ent and o#erate success!u % an order su#erior to the one whose resu ts 7 ha"e .ust describedK 1.8$ >hat wou d it be in terms o! its mo"in' #arts, its s#rin's, and its moti"e !orcesK 1.85 &he mo"in' #arts are men, that is, bein's ca#ab e o! earnin', re! ectin', reasonin', o! ma(in' errors and o! correctin' them, and conseCuent % o! ma(in' the mechanism itse ! better or worse. &he% are ca#ab e o! #ain and # easure, and in that res#ect the% are not on % the whee s, but the s#rin's o! the machine. &he% are a so the moti"e !orces, !or the source o! the #ower is in them. &he% are more than that, !or the% are the u timate ob.ect and raison d;Ntre o! the mechanism, since in the ast ana %sis the #rob ems o! its o#eration must be so "ed in terms o! their indi"idua #ain or # easure. 1.8A Bow, it has been obser"ed, and, a as, the obser"ation has not been a di!!icu t one to ma(e, that in the o#eration, the e"o ution, and e"en the #ro'ress (b% those who acce#t the idea that there has been #ro'ress) o! this #ower!u mechanism, man% mo"in' #arts were ine"itab %, !ata %, crushed< that, !or a 'reat number o! human bein's, the sum o! unmerited su!!erin's !ar e?ceeded the sum o! en.o%ments. 1.8E Faced with this !act, man% sincere and 'enerous-hearted men ha"e ost !aith in the mechanism itse !. &he% ha"e re#udiated it< the% ha"e re!used to stud% it< the% ha"e attac(ed, o!ten "io ent %, those who ha"e in"esti'ated and e?#ounded its aws< the% ha"e risen u# a'ainst the nature o! thin's< and, in a word, the% ha"e #ro#osed to or'ani1e societ% accordin' to a new # an in which in.ustice, su!!erin', and error cou d ha"e no # ace. 1.88 Hea"en !orbid that 7 shou d raise m% "oice a'ainst intentions so mani!est % #hi anthro#ic and #ureJ But 7 shou d be 'oin' bac( on m% own con"ictions, 7 shou d be turnin' a dea! ear to the "oice o! m% own conscience, i! 7 did not sa% that, in m% o#inion, the% are on the wron' trac(. 1.8F

90 7n the !irst # ace, the% are reduced b% the "er% nature o! their #ro#a'anda to the un!ortunate necessit% o! underestimatin' the 'ood that societ% has #roduced, o! den%in' its #ro'ress, o! im#utin' e"er% e"i to it, and o! a most a"id % see(in' out e"i s and e?a''eratin' them be%ond measure. 1.90 >hen a man !ee s that he has disco"ered a socia order di!!erent !rom the one that has come into bein' throu'h the natura tendencies o! man(ind, he must, #er!orce, in order to ha"e his in"ention acce#ted, #aint in the most somber co ors the resu ts o! the order he see(s to abo ish. &here!ore, the #o itica theorists to whom 7 re!er, whi e enthusiastica % and #erha#s e?a''erated % #roc aimin' the #er!ectibi it% o! man(ind, !a into the stran'e contradiction o! sa%in' that societ% is constant % deterioratin'. Accordin' to them, men are toda% a thousand times more wretched than the% were in ancient times, under the !euda s%stem and the %o(e o! s a"er%< the wor d has become a he . 7! it were #ossib e to con.ure u# the /aris o! the tenth centur%, 7 con!ident % be ie"e that such a thesis wou d #ro"e untenab e. 1.91 2econd %, the% are ed to condemn e"en the basic moti"e #ower o! human actions-7 mean se !-interest-since it has brou'ht about such a state o! a!!airs. )et us note that man is made in such a wa% that he see(s # easure and shuns #ain. From this source, 7 a'ree, come a the e"i s o! societ%: war, s a"er%, mono#o %, #ri"i e'e< but !rom this source a so come a the 'ood thin's o! i!e, since the satis!action o! wants and the a"oidance o! su!!erin' are the moti"es o! human action. &he Cuestion, then, is to determine whether this moti"atin' !orce which, thou'h indi"idua , is so uni"ersa that it becomes a socia #henomenon, is not in itse ! a basic #rinci# e o! #ro'ress. 1.98 7n an% case, do not the socia # anners rea i1e that this #rinci# e, inherent in man;s "er% nature, wi !o ow them into their new orders, and that, once there, it wi wrea( more serious ha"oc than in our natura order, in which one indi"idua ;s e?cessi"e c aims and se !-interest are at east he d in bounds b% the resistance o! a the othersK &hese writers a wa%s assume two inadmissib e #remises: that societ%, as the% concei"e it, wi be ed b% in!a ib e men com# ete % immune to the moti"e o! se !-interest< and that the masses wi a ow such men to ead them. 1.99 Fina %, our socia # anners do not seem in the east concerned about the im# ementation o! their #ro'ram. How wi the% 'ain acce#tance !or their s%stemsK How wi the% #ersuade a other men simu taneous % to 'i"e u# the basic moti"e !or a their actions: the im#u se to satis!% their wants and to a"oid su!!erin'K &o do so it wou d be necessar%, as ,ousseau said, to chan'e the mora and #h%sica nature o! man. 1.9$ &o induce a men, simu taneous %, to cast o!!, i(e an i -!ittin' 'arment, the #resent socia order in which man(ind has e"o "ed since its be'innin' and ado#t, instead, a

91 contri"ed s%stem, becomin' doci e co's in the new machine, on % two means, it seems to me, are a"ai ab e: !orce or uni"ersa consent. 1.95 Either the socia # anner must ha"e at his dis#osa !orce ca#ab e o! crushin' a resistance, so that human bein's become mere wa? between his !in'ers to be mo ded and !ashioned to his whim< or he must 'ain b% #ersuasion consent so com# ete, so e?c usi"e, so b ind e"en, that the use o! !orce is made unnecessar%. 1.9A 7 de!% an%one to show me a third means o! settin' u# and #uttin' into o#eration a #ha anster%G1$ or an% other arti!icia socia order. 1.9E Bow, i! there are on % two means, and we demonstrate that the% are both eCua % im#racticab e, we ha"e #ro"ed b% that "er% !act that the socia # anners are wastin' their time and troub e. 1.98 @isionaries thou'h the% are, the% ha"e ne"er dreamed o! ha"in' at their dis#osa the necessar% materia !orce to sub.u'ate to their biddin' a the (in's and a the #eo# es o! the earth. Oin' A !onso had the #resum#tion to sa%, 57! 0od had ta(en me into His con!idence, the so ar s%stem wou d ha"e been better arran'ed.5G15 But i! he set his wisdom abo"e the 3reator;s, he was not mad enou'h to cha en'e 0od;s #ower< and histor% does not record that he tried to ma(e the stars turn in accord with the aws o! his own in"ention. 4escartes i(ewise was content to construct a itt e wor d o! dice and strin's,G1A reco'ni1in' that he was not stron' enou'h to mo"e the uni"erse. >e (now o! no one but Per?es who was so into?icated with his #ower as to sa% to the wa"es, 5&hus !ar sha %e come, and no !arther.5 &he wa"es, howe"er, did not retreat !rom Per?es, but Per?es !rom the wa"es, and, i! not !or this wise but humi iatin' #recaution, he wou d ha"e been drowned. 1.9F &he socia # anners, there!ore, ac( the !orce to sub.ect humanit% to their e?#eriments. E"en thou'h the% shou d win o"er to their cause the 31ar o! ,ussia, the 2hah o! /ersia, and the Ohan o! the &artars, and a the ru ers who ho d abso ute #ower o"er their sub.ects, the% sti wou d not ha"e su!!icient !orce to distribute man(ind into 'rou#s and cate'oriesG1E and abo ish the 'enera aws o! #ro#ert%, e?chan'e, heredit% and !ami %, !or e"en in ,ussia, e"en in /ersia and &artar%, men must to some e?tent be ta(en into account. 7! the 31ar o! ,ussia too( it into his head to a ter the mora and #h%sica nature o! his sub.ects, he #robab % wou d soon ha"e a successor, and the successor wou d not be tem#ted to continue the e?#eriment. 1.$0 2ince !orce is a means Cuite be%ond the reach o! our numerous socia # anners, the% ha"e no other resource o#en to them than to tr% to win uni"ersa consent.


1.$1 &his can be done in two wa%s: b% #ersuasion or b% im#osture. 1.$8 /ersuasionJ But not e"en two minds ha"e e"er been (nown to reach #er!ect a'reement on e"er% #oint within e"en a sin' e !ie d o! (now ed'e. How, then, can a man(ind, di"erse in an'ua'e, race, customs, s#read o"er the !ace o! the who e earth, !or the most #art i iterate, destined to die without e"er hearin' the re!ormer;s name, be e?#ected to acce#t unanimous % the new uni"ersa scienceK >hat is in"o "edK 3han'in' the #attern o! wor(, trade, o! domestic, ci"i , re i'ious re ations-in a word, a terin' man;s #h%sica and mora nature< and #eo# e ta ( o! ra %in' a humanit% to the cause b% con"ictionJ 1.$9 &ru %, the tas( a##ears an arduous one. 1.$$ >hen a man comes and sa%s to his !e ow men: 1.$5 5For !i"e thousand %ears there has been a misunderstandin' between 0od and man. From Adam;s time unti now the human race has been on the wron' road, and i! it wi but isten to me, 7 sha #ut it bac( on the ri'ht trac(. 0od intended man(ind to ta(e a di!!erent route< man(ind re!used, and that is wh% e"i entered the wor d. )et man(ind hear(en to m% "oice, and turn about< et it #roceed in the o##osite direction< then wi the i'ht o! ha##iness shine u#on a men.5 1.$A >hen, 7 sa%, a man be'ins i(e this, he is doin' we i! he 'ets !i"e or si? disci# es to be ie"e him< and !rom !i"e or si? to a bi ion men is a !ar, !ar cr%, so !ar in !act that the distance is inca cu ab eJ 1.$E And then, re! ect that the number o! socia in"entions is as imit ess as man;s own ima'ination< that there is not a sin' e # anner who, a!ter a !ew hours a one in his stud%, cannot thin( u# a new scheme< that the in"entions o! Fourier, 2aint-2imon, =wen, 3abet, B anc,G18 etc., bear no resemb ance whatsoe"er to one another< that not a da% #asses without sti others bur'eonin' !orth< that, indeed, humanit% has some reason !or drawin' bac( and hesitatin' be!ore re.ectin' the order 0od has 'i"en it in !a"or o! decidin' de!inite % and irre"ocab % on one o! the count ess socia in"entions a"ai ab e. For what wou d ha##en i!, a!ter one o! these schemes had been se ected, a better one shou d #resent itse !K 3an the human race estab ish a new basis !or #ro#ert%, !ami %, abor, and e?chan'e e"er% da% in the %earK 3an it ris( chan'in' the socia order e"er% mornin'K 1.$8

99 5&hus,5 as ,ousseau sa%s, 5since the aw'i"er cannot use either !orce or reason, he must ha"e recourse to a di!!erent manner o! authorit% that can win su##ort without "io ence and #ersuade without con"incin'.5 1.$F >hat is that authorit%K 7m#osture. ,ousseau does not dare utter the word< but, as is his in"ariab e custom in such cases, he #uts it behind the trans#arent "ei o! a #ur# e #assa'e: 1.50 5&his,5 he sa%s, 5is what, in a times, !orced the !oundin' !athers o! nations to ha"e recourse to the inter"ention o! Hea"en and to 'i"e credit to the 'ods !or their own wisdom, so that the #eo# e, submittin' to the aws o! the state as i! to the aws o! Bature, and reco'ni1in' the se !same #ower as the creator o! men and as the creator o! their commonwea th, mi'ht obe% with ibert% and bear doci e % the %o(e o! their #ub ic !e icit%. &he decrees o! sub ime reason, which is abo"e the reach o! the common herd, are im#uted b% the aw'i"er to the immorta 'ods, so as to win b% di"ine authorit% the su##ort o! those whom human wisdom cou d not mo"e. But it is not !or e"er% man to ma(e the 'ods s#ea(....5 1.51 And so, est an%one be decei"ed, he com# etes his thou'ht in the words o! +achia"e i: +ai non !u a cuno ordinatore di e''i 2&,A=,47BA,7E in un #o#o o che non ricorresse a 4io.G1F 1.58 >h% does +achia"e i recommend in"o(in' 0od;s authorit%, and ,ousseau the authorit% o! the 'ods, and the immorta sK 7 ea"e the answer to the reader. 1.59 3ertain % 7 do not accuse the modern !oundin' !athers o! stoo#in' to such unworth% subter!u'e. Let, considerin' the #rob em !rom their #oint o! "iew, we readi % a##reciate how easi % the% can be carried awa% b% their desire !or success. >hen a sincere and #hi anthro#ic man is !irm % con"inced that he #ossesses a socia secret b% means o! which his !e ow men ma% en.o% bound ess b iss in this wor d< when he c ear % sees that he cannot win acce#tance o! his idea either b% !orce or b% reason, and that 'ui e is his on % recourse< his tem#tation is bound to be 'reat. >e (now that e"en the ministers o! the re i'ion that #ro!esses the 'reatest horror o! untruth ha"e not recoi ed !rom the use o! #ious !raud< and we obser"e (witness the case o! ,ousseau, that austere writer who inscribed at the head o! a his wor(s the motto: @itam im#endere "ero)G80 that e"en #roud #hi oso#h% herse ! can be seduced b% the enticements o! a "er% di!!erent motto: &he end .usti!ies the means. >h%, then, be sur#rised i! the modern socia # anners shou d i(ewise thin( in terms o! 5'i"in' credit to the 'ods !or their own wisdom, o! #uttin' their own decrees in the mouths o! the immorta 'ods, o! winnin' su##ort without "io ence and #ersuadin' without con"incin'5K 1.5$

9$ >e (now that, i(e +oses, Fourier had his 4euteronom% !o owin' his 0enesis. 2aint2imon and his disci# es had 'one e"en !urther in their a#osto ic nonsense. =thers, more shrewd, a% ho d o! re i'ion in its broadest sense, modi!%in' it to their "iews under the name o! neo-3hristianit%. Bo one can !ai to be struc( b% the tone o! m%stic a!!ectation that near % a the modern re!ormers #ut into their #reachin's. 1.55 But the e!!orts in this direction ha"e #ro"ed on % one thin', which has, to be sure, its im#ortance, name %, that in our da% not e"er%one who wi s ma% become a #ro#het. 7n "ain he #roc aims himse ! 0od< nobod% be ie"es him, not the #ub ic, not his #eers, not e"en he himse !. 1.5A 2ince 7 ha"e mentioned ,ousseau,G81 7 sha "enture to ma(e a !ew obser"ations about this socia # anner, #articu ar % as the% wi be he #!u in showin' in what res#ects arti!icia socia orders di!!er !rom the natura order. &his di'ression, moreo"er, is not ino##ortune, since !or some time now the 2ocia 3ontract has been hai ed as a miracu ous #ro#hec% o! thin's to come. 1.5E ,ousseau was con"inced that iso ation was man;s natura state, and, conseCuent %, that societ% was a human in"ention. 5&he socia order,5 he sa%s at the outset, 5does not come !rom Bature< it is there!ore !ounded on con"ention.5 1.58 Furthermore, our #hi oso#her, thou'h o"in' ibert% #assionate %, had a ow o#inion o! men. He considered them com# ete % inca#ab e o! creatin' !or themse "es the institutions o! 'ood 'o"ernment. &he inter"ention o! a aw'i"er, a !oundin' !ather, was there!ore indis#ensab e. 1.5F 5&he #eo# e bein' sub.ect to the aw shou d be the authors o! the aw,5 he sa%s. 5=n % those who associate to'ether ha"e the ri'ht to re'u ate the conditions o! their association. But how sha the% re'u ate themK 2ha it be b% common a'reement or b% a sudden ins#irationK How is a b ind mu titude o! men, who o!ten do not (now what the% want, since the% rare % (now what is 'ood !or them, to accom# ish o! themse "es such a "ast and di!!icu t enter#rise as that o! de"isin' a s%stem o! e'is ationK .... 7ndi"idua s see the 'ood and re.ect it< the #ub ic see(s the 'ood and cannot !ind it: both are eCua % in need o! 'uides..... Hence the necessit% o! a aw'i"er.5 1.A0 &his aw'i"er, as we ha"e seen, 5bein' unab e to use either !orce or reason, must o! necessit% ha"e recourse to a di!!erent manner o! authorit%,5 name %, in # ain words, to 'ui e and du# icit%. 1.A1

95 Bothin' can adeCuate % con"e% the idea o! the di11% hei'hts abo"e other men on which ,ousseau # aces his aw'i"er: 1.A8 5>e shou d ha"e 'ods to 'i"e aws to men..... He who dares to institute a societ% must !ee himse ! ca#ab e, so to s#ea(, o! chan'in' human nature itse !.... o! a terin' man;s essentia constitution, so that he ma% stren'then it..... He must de#ri"e man o! his own #owers that he ma% 'i"e him others that are a ien to him..... &he aw'i"er is, in e"er% res#ect, an e?traordinar% man in the state.... his !unction is a uniCue and su#erior one, which has nothin' in common with the ordinar% human status..... 7! it is true that the 'reat #rince is a "er% s#ecia man, what shou d one sa% o! the 'reat aw'i"erK &he !ormer has on % to !o ow the idea , whereas it is the atter;s ro e to create it. &he aw'i"er is the in"entor o! the machine< the #rince, mere % the o#erator.5 1.A9 And what, then, is man(ind in a thisK &he mere raw materia out o! which the machine is constructed. 1.A$ &ru %, what is this but arro'ance raised to the #oint o! monomaniaK +en, then, are the raw materia s o! a machine that the #rince o#erates and the aw'i"er desi'ns< and the #hi oso#her ru es the aw'i"er, # acin' himse ! immeasurab % abo"e the common herd, the #rince, and the aw'i"er himse !< he soars abo"e the human race, stirs it to action, trans!orms it, mo ds it, or rather teaches the !oundin' !athers how to 'o about the tas( o! stirrin', trans!ormin', and mo din' it. 1.A5 Howe"er, the !ounder o! a nation must set a 'oa !or himse !. He has human raw materia to #ut to wor(, and he must sha#e it to a #ur#ose. 2ince the #eo# e are without initiati"e and e"er%thin' de#ends on the aw'i"er, he must decide whether his nation is to be commercia or a'ricu tura , or a societ% o! barbarians and !isheaters, etc.< but it is to be ho#ed that the aw'i"er ma(es no mista(e and does not do too much "io ence to the nature o! thin's. 1.AA &he #eo# e, b% a'reein' to !orm an association, or rather b% !ormin' an association at the wi o! the aw'i"er, ha"e, then, a "er% de!inite end and #ur#ose. 5&hus it is,5 sa%s ,ousseau, 5that the Hebrews and more recent % the Arabs, had re i'ion as their #rinci#a ob.ect< the Athenians, etters< 3artha'e and &%re, commerce< ,hodes, shi##in'< 2#arta, war< and ,ome, ci"ic "irtue.5 1.AE >hat wi be the nationa ob.ecti"e that wi #ersuade us French to abandon the iso ation o! the state o! nature in order to !orm a new societ%K =r rather (!or we are on % inert matter, the raw materia !or the machine), toward what end sha our 'reat aw'i"er direct usK


1.A8 Accordin' to the ideas o! ,ousseau, it cou d hard % be toward etters, commerce, or shi##in'. >ar is a nob er 'oa , and ci"ic "irtue is nob er sti . Let there is one 'oa abo"e a others, one which 5shou d be the end and #ur#ose o! a s%stems o! e'is ation, and that is ibert% and eCua it%.5 1.AF But we must (now what ,ousseau meant b% ibert%. &o en.o% ibert%, accordin' to him, is not to be !ree, but to cast our "ote, e"en in case we shou d be 5swe#t a on' without "io ence and #ersuaded without bein' con"inced, !or then we obe% with ibert% and bear doci e % the %o(e o! #ub ic !e icit%.5 1.E0 5Amon' the 0ree(s,5 he said, 5a that the #o#u ace had to do it did !or itse !< the #eo# e were constant % assemb ed in the mar(et # ace, their c imate was mi d, the% were not a"aricious, s a"es did a their wor(, and their 'reat concern was their ibert%.5 1.E1 5&he En' ish #eo# e,5 he sa%s e sewhere, 5be ie"e that the% are !ree. &he% are "er% much mista(en. &he% are !ree on % whi e the% are e ectin' their members o! #ar iament. =nce the% ha"e e ected them, the% are s a"es, the% are nothin'.5 1.E8 &he #eo# e, then, must do !or themse "es e"er%thin' that re ates to the #ub ic ser"ice i! the% are to be !ree, !or it is in this that ibert% consists. &he% must be constant % carr%in' on e ections, constant % in the mar(et # ace. >oe to them i! the% thin( o! wor(in' !or their i"e ihoodJ &he instant a sin' e citi1en decides to ta(e care o! his own a!!airs, that "er% instant (to use a !a"orite #hrase o! ,ousseau) e"er%thin' is ost. 1.E9 But sure % this is no minor di!!icu t%. >hat is to be doneK For, ob"ious %, in order to #ractice "irtue, e"en to en.o% the ri'ht to ibert%, we must !irst sta% a i"e. 1.E$ >e ha"e a read% noted the rhetorica "erbia'e that ,ousseau uses to concea the word 5im#osture.5 Bow we see him resort to ! i'hts o! orator% to ' oss o"er the o'ica conc usion o! his who e wor(, which is s a"er%. 1.E5 5Lour harsh c imate im#oses s#ecia wants. For si? months in the %ear %our mar(et # ace cannot be !reCuented, %our muted ton'ues cannot ma(e themse "es heard in the o#en air, and %ou !ear s a"er% ess than #o"ert%. 1.EA 5&ru % %ou see that %ou cannot be !ree.


1.EE 5>hatJ )ibert% can be #reser"ed on % i! su##orted b% s a"er%K /erha#s.5 1.E8 7! ,ousseau had ended with this horrib e word, the reader wou d ha"e been re"o ted. ,ecourse to im#ressi"e dec amation is in order. ,ousseau res#onds nob %. 1.EF 5E"er%thin' that is unnatura Hhe is s#ea(in' o! societ%I has its incon"eniences, and ci"i societ% e"en more than an%thin' e se. &here are un!ortunate situations in which one man;s ibert% can be #reser"ed on % at the e?#ense o! another;s, and where the citi1en can be #er!ect % !ree on % on condition that the s a"e be ab.ect % a s a"e. Lou nations o! the modern wor d ha"e no s a"es, but %ou %ourse "es are s a"es< %ou #urchase their !reedom at the #rice o! %our own..... 7 am unmo"ed b% the nob e moti"es %ou attribute to %our choice< 7 !ind %ou more coward % than humane.5 1.80 4oes not this sim# % mean: +odern nations, %ou wou d do better not to be s a"es %ourse "es but, instead, to own s a"esK 1.81 7 be' the reader to !or'i"e this on' di'ression, which, 7 trust, has not been without "a ue. For some time we ha"e had ,ousseau and his disci# es o! the 3on"entionG88 he d u# to us as the a#ost es o! the doctrine o! the brotherhood o! man. +en as the raw materia , the #rince as the o#erator o! a machine, the !oundin' !ather as the desi'ner, the #hi oso#her hi'h and mi'ht% abo"e them a , !raud as the means, and s a"er% as the end-is this the brotherhood o! man that was #romisedK 1.88 7t a so seemed to me that this ana %sis o! the 2ocia 3ontract was use!u in showin' what characteri1es arti!icia socia orders. 2tart with the idea that societ% is contrar% to Bature< de"ise contri"ances to which humanit% can be sub.ected< ose si'ht o! the !act that humanit% has its moti"e !orce within itse !< consider men as base raw materia s< #ro#ose to im#art to them mo"ement and wi , !ee in' and i!e< set onese ! u# a#art, immeasurab % abo"e the human race-these are the common #ractices o! the socia # anners. &he # ans di!!er< the # anners are a a i(e. 1.89 Amon' the new arran'ements that #oor wea( morta s are in"ited to consider, there is one that is #resented in terms worth% o! our attention. 7ts !ormu a is: #ro'ressi"e and "o untar% association. 1.8$ But #o itica econom% is based on this "er% assum#tion, that societ% is #ure % an association o! the (ind described in the !ore'oin' !ormu a< a "er% im#er!ect association,

98 to be sure, because man is im#er!ect, but ca#ab e o! im#ro"ement as man himse ! im#ro"es< in other words, #ro'ressi"e. 7s it a Cuestion o! a c oser association amon' abor, ca#ita , and ta ent, which shou d resu t in more wea th !or the human !ami % and its better distributionK /ro"ided the association remains "o untar%, that !orce and constraint do not inter"ene, that the #arties to the association do not #ro#ose to ma(e others who re!use to enter !oot the bi , in what wa% are these associations contrar% to the idea o! #o itica econom%K 7s not #o itica econom%, as a science, committed to the e?amination o! the "arious !orms under which men see !it to .oin their !orces and to a##ortion their tas(s, with a "iew to 'reater and more wide % di!!used #ros#erit%K 4oes not the business wor d !reCuent % !urnish us with e?am# es o! two, three, !our #ersons !ormin' such associationsK 7t not the mta%a'e,G89 !or a its im#er!ections, a (ind o! association o! ca#ita and aborK Ha"e we not recent % seen stoc( com#anies !ormed that #ermit e"en the sma est in"estors to #artici#ate in the ar'est enter#risesK Are there not in our countr% some !actories that ha"e estab ished #ro!it-sharin' associations !or their wor(ersK 4oes #o itica econom% condemn these e!!orts o! men to recei"e a better return !or their aborK 4oes it dec are an%where that man(ind has 'one as !ar as it canK Quite the contrar%, !or 7 am con"inced that no science #ro"es more c ear % that societ% is in its in!anc%. 1.85 But, whate"er ho#es we ma% entertain !or the !uture, whate"er ideas we ma% ha"e o! the !orms man ma% disco"er !or the im#ro"ement o! his re ations with his !e ow man, !or the more eCuitab e distribution o! wea th, and !or the dissemination o! (now ed'e and mora it%, we must nonethe ess reco'ni1e that the socia order is com#osed o! e ements that are endowed with inte i'ence, mora it%, !ree wi , and #er!ectibi it%. 7! %ou de#ri"e them o! ibert%, %ou ha"e nothin' e!t but a crude and sorr% #iece o! machiner%. 1.8A )ibert%J &oda%, a##arent %, we are no on'er interested. 7n this and o! ours, this France, where !ashion rei'ns as Cueen, ibert% seems to ha"e 'one out o! st% e. Let, !or m%se !, 7 sa%: >hoe"er re.ects ibert% has no !aith in man(ind. ,ecent %, it is a e'ed, the distressin' disco"er% has been made that ibert% eads ine"itab % to mono#o %.GG9 Bo, this monstrous in(in', this unnatura .oinin' to'ether o! !reedom and mono#o % is none?istent< it is a !i'ment o! the ima'ination that the c ear i'ht o! #o itica econom% Cuic( % dissi#ates. )ibert% be'ets mono#o %J =##ression is born o! !reedomJ But, ma(e no mista(e about it, to a!!irm this is to a!!irm that man;s tendencies are inherent % e"i , e"i in their nature, e"i in their essence< it is to a!!irm that his natura bent is toward his deterioration and that his mind is attracted irresistib % toward error. >hat 'ood, then, are our schoo s, our stud%, our research, our discussions, e?ce#t to add momentum to our descent down the !ata s o#e< since, !or man, to earn to choose is to earn to commit suicideK And i! man;s tendencies are #er"erse, where wi the socia # anners see( to # ace their !u crumK Accordin' to their #remises, it wi ha"e to be outside o! humanit%. >i the% see( it within themse "es, in their own inte i'ence, in their own heartsK But the% are not %et 'ods: the% too are men and hence, a on' with a humanit%, careenin' down toward the !ata ab%ss. >i the% ca u#on the state to inter"eneK But the state is com#osed o! men< and we shou d ha"e to #ro"e that the men who !orm the state constitute a c ass a#art, to whom the 'enera aws o! societ% are not a## icab e, since the%

9F are ca ed u#on to ma(e the aws. 6n ess this be #ro"ed, the !acin' o! the di emma is not e"en #ost#oned. 1.8E )et us not thus condemn man(ind unti we ha"e studied its aws, !orces, ener'ies, and tendencies. Bewton, a!ter he had disco"ered the aw o! 'ra"it%, ne"er s#o(e the name o! 0od without unco"erin' his head. As !ar as inte ect is abo"e matter, so !ar is the socia wor d abo"e the #h%sica uni"erse that Bewton re"ered< !or the ce estia mechanism is unaware o! the aws it obe%s. How much more reason, then, do we ha"e to bow be!ore the Eterna >isdom as we contem# ate the mechanism o! the socia wor d in which the uni"ersa mind o! 0od a so resides (mens a'itat mo em),G8$ but with the di!!erence that the socia wor d #resents an additiona and stu#endous #henomenon: its e"er% atom is an animate, thin(in' bein' endowed with that mar"e ous ener'%, that source o! a mora it%, o! a di'nit%, o! a #ro'ress, that e?c usi"e attribute o! man-!reedomJ 1.88 3ha#ter 8 >ants, E!!orts, 2atis!actionsGG$ >hat a #ro!ound % a##a in' s#ectac e France #resentsJ 7t wou d be di!!icu t to sa% whether anarch% has #assed !rom a theor% to a !act or !rom a !act to a theor%, but it is certain that it has s#read e"er%where. 8.1 &he #oor ha"e risen a'ainst the rich< the #ro etariat a'ainst the ca#ita ists< a'ricu ture a'ainst industr%< the countr% a'ainst the cit%< the #ro"inces a'ainst the ca#ita < the nati"eborn a'ainst the !orei'ners. 8.8 And now the theorists who see( to bui d a s%stem out o! a this di"ision and con! ict ste# !orward. 57t is the ine"itab e resu t,5 the% sa%, 5o! the nature o! thin's, that is, o! !reedom. +an is #ossessed o! se !- o"e, and this is the cause o! a the e"i < !or, since he is #ossessed o! se !- o"e, he stri"es !or his own we -bein' and can !ind it on % at the e?#ense o! his brothers; mis!ortune. )et us, then, #re"ent him !rom !o owin' his im#u ses< et us sti! e ibert%< et us chan'e the human heart< et us !ind another moti"atin' !orce to re# ace the one that 0od 'a"e him< et us in"ent an arti!icia societ% and direct it as it shou d 'oJ5 8.9 >hen the theorist reaches this #oint, he sees an end ess "ista arisin' to cha en'e his o'ic or his ima'ination. 7! his mind runs to dia ectics and his tem#erament to me ancho %, he de"otes himse ! who % to the ana %sis o! e"i < he dissects it, he #uts it in the test tube, he #robes it, he 'oes bac( to its "er% be'innin's, he !o ows it !orward to its u timate conseCuences< and since, in "iew o! our innate im#er!ection, there is nothin' in which

$0 e"i is not #resent, there is nothin' at which he !ai s to car# bitter %. He #resents on % one side o! the Cuestion when he e?amines #ro#ert%, the !ami %, ca#ita , industr%, com#etition, !reedom, se !-interest-the dama'in' and destructi"e side. He reduces human bio o'%, so to s#ea(, to a c inica #ost-mortem. He de!ies 0od to reconci e what has been said o! His in!inite 'oodness with the e?istence o! e"i . He de!i es e"er%thin', he ma(es e"er%thin' distaste!u , he denies e"er%thin'< ne"erthe ess, he does succeed in winnin' a certain su en and dan'erous !o owin' amon' those c asses whose su!!erin' has made them on % too "u nerab e to des#air. 8.$ 7!, on the other hand, our theorist has a heart o#en to bene"o ence and a mind that de i'hts in i usions, he ta(es o!! !or the ha##% and o! dreams. He dreams o! =ceanas, At antises, 2a entes, 2#ensones, 7carias, 6to#ias, and /ha ansteries<G85 he #eo# es them with doci e, o"in', de"oted bein's who wou d ne"er im#ede the dreamer;s ! i'hts o! !anc%. He com# acent % sets himse ! u# in his ro e o! /ro"idence. He arran'es, he dis#oses, he creates men to his own taste. Bothin' sto#s him< no disa##ointment o"erta(es him. He is i(e the ,oman #reacher who, #retendin' that his sCuare ca# was ,ousseau, re!uted "i'orous % the 2ocia 3ontract and then trium#hant % dec ared that he had reduced his ad"ersar% to si ence. 7n .ust this wa% the re!ormer dan' es be!ore the e%es o! #eo# e in miser% a seducti"e #icture o! idea b iss we !itted to ma(e them ose their taste !or the harsh necessities o! rea i!e. 8.5 But the uto#ian is rare % content to sto# at these innocent dreams. As soon as he tries to win man(ind o"er to them, he disco"ers that #eo# e do not readi % end themse "es to trans!ormation. +en resist< the% 'row bitter. 7n order to win them o"er, he s#ea(s not mere % o! the 'ood thin's that the% are re.ectin'< he s#ea(s es#ecia % o! the e"i s !rom which he #ro#oses to de i"er them. He cannot #aint these too stri(in' %. He 'rows accustomed to increasin' the intensit% o! the co ors on his #a ette. He see(s out the e"i in #resent-da% societ% as #assionate % as another wou d see( out the 'ood. He sees on % su!!erin', ra's, emaciated bodies, star"ation, #ain, o##ression. He is ama1ed, he is e?as#erated, b% the !act that societ% is not su!!icient % aware o! a its miser%. He ne' ects nothin' as he tries to ma(e it sha(e o!! its a#ath%, and, a!ter be'innin' with bene"o ence, he, too, ends with misanthro#%.GG5 8.A 0od !orbid that 7 shou d Cuestion an% man;s sincerit%J But 7 rea % cannot understand how those #o itica theorists who see a !undamenta anta'onism at the !oundation o! the natura order o! societ% can en.o% a moment;s ca m and re#ose. 7t seems to me that discoura'ement and des#air must be their unha##% ot. For i! nature erred in ma(in' se !interest the mains#rin' o! human societ% (and her error is e"ident as soon as we admit that men;s interests are inherent % anta'onistic), how can the% !ai to see that the e"i is be%ond re#airK Bot bein' ab e to 'o be%ond men, !or we are men ourse "es, where sha we !ind a !u crum !or our e"er with which to chan'e human tendenciesK 2ha we ca u#on aw and order, the ma'istrates, the state, the e'is atorK But to do so is to a##ea to

$1 men, that is, to bein's sub.ect to the common in!irmit%. 2ha we resort to uni"ersa su!!ra'eK But this is on % 'i"in' the !reest rein o! a to the uni"ersa tendenc%. 8.E =n % one recourse, then, remains o#en to these socia # anners. &he% must #ass themse "es o!! as the #ossessors o! a s#ecia re"e ation, as #ro#hets, mo ded !rom a di!!erent c a%, drawin' their ins#iration !rom a di!!erent source !rom that o! the rest o! man(ind< and this is doubt ess the reason that we o!ten see them en"e o#in' their s%stems and their admonitions in m%stica #hraseo o'%. But i! the% are sent !rom 0od, et them #ro"e their hi'h ca in'. 7n the ast ana %sis, what the% desire is su#reme authorit%, the most abso ute, des#otic #ower that e"er e?isted. &he% not on % desire to contro our actions< the% e"en 'o so !ar as to #ro#ose to a ter the "er% nature o! our !ee in's. &he east that can be as(ed is that the% show their credentia s. 4o the% e?#ect that humanit% wi ta(e them at their word, es#ecia % when the% can come to no a'reement amon' themse "esK 8.8 But, be!ore we e?amine their b ue#rints !or arti!icia societies, is there not somethin' we shou d ma(e sure o!, name %: Are the% not on the wron' trac( !rom the "er% outsetK 7s it, indeed, certain that men;s interests are inherent % anta'onistic, that ineCua it% de"e o#s ine"itab % and irremediab % in the natura order o! human societ%, under the in! uence o! se !-interest, and that 0od, there!ore, was ob"ious % wron' when He to d man to #ursue his own ha##inessK 8.F &his is what 7 #ro#ose to in"esti'ate. 8.10 &a(in' man as 0od saw !it to ma(e him, ca#ab e o! antici#atin' the !uture and o! earnin' !rom the #ast, hence #er!ectib e, 'i"en to se !- o"e admitted %, but (ind % dis#osed toward others and in"ariab % Cuic( to res#ond to their (ind % a!!ections, 7 see( to earn what socia order necessari % resu ts !rom the combination o! these e ements i! their !ree # a% is not inter!ered with. 8.11 7! we !ind that the resu tin' order eads #ro'ressi"e % toward the 'enera we !are, im#ro"ement and eCua it%< toward the #h%sica , inte ectua , and mora e"e in' o! a c asses, and that this e"e is constant % raised< then 0od;s wa%s wi be "indicated. >e sha earn to our .o% that there are no 'a#s in the creation, and that the socia order, i(e a the others, bears witness to the e?istence o! the harmonious aws be!ore which Bewton bowed in re"erence, and which mo"ed the #sa mist to cr% out: 3oe i enarrant ' oriam 4ei.G8A 8.18 ,ousseau said: 57! 7 were a #rince or a aw'i"er, 7 shou d not waste m% time sa%in' what must be done< 7 shou d do it, or ho d m% ton'ue.5G8E


8.19 7 am not a #rince, but the con!idence o! m% !e ow citi1ens in me has made me a aw'i"er.G88 /erha#s the% wi te me that it is time !or me to act and not to write. 8.1$ 7 as( their #ardon. >hether it is the truth itse ! that ur'es me on, or whether 7 am the "ictim o! an i usion, the !act remains that 7 !ee the need o! #uttin' to'ether into a sin' e "o ume ideas !or which, to date, 7 ha"e !ai ed to win acce#tance because 7 ha"e #resented them se#arate %, as scattered !ra'ments. 7t seems to me that 7 #ercei"e in the inter# a% o! the natura aws o! societ% sub ime and reassurin' harmonies. >hat 7 see, or thin( 7 see, must 7 not tr% to show to others, in order to ra % to'ether around an idea o! #eace and brotherhood men whose minds ha"e been mis ed, whose hearts ha"e become embitteredK 7!, when our be o"ed shi# o! state is tossed b% the storm, 7 a##ear sometimes to withdraw, in order to 'et m% bearin's, !rom the #ost to which 7 ha"e been ca ed, the reason is that m% !eeb e hands are una"ai in' at the he m. And besides, am 7 betra%in' m% trust when 7 re! ect on the causes o! the storm and stri"e to act accordin' %K And who (nows whether it wou d be 'ranted to me to do tomorrow what 7 shou d !ai to do toda%K 8.15 7 sha be'in b% settin' down a !ew 'enera ideas about economics. 6sin' the wor(s o! m% #redecessors, 7 sha tr% to sum u# the science o! #o itica econom% in a sin' e, sim# e, true, and constructi"e #rinci# e, one that #o itica economists !rom the "er% be'innin' ha"e been dim % aware o! and ha"e come c oser and c oser to com#rehendin'. /erha#s the time has now come to 'i"e it e?#ression in a de!initi"e !ormu a. &hen, in the i'ht o! this c ear (now ed'e, 7 sha tr% to reso "e a !ew o! the #rob ems sti contro"ersia , such as com#etition, the ro e o! the machine, !orei'n trade, u?ur%, ca#ita , income !rom in"estments, etc. 7 sha #oint out some o! the re ationshi#s, or rather, the harmonies, that e?ist between #o itica econom% and the other mora and socia sciences, with a ' ance at the im#ortant to#ics desi'nated b% the words 5se !-interest,5 5#ro#ert%,5 5#ub ic ownershi#,5 5 ibert%,5 5eCua it%,5 5res#onsibi it%,5 5so idarit%,5 5brotherhood,5 5unit%.5 Fina %, 7 sha ca the reader;s attention to the arti!icia obstac es that beset the #eace!u , order %, and #ro'ressi"e de"e o#ment o! human societ%. From these two ideas -natura , harmonious aws, on the one hand, and arti!icia , disru#ti"e e ements on the other-wi be deduced the so ution o! the socia #rob em. 8.1A 7t wou d be di!!icu t to !ai to see the #it!a s that threaten this underta(in' !rom two sides. 7n the midst o! the hurricane that is swee#in' us a on', i! our boo( is too abstruse, it wi not be read< i! it succeeds in winnin' readers, it wi be because the Cuestions it #oses ha"e been touched u#on on % i'ht %. How can we reconci e scienti!ic inte'rit% with the demands o! the readerK &o satis!% a the reCuirements o! !orm and content, we shou d ha"e to wei'h each word and stud% its conte?t. 7t is thus that the cr%sta is !ormed dro# b% dro# in si ence and obscurit%. 2i ence, retirement, time, #eace o! mind-7 ha"e none o! these: and 7 am com#e ed to a##ea to the 'ood sense o! the #ub ic and to be' its indu 'ence.


-------------------------------------------------------------------------------8.1E &he sub.ect o! #o itica econom% is man. 8.18 But it does not embrace the who e man. ,e i'ious sentiment, #aterna and materna a!!ection, !i ia de"otion, o"e, !riendshi#, #atriotism, charit%, #o iteness-these be on' to the mora rea m, which embraces a the a##ea in' re'ions o! human s%m#ath%, ea"in' !or the sister science o! #o itica econom% on % the co d domain o! se !-interest. &his !act is un!air % !or'otten when we re#roach #o itica econom% with ac(in' the charm and 'race o! mora #hi oso#h%. How cou d it be otherwiseK )et us cha en'e the ri'ht o! #o itica econom% to e?ist as a science, but et us not !orce it to #retend to be what it is not. 7! human transactions whose ob.ect is wea th are "ast enou'h and com# icated enou'h to constitute a s#ecia science, et us 'rant it its own s#ecia a##ea , and not reduce it to ta (in' o! se !-interest in the an'ua'e o! sentiment. 7 am #ersona % con"inced that recent % we ha"e done it no ser"ice b% demandin' !rom it a tone o! enthusiastic sentimenta it% that !rom its i#s can sound on % i(e ho ow dec amation. >hat does it dea withK >ith transactions carried on between #eo# e who do not (now each other, who owe each other nothin' be%ond sim# e .ustice, who are de!endin' and see(in' to ad"ance their own se !-interest. 7t dea s with c aims that are restricted and imited b% other c aims, where se !-sacri!ice and unse !ish dedication ha"e no # ace. &a(e u# the #oet;s %re, then, to s#ea( o! these thin's. 7 wou d as soon see )amartineG8F consu t a tab e o! o'arithms to sin' his odes.GGA 8.1F &his is not to sa% that #o itica econom% does not ha"e its own s#ecia #oetr%. >hene"er there is order and harmon%, there is #oetr%. But it is to be !ound in the resu ts, not in the demonstrations. 7t is re"ea ed< it is not created b% the demonstrator. Oe# er did not set himse ! u# as a #oet< %et certain % the aws he disco"ered are the true #oetr% o! the mind. 8.80 &hus, #o itica econom% re'ards man !rom one side on %, and our !irst concern must be to stud% him !rom this #oint o! "iew. For this reason we cannot a"oid 'oin' bac( to the #rimar% #henomena o! human sensation and acti"it%. )et me reassure the reader, howe"er. =ur sta% in the c oud% re'ions o! meta#h%sics wi not be a on' one, and we sha borrow !rom this science on % a !ew sim# e, c ear, and, i! #ossib e, incontestab e ideas. 8.81

$$ &he sou (or, not to become in"o "ed in s#iritua Cuestions, man) is endowed with the !acu t% o! sense #erce#tion. >hether sense #erce#tion resides in the bod% or in the sou , the !act remains that as a #assi"e bein' he e?#eriences sensations that are #ain!u or # easurab e. As an acti"e bein' he stri"es to banish the !ormer and mu ti# % the atter. &he resu t, which a!!ects him a'ain as a #assi"e bein', can be ca ed satis!action. 8.88 From the 'enera idea o! sensation come the more de!inite ideas o! #ain, wants, desires, tastes, a##etites, on the one hand< and, on the other, o! # easure, en.o%ment, !u !i ment, and we -bein'. 8.89 Between these e?tremes is inter#osed a mean, and !rom the 'enera idea o! acti"it% come the more de!inite ideas o! #ain, e!!ort, !ati'ue, abor, and #roduction. 8.8$ An ana %sis o! sensation and acti"it% shows one word common to both domains, the word #ain. 7t is #ain!u to e?#erience certain sensations, and we can sto# them on % b% an e!!ort that we ca ta(in' #ains. &hus, we are a##rised that here be ow we ha"e itt e e se than the choice o! two e"i s. 8.85 E"er%thin' in this com# e? o! #henomena is on the #ersona e"e , the sensation that #recedes the e!!ort as we as the satis!action that !o ows it. 8.8A >e cannot doubt that se !-interest is the mains#rin' o! human nature. 7t must be c ear % understood that this word is used here to desi'nate a uni"ersa , incontestab e !act, resu tin' !rom the nature o! man, and not an ad"erse .ud'ment, as wou d be the word se !ishness. &he mora sciences wou d be im#ossib e i! we #er"erted at the outset the terms that the sub.ect demands. 8.8E Human e!!ort does not a wa%s and ine"itab % inter"ene between sensation and satis!action. 2ometimes satis!action is obtained b% itse !. +ore o!ten e!!ort is e?erted on materia ob.ects, throu'h the a'enc% o! !orces that Bature has without cost # aced at man;s dis#osa . 8.88 7! we 'i"e the name o! uti it% to e"er%thin' that e!!ects the satis!action o! wants, then there are two (inds o! uti it%. =ne (ind is 'i"en us b% /ro"idence without cost to ourse "es< the other (ind insists, so to s#ea(, on bein' #urchased throu'h e!!ort. 8.8F &hus, the com# ete c%c e embraces, or can embrace, these !our ideas:

$5 >ant 0ratuitous 6ti it% =nerous 6ti it% 2atis!action

8.90 +an is endowed with a !acu t% !or im#ro"ement. He com#ares, he oo(s ahead, he earns, he #ro!its b% e?#erience. 7! want is a #ain, and e!!ort too entai s #ains, there is no reason !or him not to see( to reduce the #ains o! the e!!ort i! he can do so without im#airin' the satis!action that is its 'oa . &his is what he accom# ishes when he succeeds in re# acin' onerous uti it% b% 'ratuitous uti it%, which is the constant ob.ect o! his search. 8.91 =ur se !-interest is such that we constant % see( to increase the sum o! our satis!actions in re ation to our e!!orts< and our inte i'ence is such-in the cases where our attem#t is success!u -that we reach our 'oa throu'h increasin' the amount o! 'ratuitous uti it% in re ation to onerous uti it%. 8.98 E"er% time #ro'ress o! this t%#e is achie"ed, a #art o! our e!!orts is !reed to be # aced on the a"ai ab e ist, so to s#ea(< and we ha"e the o#tion either o! en.o%in' more rest or o! wor(in' !or the satis!action o! new desires i! these are (een enou'h to stir us to action. 8.99 2uch is the source o! a #ro'ress in the economic order. 7t is a so, as we easi % com#rehend, the source o! a misca cu ations, !or #ro'ress and misca cu ation both ha"e their roots in that mar"e ous and s#ecia 'i!t that 0od has bestowed u#on man: !ree wi . 8.9$ >e are endowed with the !acu t% o! com#arin', o! .ud'in', o! choosin', and o! actin' accordin' %. &his im# ies that we can arri"e at a 'ood or a bad .ud'ment, ma(e a 'ood or a bad choice-a !act that it is ne"er id e to remind men o! when we s#ea( to them o! ibert%. 8.95 >e are not, to be sure, mista(en about our own sensations, and we discern with an in!a ib e instinct whether the% are #ain!u or # easurab e. But how man% di!!erent !orms our errors o! .ud'ment can ta(eJ >e can mista(e the cause and #ursue ea'er %, as somethin' sure to 'i"e us # easure, what can 'i"e us on % #ain< or we can !ai to see the re ation o! cause and e!!ect and be unaware that an immediate # easure wi be !o owed u timate % b% 'reater #ain< or a'ain, we can be mista(en as to the re ati"e im#ortance o! our wants and our desires. 8.9A

$A >e can 'i"e a wron' direction to our e!!orts not on % throu'h i'norance, but a so throu'h the #er"ersit% o! our wi . 5+an,5 said de Bona d,G90 is an inte ect ser"ed b% bodi % or'ans.5 7ndeedJ 4o we ha"e nothin' e seK 4o we not ha"e #assionsK 8.9E >hen we s#ea(, then, o! harmon%, we do not mean that the natura arran'ement o! the socia wor d is such that error and "ice ha"e been e?c uded. &o ad"ance such a thesis in the !ace o! the !acts wou d be carr%in' the o"e o! s%stem to the #oint o! madness. For this harmon% to be without an% discordant note, man wou d ha"e to be without !ree wi , or e se in!a ib e. >e sa% on % this: +an;s #rinci#a socia tendencies are harmonious in that, as e"er% error eads to disi usionment and e"er% "ice to #unishment, the discords tend constant % to disa##ear.

-------------------------------------------------------------------------------8.98 A !irst and "a'ue notion o! the nature o! #ro#ert% can be deduced !rom these #remises. 2ince it is the indi"idua who e?#eriences the sensation, the desire, the want< since it is the indi"idua who e?erts the e!!ort< the satis!actions a so must ha"e their end in him, !or otherwise the e!!ort wou d be meanin' ess. 8.9F &he same ho ds true o! inheritance. Bo theor%, no ! i'hts o! orator% can succeed in (ee#in' !athers !rom o"in' their chi dren. &he #eo# e who de i'ht in settin' u# ima'inar% societies ma% consider this re'rettab e, but it is a !act. A !ather wi e?#end as much e!!ort, #erha#s more, !or his chi dren;s satis!actions as !or his own. 7!, then, a new aw contrar% to Bature shou d !orbid the beCuest o! #ri"ate #ro#ert%, it wou d not on % in itse ! do "io ence to the ri'hts o! #ri"ate #ro#ert%, but it wou d a so #re"ent the creation o! new #ri"ate #ro#ert% b% #ara %1in' a !u ha ! o! human e!!ort. 8.$0 2e !-interest, #ri"ate #ro#ert%, inheritance-we sha ha"e occasion to come bac( to these to#ics. )et us !irst, howe"er, tr% to estab ish the imits o! the science with which we are concerned. 8.$1 7 am not one o! those who be ie"e that a science has inherent % its own natura and immutab e boundaries. 7n the rea m o! ideas, as in the rea m o! materia ob.ects, e"er%thin' is in(ed to'ether, e"er%thin' is connected< a truths mer'e into one another, and e"er% science, to be com# ete, must embrace a others. 7t has been we said that !or an in!inite inte i'ence there wou d be on % one sin' e truth. 7t is on % our human !rai t%,

$E there!ore, that reduces us to stud% a certain order o! #henomena as thou'h iso ated, and the resu tin' c assi!ications cannot a"oid a certain arbitrariness. 8.$8 &he true merit consists in the e?act e?#osition o! the !acts, their causes and their e!!ects. &here is a so merit, but a #ure % minor and re ati"e one, in determinin', not ri'orous %, which is im#ossib e, but rationa %, the t%#e o! !acts to be considered. 8.$9 7 sa% this so that it ma% not be su##osed that 7 wish to critici1e m% #redecessors i! 7 ha##en to 'i"e to #o itica econom% somewhat di!!erent imits !rom those that the% ha"e assi'ned to it. 8.$$ 7n recent %ears economists ha"e !reCuent % been re#roached !or too 'reat a #reoccu#ation with the Cuestion o! wea th. 7t has been !e t that the% shou d ha"e inc uded as #art o! #o itica econom% e"er%thin' that contributes, direct % or indirect %, to human ha##iness or su!!erin'< and it has e"en been a e'ed that the% denied the e?istence o! e"er%thin' that the% did not discuss, !or e?am# e, the mani!estations o! a truism, as natura to the heart o! man as se !-interest. &his is i(e accusin' the minera o'ist o! den%in' the e?istence o! the anima (in'dom. 7s not wea th-i.e., the aws o! its #roduction, distribution, and consum#tion-su!!icient % "ast and im#ortant a sub.ect to constitute a s#ecia !ie d o! scienceK 7! the conc usions o! the economist were in contradiction to those in the !ie ds o! 'o"ernment or ethics, 7 cou d understand the accusation. >e cou d sa% to him, 5B% imitin' %ourse !, %ou ha"e ost %our wa%, !or it is not #ossib e !or two truths to be in con! ict.5 /erha#s one resu t o! the wor( that 7 am submittin' to the #ub ic ma% be that the science o! wea th wi be seen to be in #er!ect harmon% with a the other sciences. 8.$5 =! the three terms that encom#ass the human condition-sensation, e!!ort, satis!actionthe !irst and the ast are a wa%s, and ine"itab %, mer'ed in the same indi"idua . 7t is im#ossib e to thin( o! them as se#arated. >e can concei"e o! a sensation that is not satis!ied, a want that is not !u !i ed, but ne"er can we concei"e o! a want !e t b% one man and its satis!action e?#erienced b% another. 8.$A 7! the same he d true o! the midd e term, e!!ort, man wou d be a com# ete % so itar% creature. &he economic #henomenon wou d occur in its entiret% within an iso ated indi"idua . &here cou d be a .u?ta#osition o! #ersons< there cou d not be a societ%. &here cou d be a #ersona econom%< there cou d not be a #o itica econom%. 8.$E But such is not the case. 7t is Cuite #ossib e, and indeed it !reCuent % ha##ens, that one #erson;s want owes its satis!action to another #erson;s e!!ort. &he !act is that i! we thin( o! a the satis!actions that come to us, we sha a reco'ni1e that we deri"e most o! them

$8 !rom e!!orts we ha"e not made< and i(ewise, that the abor that we #er!orm, each in our own ca in', a most a wa%s 'oes to satis!% desires that are not ours. 8.$8 &hus, we rea i1e that it is not in wants or in satis!actions, which are essentia % #ersona and intransmissib e #henomena, but in the nature o! the midd e term, human e!!ort, that we must see( the socia #rinci# e, the ori'in o! #o itica econom%. 7t is, in !act, #recise % this !acu t% o! wor(in' !or one another, which is 'i"en to man(ind and on % to man(ind, this trans!er o! e!!orts, this e?chan'e o! ser"ices, with a the in!inite % com# icated combinations o! which it is susce#tib e in time and s#ace, that constitutes the science o! economics, demonstrates its ori'ins, and determines its imits. 8.$F 7 there!ore sa%: /o itica econom% has as its s#ecia !ie d a those e!!orts o! men that are ca#ab e o! satis!%in', sub.ect to ser"ices in return, the wants o! #ersons other than the one ma(in' the e!!ort, and, conseCuent %, those wants and satis!actions that are re ated to e!!orts o! this (ind. 8.50 &hus, to cite an e?am# e, the act o! breathin', a thou'h containin' the three e ements that ma(e u# the economic #henomenon, does not be on' to the science o! economics, and the reason is a##arent: we are concerned here with a set o! !acts in which not on % the two e?tremes-want and satis!action-are nontrans!erab e (as the% a wa%s are), but the midd e e ement, e!!ort, as we . >e as( no one;s he # in order to breathe< no 'i"in' or recei"in' is in"o "ed. B% its "er% nature it is an indi"idua act and a nonsocia one, which cannot be inc uded in a science that, as its "er% name im# ies, dea s entire % with interre ations. 8.51 But et s#ecia circumstances arise that reCuire men to he # one another to breathe, as when a wor(man 'oes down in a di"in' be , or a doctor o#erates a #u motor, or the #o ice ta(e ste#s to #uri!% the air< then we ha"e a want satis!ied b% a #erson other than the one e?#eriencin' it, we ha"e a ser"ice rendered, and breathin' itse !, at east on the score o! assistance and remuneration, comes within the sco#e o! #o itica econom%. 8.58 7t is not necessar% that the transaction be actua % com# eted. /ro"ided on % a transaction is #ossib e, the abor in"o "ed becomes economic in character. &he !armer who raises wheat !or his own use #er!orms an economic act in that the wheat is e?chan'eab e. 8.59 &o ma(e an e!!ort in order to satis!% another #erson;s want is to #er!orm a ser"ice !or him. 7! a ser"ice is sti#u ated in return, there is an e?chan'e o! ser"ices< and, since this is the most common situation, #o itica econom% ma% be de!ined as the theor% o! e?chan'e. 8.5$

$F Howe"er (een ma% be the want o! one o! the contractin' #arties, howe"er 'reat the e!!ort o! the other, i! the e?chan'e is !ree % made, the two ser"ices are o! eCua "a ue. @a ue, then, consists in the com#arati"e estimation o! reci#roca ser"ices, and #o itica econom% ma% a so be de!ined as the theor% o! "a ue. 8.55 7 ha"e .ust de!ined #o itica econom% and mar(ed out the area it co"ers, without mentionin' one essentia e ement: 'ratuitous uti it%, or uti it% without e!!ort. 8.5A A authors ha"e commented on the !act that we deri"e count ess satis!actions !rom this source. &he% ha"e termed these uti ities, such as air, water, sun i'ht, etc., natura wea th, in contrast to socia wea th, and then dismissed them< and, in !act, since the% ead to no e!!ort, no e?chan'e, no ser"ice, and, bein' without "a ue, !i'ure in no in"entor%, it wou d seem that the% shou d not be inc uded within the sco#e o! #o itica econom%. 8.5E &his e?c usion wou d be o'ica i! 'ratuitous uti it% were a !i?ed, in"ariab e Cuantit% a wa%s distinct !rom onerous uti it%, that is, uti it% created b% e!!ort< but the two are constant % intermin' ed and in in"erse ratio. +an stri"es cease ess % to substitute the one !or the other, that is, to obtain, with the he # o! natura and 'ratuitous uti ities, the same resu ts with ess e!!ort. He ma(es wind, 'ra"it%, heat, 'as do !or him what ori'ina % he accom# ished on % b% the stren'th o! his own musc es. 8.58 Bow, what ha##ensK A thou'h the resu t is the same, the e!!ort is ess. )ess e!!ort im# ies ess ser"ice, and ess ser"ice im# ies ess "a ue. A #ro'ress, there!ore, destro%s some de'ree o! "a ue, but howK Bot at a b% im#airin' the use!u ness o! the resu t, but b% substitutin' 'ratuitous uti it% !or onerous uti it%, natura wea th !or socia wea th. From one #oint o! "iew, the #art o! "a ue thus destro%ed no on'er be on's in the !ie d o! #o itica econom%, since it does not !i'ure in our in"entories< !or it can no on'er be e?chan'ed, i.e., bou'ht or so d, and humanit% en.o%s it without e!!ort, a most without bein' aware o! it. 7t can no on'er be counted as re ati"e wea th< it ta(es its # ace amon' the b essin's o! 0od. But, on the other hand, #o itica econom% wou d certain % be in error in not ta(in' account o! it. &o !ai to do so wou d be to ose si'ht o! the essentia , the main consideration o! a : the !ina outcome, the use!u resu t< it wou d be to misunderstand the stron'est !orces wor(in' !or sharin' in common and eCua it%< it wou d be to see e"er%thin' in the socia order e?ce#t the e?istin' harmon%. 7! this boo( is destined to ad"ance #o itica econom% a sin' e ste#, it wi be throu'h (ee#in' constant % be!ore the reader;s e%es that #art o! "a ue which is successi"e % destro%ed and then rec aimed in the !orm o! 'ratuitous uti it% !or a humanit%. 8.5F 7 sha here ma(e an obser"ation that wi #ro"e how much the "arious sciences o"er a# and how c ose the% are to mer'in' into one.

50 8.A0 7 ha"e .ust de!ined ser"ice. 7t is e!!ort on the #art o! one man, whereas the want and the satis!action are another;s. 2ometimes the ser"ice is rendered 'ratis, without #a%ment, without an% ser"ice e?acted in return. 7t s#rin's !rom a truism rather than !rom se !interest. 7t constitutes a 'i!t and not an e?chan'e. 3onseCuent %, it seems to be on', not to #o itica econom% (which is the theor% o! e?chan'e), but to mora #hi oso#h%. 7n !act, acts o! this nature are, because o! their moti"ation, mora rather than economic #henomena. Be"erthe ess, we sha see that, b% reason o! their resu ts, the% #ertain to the science with which we are here concerned. =n the other hand, ser"ices rendered in return !or e!!ort, reCuirin' #a%ment, and, !or this reason, essentia % economic, do not on that account remain, in their resu ts, outside the rea m o! ethics. 8.A1 Accordin' %, these two !ie ds o! (now ed'e ha"e count ess #oints in common< and, since two truths cannot be contradictor%, when the economist "iews with a arm a #henomenon that the mora ist hai s as bene!icia , we can be sure that one or the other is wron'. &hus do the "arious sciences ho d one another to the #ath o! truth. 8.A8

3ha#ter 9 +an;s >ants 7t is #erha#s im#ossib e and, in an% case, not "er% use!u to #resent a com# ete and methodica cata o'ue o! a o! man;s wants. A most a those o! rea im#ortance are inc uded in the !o owin' ist: 9.1 Breathin' (7 (ee# this want here as mar(in' the abso ute imit where the trans!er o! abor or the e?chan'e o! ser"ices be'ins), !ood, c othin', housin', the #reser"ation or reco"er% o! hea th, trans#ortation, securit%, education, amusement, en.o%ment o! the beauti!u . 9.8 >ants e?ist. &his is a !act. 7t wou d be chi dish to inCuire whether it wou d be better i! the% did not e?ist and wh% 0od has made us sub.ect to them. 9.9 7t is certain that man su!!ers and e"en dies when he cannot satis!% the wants that it is his nature as a human bein' to !ee . 7t is certain that he su!!ers and can die when he satis!ies certain o! them o"ermuch. 9.$

51 >e can satis!% most o! our wants on % b% ta(in' #ains, which can themse "es be considered su!!erin'. &he same is true o! the act b% which, e?ercisin' a nob e restraint o"er our a##etites, we de#ri"e ourse "es o! somethin'. 9.5 &hus, su!!erin' is una"oidab e, and we ha"e itt e more than a choice o! e"i s. Furthermore, su!!erin' is the most #ersona , intimate thin' in the wor d< conseCuent %, se !-interest, the im#u se that toda% is branded as se !ish and indi"idua istic, is indestructib e. Bature has # aced !ee in' at the ends o! our ner"es, at a the a##roaches to our hearts and our minds, i(e an out#ost, to warn us where there is a ac( or an e?cess o! satis!action. /ain, then, has a #ur#ose, a mission. 7t has o!ten been as(ed i! the e?istence o! e"i can be reconci ed with the in!inite 'oodness o! the 3reator-an awesome #rob em that #hi oso#h% wi a wa%s 'ra## e with and wi #robab % ne"er so "e. As !ar as #o itica econom% is concerned, man must be ta(en as he is, inasmuch as it has not been "ouchsa!ed to the ima'ination to #icture-and to reason e"en ess to concei"e o!-an animate and morta bein' e?em#t !rom #ain. A our e!!orts to understand !ee in' without #ain or man without !ee in' wou d be "ain. 9.A &oda%, some sentimenta ist schoo s re.ect as !a se an% socia science that has not succeeded in de"isin' a s%stem b% means o! which #ain wi disa##ear !rom the wor d. &he% #ass a harsh .ud'ment on #o itica econom% because it reco'ni1es what cannot be denied: the e?istence o! su!!erin'. &he% 'o !urther< the% ho d #o itica econom% res#onsib e !or it. &his is i(e attributin' the !rai t% o! our or'ans to the #h%sio o'ist who studies them. 9.E =! course, a man can ma(e himse ! momentari % #o#u ar, can attract to himse ! men who are su!!erin', and can arouse them a'ainst the natura order o! societ% b% te in' them that he has in mind a # an !or the arti!icia arran'ement o! societ% that wi e?c ude #ain in an% !orm. He can e"en sa% that he has sto en 0od;s secret and has inter#reted His su##osed wi b% banishin' e"i !rom the !ace o! the earth. And %et the sentimenta ist schoo s ca irre"erent the science that re!uses to ma(e such c aims, accusin' it o! misunderstandin' or den%in' the !oresi'ht or omni#otence o! the Author o! a thin'sJ 9.8 At the same time, these schoo s #aint a !ri'htenin' #icture o! #resent-da% societ%, and the% do not #ercei"e that, i! it is irre"erent to #redict su!!erin' !or the !uture, it is no ess irre"erent to note its e?istence in the #ast or in the #resent. For the 7n!inite admits o! no imits< and i!, since 3reation, e"en one man has su!!ered in this wor d, that is reason enou'h to admit, without irre"erence, that #ain has entered into the # an o! /ro"idence. 9.F 7t is certain % more scienti!ic and more man % to reco'ni1e the e?istence o! the 'reat !acts o! Bature, which not on % do e?ist, but without which man(ind cou d not be ima'ined.

58 9.10 &hus, man is sub.ect to su!!erin', and, conseCuent %, societ% is a so. 9.11 2u!!erin' has a ro e to # a% in the i!e o! the indi"idua and, conseCuent %, in that o! societ% as we . 9.18 &he stud% o! the natura aws o! societ% wi re"ea that the ro e o! su!!erin' is 'radua % to destro% its own causes, to restrict itse ! to narrower and narrower imits, and, !ina %, to 'uarantee us, b% ma(in' us earn and deser"e it, a #re#onderance o! the 'ood and the beauti!u o"er the e"i . 9.19 &he cata o'ue #resented abo"e #uts materia needs !irst. 9.1$ >e i"e in times that !orce me to warn the reader once a'ain a'ainst the sentimenta a!!ectation so "er% much in "o'ue. 9.15 &here are #eo# e who ho d "er% chea# what the% disdain!u % ca materia needs, materia satis!actions. &he% wi doubt ess sa% to me, as B ise sa%s to 3hr%sa e: 7s the bod%, this ra', o! su!!icient im#ortance, =! su!!icient worth, that we shou d 'i"e it the s i'htest heedKG91 9.1A And these #eo# e, thou'h 'enera % we #ro"ided !or in e"er% res#ect (on which 7 sincere % con'ratu ate them), wi b ame me !or ha"in' isted !ood, !or e?am# e, as comin' !irst. 9.1E 3ertain % 7 reco'ni1e that mora im#ro"ement be on's to a hi'her order o! thin's than the #reser"ation o! the bod%. But, a!ter a , are we so beset b% this mania !or cant and a!!ectation that we are no on'er #ermitted to sa% that in order to attain mora im#ro"ement we must (ee# sou and bod% to'etherK )et us a"oid these chi dish attitudes, which stand in the wa% o! science. B% tr%in' to #ass ourse "es o!! as #hi anthro#ic, we cease to be truth!u < !or it is contrar% to o'ic and to the !acts that mora #ro'ress, the concern !or #ersona di'nit%, the cu ti"ation o! re!ined sentiments shou d ha"e #riorit% o"er the sim# e needs o! #reser"in' the bod%. &his t%#e o! #ruder% is Cuite recent. ,ousseau, that enthusiastic #ane'%rist o! the state o! nature, did not indu 'e in it< and a man endowed with e?Cuisite de icac%, with a##ea in' 'ent eness o! heart, with a s#iritua it% that ed him to embrace Cuietism, and witha a stoic in his own mode o! i!e, Fne on, said, 57n the !ina ana %sis, soundness o! mind consists in see(in' to earn how

59 those thin's are done that are the basis o! human i!e. A the matters o! 'reat im#ortance turn u#on them.5G98 9.18 >ithout #ro!essin', then, to c assi!% human wants in a ri'orous % methodica order, we ma% sa% that man cannot direct his e!!orts toward the satis!action o! his hi'hest and nob est mora wants unti he has #ro"ided !or those that concern the #reser"ation o! his i!e. Hence, we can a read% conc ude that an% e'is ati"e measure that ma(es materia i!e di!!icu t is harm!u to the mora i!e o! nations, a harmon% that 7 ca to the reader;s attention in #assin'. 9.1F And, since the o##ortunit% has arisen, 7 sha #oint out another one. 9.80 2ince the ine?orab e necessities o! materia i!e are an obstac e to mora and inte ectua de"e o#ment, it !o ows that more "irtue wi be !ound in the more a!! uent nations and c asses. 0ood Hea"ensJ >hat ha"e 7 said, and what an u#roar assai s m% earsJ &oda% there is a "eritab e mania !or attributin' to the #oorer c asses a mono#o % o! a the de"otion, a the se !-sacri!ice, a the nob e Cua ities that constitute in man mora 'randeur and beaut%< and this mania has recent % s#read !urther under the in! uence o! a re"o utionG99 that, b% brin'in' these c asses to the sur!ace o! societ%, has not !ai ed to raise u# about them a horde o! adu ators. 9.81 7 do not den% that wea th, and es#ecia % o#u ence, #articu ar % when un.ust % distributed, tends to de"e o# certain s#ecia "ices. 9.88 But is it #ossib e to admit as a 'enera #ro#osition that "irtue is the #ri"i e'e o! the #o"ert%-stric(en, and that "ice is the un o"e % and un!ai in' com#anion o! the we -to-doK &his wou d be to a!!irm that mora and inte ectua de"e o#ment, which is com#atib e on % with a certain de'ree o! eisure and com!ort, wor(s to the detriment o! inte i'ence and mora it%. 9.89 And 7 a##ea to the honest .ud'ment o! the un!ortunate c asses themse "es. &o what horrib e discords wou d such a #arado? not eadK 9.8$ >e shou d there!ore ha"e to sa% that humanit% is !aced with the terrib e a ternati"es o! either remainin' eterna % #o"ert%-stric(en or o! mo"in' toward e"er increasin' immora it%. 7n accordance with this o'ic, a the !orces that ead to wea th, such as enter#rise, thri!t, order iness, s(i , honest%, are the seeds o! "ice< whereas those that ho d us bac( in #o"ert%, i(e im#ro"idence, id eness, dissi#ation, ne' i'ence, are the #recious buds o! "irtue. 3ou d a more discoura'in' discord be ima'ined in the mora wor dK And

5$ i! such were the case, who wou d dare s#ea( to the #eo# e or #ro!!er an% ad"iceK Lou com# ain o! %our su!!erin's, we shou d ha"e to sa%, and %ou are an?ious to see them end. Lou 'roan under the %o(e o! the most #ressin' materia wants, and %ou on' !or the hour o! de i"erance< !or %ou, too, desire a measure o! eisure to de"e o# %our inte ectua and emotiona ca#acities. For this reason %ou see( to ma(e %our "oice heard in the #o itica arena and to #rotect %our interests. But earn the nature o! what %ou desire, and rea i1e that the 'rantin' o! %our wishes wou d be !ata to %ou. 2o "enc%, eas% circumstances, wea th en'ender "ice. 3 in' o"in' %, then, to %our #o"ert% and %our "irtue. 9.85 &he ! atterers o! the #eo# e thus !a into an ob"ious contradiction when the% #oint to wea th as a "i e cess#oo o! se !ishness and "ice, and at the same time ur'e the #eo# eand o!ten, in their haste, b% the most i e'a o! means-toward that re'ion which the% consider so abominab e. 9.8A Bo, such discord is not to be !ound in the natura order o! societ%. 7t is not #ossib e that a men shou d as#ire to i"e in com!ortab e circumstances, that the natura wa% to attain it shou d be throu'h the e?ercise o! the strictest "irtue, and that on reachin' it, the% shou d, ne"erthe ess, !a a'ain under the %o(e o! "ice. 2uch rantin's are !it on % to (ind e and (ee# a i"e the !ires o! c ass hatred. >ere the% true, the% wou d 'i"e humanit% on % the choice between dire #o"ert% and immora it%. Bein' !a se, the% ma(e ies ser"e the cause o! disorder, and, b% their deceit, set a'ainst each other c asses that shou d mutua % o"e and assist each other. 9.8E Les, unnatura ineCua it%, ineCua it% that the aw creates b% disturbin' the natura and order % de"e o#ment o! the "arious c asses o! societ%, is, !or a , a #ro i!ic source o! resentments, .ea ousies, and "ices. For this reason we must ma(e sure whether or not this natura order eads to the #ro'ressi"e eCua i1ation and im#ro"ement o! a c asses< and we shou d be sto##ed short in this stud% b% what is (nown in aw as a #erem#tor% e?ce#tion i! this two!o d materia #ro'ress ine"itab % entai ed a two!o d mora deterioration. 9.88 =n the sub.ect o! human wants 7 ha"e an obser"ation to ma(e that is im#ortant, e"en !undamenta , !or #o itica econom%: the% are not a !i?ed, immutab e Cuantit%. B% nature the% are not static, but #ro'ressi"e. 9.8F &his characteristic is to be noted e"en in the most materia o! our wants< it becomes more mar(ed as we ad"ance to those inte ectua tastes and %earnin's that distin'uish man !rom beast. 9.90 7t wou d seem that, i! there is an% one thin' in which men must resemb e one another, it is in their need !or !ood< !or, e?ce#t !or abnorma ities, a stomachs are about the same.

55 Be"erthe ess, !oods that wou d ha"e been a de icac% in one era ha"e become coarse !are !or another, and the diet which suits a a11arone wou d cause a 4utchman an'uish. &hus, this want, the most immediate, the most e ementa , and, conseCuent %, the most uni!orm o! a , sti "aries accordin' to a'e, se?, tem#erament, c imate, and habit. 9.91 &he same is true o! a other wants. Hard % has man 'ot himse ! a she ter when he wants a house< hard % has he c othed himse ! when he wants adornment< hard % has he satis!ied the needs o! his bod% when stud%, (now ed'e, art o#en to his desires a new and end ess "ista. 9.98 7t is Cuite worth whi e to note the s#eed with which, throu'h continued satis!action, what was on % a "a'ue desire becomes a taste, and what was on % a taste becomes a want and e"en a want that wi not be denied. 9.99 &a(e, !or e?am# e, a rou'h and industrious artisan. Accustomed to coarse !are, humb e c othin', mediocre od'in', he thin(s that he wou d be the ha##iest o! men, that he wou d want nothin' more, i! he cou d mount to the run' o! the adder that he sees immediate % abo"e him. He is ama1ed that those who ha"e 'ot there are sti tormentin' themse "es. )et the modest !ortune he has dreamed o! come his wa%, and he is ha##%< ha##%-a asJ !or a !ew da%s. 9.9$ For soon he becomes !ami iar with his new #osition, and itt e b% itt e he ceases to be aware o! his on'ed-!or 'ood !ortune. He dons with indi!!erence the 'arment he had once co"eted. He has created a new en"ironment !or himse !, he associates with di!!erent #eo# e, !rom time to time he touches his i#s to a di!!erent 'ob et, he as#ires to c imb another run'< and, i! he wi but oo( into his own heart, he wi be we aware that, i! his !ortune has chan'ed, his sou has remained what it was, an ine?haustib e we o! desires. 9.95 7t wou d a##ear that Bature has 'i"en habit this #ecu iar #ower in order that it shou d be in us what the ratchet whee is in mechanics, and that humanit%, e"er ur'ed on toward hi'her and hi'her re'ions, shou d ne"er sto# at an% e"e o! ci"i i1ation. 9.9A &he sense o! one;s own worth acts, #erha#s, e"en more #ower!u % in the same direction. &he 2toic #hi oso#her has o!ten b amed man !or wantin' to a##ear rather than to be. But, i! he ta(e a broader "iew o! thin's, is it Cuite certain that a##earin' is not !or man(ind one o! the !orms o! bein'K 9.9E >hen, throu'h industr%, order iness, and thri!t, a !ami % rises ste# b% ste# toward those socia re'ions where tastes are more and more re!ined, re ations more #o ite, sentiments

5A more de icate, minds more cu ti"ated, who does not (now the #oi'nant 'rie! that accom#anies a re"ersa o! !ortuneK 7n that case it is not the bod% a one that su!!ers. &he descent brea(s habits that ha"e become, as we sa%, second nature< it im#airs the sense o! one;s own worth and with it a the !acu ties o! the sou . &here!ore, it is not unusua , in such cases, to see the "ictim 'i"e wa% to des#air and !a at once into a state o! brutish de'radation. As with the air we breathe, so with the socia mi ieu. &he mountaineer, accustomed to his #ure air, soon wastes awa% in the narrow streets o! our cities. 9.98 7 hear a "oice cr%in': Economist, a read% %ou !a ter. Lou had announced that %our science was in harmon% with ethics, and here %ou are .usti!%in' s%barite u?ur%. 9.9F /hi oso#her, 7 sha sa% in m% turn, di"est %ourse ! o! those 'arments %ou wear, which were ne"er those o! #rimiti"e man, brea( %our !urniture, burn %our boo(s, !eed %ourse ! on the raw meat o! anima s, and 7 sha re# % to %our ob.ection. 7t is too eas% to cha en'e the !orce o! habit whi e readi % consentin' to be the i"in' #roo! o! what it can do. 9.$0 7t is #ossib e to critici1e this inc ination that Bature has 'i"en the or'ans o! our bod%, but criticism wi not #re"ent it !rom bein' uni"ersa . >e note its #resence amon' a #eo# es, ancient and modern, sa"a'e and ci"i i1ed, in the anti#odes as in France. >ithout it, it is im#ossib e to account !or ci"i i1ation. Bow, when an inc ination o! the human heart is uni"ersa and indestructib e, has socia science the ri'ht not to ta(e it into accountK 9.$1 =b.ection wi be raised b% the #o itica theorists who c aim the honor o! bein' disci# es o! ,ousseau. But ,ousseau ne"er denied the #henomenon o! which 7 s#ea(. He comments #ositi"e % on the e asticit% o! our wants, on the !orce o! habit, and e"en on the ro e that 7 assi'n to it o! #re"entin' humanit% !rom ta(in' an% bac(ward ste#. But what 7 admire, he de# ores, and it cou d not be otherwise. ,ousseau con.ectures that there was a time when men had neither ri'hts nor duties nor contacts with other men nor a!!ections nor an'ua'e, and that was the time when the% were ha##% and #er!ect. He cou d not !ai to abhor, there!ore, the com# icated socia machiner% that is cease ess % mo"in' man(ind awa% !rom its ear ier #er!ection. &hose who be ie"e, on the contrar%, that #er!ection is to be !ound, not at the be'innin', but at the end, o! the e"o utionar% c%c e, mar"e at the dri"in' !orce that im#e s us !orward. But in re'ard to the e?istence o! this dri"in' !orce and the wa% it wor(s, we are in a'reement. 9.$8 5+en,5 he said, 5en.o%in' much eisure, used it to #rocure !or themse "es "arious t%#es o! commodities un(nown to their !athers, and this was the !irst %o(e that the% unconscious % # aced about their nec(s and the be'innin' o! the woes that the% #re#ared !or their descendants< !or, in addition to the !act that the% thus so!tened their bodies and their minds, these commodities ha"in', throu'h habit, ost near % a their charm, and ha"in' at

5E the same time de'enerated into rea wants, their oss became much more crue than their #ossession had been sweet, and men were miserab e at osin' them without e"er bein' ha##% at #ossessin' them.5G9$ 9.$9 ,ousseau was con"inced that 0od, nature, and man were wron'. 7 (now that this o#inion sti swa%s man% minds, but mine is not one o! them. 9.$$ A!ter a , 0od !orbid that 7 shou d attac( man;s nob est #ortion, his !airest "irtue, dominion o"er himse !, contro o"er his #assions, moderation in his desires, scorn o! ostentatious u?ur%J 7 do not sa% that he shou d et himse ! become the s a"e o! an% arti!icia want. 7 do sa% that, 'enera % s#ea(in', his wants, such as both his #h%sica and his immateria nature ma(es them, combined with !orce o! habit and his sense o! his own worth, are ca#ab e o! bein' inde!inite % mu ti# ied, because the% stem !rom an ine?haustib e source-desire. >ho wi censure a man mere % because he is wea th%, i! he is sober, restrained in his dress, not 'i"en to ostentation and so!t i"in'K But are there not o!tier desires that he is #ermitted to 'rati!%K Are there an% imits to his on'in' !or (now ed'eK Are his e!!orts to ser"e his countr%, to encoura'e the arts, to disseminate "a uab e in!ormation, to aid his ess !ortunate brethren, in an% wa% incom#atib e with the #ro#er use o! wea thK 9.$5 Furthermore, whether or not the #hi oso#her a##ro"es, human wants are not a !i?ed and unchan'eab e Cuantit%. &his is a !act, certain, not to be 'ainsaid, uni"ersa . 7n no cate'or%, whether !ood, od'in', or education, were the wants o! the !ourteenth centur% as 'reat as ours, and we ma% we #redict that ours do not eCua those to which our descendants wi become accustomed. 9.$A &his is an obser"ation that ho ds 'ood !or a the e ements that ha"e a # ace in #o itica econom%: wea th, abor, "a ue, ser"ices, etc., a o! which share the e?treme "ariabi it% o! their source, man. /o itica econom% does not ha"e, i(e 'eometr% or #h%sics, the ad"anta'e o! s#ecu atin' about ob.ects that can be wei'hed or measured< and this is one o! its initia di!!icu ties and, subseCuent %, a #er#etua source o! error< !or, when the human mind a## ies itse ! to a certain order o! #henomena, it is natura % dis#osed to see( a criterion, a common measure to which it ma% re!er e"er%thin', in order to 'i"e to the #articu ar !ie d o! (now ed'e the character o! an e?act science. &hus, we note that most authors see( !i?it%, some in "a ue, others in mone%, another in 'rain, sti another in abor, that is to sa%, in measures e?hibitin' the "er% ! uctuation the% see( to a"oid. 9.$E +an% economic errors are due to the !act that human wants are considered as a !i?ed Cuantit%< and !or that reason 7 ha"e !e t ob i'ed to en ar'e on this sub.ect. At the ris( o! antici#atin' what 7 sha sa% ater 7 sha now describe brie! % this mode o! reasonin'. A the chie! satis!actions o! the a'e in which one ha##ens to i"e are ta(en into account, and

58 it is #resumed that humanit% admits o! no others. &hen, i! the bount% o! Bature or the #roducti"it% o! machiner% or habits o! tem#erance and moderation resu t !or a time in renderin' id e a certain #art o! human abor, this #ro'ress is "iewed with a arm, it is considered a disaster, and the theorists ta(e re!u'e behind absurd but # ausib e !ormu as, i(e: >e are su!!erin' !rom o"er#roduction< we are d%in' o! a sur!eit< #roduction has outstri##ed consumer bu%in' #ower, etc. 9.$8 7t is im#ossib e to !ind a 'ood so ution to the #rob em o! the machine, !orei'n com#etition, and u?ur%, as on' as wants are considered as an in"ariab e Cuantit%, or their ca#acit% !or inde!inite mu ti# ication is not ta(en into account. 9.$F But i! man;s wants are not !i?ed Cuantities, but #ro'ressi"e, ca#ab e o! 'rowth i(e the ine?haustib e desires on which the% constant % !eed, we must conc ude, 'rantin' that a ba ance between the means and the end is the !irst aw o! a harmon%, that Bature has # aced in man and about him un imited and constant % increasin' means o! satis!action. &his is what we sha now e?amine.

-------------------------------------------------------------------------------9.50 7 said, at the be'innin' o! this wor(, that #o itica econom% has !or its sub.ect man, considered !rom the #oint o! "iew o! his wants and the means whereb% he is ab e to satis!% them. 9.51 7t is thus natura to ha"e be'un b% stud%in' man and his nature. 9.58 But we ha"e a so seen that he is not a so itar% bein'. 7! his wants and his satis!actions-in "irtue o! the nature o! his senses-are inse#arab e !rom his bein', the same is not true o! his e!!orts, which are #art o! his d%namic constitution. &hese are trans!erab e. 7n a word, men wor( !or one another. 9.59 Bow a "er% stran'e thin' ha##ens. 9.5$ >hen we consider man !rom a 'enera and, so to s#ea(, abstract #oint o! "iew-his wants, his e!!orts, his satis!actions, his constitution, his inc inations, his tendencies-we arri"e at a series o! obser"ations that seem c ear be%ond a doubt and stri(in' % se !-

5F e"ident, !or each one o! us !inds their #roo! within himse !. 2o ob"ious and common# ace are these truths that the writer !ears the #ub ic;s derision i! he #resents them. He !ee s, with some reason, that he can see the an'r% reader throwin' awa% the boo( and cr%in' out, 57 wi not waste m% time earnin' an%thin' so tri"ia .5 9.55 Be"erthe ess, these truths, he d to be so incontestab e-as on' as the% are #resented in a 'enera wa%-that we can hard % bear to be reminded o! them, are no on'er re'arded as an%thin' but ridicu ous errors, absurd theories, as soon as we "iew man in his socia surroundin's. >ho, contem# atin' man in his iso ated state, wou d e"er thin( o! sa%in': >e ha"e o"er#roduction< consum#tion cannot (ee# #ace with #roduction< u?ur% and arti!icia tastes are the source o! wea th< mechanica in"entions destro% abor< and other a#horisms o! the same im#ort, which, when a## ied to the mass o! man(ind, are ne"erthe ess acce#ted as so a?iomatic that the% are made the !oundation o! our industria and commercia awsK E?chan'e #roduces in this res#ect an i usion ca#ab e o! be'ui in' e"en the best minds, and 7 a!!irm that #o itica econom% wi ha"e 'ained its ob.ecti"e and !u !i ed its mission when it has conc usi"e % #ro"ed this !act: >hat ho ds true !or one man ho ds true !or societ%. +an in a state o! iso ation is at once #roducer and consumer, in"entor and entre#reneur, ca#ita ist and wor(er< a the economic #henomena are #er!ormed in him, and he is, as it were, a societ% in miniature. 7n the same wa%, humanit%, "iewed in its tota it%, is i(e a sin' e man, immense, com#osite, man%-sided, to whom are a## icab e e?act % the same truths obser"ab e in a sin' e indi"idua . 9.5A 7 !e t the need to ma(e this remar(, which, 7 ho#e, wi be better .usti!ied ater, be!ore continuin' m% studies on man. Had 7 not made it, 7 shou d ha"e !eared that the reader wou d re.ect as su#er! uous the deductions, the "eritab e truisms, that are to !o ow. 9.5E 7 ha"e .ust s#o(en o! man;s wants, and, a!ter an a##ro?imate enumeration o! them, 7 ha"e obser"ed that the% are not static, but #ro'ressi"e. &his is true whether the% are considered b% themse "es a one or inc uded a to'ether in the #h%sica , inte ectua , or mora order. How cou d it be otherwiseK &here are certain wants o! our bodies that must be satis!ied, or we die< and, u# to a certain #oint, we cou d maintain that these wants are !i?ed Cuantities, thou'h this statement is not strict % accurate. For, howe"er itt e we ma% desire to o"er oo( an essentia e ement-the !orce o! habit-and to condescend to sub.ect ourse "es to honest se !-e?amination, we are constrained to admit that our wants, e"en the most e ementa , i(e eatin', are unCuestionab % modi!ied b% habit. An%one who wou d ta(e e?ce#tion to this remar(, as smac(in' o! materia ism or e#icureanism, wou d be most unha##% i! we too( him at his word and reduced him to the b ac( broth o! the 2#artans or to the #ittance o! an anchorite. But, in an% case, when these wants are satis!ied once and !or a , there are others that s#rin' !rom the most e astic o! a our !acu ties-desire. 3an we ima'ine a moment in man;s i!e when he is inca#ab e o! new desires, e"en reasonab e desiresK )et us not !or'et that a desire that is unreasonab e at a certain #oint in ci"i i1ation, when a human resources are absorbed in the satis!action o! esser desires, ceases to be unreasonab e when the im#ro"ement o! these resources has

A0 c eared the wa%. &hus, a desire to 'o thirt% mi es an hour wou d ha"e been unreasonab e two centuries a'o but is not so toda%. &o assert that the wants and desires o! man are !i?ed and static Cuantities is to misunderstand the nature o! the sou , to den% the !acts, to ma(e ci"i i1ation ine?# icab e. 9.58 7t wou d be sti more ine?# icab e i! the un imited !ormation o! new wants were not accom#anied b% the #otentia % un imited de"e o#ment o! new means to satis!% them. As !ar as #ro'ress is concerned, what 'ood wou d the inde!inite % e astic nature o! our wants do us i!, at a certain de!inite #oint, our !acu ties cou d ad"ance no !urther, i! the% encountered an immo"ab e barrierK &here!ore, un ess Bature, /ro"idence, or whate"er ma% be the #ower that ru es our !ate, has !a en into the most crue and shoc(in' contradiction, we must #resume, since our desires are without imit, that our means o! satis!%in' them are i(ewise without imit. 9.5F 7 sa% 5without imit,5 and not 5in!inite,5 !or nothin' that re ates to man is in!inite. Because our desires and our !acu ties 'o on de"e o#in' end ess %, the% ha"e no assi'nab e imits, a thou'h the% do ha"e abso ute imits. >e can mention count ess #oints abo"e and be%ond humanit% that humanit% can ne"er reach, %et we cannot !or that reason determine an e?act instant when #ro'ress toward them wi come to a ha t.GGE 9.A0 7 do not mean that desire and the means o! satis!%in' it (ee# #ace with one another. 4esire runs ahead, whi e the means im#s a on' behind. &he nature o! our desire, so Cuic( and ad"enturous com#ared with the s owness o! our !acu ties, reminds us that at e"er% ste# o! ci"i i1ation, on e"er% run' o! the adder o! #ro'ress, a certain de'ree o! su!!erin' is and a wa%s wi be man;s ot. But it teaches us a so that su!!erin' has a mission, since it wou d be im#ossib e to com#rehend the ro e o! desire as a 'oad to our !acu ties i! it a''ed behind them, instead o! rushin' a on' ahead, as it does. Let et us not accuse Bature o! crue t% !or ha"in' bui t this mechanism, !or it is to be noted that desire does not become a rea want, that is, a #ain!u desire, un ess habit has turned it into a #ermanent satis!action< in other words, un ess the means o! 'rati!%in' it has been disco"ered and # aced #ermanent % and irre"ocab % within our reach.GG8 9.A1 >e must now consider this Cuestion: >hat means are a"ai ab e to us to satis!% our wantsK 9.A8 7t seems c ear to me that there are two: Bature and abor, the 'i!ts o! 0od and the !ruits o! our e!!orts, or, i! %ou wi , the a## ication o! our !acu ties to the thin's that Bature has # aced at our dis#osa . 9.A9

A1 Bo schoo o! thou'ht, as !ar as 7 (now, has attributed to Bature a one the satis!action o! our wants. 2uch an assertion is ob"ious % re!uted b% e?#erience, and we do not ha"e to stud% #o itica econom% to #ercei"e that the inter"ention o! our !acu ties is necessar%. 9.A$ But there are schoo s that ha"e attributed this distinction to abor a one. &heir a?iom is: A wea th comes !rom abor< abor is wea th. 9.A5 7 cannot re!rain !rom obser"in' here that these !ormu as, ta(en itera %, ha"e ed to 'ross errors o! #rinci# e and, conseCuent %, to de# orab e e'is ati"e measures. 7 sha s#ea( o! this sub.ect e sewhere. 9.AA 7 con!ine m%se ! here to maintainin' that, in #oint o! !act, Bature and abor !unction to'ether !or the satis!action o! our wants and our desires. 9.AE )et us oo( at the !acts. 9.A8 &he !irst want, which we ha"e # aced at the head o! our ist, is that o! breathin'. =n this score we ha"e a read% noted that, 'enera %, Bature !oots the who e bi , and that human abor inter"enes on % in certain e?ce#tiona cases as, !or e?am# e, when it is necessar% to #uri!% the air. 9.AF &he want o! Cuenchin' our thirst is satis!ied b% Bature, to a 'reater or esser de'ree, accordin' to the a"ai abi it% and Cua it% o! the water #ro"ided< and the ro e o! abor is to com#ensate b% we s and cisterns !or Bature;s de!iciencies. 9.E0 Bature is no more uni!orm % ibera toward us in the matter o! !ood< !or who wi sa% that the amount o! abor we must #er!orm is a wa%s the same whether the and is !erti e or barren, the !orest !i ed with 'ame, the ri"er with !ish, or the contrar% is the caseK 9.E1 As !or i'htin', there is certain % ess !or human abor to do in # aces where the ni'ht is short than where it has # eased the sun to run a brie!er course. 9.E8 7 dare not state this as an abso ute ru e, but it seems to me that as we rise on the sca e o! our wants, Bature;s co-o#eration diminishes, and more is e!t to our own !acu ties. &he #ainter, the scu #tor, e"en the writer, are !orced to use materia s and instruments that Bature a one !urnishes< but we must admit that the% must draw u#on their own 'enius !or the Cua ities that ma(e !or the charm, the merit, the use!u ness, and the "a ue o! their

A8 wor(s. )earnin' is a want that is satis!ied a most entire % b% the use o! our inte ectua !acu ties. Be"erthe ess, cou d we not sa% that here too Bature aids us b% o!!erin' to us, in di!!erent de'rees, ob.ects !or obser"ation and com#arisonK For an eCua amount o! wor( can an eCua amount o! #ro'ress in botan%, 'eo o'%, or bio o'% be made e"er%where in the wor dK 9.E9 7t wou d be su#er! uous to cite other e?am# es. >e can a read% state as a !act that Bature 'i"es us means o! satis!action that ha"e 'reater or esser de'rees o! uti it%. (&his word is used in its et%mo o'ica sense, i.e., the #ro#ert% o! renderin' a ser"ice.) 7n man% cases, in a most e"er% case, somethin' remains !or abor to do be!ore this uti it% is com# ete< and we reco'ni1e that this contribution b% abor wi be 'reater or ess, in each indi"idua case, in accordance with the e?tent to which Bature herse ! has !urthered the o#eration. 9.E$ >e can there!ore a% down these two !ormu as: 1. 6ti it% is transmitted sometimes b% Bature, sometimes b% abor a one, a most a wa%s b% the con.unction o! Bature and abor. 8. &o brin' a thin' to its com# ete state o! uti it%, the contribution o! abor is in in"erse ratio to the contribution o! Bature. 9.E5 From these two #ro#ositions, combined with what we ha"e said about the inde!inite e asticit% o! our wants, a ow me to draw a conc usion whose im#ortance wi be demonstrated ater. 7! we ima'ine two men without means o! mutua communication # aced in uneCua situations, with Bature 'enerous to one and #arsimonious to the other, the !irst one wi ob"ious % ha"e ess wor( to do !or each 'i"en satis!action. 4oes it !o ow that that #art o! his ener'ies thus e!t, so to s#ea(, a"ai ab e, wi necessari % be stric(en with inertia, and that this man, because o! Bature;s ibera it%, wi be reduced to en!orced id enessK Bo, what ha##ens is that he wi be ab e, i! he so desires, to em# o% his ener'ies to en ar'e the circ e o! his en.o%ments< that !or an eCua amount o! abor he wi obtain two satis!actions instead o! one< in a word, #ro'ress wi be easier !or him. 9.EA /erha#s 7 am de udin' m%se !, but it does not seem to me that an% science, not e"en 'eometr%, #resents, at its outset, truths more unassai ab e. 7!, ne"erthe ess, someone were to #ro"e to me that a these truths are so man% errors, he wou d ha"e destro%ed in me not on % the con!idence that the% ins#ire, but the bases o! a certaint% and a !aith in e"idence o! an% (ind whatsoe"er, !or what o'ic cou d be more con"incin' than the o'ic that he wou d thus ha"e o"erturnedK =n the da% when an a?iom wi be !ound to contradict the a?iom that a strai'ht ine is the shortest distance between two #oints, the

A9 human mind wi ha"e no other re!u'e than abso ute s(e#ticism, i! that can be ca ed a re!u'e. 9.EE &here!ore, 7 !ee a rea embarrassment in insistin' on #rimar% truths so c ear that the% seem chi dish. Be"erthe ess, 7 must sa%, in the midst o! the com# ications o! human transactions, these truths ha"e been misunderstood< and, to .usti!% m%se ! in the e%es o! the reader !or de a%in' him so on' on what the En' ish ca truisms, 7 sha #oint out the sin'u ar aberration that has mis ed some "er% e?ce ent minds. 2ettin' aside, ne' ectin' entire %, the co-o#eration o! Bature, in re ation to the satis!action o! our wants, the% ha"e aid down this abso ute #rinci# e: A wea th comes !rom abor. =n this #remise the% ha"e constructed the !o owin' s% o'ism: 5A wea th comes !rom abor. 5Hence, wea th is in #ro#ortion to abor. 5But abor is in in"erse ratio to the bount% o! Bature. 5Hence, wea th is in in"erse ratio to the bount% o! Bature.5 9.E8 And, whether we i(e it or not, man% o! our economic aws ha"e been ins#ired b% this sin'u ar o'ic. &hese aws can be on % detrimenta to the creation and distribution o! wea th. For this reason 7 am .usti!ied in settin' down these a##arent % "er% tri"ia truths as a #re iminar% ste# toward re!utin' the errors and de# orab e misconce#tions under which #resent-da% societ% is aborin'. 9.EF )et us now ana %1e this Cuestion o! the contribution o! Bature. 9.80 Bature #uts two thin's at our dis#osa : materia s and !orces. 9.81 +ost materia ob.ects that contribute to the satis!action o! our wants and our desires are brou'ht to the state o! uti it%, which ada#ts them to our use throu'h the inter"ention o! abor, b% the a## ication o! human !acu ties. But, in an% case, the e ements, the atoms, i! %ou wish, o! which these ob.ects are com#osed, are 'i!ts, and 7 add, 'ratuitous 'i!ts, o! Bature. &his obser"ation is o! the 'reatest im#ortance, and, 7 am con"inced, wi shed a new i'ht on the theor% o! wea th. 9.88 7 be' the reader to be 'ood enou'h to remember that 7 am stud%in' here in a 'enera wa% the #h%sica and mora constitution o! man, his wants, his !acu ties, and his re ations with Bature, with the e?ce#tion o! e?chan'e, which 7 sha ta(e u# in the ne?t cha#ter< we sha then see in what areas and in what wa% socia transactions modi!% the #henomena.


9.89 7t is ob"ious that i! man in the state o! iso ation must, so to s#ea(, #urchase most o! his satis!actions b% abor, b% e!!ort, it is strict % accurate to sa% that be!ore an% abor, an% e!!ort, o! his has come into # a%, the materia s he !inds a"ai ab e are the 'ratuitous 'i!ts o! Bature. A!ter the !irst e!!ort, howe"er s i'ht, the% cease to be 'ratuitous< and i! the termino o'% o! #o itica econom% had a wa%s been e?act, the name raw materia s wou d ha"e been reser"ed !or materia ob.ects in this state, #rior to an% human acti"it%. 9.8$ 7 sa% a'ain at this #oint that the 'ratuitousness o! these 'i!ts o! Bature, be!ore the inter"ention o! abor, is o! the hi'hest im#ortance. 7n !act, 7 said in the second cha#ter that #o itica econom% was the theor% o! "a ue. 7 add now, antici#atin', that thin's be'in to ha"e "a ue on % when abor 'i"es it to them. 7 #ro#ose to demonstrate, ater, that a that is 'ratis to man in the state o! iso ation remains 'ratis to man in societ%, and that the 'ratuitous 'i!ts o! Bature, howe"er 'reat their uti it%, ha"e no "a ue. 7 sa% that a man recei"in' direct % and without e!!ort a bene!it !rom Bature cannot be considered as ha"in' rendered himse ! an onerous ser"ice, and that, conseCuent %, he cannot render an% ser"ice to another in re'ard to thin's that are common to a . 2o, when there are no ser"ices rendered or recei"ed, there is no "a ue. 9.85 A that 7 sa% o! materia s a## ies a so to the !orces su## ied us b% Bature. 0ra"itation, "o ati e 'ases, the #ower o! the wind, the aws o! eCui ibrium, # ant and anima i!ethese are so man% !orces that we earn to turn to our ad"anta'e. &he #ains, the menta ener'%, we e?#end to accom# ish this are sub.ect to #a%ment, !or we cannot be reCuired to de"ote our e!!orts 'ratis to another;s ad"anta'e. But these natura !orces, considered in themse "es a one, and without re!erence to an% inte ectua or #h%sica abor, are 'ratuitous 'i!ts !rom /ro"idence< and, as such, remain without "a ue throu'h a the com# ications o! human transactions. 2uch is the centra idea o! this wor(. 9.8A &his obser"ation, 7 admit, wou d ha"e itt e im#ortance i! the co-o#eration o! Bature were entire % uni!orm, i! e"er% man, at a times, in a # aces, under a circumstances, in"ariab % recei"ed e?act % the same assistance !rom Bature. 7n that case science cou d be e?cused !or not ta(in' into account an e ement that, remainin' a wa%s and e"er%where the same, wou d a!!ect the e?chan'e o! ser"ices to the same e?tent in a areas. Must as in 'eometr% the se'ments o! ines common to two !i'ures under com#arison are e iminated, so in #o itica econom% we cou d disre'ard this e"er-#resent co-o#eration and be content to sa%, as has been said unti now: Batura wea th does e?ist< #o itica econom% notes the !act once and !or a and is no on'er concerned with it. 9.8E But this is not the wa% thin's ha##en. &he irresistib e tendenc% o! the human inte ect, stimu ated b% se !-interest and aided b% #re"ious disco"eries, is to substitute the 'ratuitous contribution o! Bature !or the onerous contribution o! man< so that an% 'i"en

A5 uti it%, a thou'h remainin' the same in its resu t, in the satis!action it 'i"es, re#resents a continua % decreasin' amount o! abor. 3ertain % we cannot !ai to see the tremendous in! uence o! this mar"e ous #henomenon on our idea o! "a ue. For what is the resu tK 7n e"er% #roduct the tendenc% is !or 'ratuitous uti it% to re# ace onerous uti it%. 2ince uti it% is the resu t o! two contributions, one reCuirin' #a%ment in terms o! e!!ort, the other not, "a ue that is determined on % b% the !ormer decreases !or an identica amount o! uti it% !rom both sources in #ro#ortion as Bature;s share is made more e!!ecti"e. &hus, we can sa% that humanit% en.o%s 'reater satis!actions, or wea th, in #ro#ortion as "a ue decreases. Bow, since most authors ha"e 'i"en a (ind o! s%non%mous meanin' to the three e?#ressions-5uti it%,5 5wea th,5 5"a ue5-the% ha"e !ormu ated a theor% that is not on % incorrect, but the e?act o##osite o! the truth. 7 sincere % be ie"e that a more e?act descri#tion o! this combination o! natura and human !orces in the wor( o! #roduction or, #uttin' it another wa%, a more accurate de!inition o! "a ue, wi #ut an end to ine?tricab e theoretica con!usions and wi reconci e schoo s o! thou'ht now di"er'ent< and i! 7 antici#ate here some o! the !indin's o! this inCuir%, 7 do so to .usti!% m%se ! to the reader !or dwe in' on notions whose im#ortance wou d otherwise be di!!icu t to a##reciate. 9.88 A!ter this di'ression 7 resume m% stud% o! man considered so e % !rom the economic #oint o! "iew. 9.8F Another obser"ation b% Mean-Ba#tiste 2a%G95 which is ob"ious enou'h, a thou'h too o!ten ne' ected b% other authors, is that man creates neither the materia s nor the !orces o! Bature, i! we understand the word 5create5 in its strict sense. &hese materia s, these !orces, e?ist inde#endent % o! man. +an can on % combine them, mo"e them about !or his own or others; ad"anta'e. 7! he does so !or his own ad"anta'e, he renders a ser"ice to himse !< i! !or the ad"anta'e o! others, he renders a ser"ice to his !e ow men, and it is his ri'ht to e?act an eCui"a ent ser"ice in return. Hence, it !o ows a so that "a ue is in #ro#ortion to the ser"ice rendered, and not at a in #ro#ortion to the abso ute uti it% o! the thin'. For this uti it% can be, in ar'e #art, the resu t o! a 'ratuitous act o! Bature, in which case the human ser"ice, the ser"ice in"o "in' abor and remuneration, is o! itt e "a ue. &his resu ts !rom the a?iom stated abo"e: 7n brin'in' a thin' to the hi'hest de'ree o! uti it%, man;s share in the action is in in"erse ratio to Bature;s. 9.F0 &his obser"ation o"erturns the doctrine that # aces "a ue in the materia it% o! thin's. &he contrar% is true. +ateria it% is a Cua it% that is 'i"en b% Bature and is, there!ore, 'ratuitous, #ossessin' no "a ue, a thou'h o! incontestab e uti it%. Human action, which can ne"er succeed in creatin' matter, a one constitutes the ser"ice that man in a state o! iso ation renders to himse ! or that men in societ% render one another, and it is the !ree a##raisa o! these ser"ices that is the basis o! "a ue. @a ue cannot be thou'ht o! as residin' on % in matter, as Adam 2mith wou d ha"e #ut it< rather, between matter and "a ue there is no #ossib e connection. 9.F1

AA From this erroneous doctrine, ri'orous % adhered to, came the conc usion that those c asses a one are #roducti"e that wor( direct % with matter. 2mith thus #re#ared the wa% !or the error o! the modern socia ists, who a wa%s re#resent as un#roducti"e #arasites those whom the% ca the midd emen between the #roducer and the consumer, such as the businessman, the merchant, etc. 4o the% render ser"icesK 4o the% s#are us #ains b% ta(in' #ains !or usK 7n that case, the% create "a ue, e"en thou'h the% do not create matter. And, indeed, since nobod% creates matter, since we are a imited to renderin' reci#roca ser"ices, it is a to'ether accurate to sa% that a o! us, inc udin' !armers and artisans, are midd emen in our re ations with one another. 9.F8 For the moment, this is what 7 ha"e to sa% about the contribution o! Bature. Bature # aces at our dis#osa , in "ar%in' amounts accordin' to c imate, seasons, and our own de'ree o! en i'htenment, but a wa%s 'ratis, materia s and !orces. &here!ore, these materia s and these !orces do not ha"e "a ue< it wou d be "er% stran'e i! the% did. 7n accordance with what criterion wou d we estimate itK How can we understand Bature bein' #aid, recom#ensed, remuneratedK >e sha see ater that e?chan'e is necessar% to determine "a ue. >e do not bu% Bature;s 'oods< we 'ather them in, and i!, to 'ather them in, an e!!ort o! some sort has to be made, it is in this e!!ort, not in the 'i!t o! Bature, that the "a ue consists. 9.F9 )et us #ass, now, to man;s action, desi'nated in a 'enera wa% under the name o! abor. 9.F$ &he word 5 abor,5 i(e near % a those used in #o itica econom%, is "er% "a'ue< the breadth o! its connotations "aries !rom author to author. /o itica econom% has not had, i(e most sciences-chemistr% !or e?am# e-the ad"anta'e o! bein' ab e to create its own "ocabu ar%. 4ea in' with thin's with which men ha"e been occu#ied since the be'innin' o! the wor d, and which the% ha"e made the habitua sub.ect o! their con"ersation, #o itica economists ha"e !ound their terms read%-made and ha"e been !orced to use them. &he sense o! the word 5 abor5 is !reCuent % restricted to the muscu ar acti"it% o! men wor(in' with materia thin's. &hus, we s#ea( o! the 5wor(in' c asses5 when we mean those who carr% out the mechanica #art o! #roduction. 9.F5 &he reader wi understand that 7 'i"e this a broader sense. B% abor 7 mean the use o! our !acu ties !or the satis!action o! our wants. >ant, e!!ort, satis!action-this is the orbit o! #o itica econom%. E!!ort can be #h%sica , inte ectua , or e"en mora , as we sha see. 9.FA 7t is unnecessar% to demonstrate here that a our #owers, a or near % a our !acu ties, can and in !act do contribute to #roduction. 3oncentration, sa'acit%, inte i'ence, ima'ination ha"e their #art to # a% in it. 9.FE

AE +. 4uno%er, in his admirab e boo( on &he Freedom o! )abor,G9A has inc uded, and with !u scienti!ic accurac%, our mora !acu ties amon' the !actors to which we owe our wea th. &his is a new idea and as stimu atin' as it is sound< it is destined to add sco#e and uster to the !ie d o! #o itica econom%. 9.F8 7 sha dwe on this idea here on % in so !ar as it 'i"es me the o##ortunit% to shed a itt e i'ht on the ori'in o! a #ower!u a'ent o! #roduction about which 7 ha"e not %et s#o(en: ca#ita . 9.FF 7! we e?amine successi"e % the materia ob.ects that ser"e to satis!% our wants, we sha reco'ni1e that a or near % a o! them reCuire !or their #roduction more time, a 'reater #art o! our i"es, than we can e?#end without renewin' our stren'th, that is to sa%, without satis!%in' our wants. Hence, the men who #roduced such thin's were !irst reCuired, #resumab %, to reser"e, to set aside, to accumu ate, their means o! i"e ihood durin' the o#eration. 9.100 &he same is true !or satis!actions o! a nonmateria order. A #riest cou d not de"ote himse ! to his #reachin', a #ro!essor to his teachin', a ma'istrate to the maintenance o! aw and order, un ess b% their own de"ices or with the he # o! others the% had at their dis#osa #re"ious % #roduced means o! subsistence. 9.101 )et us 'o bac( and ima'ine a man in the state o! iso ation reduced to earnin' a i"in' b% huntin'. 7t is eas% to see that i!, e"er% e"enin', he ate a the 'ame he had cau'ht durin' the da%, he wou d ne"er be ab e to underta(e an% other t%#e o! wor(, such as bui din' a hut or re#airin' his wea#ons< a #ro'ress wou d be out o! the Cuestion !or him. 9.108 &his is not the # ace to de!ine the nature and !unction o! ca#ita . +% on % #ur#ose is to show how, e"en i! we do not 'o be%ond mere considerations o! wea th, certain mora "irtues such as order iness, !oresi'ht, se !-contro , thri!t, contribute direct % to the im#ro"ement o! our wa% o! i!e. 9.109 Foresi'ht is one o! man;s nob est #ri"i e'es, and it is hard % necessar% to sa% that, in a most a the circumstances o! i!e, the odds are a in !a"or o! the man who best (nows the conseCuences o! his decisions and his acts. 9.10$ ,estraint o! one;s a##etites, contro o! one;s #assions, acce#tance o! #resent #ri"ation !or the sa(e o! !uture, thou'h distant, 'ain-these are the essentia conditions !or the bui din' u# o! ca#ita < and ca#ita , as we ha"e seen, is itse ! the essentia #rereCuisite !or a underta(in's that are at a com# icated or e?tensi"e. A the e"idence su''ests that i! two

A8 men were # aced in com# ete % identica situations, i! we su##osed them to #ossess the same de'ree o! inte i'ence and initiati"e, the one ma(in' the 'reater #ro'ress wou d be he who, b% storin' u# his resources, wou d be ab e to carr% on on'-ran'e o#erations, im#ro"e his too s, and thus en ist the !orces o! Bature in accom# ishin' his ends. 9.105 7 sha not dwe on this. >e need on % oo( about us to rea i1e that a our stren'th, a our !acu ties, a our "irtues, wor( to'ether !or the ad"ancement o! man and societ%. 9.10A B% the same to(en there is not one o! our "ices that does not contribute direct % or indirect % to #o"ert%. 7d eness #ara %1es the "er% sinews o! #roduction. 7'norance and error 'i"e it !a se direction. )ac( o! !oresi'ht o#ens the wa% to misca cu ations. Lie din' to the a##etites o! the moment #re"ents the bui din' u# o! ca#ita . @anit% eads to dissi#atin' our ener'ies on i usor% satis!actions, at the e?#ense o! rea ones. @io ence, !raud, #ro"o(in' "io ence and !raud in return, !orce us to surround ourse "es with burdensome #rotecti"e measures, to the 'reat de# etion o! our ener'ies. 9.10E 7 sha end this #re iminar% stud% o! man with an obser"ation that 7 ha"e a read% made concernin' wants. &he !actors enumerated in this cha#ter that enter into the science o! economics and constitute it are essentia % "ariab e and di"erse. >ants, desires, materia s and !orces su## ied b% Bature, muscu ar stren'th, bodi % or'ans, inte ectua !acu ties, mora Cua ities-a "ar% accordin' to the indi"idua , the time, and the # ace. Bo two men are a i(e in an% one o! these res#ects and e"en ess a i(e in a o! them ta(en to'ether. Furthermore, no man is e?act % i(e himse ! !or two hours runnin'. >hat one man (nows, another does not< what one man treasures, another des#ises< here Bature has been a"ish, there miser %< a "irtue that is di!!icu t to #ractice at one de'ree o! tem#erature becomes eas% in a di!!erent c imate. &he science o! economics, there!ore, does not ha"e the ad"anta'e, as do the so-ca ed e?act sciences, o! #ossessin' a measure, a %ardstic(, enab in' it to determine the #recise intensit% o! desires, e!!orts, and satis!actions. 7! we were ca ed u#on to wor( in so itude, i(e certain anima s, our circumstances wou d di!!er to some de'ree, and e"en i! these outside circumstances were simi ar, and our mi ieu identica , we shou d sti di!!er in our desires, our wants, our ideas, our .ud'ment, our ener'%, our "a ues, our !oresi'ht, our acti"it%< so that a 'reat and ine"itab e ineCua it% wou d be mani!ested amon' men. 3ertain %, abso ute iso ation, the absence o! a contacts amon' men, is on % a ! i'ht o! !anc% born in the ima'ination o! ,ousseau. But, su##osin' that this antisocia state, the so-ca ed state o! nature, e"er e?isted, 7 wonder how ,ousseau and his !aith!u !o owers e"er mana'ed to attribute eCua it% to it. >e sha see ater that eCua it%, i(e wea th, i(e ibert%, i(e brotherhood, i(e unit%, is an end, and not a #oint o! de#arture. 7t arises !rom the natura and order % de"e o#ment o! societ%. Humanit% does not mo"e awa% !rom eCua it%, but toward it. &his thou'ht is more reassurin' than what ,ousseau wou d ha"e us be ie"e, and !ar truer. 9.108

AF Ha"in' s#o(en o! our wants and the means we #ossess to satis!% them, 7 ha"e a word to sa% about our satis!actions. &he% are the resu t o! the who e mechanism. Accordin' to the de'ree o! #h%sica , mora , and inte ectua satis!actions en.o%ed b% humanit%, we (now whether the machine is !unctionin' we or bad %. Hence, the word consommation (ta(en o"er in French b% the economists to mean consum#tion) wou d ha"e #ro!ound meanin', i!, (ee#in' its et%mo o'ica sense, it were used as a s%non%m o! end, achie"ement. 6n!ortunate %, in common usa'e and e"en in the scienti!ic an'ua'e, it su''ests to the mind a coarse and materia connotation, accurate undoubted % !or #h%sica wants, but not !or wants o! a hi'her order. &he raisin' o! wheat, the s#innin' o! woo are conc uded b% an act o! consum#tion. 3an the word consum#tion be a so a## ied to the wor(s o! the artist, the son's o! the #oet, the de iberations o! the .urist, the sermons o! the #riestK Here a'ain we encounter the di!!icu ties o! the basic error that ed Adam 2mith to con!ine #o itica econom% to materia "a ues< and the reader wi #ardon me i! 7 o!ten use the word satis!action to a## % to a our wants and to a our desires, since 7 thin( it better corres#onds to the wider sco#e that 7 !ee .usti!ied in 'i"in' to #o itica econom%. 9.10F Economists ha"e o!ten been re#roached !or concernin' themse "es e?c usi"e % with the interests o! the consumer. 5Lou !or'et the #roducer,5 #eo# e sa%. But satis!action bein' the 'oa , the end o! a e!!orts, and, as it were, the !ina consummation o! economic #henomena, is it not e"ident that it is the touchstone o! a #ro'ressK A man;s we -bein' is not measured b% his e!!orts, but b% his satis!actions. &his obser"ation a so ho ds true !or men ta(en co ecti"e %. &his a'ain is one o! those truths acce#ted b% e"er%bod% when it is a## ied to the indi"idua , but dis#uted end ess % when a## ied to societ% as a who e. &he e?#ression so much attac(ed means on % this: &he "a ue o! e"er% economic acti"it% is determined, not b% the abor it entai s, but b% the #ositi"e e!!ect it #roduces, which in turn resu ts in increasin' or decreasin' the 'enera we !are. 9.110 >e ha"e said, a#ro#os o! wants and desires, that no two men are a i(e. &he same is true o! our satis!actions. &he% are not eCua % esteemed b% a < which is tantamount to the trite obser"ation: tastes di!!er. But it is the intensit% o! our desires and the "ariet% o! our tastes that determine the direction o! our e!!orts. Here the in! uence o! mora it% on habits o! wor( becomes c ear. >e can ima'ine an indi"idua man as a s a"e to id e, chi dish, immora tastes. 7n that case, it is ob"ious that his stren'th, which is imited, wi satis!% his de#ra"ed desires on % at the e?#ense o! more inte i'ent and reasonab e desires. But when societ% as a who e is considered, this ob"ious a?iom a##ears erroneous. >e tend to be ie"e that id e tastes, i usor% satis!actions, which we reco'ni1e as a cause o! #o"ert% !or the indi"idua , are ne"erthe ess a source o! nationa wea th because the% create an out et !or a mu titude o! industries. 7! such were the case, we shou d arri"e at a "er% distressin' conc usion: +an in the socia state has the choice o! #o"ert% or immora it%. =nce a'ain, it is #o itica econom% that can reso "e these seemin' contradictions in the most satis!actor% and conc usi"e wa%. 9.111


3ha#ter $ E?chan'e E?chan'e is #o itica econom%. 7t is societ% itse !, !or it is im#ossib e to concei"e o! societ% without e?chan'e, or e?chan'e without societ%. &here!ore, 7 do not e?#ect to e?haust in this one cha#ter so "ast a sub.ect. &he who e boo( wi hard % #resent more than a rou'h out ine o! it. $.1 7! men, i(e snai s, i"ed in com# ete iso ation !rom one another, i! the% did not e?chan'e their wor( and their ideas, i! the% did not en'a'e in transactions with one another, there cou d be mu titudes, human units, .u?ta#ositions o! indi"idua s, but there cou d not be a societ%. $.8 7ndeed, there wou d not e"en be indi"idua s. For man, iso ation means death. Bow, i! he cannot i"e outside societ%, it is strict % o'ica to conc ude that his natura state is the socia state. $.9 A sciences arri"e at this same truth, so much misunderstood in the ei'hteenth centur%, which !ounded its mora and #o itica s%stems on the contrar% assum#tion. +en o! that time, not content with mere % contrastin' the state o! nature with the socia state, 'a"e the !ormer mar(ed su#eriorit% o"er the atter. 5Ha##% are men,5 said +ontai'ne,G9E 5when the% i"e without ties, without aws, without an'ua'e, without re i'ionJ5 >e (now that ,ousseau;s s%stem, which once had, as it sti has, so 'reat an in! uence o"er men;s o#inions and actions, rests entire % on the h%#othesis that one da% men, to their undoin', a'reed to abandon the innocent state o! nature !or the storm% state o! societ%. $.$ 7t is not the intent o! this cha#ter to assemb e a the re!utations that cou d be made a'ainst this !undamenta error, the most "iru ent that e"er in!ected the socia sciences< !or, i! societ% is sim# % contri"ed and arti!icia % a'reed u#on, it !o ows that e"er% man ma% in"ent a new socia order, and such has been, since ,ousseau, the direction ta(en b% man% minds. 7 cou d easi % #ro"e, 7 !ee sure, that iso ation #rec udes an'ua'e, .ust as the absence o! an'ua'e #rec udes thou'ht. And certain % man without thou'ht, !ar !rom bein' man in the state o! nature, is not e"en man. $.5 But an unanswerab e re!utation o! the idea on which ,ousseau;s doctrine rests wi come direct %, without our see(in' it, !rom a !ew considerations on the sub.ect o! e?chan'e. $.A

E1 >ant, e!!ort, satis!action: such is man, !rom the #oint o! "iew o! economics. $.E >e ha"e seen that the two e?tremes are essentia % nontrans!erab e, !or the% occur in the rea m o! sensation< the% are themse "es sensation, which is the most #ersona thin' in the wor d: the want that #recedes the e!!ort and ca s it !orth is a sensation, as is the satis!action that !o ows the e!!ort and rewards it. $.8 E!!ort, then, is the e ement that is e?chan'ed< and it cannot be otherwise, since e?chan'e im# ies acti"it%, and our acti"it% dis# a%s itse ! on % in terms o! e!!ort. >e cannot su!!er or en.o% !or one another, howe"er sensiti"e we ma% be to others; #ains and # easures. But we can he # one another, wor( !or one another, render reci#roca ser"ices, #ut our !acu ties, or the #roduct o! our !acu ties, at the ser"ice o! others, sub.ect to #a%ment in return. &his is societ%. &he causes, the e!!ects, the aws o! these e?chan'es constitute #o itica and socia econom%. $.F >e not on % can aid one another in a these wa%s, but we do so o! necessit%. >hat 7 a!!irm is this: >e are so constituted that we are ob i'ed to wor( !or one another under #ena t% o! immediate death. 7! this is true, societ% is our natura state, since it is the on % state in which we can i"e at a . $.10 &here is one obser"ation that 7 ha"e to ma(e concernin' the eCui ibrium between our wants and our #roducti"e ca#acities, an obser"ation that has a wa%s !i ed me with admiration !or the #ro"identia # an that ru es our destin%. $.11 7n the state o! iso ation, our wants e?ceed our #roducti"e ca#acities. $.18 7n societ%, our #roducti"e ca#acities e?ceed our wants. $.19 Hence, man in the state o! iso ation cannot sur"i"e< whereas, with man in societ%, the most e ementa wants 'i"e wa% to desires o! a hi'her order, and this #rocess, tendin' a wa%s toward a more #er!ect condition, 'oes on without interru#tion or assi'nab e imits. $.1$ &his is not mere orator%, but a statement that can be !u % #ro"ed b% reason and ana o'%, i! not b% e?#erience. And wh% not b% e?#erience, b% direct obser"ationK 2im# % because the statement is true< sim# % because, since man cannot i"e in a state o! iso ation, it is im#ossib e to demonstrate the e!!ects o! abso ute so itude on i"in' human nature. =ur senses cannot 'ras# somethin' that does not e?ist. Lou can #ro"e to m% mind that a trian' e ne"er has !our sides< %ou cannot, in su##ort o! %our ar'ument, # ace be!ore m%

E8 e%es a tetra'ona trian' e. 7! %ou did, %ou wou d destro% %our assertion b% %our own e"idence. 2imi ar %, to as( me !or a #roo! based on e?#eriment, to demand that 7 stud% the e!!ects o! iso ation on i"in' human nature, wou d be to !orce u#on me a o'ica contradiction, since, iso ation and i!e bein' mutua % incom#atib e !or man, no one has e"er seen, no one wi e"er see, men without human contacts. $.15 &here ma% be anima s, !or a 7 (now, destined b% their bodi % structure to i"e out their s#an o! i!e in abso ute iso ation< i! so, it is "er% c ear that Bature must ha"e estab ished an e?act ba ance between their wants and their #roducti"e ca#acities. >e cou d a so concei"e o! their #roducti"e ca#acities as su#erior to their wants, in which case the% wou d be #er!ectib e and ca#ab e o! #ro'ress. E?act ba ance ma(es them static creatures, but a #re#onderance o! wants cannot be concei"ed o!: !rom their birth on, !rom their !irst a##earance on the scene o! i!e, their #roducti"e ca#acities wou d ha"e to be !u % adeCuate to satis!% the wants !or which the% wou d ha"e to #ro"ide, or, at east, the two wou d ha"e to de"e o# side b% side at the same rate. =therwise the s#ecies wou d die at birth and wou d not be a"ai ab e !or obser"ation. $.1A =! a the s#ecies o! i"in' creatures about us, not one, certain %, is sub.ect to as man% wants as man. 7n not one is the #eriod o! immaturit% so on' and so he # ess, maturit% so oaded with res#onsibi it%, o d a'e so !eeb e and ai in'. And, as i! his wants were not enou'h !or him, man a so has tastes whose satis!action ta?es his !acu ties Cuite as much as his wants. Hard % has he earned to satis!% his hun'er when he see(s to tic( e his #a ate< to co"er his na(edness, when he see(s adornment< to she ter himse ! !rom the e ements, when he dreams o! beauti!%in' his dwe in'. His mind is as rest ess as his bod% is demandin'. He see(s to #enetrate the m%steries o! Bature, to tame the anima s, to harness the e ements, to de "e into the bowe s o! the earth, to cross the bound ess oceans, to soar abo"e the winds, to annihi ate time and s#ace< he see(s to (now the inner wor(in's, the s#rin's, the aws, o! his own wi and heart, to ru e o"er his #assions, to achie"e immorta it%, to mer'e his bein' in his 3reator, to # ace e"er%thin' under his dominion-Bature, his !e ows, himse !< in a word, his desires reach out end ess % toward the in!inite. $.1E Hence, in no other s#ecies are !acu ties to be !ound ca#ab e o! such 'reat de"e o#ment as in man. He a one a##ears ab e to com#are and to .ud'e< he a one reasons and s#ea(s< he a one oo(s ahead< he a one sacri!ices the #resent !or the !uture< he a one transmits !rom one 'eneration to another his wor(s, his thou'hts, the treasures o! his e?#erience< he a one, in a word, is ca#ab e o! !or'in' the count ess in(s o! a chain o! #ro'ress seemin' % stretchin' be%ond the imits o! this earth. $.18 )et us ma(e a #ure % economic obser"ation here. Howe"er e?tensi"e our #roducti"e ca#acities ma% be, the% cannot 'o so !ar as to enab e us to create. 7t is not 'i"en to man, in !act, to add to or subtract !rom the e?istin' number o! mo ecu es. His ro e is con!ined

E9 to modi!%in' or combinin' !or his use the substances he !inds e"er%where about him. (M. B. 2a%.) $.1F &o modi!% substances in such a wa% as to increase their uti it% !or us is to #roduce, or rather it is one wa% o! #roducin'. 7 conc ude that "a ue, as we sha see ater, can ne"er reside in these substances themse "es, but in the e!!ort which is e?erted in order to modi!% them and to which e?chan'e 'i"es a re ati"e a##raisa based on other com#arab e e!!orts. For this reason, "a ue is mere % the a##raisa o! the ser"ices e?chan'ed, whether a materia commodit% is or is not in"o "ed in the transaction. As re'ards the notion o! "a ue, it is a matter o! com# ete indi!!erence whether 7 render m% !e ow man a direct ser"ice-!or e?am# e, b% #er!ormin' a sur'ica o#eration-or an indirect ser"ice b% ma(in' him some medicina #re#aration< in the atter case the uti it% is in the substance, but the "a ue is in the ser"ice, in the inte ectua and materia e!!ort made b% one man !or the bene!it o! another. 7t is #ure meton%m% to attribute "a ue to the materia commodit% itse !, and in this case, as in so man% others, the meta#hor eads science astra%. $.80 7 return to the sub.ect o! the wa% man is constituted. 7! we sto##ed at the notions we ha"e a read% #resented, man wou d be di!!erent !rom other anima s on % in the 'reater ran'e o! his wants and the su#eriorit% o! his ca#acities. A are sub.ect to the !ormer and endowed with the atter. Birds underta(e on' mi'rations in search o! the #ro#er tem#erature< bea"ers cross streams on dams that the% ha"e bui t< haw(s attac( their #re% in !u "iew< cats sta ( theirs #atient %< s#iders set u# snares< a wor( in order to i"e and increase. $.81 But, whi e Bature has set u# an e?act ba ance between the wants o! anima s and their #roducti"e ca#acities, she has treated man more 'rand % and muni!icent %. 7!, in order to !orce him to be sociab e, she has decreed that in the state o! iso ation his wants shou d e?ceed his #roducti"e ca#acities, whereas in societ% his #roducti"e ca#acities, su#erior to his wants, shou d o#en u# bound ess "istas !or his nob er en.o%ments< we must a so reco'ni1e that, e"en as man in his re ation to his 3reator is raised abo"e the beasts b% his re i'ious !ee in', in his dea in's with his !e ow men b% his sense o! .ustice, in his dea in's with himse ! b% his mora it%, so, in !indin' his means o! sur"i"a and increase, he is distin'uished !rom them b% a remar(ab e #henomenon, name %, e?chan'e. $.88 2ha 7 tr% to #ortra% the state o! #o"ert%, barrenness, and i'norance in which, without the !acu t% o! e?chan'e, the human s#ecies wou d ha"e wa owed eterna %, i! indeed, it wou d not ha"e disa##eared a to'ether !rom the !ace o! the earthK $.89 =ne o! the most #o#u ar o! #hi oso#hers, in a no"e that has had the 'ood !ortune to charm 'eneration a!ter 'eneration o! chi dren, shows us how a man can rise abo"e the hardshi#s o! abso ute so itude b% his ener'%, his initiati"e, and his inte i'ence. 4esirin' to show a the resources #ossessed b% this nob e creature, our author ima'ines him

E$ accidenta % cut o!!, so to s#ea(, !rom ci"i i1ation. 7t was, there!ore, 4anie 4e!oe;s ori'ina # an to cast ,obinson 3rusoe ashore on the 7s e o! 4es#air a one, na(ed, de#ri"ed o! a that can be added to one man;s stren'th b% united e!!ort, s#ecia i1ed s(i s, e?chan'e, and societ%. $.8$ Be"erthe ess, and des#ite the !act that the obstac es are #ure % !ictitious, 4e!oe wou d ha"e de#ri"ed his no"e o! e"er% trace o! "erisimi itude i!, o"er!aith!u to the thou'ht he wished to de"e o#, he had not made necessar% socia concessions b% a owin' his hero to sa"e !rom the shi#wrec( a !ew indis#ensab e ob.ects, such as #ro"isions, 'un#owder, a ri! e, an a?, a (ni!e, ro#e, boards, iron, etc.-decisi"e e"idence that societ% is man;s necessar% mi ieu, since e"en a no"e ist cannot ma(e him i"e outside it. $.85 And note that ,obinson 3rusoe too( with him into so itude another socia treasure worth a thousand times more, one that the wa"es cou d not swa ow u#: 7 mean his ideas, his memories, his e?#erience, and es#ecia % his an'ua'e, without which he cou d not ha"e communicated with himse ! or !ormed his thou'hts. $.8A >e ha"e the distressin' and unreasonab e habit o! attributin' to societ% the su!!erin' that we see about us. 6# to a #oint we are ri'ht, i! we mean to com#are societ% with itse !, ta(en at two di!!erent sta'es o! its #ro'ress< but we are wron', i! we com#are the socia state, e"en in its im#er!ection, with the state o! iso ation. &o be ab e to assert that e"en the most un!ortunate o! men are worse o!! in societ% than out o! it, we shou d ha"e to be'in b% #ro"in' that the #oorest o! our !e ow men has to bear, in the socia state, a hea"ier burden o! #ri"ations and su!!erin' than wou d ha"e been his ot in so itude. Bow, consider the i!e o! the humb est da% aborer. 3onsider, in a their detai , the artic es o! his dai % consum#tion. He wears a !ew coarse #ieces o! c othin'< he eats a itt e b ac( bread< at ni'ht he has a roo! o"er his head and at the "er% worst some bare # an(s to s ee# on. Bow, as( %ourse ! whether this man in iso ation, without the resources o! e?chan'e, wou d ha"e the remotest #ossibi it% o! obtainin' this coarse c othin', this b ac( bread, this crude cot, this humb e she ter. &he most im#assioned ad"ocate o! the state o! nature, ,ousseau himse !, admitted that this was com# ete % im#ossib e. +en did without e"er%thin', he said< the% went na(ed, the% s e#t in the o#en air. &hus, ,ousseau himse !, in order to #resent the state o! nature !a"orab %, was ob i'ed to ma(e ha##iness consist in #ri"ation. But 7 a!!irm that e"en this ne'ati"e ha##iness is a de usion, and that man in the state o! iso ation wou d sure % die in a "er% !ew hours. /erha#s ,ousseau wou d ha"e 'one so !ar as to sa% that that wou d be the true #er!ection. He wou d ha"e been consistent, !or i! ha##iness ies in #ri"ation, then #er!ection ies in annihi ation. $.8E 7 trust that the reader wi not conc ude !rom the #recedin' remar(s that we are insensib e to the socia su!!erin' o! our !e ow men. A thou'h the su!!erin' is ess in the #resent im#er!ect state o! our societ% than in the state o! iso ation, it does not !o ow that we do not see( who ehearted % !or !urther #ro'ress to ma(e it ess and ess< but i! the state o!

E5 iso ation is worse than the worst in the socia state, then 7 was ri'ht in sa%in' that iso ation ma(es our wants, to mention on % the most e ementa o! them, !ar e?ceed our #roducti"e ca#acities. $.88 How does e?chan'e re"erse this order to our ad"anta'e and ma(e our #roducti"e ca#acities e?ceed our wantsK $.8F First o! a , this is #ro"ed b% the "er% !act o! ci"i i1ation. 7! our wants e?ceeded our #roducti"e ca#acities, we shou d be irremediab % retro'ressi"e creatures< i! the two were in com# ete ba ance, we shou d be irremediab % static. Howe"er, we ad"ance< hence, e"er% #eriod in the i!e o! societ%, com#ared to a #re"ious #eriod, !rees !or other #ur#oses, in re ation to a 'i"en number o! satis!actions, a certain #art o! our #roducti"e ca#acities. $.90 )et us tr% to e?# ain this mar"e ous #henomenon. $.91 &he e?# anation we owe to 3ondi acG98 seems to me entire % insu!!icient and em#irica , or rather it !ai s to e?# ain an%thin' at a . 5&he "er% !act that an e?chan'e ta(es # ace,5 he sa%s, 5is #roo! that there must necessari % be #ro!it in it !or both the contractin' #arties< otherwise it wou d not be made. Hence, e"er% e?chan'e re#resents two 'ains !or humanit%.5 $.98 E"en 'rantin' that the #ro#osition is true, we see in it on % a statement o! !act, not an e?# anation. 7t was thus that the h%#ochondriac e?# ained the narcotic #ower o! o#ium: Quia est in eo @irtus dormiti"a Quae !acit dormire.G9F $.99 &he e?chan'e re#resents two 'ains, %ou sa%. &he Cuestion is: >h% and howK 7t resu ts !rom the "er% !act that it ta(es # ace. But wh% does it ta(e # aceK >hat moti"es ha"e induced the two men to ma(e it ta(e # aceK 4oes the e?chan'e ha"e in it a m%sterious "irtue, inherent % bene!icia and inca#ab e o! e?# anationK $.9$ =thers attribute the bene!it to the !act that we 'i"e !rom what we ha"e in e?cess to recei"e what we ac(. E?chan'e, the% sa%, is the barter o! the sur# us !or the necessar%. Aside !rom the !act that this is contrar% to what we see ha##enin' be!ore our own e%eswho wou d dare sa% that the #easant, who #arts with the 'rain he has 'rown and wi

EA ne"er eat, is 'i"in' !rom his sur# usK-7 see !rom it how two men ha##en to stri(e a bar'ain, but 7 do not see an% e?# anation o! #ro'ress. $.95 =bser"ation wi 'i"e us a more satis!actor% e?# anation o! the #ower o! e?chan'e. $.9A E?chan'e #roduces two #henomena: the .oinin' o! men;s !orces and the di"ersi!ication o! their occu#ations, or the di"ision o! abor. $.9E 7t is "er% c ear that in man% cases the combined !orce o! se"era men is su#erior to the sum o! their indi"idua se#arate !orces. 7n mo"in' a hea"% ob.ect, !or e?am# e, a thousand men ta(in' successi"e turns wou d !ai where !our men b% unitin' their e!!orts cou d succeed. &r% to ima'ine the thin's that wou d ne"er ha"e been done in the wor d without this (ind o! .oint action. $.98 And %et the co-o#erati"e use o! musc e #ower !or a common 'oa is a mere nothin'. Bature has 'i"en us hi'h % "aried #h%sica , mora , and inte ectua !acu ties. &here are ine?haustib e combinations in the co-o#erati"e union o! these !acu ties. 4o we need to carr% out a use!u #ro.ect, i(e bui din' a road or de!endin' our countr%K =ne # aces his stren'th at the dis#osa o! the communit%< another, his a'i it%< another, his darin'< sti another, his e?#erience, his !oresi'ht, his ima'ination, e"en his renown. 7t is eas% to understand that the same men, wor(in' se#arate %, cou d ne"er ha"e accom# ished, or e"en contem# ated, such an underta(in'. $.9F Bow, the .oinin' o! men;s !orces im# ies e?chan'e. &o 'ain their co-o#eration, the% must ha"e 'ood reason to antici#ate sharin' in the satis!action to be obtained. Each one b% his e!!orts bene!its the others and in turn bene!its b% their e!!orts accordin' to the terms o! the bar'ain, which is e?chan'e. $.$0 >e see how e?chan'e, in this !orm, adds to our satis!actions. B% the mere !act o! their union, e!!orts eCua in intensit% #roduce su#erior resu ts. Here there is no trace o! the soca ed barter o! the su#er! uous !or the necessar%, nor o! the doub e and em#irica #ro!it a e'ed b% 3ondi ac. $.$1 >e ma% ma(e the same obser"ation concernin' the di"ision o! abor. 7ndeed, i! we oo( c ose % at the matter, we see that the di"ersi!ication o! occu#ations is on % another, more #ermanent, wa% o! .oinin' !orces, o! co-o#eratin', o! !ormin' an association< and it is a to'ether accurate to sa%, as wi be shown ater, that the #resent socia or'ani1ation, #ro"ided the #rinci# e o! !ree e?chan'e is reco'ni1ed, is the most beauti!u , most stu#endous o! associations-a mar"e ous association, but "er% di!!erent !rom the

EE associations dreamed u# b% the socia ists, since in it, b% an admirab e arran'ement, the #rinci# e o! indi"idua ibert% is reco'ni1ed. A men, at a times, ma% .oin or ea"e it at their # easure. &he% contribute what the% wi < the% recei"e in return a constant % increasin' de'ree o! satis!action, which is determined, accordin' to the aws o! .ustice, b% the nature o! thin's, not b% the arbitrar% wi o! a chie!. But 7 shou d not antici#ate what 7 sha sa% ater. A that 7 ha"e to do at the moment is to e?# ain how the di"ision o! abor adds to our stren'th. $.$8 >ithout dwe in' on this sub.ect, one o! the !ew that has not #ro"o(ed contro"ers%, 7 do ha"e somethin' to sa% that is not without "a ue. /erha#s, indeed, its im#ortance has been minimi1ed. &o demonstrate the #ower o! the di"ision o! abor, writers ha"e been content to #oint out the mar"e ous thin's it accom# ishes in certain industries, #in manu!acture, !or e?am# e. &he Cuestion can be 'i"en broader and more #hi oso#hica si'ni!icance. +oreo"er, habit has the #ecu iar #ower o! ma(in' us shut our e%es and ose si'ht o! the thin's around us. &here is no truer word than that o! ,ousseau: 57t ta(es a 'reat dea o! scienti!ic insi'ht to obser"e what we see e"er% da%.5G$0 7t is not su#er! uous, then, to ca to men;s attention what the% owe to e?chan'e without bein' aware o! it. $.$9 How has the #ower o! e?chan'e raised humanit% to its #resent hei'htsK B% its in! uence on abor, on the harnessin' o! the !orces o! Bature, on the ca#acities o! man, and on ca#ita . $.$$ Adam 2mith has we shown this in! uence on abor. $.$5 5&he increase in the Cuantit% o! abor that can be #er!ormed b% the same number o! men as a resu t o! the di"ision o! abor is due to three !actors,5 said the ce ebrated economist: 5(1) the e"e o! s(i acCuired b% each wor(er< (8) the sa"in' o! time norma % ost b% mo"in' !rom one occu#ation to another< (9) the increased o##ortunit% each man has o! disco"erin' eas% and e!!icient wa%s o! attainin' an ob.ect when his attention is centered on it, rather than di"erted to man% other thin's.5G$1 $.$A &hose who, i(e Adam 2mith, see in abor the so e source o! wea th, con!ine themse "es to the Cuestion o! how di"ision im#ro"es its e!!icienc%. But we ha"e seen in the #recedin' cha#ter that abor is not the on % a'ent !or #rocurin' our satis!actions. Batura !orces a so contribute. &his is not o#en to Cuestion. $.$E &hus, in a'ricu ture, the action o! the sun and the rain, the moisture in the soi , the 'ases in the atmos#here, are certain % resources that co-o#erate with human abor in the 'rowin' o! "e'etab es.

E8 $.$8 7ndustr% owes simi ar ser"ices to the chemica Cua ities o! certain substances: to the #ower 'enerated b% water!a s, to the #ressure o! steam, to 'ra"itation, to e ectricit%. $.$F 3ommerce has earned to turn to man;s #ro!it the stren'th and instincts o! certain anima s, the #ower o! the wind !or sai in' boats, the aws o! ma'netism, which, actin' on the com#ass, 'uide shi#s o"er 'reat oceans. $.50 &here are two 'reat incontro"ertib e truths. &he !irst is: &he better man e?# oits the !orces o! Bature, the better he #ro"ides himse ! with a that he needs. $.51 7t is se !-e"ident that we 'et more wheat, !or the same amount o! e!!ort, !rom 'ood, rich soi than !rom dr% sand or barren roc(s. $.58 &he second truth is: &he resources o! Bature are uneCua % distributed o"er the earth. $.59 >ho wou d dare maintain that a ands are eCua % !a"orab e !or 'rowin' the same cro#s, a countries !or #roducin' the same 'oodsK $.5$ Bow, i! it is true that natura resources "ar% !rom one #art o! the ' obe to another, and i!, on the other hand, the more men use them, the richer the% are, it !o ows that the #ower o! e?chan'e increases immeasurab % the use!u ness o! these resources. $.55 Here once a'ain we encounter 'ratuitous uti it% and onerous uti it%, the !irst re# acin' the second b% "irtue o! e?chan'e. 7s it not c ear, in !act, that i!, de#ri"ed o! the #ower o! e?chan'e, men were reduced to #roducin' ice at the eCuator and su'ar at the #o es, the% wou d ha"e to do with 'reat e!!ort what heat and co d toda% do !or them 'ratis, and that, as !ar as the% were concerned, a 'reat #ercenta'e o! natura resources wou d remain id eK &han(s to e?chan'e, these resources are #ut to use where"er the% are !ound. >heat and is sown with wheat< and suitab e !or the #roduction o! 'ra#es is # anted with "ine%ards< there are !ishermen on the sea coasts, and woodcutters in the mountains. Here water, there wind, is directed a'ainst a whee , re# acin' ten men. Bature becomes a s a"e whom we neither ha"e to c othe nor !eed, whose ser"ices reCuire no #a%ment, who costs neither our #urse nor our conscience an%thin'.GGF &he same sum o! human e!!orts, that is to sa%, the same ser"ice-the same "a ue-#roduces a constant % increasin' sum o! uti it%. For e"er% #ro.ect com# eted, on % a #art o! human acti"it% is e?#ended< the rest, throu'h the instrumenta it% o! Bature, is made a"ai ab e and is turned to new #rob ems, satis!ies new desires, creates new uti ities.

EF $.5A &he e!!ects o! e?chan'e on our inte ectua !acu ties are such that e"en the most in'enious ima'ination wou d be unab e to 'au'e their e?tent. $.5E 5=ur (now ed'e,5 sa%s +. de &rac%G$8 5is our most #recious #ossession, since it is (now ed'e, in #ro#ortion to its soundness and breadth, which 'uides our e!!orts and ma(es them #roducti"e. Bow, no man is in a #osition to see e"er%thin', and it is much easier to earn than to in"ent. But when se"era men are in communication, what one obser"es is soon (nown b% a , and on % one o! them needs to be es#ecia % in'enious !or a o! them soon to be in #ossession o! "a uab e disco"eries. &he sum tota o! (now ed'e, there!ore, 'rows much more ra#id % than in the state o! iso ation, not to mention that it can be #reser"ed and, there!ore, #assed on !rom 'eneration to 'eneration.5 $.58 7! Bature has distributed uneCua % the resources she # aces at man;s dis#osa , she has been no more uni!orm in her distribution o! human endowments. >e are not a b essed with the same de'ree o! stren'th, coura'e, inte i'ence, #atience, or artistic, iterar%, and industria ta ents. 7! it were not !or e?chan'e, this di"ersit%, !ar !rom bein' turned to our we -bein', wou d contribute to our wretchedness, each one bein' more aware o! the ta ents he ac(ed than o! the ad"anta'es o! the ta ents he had. &han(s to e?chan'e, the stron' man can, u# to a #oint, do without 'enius< the inte i'ent man, without brawn< !or, b% the admirab e #oo in' o! 'i!ts that e?chan'e estab ishes amon' men, each one shares in the distincti"e ta ents o! his !e ows. $.5F &o satis!% our wants and our tastes, it is not enou'h to wor(, to use our !acu ties on or throu'h the resources o! Bature. >e a so need too s, instruments, machines, #ro"isionsin a word, ca#ita . )et us ima'ine a tin% communit% o! ten !ami ies, each one o! which, wor(in' so e % !or itse !, is ob i'ed to en'a'e in ten di!!erent occu#ations. Each head o! a !ami % wou d need the eCui#ment !or ten di!!erent industria units. &here wou d be, then, in the communit% ten # ows, ten teams o! o?en, ten !or'es, ten car#enter;s sho#s, ten ooms, etc.< with e?chan'e a sin' e # ow, a sin' e team o! o?en, a sin' e !or'e, a sin' e oom wou d su!!ice. &he ca#ita sa"in's due to e?chan'e sur#ass one;s ima'ination. $.A0 &he reader can now we #ercei"e the true #ower o! e?chan'e. 7t does not im# %, as 3ondi ac sa%s, two 'ains, because each o! the contractin' #arties sets more store b% what he recei"es than b% what he 'i"es. Bo more is it a matter o! each 'i"in' !rom his sur# us to acCuire what is necessar%. 7t is sim# % that, when one man sa%s to another, 5Lou do on % this, and 7 wi do on % that, and we; share,5 there is better em# o%ment o! abor, ta ents, natura resources, ca#ita , and, conseCuent %, there is more to share. 2o much the better i! three, ten, a hundred, a thousand, a mi ion men .oin the association. $.A1 &he two #ro#ositions that 7 ha"e ad"anced are there!ore strict % correct, name %:


$.A8 7n the state o! iso ation, our wants e?ceed our #roducti"e ca#acities. $.A9 7n societ%, our #roducti"e ca#acities e?ceed our wants. $.A$ &he !irst is true because the entire area o! France cou d not !or on' (ee# a i"e a sin' e man in the state o! abso ute iso ation. $.A5 &he second is true because, in !act, the #o#u ation o! this same area is 'rowin' in numbers and #ros#erit%. $.AA /ro'ress in E?chan'e &he #rimiti"e !orm o! e?chan'e is barter. &wo #ersons, each o! whom !ee s a want and #ossesses the ob.ect that can satis!% the other;s want, either e?chan'e ob.ects or a'ree to wor( se#arate % at di!!erent thin's and share, to the e?tent sti#u ated, in the !inished #roduct. &his is barter, which is, as the socia ists wou d sa%, e?chan'e, business, commerce in embr%o. >e note here two wants as the moti"atin' !orce, two e!!orts as the means, two satis!actions as the resu t, or as the termination o! the entire #rocess, and nothin' in it di!!ers essentia % !rom the same #rocess as carried out in the state o! iso ation, e?ce#t that on % the wants and satis!actions ha"e remained nontrans!erab e, as is their nature, whi e the e!!orts ha"e been e?chan'ed< in other words, two #ersons ha"e wor(ed !or each other and ha"e rendered reci#roca ser"ices. $.AE 7t is at this #oint, there!ore, that #o itica econom% rea % be'ins, !or it is here that we can !irst obser"e the a##earance o! "a ue. Barter occurs on % a!ter an a'reement, a discussion. Each o! the contractin' #arties ma(es his decision a!ter considerin' his se !-interest. Each one ca cu ates in this !ashion: 57 sha barter i! the trade brin's me the satis!action o! m% want with ess e!!ort on m% #art.5 7t is certain % a stri(in' #henomenon that e?chan'e ma(es it #ossib e to 'i"e men;s wants the same satis!action at the cost o! ess e!!ort, and it is e?# ained b% the considerations 7 #resented in the !irst #ara'ra#h o! this cha#ter. >hen two #roducts or two ser"ices are bartered, we ma% sa% that the% are o! eCua "a ue. )ater we sha ha"e occasion to 'o more dee# % into the Cuestion o! "a ue. For the moment this "a'ue de!inition wi su!!ice. $.A8 >e can concei"e o! roundabout barter, in"o "in' three contractin' #arties. /au renders a ser"ice to /eter, who renders an eCui"a ent ser"ice to Mames, who in turn renders an

81 eCui"a ent ser"ice to /au , thereb% com# etin' the c%c e. 7 need not sa% that this rotation does not ta(e # ace un ess it satis!ies a #arties, and it chan'es in no wise either the nature or the resu t o! a sim# e barter. $.AF &he !undamenta character o! barter wou d not in an% wa% be a!!ected i! the number o! contractin' #arties shou d be !urther increased. 7n m% #arish the wine'rower uses his wine to #a% !or the ser"ices o! the b ac(smith, the barber, the tai or, the bead e, the "icar, the 'rocer. &he b ac(smith, the barber, the tai or, in turn, de i"er to the 'rocer the wine the% recei"e !rom the wine-'rower as #a%ment !or the commodities the% consume durin' the %ear. $.E0 &his roundabout barter, 7 cannot re#eat too o!ten, does not in an% wa% a ter the ori'ina conce#ts set !orth in the #recedin' cha#ter. >hen the #rocess is com# eted, each #artici#ant has #resented this tri# e #henomenon: want, e!!ort, satis!action. =n % one thin' has been added: the e?chan'e o! e!!orts, which means the trans!er o! ser"ices and the di"ision o! abor. &he resu ts are ad"anta'eous to a #arties< !or otherwise the bar'ain wou d not ha"e been a'reed to, and each wou d ha"e #re!erred his own iso ated, indi"idua e!!ort, which is a wa%s a #ossib e a ternati"e. $.E1 7t is eas% to understand that roundabout barter in (ind cannot be 'reat % e?#anded, and there is no need to dwe on the obstac es that #re"ent its !urther de"e o#ment. 7! a man wished to barter his house !or the thousand and one items he wou d use in the course o! the %ear, how wou d he 'o about itK 7n an% case, barter cannot 'o be%ond a sma circ e o! #ersons acCuainted with one another. Humanit% wou d soon ha"e reached the imits o! the di"ision o! abor, the imits o! #ro'ress, i! a means o! !aci itatin' e?chan'e had not been !ound. $.E8 &hat is wh%, since the be'innin's o! societ%, men ha"e em# o%ed in their transactions some intermediate artic e, such as 'rain, wine, anima s, and, a most a wa%s, meta s. &hese artic es #er!orm their !unction as a medium o! e?chan'e, some more, some ess satis!actori %< but a are acce#tab e, #ro"ided the% re#resent e!!ort in terms o! "a ue, which is the thin' to be transmitted. $.E9 >hen this t%#e o! intermediate commodit% is resorted to, two economic #henomena a##ear, which are ca ed sa e and #urchase. 7t is c ear that the idea o! sa e and #urchase is not inc uded in sim# e barter or e"en in roundabout barter. >hen one man 'i"es another somethin' to drin( in return !or somethin' to eat, we ha"e a sim# e act that cannot be !urther bro(en down into com#onent #arts. Bow, at the outset o! our stud% o! #o itica econom%, we must notice that the e?chan'e that is transacted throu'h an intermediate commodit% oses nothin' o! the nature, essence, or character o! barter< it is sim# % a !orm o! indirect barter. As Mean-Ba#tiste 2a% "er% wise % and #ro!ound % obser"ed, it is barter

88 with two !actors added, one ca ed sa e, the other #urchase, which to'ether are indis#ensab e to com# ete a barter transaction. $.E$ 7n !act, the a##earance in the wor d o! a con"enient medium o! barter does not chan'e the nature o! men or o! thin's. &here remain !or e"er% man the want that #rom#ts the e!!ort, and the satis!action that rewards it. E?chan'e is not com# ete unti the man who has made an e!!ort !or another man recei"es in return an eCui"a ent ser"ice, that is, a satis!action. For this #ur#ose, he se s his ser"ice !or the intermediate commodit%< then with it he bu%s eCui"a ent ser"ices, and thus the two !actors reconstitute !or him a sim# e barter transaction. $.E5 &a(e the case o! a doctor, !or e?am# e. For some %ears he has de"oted his time and his !acu ties to the stud% o! diseases and their cure. He has ca ed on his #atients, he has 'i"en them medica care-in a word, he has rendered ser"ices. 7nstead o! recei"in' !rom his #atients, in #a%ment, direct ser"ices, which wou d ha"e constituted sim# e barter, he has recei"ed an intermediate commodit%, #ieces o! meta , with which he has #rocured the satis!actions that were his ob.ecti"e. His #atients ha"e not su## ied him with bread, wine, or !urniture, but the% ha"e su## ied him with "a ue to that amount. &he% ha"e been ab e to 'i"e him #ieces o! mone% because the% themse "es had rendered ser"ices. &here is, there!ore, a ba ance o! ser"ices !or them as we as !or the doctor< and, i! it were #ossib e to trace this circu ation o! mone% in our ima'inations to its "er% end, we shou d see that e?chan'e throu'h the medium o! mone% brea(s down into a mu titude o! sim# e acts o! barter. $.EA 6nder the s%stem o! sim# e barter, "a ue is the a##raisa o! the worth o! the two ser"ices e?chan'ed, arri"ed at throu'h direct com#arison. 6nder the s%stem o! indirect e?chan'e, the two ser"ices are a so a##raised, but in com#arison with the midd e !actor, the intermediate commodit%, which is ca ed mone%. >e sha see e sewhere what di!!icu ties, what errors, ha"e arisen !rom this com# ication. 7t is enou'h to obser"e here that the #resence o! this intermediate commodit% does not in an% wa% a ter the !undamenta notion o! "a ue. $.EE =nce it is admitted that e?chan'e is both the cause and the e!!ect o! the di"ision o! abor, once it is admitted that the di"ision o! abor mu ti# ies satis!actions in re ation to e!!ort, !or the reasons #resented at the be'innin' o! this cha#ter, the reader wi readi % understand the ser"ices mone% has rendered humanit% b% the mere !act that it !aci itates the act o! ma(in' an e?chan'e. &han(s to mone%, e?chan'e has tru % been ab e to e?#and inde!inite %. Each one turns his ser"ices o"er to societ%, without (nowin' who wi recei"e the satis!actions the% are intended to 'i"e. )i(ewise each one recei"es !rom societ%, not immediate ser"ices, but #ieces o! mone%, with which he wi bu% #articu ar ser"ices where, when, and how he wi s. 7n this wa% the u timate transactions are carried on across time and s#ace between #ersons un(nown to one another, and no one (nows, at

89 east in most instances, b% whose e!!ort his wants wi be satis!ied, or to whose wants his own e!!orts wi brin' satis!action. E?chan'e, throu'h the intermediar% o! mone%, brea(s down into count ess acts o! barter between #arties unacCuainted with each other. $.E8 Let e?chan'e is so 'reat a bene!it to societ% (indeed, is it not societ% itse !K) that societ%, to encoura'e and e?#and it, has done more than introduce mone%. 7n o'ica order, a!ter want and satis!action brou'ht to'ether in the same indi"idua b% iso ated e!!ort, a!ter direct barter, a!ter indirect barter, in which the e?chan'e consists o! #urchase and sa e, come other transactions, e?tended o"er time and s#ace b% credit: mort'a'es, bi s o! e?chan'e, ban( notes, etc. &han(s to this mar"e ous de"ice, which is the resu t o! ci"i i1ation, which #er!ects ci"i i1ation, and which at the same time is #er!ected a on' with ci"i i1ation, an e!!ort e?erted in /aris toda% wi cross the oceans and the centuries to satis!% a #erson un(nown< and the one ma(in' the e!!ort ne"erthe ess recei"es his remuneration now, throu'h #ersons who ad"ance it and are wi in' to 'o to distant ands to as( !or their com#ensation, or to await it !rom the !ar-o!! !uture-an ama1in' % intricate #iece o! machiner%, which, when submitted to e?act ana %sis, shows us, a!ter a , the soundness o! the economic #rocess, want, e!!ort, satis!action, !unctionin' !or each indi"idua in (ee#in' with the aws o! .ustice. $.EF )imits o! E?chan'e &he 'enera nature o! e?chan'e is to essen the amount o! e!!ort in re ation to the satis!action. Between our wants and our satis!actions there are inter#osed obstac es that we succeed in essenin' b% .oinin' our !orces or di"idin' our abor, that is, b% e?chan'e. But e?chan'e too encounters obstac es and demands e!!ort. /roo! o! this is to be !ound in the 'reat mass o! human abor that e?chan'e brin's into # a%. /recious meta s, roads, cana s, rai wa%s, coaches, shi#s-a these thin's absorb a considerab e #art o! human acti"it%. And .ust thin( o! how man% men are em# o%ed so e % in e?#editin' acts o! e?chan'e, how man% ban(ers, businessmen, sho#(ee#ers, bro(ers, coachmen, sai orsJ &his "ast and cost % assemb a'e o! men and thin's #ro"es better than an% ar'ument the tremendous #ower in the !acu t% o! e?chan'e< otherwise, wh% wou d humanit% ha"e consented to burden itse ! with itK $.80 2ince it is in the nature o! e?chan'e both to sa"e e!!ort and to demand e!!ort, it is eas% to understand what its natura imitations are. B% "irtue o! that !orce within man that a wa%s im#e s him to choose the esser o! two e"i s, e?chan'e wi e?#and inde!inite % as on' as the e!!ort it reCuires is ess than the e!!ort it sa"es. And it wi ha t, natura %, when, in the a''re'ate, the sum tota o! satis!actions obtained b% the di"ision o! abor reaches the #oint where it is ess, b% reason o! the di!!icu ties o! e?chan'e, than the satis!actions that cou d be #rocured b% direct, indi"idua action.

8$ $.81 3onsider a sma communit%, !or e?am# e. 7! it desires a certain satis!action, it wi ha"e to ma(e the necessar% e!!ort. 7t can sa% to another such communit%: 5+a(e this e!!ort !or us, and we sha ma(e another one !or %ou.5 &he arran'ement can satis!% e"er%bod%, i!, !or e?am# e, the second communit% is ab e, throu'h its situation, to brin' to bear on the tas( a ar'er #ro#ortion o! 'ratuitous natura resources than the !irst. 7n that case it wi accom# ish what it wants with an e!!ort eCua to, sa%, ei'ht, whi e the !irst communit% cou d not do so !or an e!!ort o! ess than twe "e. 2ince on % ei'ht is reCuired, there is a sa"in' o! !our !or the !irst communit%. But then come the cost o! trans#ortation, the remuneration o! midd emen-in short, the e!!ort reCuired b% the machiner% o! the e?chan'e. E"ident % the !i'ure o! ei'ht wi ha"e to be added to. &he e?chan'e wi continue in e!!ect as on' as it itse ! does not cost !our. =nce that !i'ure is reached, the e?chan'e comes to a ha t. 7t is not necessar% to e'is ate on this matter. For either the aw inter"enes be!ore this e"e has been reached, and then the aw is harm!u , since it thwarts the economi1in' o! e!!ort< or it comes a!terwards, and then it is su#er! uous, i(e a aw !orbiddin' the i'htin' o! am#s at noonda%. $.88 >hen e?chan'e thus comes to a ha t because it ceases to be ad"anta'eous, the east im#ro"ement in the commercia machiner% 'i"es it a new im#etus. A certain number o! transactions are carried on between =r ans and An'ou Nme. &hese two towns e?chan'e whene"er this #rocedure brin's more satis!actions than direct #roduction cou d. &he% sto# e?chan'in' when #roduction b% e?chan'e, a''ra"ated b% the costs o! the e?chan'e itse !, reaches or e?ceeds the e"e o! e!!ort reCuired b% direct #roduction. 6nder these circumstances, i! the machiner% o! e?chan'e is im#ro"ed, i! the midd emen ower their costs, i! a mountain is tunne ed, i! a brid'e is thrown o"er a ri"er, i! a road is #a"ed, i! obstac es are reduced, e?chan'e wi increase, because the inhabitants wish to a"ai themse "es o! a the ad"anta'es we ha"e noted in e?chan'e, because the% desire to obtain 'ratuitous uti it%. &he im#ro"ement o! the commercia machiner%, there!ore, is eCui"a ent to mo"in' the two towns c oser to'ether. Hence, it !o ows that brin'in' men c oser to'ether is eCui"a ent to im#ro"in' the machiner% o! e?chan'e. And this is "er% im#ortant, !or it is the so ution o! the #rob em o! #o#u ation< here in this 'reat #rob em is the e ement that +a thus has ne' ected. >here +a thus saw discord, this e ement wi enab e us to see harmon%. $.89 B% means o! e?chan'e, men attain the same satis!action with ess e!!ort, because the mutua ser"ices the% render one another %ie d them a ar'er #ro#ortion o! 'ratuitous uti it%. $.8$ &here!ore, the !ewer obstac es an e?chan'e encounters, the ess e!!ort it reCuires, the more readi % men e?chan'e. $.85

85 And the c oser men are to'ether, the !ewer the obstac es, the sma er the e!!ort. A 'reater densit% o! #o#u ation is, there!ore, necessari % accom#anied b% a 'reater #ro#ortion o! 'ratuitous uti it%. 7t transmits 'reater #ower to the machiner% o! e?chan'e< it ma(es a"ai ab e a 'reater #art o! human e!!ort< it is a source o! #ro'ress. $.8A And now et us, i! %ou # ease, ea"e o!! 'enera ities and oo( at the !acts. $.8E 4oes not a street o! eCua en'th render more ser"ice in /aris than in a sma townK 4oes not a rai road a (i ometer on' in the 4e#artment o! the 2eine render more ser"ice than one in the 4e#artment o! )andesKG$9 3annot a merchant in )ondon be satis!ied with a sma er #ro!it #er sa e because o! his "o umeK 7n e"er%thin' we sha see that two mechanisms o! e?chan'e, thou'h identica , render "er% di!!erent ser"ices accordin' to their ocation, de#endin' on whether the% !unction in areas with a dense or a s#arse #o#u ation. $.88 4ensit% o! #o#u ation enab es us not on % to 'et a better return !rom the a##aratus o! e?chan'e but a so to en ar'e and #er!ect this a##aratus itse !. 3ertain im#ro"ements that are desirab e in a dense % #o#u ated area, because the% wi sa"e more e!!ort than the% wi cost, are not !easib e in a s#arse % #o#u ated area, because the% wou d reCuire more e!!ort than the% wou d sa"e. $.8F >hen one ea"es /aris !or a short sta% in a itt e town in the #ro"inces, one is astonished at the number o! occasions when certain itt e ser"ices can be secured on % at e?cessi"e cost o! time and mone% and with 'reat di!!icu t%. $.F0 7t is not on % the #h%sica side o! the commercia mechanism that is #ut to use and im#ro"ed b% the mere !act o! the densit% o! the #o#u ation, but the mora and cu tura side as we . +en i"in' in c ose #ro?imit% are better ab e to di"ide their abor, .oin !orces, wor( to'ether to !ound schoo s and museums, bui d churches, #ro"ide !or their securit%, estab ish ban(s and insurance com#anies-in a word, to en.o% mutua ad"anta'es with the e?#enditure o! much ess e!!ort #er #erson. $.F1 &hese considerations wi a'ain become a##arent when we reach the Cuestion o! #o#u ation. )et us con!ine ourse "es here to this obser"ation: E?chan'e is a means 'i"en to men to enab e them to ma(e better use o! their #roducti"e ca#acities, to economi1e their ca#ita , to e?# oit more e!!ecti"e % the 'ratuitous resources o! Bature, to increase the ratio o! 'ratuitous uti it% to onerous uti it%, to decrease, there!ore, the ratio o! e!!ort to resu t, to !ree more and more o! their ener'% !rom the business o! #ro"idin' !or their more ur'ent and e ementa wants, in order to use it instead !or en.o%ments o! a hi'her and hi'her order.


$.F8 7! e?chan'e sa"es e!!ort, it a so reCuires e!!ort. 7t e?#ands, increases, mu ti# ies to the #oint where the e!!ort it reCuires eCua s the e!!ort it sa"es, and then it comes to a ha t unti , throu'h im#ro"ement in the commercia machiner%, throu'h the mere !act o! increased #o#u ation, o! more men i"in' c oser to'ether, it encounters the conditions necessar% to resume its !orward march. 3onseCuent %, aws that imit e?chan'e are a wa%s either harm!u or unnecessar%. $.F9 0o"ernments, which are a wa%s dis#osed to be ie"e that nothin' can be done without them, re!use to understand this aw o! harmon%. $.F$ E?chan'e de"e o#s natura % to the #oint where !urther de"e o#ment wou d be more onerous than use!u , and sto#s o! its own accord at this imit. $.F5 3onseCuent %, we see 'o"ernments e"er%where 'reat % #reoccu#ied either with 'i"in' e?chan'e s#ecia !a"ors or with restrictin' it. &o carr% it be%ond its natura imits, the% see( a!ter new out ets and co onies. &o ho d it within these imits, the% thin( u# a (inds o! restrictions and chec(s. $.FA &his inter"ention o! !orce in human transactions is a wa%s accom#anied b% count ess e"i s. $.FE &he "er% increase in its si1e is a read% a #rimar% e"i < !or it is "er% e"ident that a state cannot ma(e conCuests, # ace distant countries under its domination, di"ert the natura ! ow o! commerce b% means o! tari!!s, without mu ti# %in' 'reat % the number o! its a'ents. $.F8 &he di"ertin' o! the a'encies o! aw and order !rom their natura !unction is an e"en 'reater e"i than addin' undu % to their si1e. &heir rationa !unction was to #rotect a ibert% and a #ro#ert%, and instead we see them bent on doin' "io ence to the ibert% and the #ro#ert% o! the citi1ens. &hus, 'o"ernments seem to be dedicated to the tas( o! remo"in' !rom men;s minds a notions o! eCuit% and #rinci# e. As soon as it is admitted that o##ression and # under are e'itimate #ro"ided the% are e'a , #ro"ided the% are #racticed on the #eo# e on % throu'h the authorit% o! the aw and its #owers o! en!orcement, we see each c ass itt e b% itt e demandin' that a other c asses be sacri!iced to it. $.FF

8E >hether this inter"ention o! !orce in the #rocess o! e?chan'e creates e?chan'es that otherwise wou d not be made or #re"ents others !rom bein' made, it cannot !ai to resu t in the waste and misuse o! abor and ca#ita , and conseCuent % in the disturbance o! the natura distribution o! #o#u ation. Batura interests disa##ear at one #oint, arti!icia interests are created at another, and men are com#e ed to !o ow the course o! these interests. &hus, 'reat industries are estab ished where the% ha"e no ri'ht to be. France ma(es su'ar< En' and s#ins cotton brou'ht !rom the # ains o! 7ndia. 7t too( centuries o! war, torrents o! s#i ed b ood, the !ritterin' awa% o! immense treasure, to arri"e at this resu t: substitutin' in Euro#e #recarious industries !or "i'orous ones, and thus o#enin' the door to #anics, unem# o%ment, instabi it%, and, in the ast ana %sis, #au#erism. $.100 But 7 see that 7 am antici#atin'. >e must !irst (now the aws o! the !ree and natura de"e o#ment o! human societ%. >e ma% then stud% the disturbances. $.101 &he +ora Force o! E?chan'e >e must re#eat, at the ris( o! distressin' modern sentimenta ists: /o itica econom% is restricted to the area that we ca business, and business is under the in! uence o! se !interest. )et the #uritans o! socia ism cr% out as much as the% wi : 5&his is horrib e< we sha chan'e a this5< their rantin's on this sub.ect constitute their own conc usi"e re!utation. &r% to bu% a #rinted co#% o! their #ub ications on the Quai @o taire,G$$ usin' brother % o"e as #a%mentJ $.108 7t wou d be !a in' into another (ind o! em#t% orator% to attribute mora it% to acts determined and 'o"erned b% se !-interest. But sure % Bature, in her in'enuit%, has been ab e so to arran'e the socia order that these same acts, thou'h the% ha"e no mora moti"ation, ne"erthe ess achie"e mora resu ts. 7s this not true o! aborK 2o 7 sa% that e?chan'e, whether in the !orm o! direct barter or 'rown into a "ast industr%, de"e o#s in societ% tendencies more nob e than its moti"es. $.109 0od !orbid that 7 shou d tr% to attribute to but a sin' e as#ect o! human ener'% a the 'randeur, ' or%, and charm o! our e?istence. As there are two !orces in the #h%sica uni"erse, centri#eta !orce and centri!u'a !orce, so there are two #rinci# es in the socia wor d: se !-interest and a truism. >ho is un!ortunate enou'h not to (now the bene!its and the .o%s that come !rom a truistic im#u ses, mani!ested b% o"e, !i ia de"otion, #arenta a!!ection, charit%, #atriotism, re i'ion, enthusiasm !or the 'ood and the beauti!u K &here are those who sa% that a truism is on % a ' ori!ied !orm o! se !- o"e, and that, in rea it%, o"in' others is on % an inte i'ent wa% o! o"in' onese !. &his is not the # ace to de "e into the #ro!undities o! this Cuestion. >hether our two moti"atin' !orces be distinct or

88 mer'ed, it is enou'h to (now that, !ar !rom c ashin', as is so o!ten said, the% combine and wor( to'ether !or the same common end: the 'enera we !are. $.10$ 7 ha"e estab ished these two #ro#ositions: $.105 7n the state o! iso ation, our wants e?ceed our #roducti"e ca#acities. $.10A B% "irtue o! e?chan'e, our #roducti"e ca#acities e?ceed our wants. $.10E &he% e?# ain the reason !or the e?istence o! societ%. Here are two others that assure un imited #ro'ress: $.108 7n the state o! iso ation, one man;s #ros#erit% is inimica to that o! a others. $.10F B% "irtue o! e?chan'e, one man;s #ros#erit% is bene!icia to a others. $.110 7s there need to #ro"e that, i! Bature had destined men !or a so itar% e?istence, the #ros#erit% o! one wou d be an obstac e to the #ros#erit% o! anotherK &he more numerous the% were, the ess chance the% wou d ha"e o! attainin' we -bein'. 7n an% case, we can we see how their numbers cou d be harm!u to them< we cannot see how the% cou d be bene!icia . And then, 7 as(, under what !orm wou d a truism mani!est itse !K >hat wou d brin' it into bein'K How cou d we e"en concei"e o! itK $.111 But men e?chan'e. 7m# icit in e?chan'e, as we ha"e seen, is the di"ision o! abor. 7t 'i"es rise to the #ro!essions and trades. Each one a## ies himse ! to conCuerin' one set o! obstac es !or the bene!it o! the communit%. Each one de"otes himse ! to renderin' one (ind o! ser"ice. Bow, a com# ete ana %sis o! "a ue demonstrates that the worth o! e"er% ser"ice is de#endent !irst on its intrinsic uti it%, and then on the !act that it is o!!ered !or sa e in a richer oca it%, that is, in a communit% more inc ined to demand it, more ab e to #a% !or it. Actua e?#erience-which shows us the artisan, the doctor, the aw%er, the businessman, the coach-ma(er, the teacher, the scho ar, recei"in' a better return !or their ser"ices in /aris, )ondon, or Bew Lor(, than in the moors o! 0ascon%, the mountains o! >a es, or the #rairies o! the Far >est-con!irms us in this truth: $.118 &he more #ros#erous the # ace in which he is situated, the better the chances a man has to #ros#er.

8F $.119 =! a the harmonies about which 7 ha"e written, this one is certain % the most im#ortant, the !inest, the most decisi"e, the most #roducti"e. 7t im# ies and sums u# a the others. For this reason 7 can 'i"e it here on % a "er% incom# ete demonstration. 7 shou d consider it !ortunate, indeed, i! it emanates !rom the s#irit o! this boo( and more !ortunate sti i! it a##ears su!!icient % #robab e to induce the reader to #roceed on his own !rom #robabi it% to certaint%J $.11$ For, be%ond a shadow o! doubt, this is the reason wh% we must decide between the natura socia order and a arti!icia socia orders< here, and here a one, is the so ution to the socia #rob em. 7! the #ros#erit% o! a is reCuisite !or the #ros#erit% o! one, we ma% # ace our trust not on % in the economic #ower o! !ree e?chan'e, but a so in its mora !orce. =nce men (now what their true interests are, then a the restrictions, a the industria .ea ousies, the commercia wars, the mono#o ies, wi !a be!ore the #rotest o! #ub ic o#inion< then the% wi as(, be!ore demandin' the #assa'e o! an% e'is ation, not: 5>hat 'ood wi it do meK5 but: 5>hat 'ood wi it do the communit%K5 7 admit that we sometimes as( ourse "es this second Cuestion at the #rom#tin' o! our a truism< but as the i'ht o! understandin' comes to #re"ai , we sha as( it a so out o! se !-interest. &hen, indeed, it wi be #ossib e to sa% that the two moti"e !orces o! our nature wor( to'ether !or the same resu t-the 'enera 'ood< and it wi be im#ossib e to den% that in se !interest, and i(ewise in the transactions that stem !rom it, at east as !ar as their resu ts are concerned, there resides a source o! mora #ower. $.115 >hether we consider the re ations o! man to man, !ami % to !ami %, #ro"ince to #ro"ince, nation to nation, hemis#here to hemis#here, ca#ita ist to wor(er, or #ro#ert% owner to #ro etarian, it is e"ident, 7 be ie"e, that we cannot so "e or e"en a##roach the socia #rob em !rom an% o! these #oints o! "iew without !irst choosin' between these two ma?ims: $.11A &he #ro!it o! the one is the oss o! the other. $.11E &he #ro!it o! the one is the #ro!it o! the other. $.118 For, i! Bature has arran'ed thin's in such a wa% that anta'onism is the aw o! !ree transactions, our on % recourse is to conCuer Bature and to sti! e ibert%. 7!, on the contrar%, these !ree transactions are harmonious, that is, i! the% tend to im#ro"e and eCua i1e conditions, we must con!ine our e!!orts to a owin' Bature to act and to maintainin' the ri'hts o! human ibert%. $.11F

F0 And that is wh% 7 ur'e the %oun' men to whom this boo( is dedicated to scrutini1e care!u % the doctrines it contains and to ana %1e the inner nature and the resu ts o! e?chan'e. Les, 7 am con!ident that there wi be one amon' them who wi !ina % adduce a ri'orous % o'ica demonstration o! this #ro#osition: &he 'ood o! each is !a"orab e to the 'ood o! a , e"en as the 'ood o! a is !a"orab e to the 'ood o! each< who wi be ab e to # ant this truth dee# % in a minds, ma(in' it sim# e, cr%sta -c ear, irre!utab e. &his %oun' man wi ha"e so "ed the socia #rob em< he wi be the bene!actor o! the human race. $.180 )et us, then, bear this in mind: Accordin' to the truth or !a sit% o! this a?iom, the natura aws o! societ% are harmonious or anta'onistic< and accordin' to their harmon% or anta'onism, it is to our interest to con!orm to them or to de"iate !rom them. 7!, then, it were once c ear % demonstrated that, under ibert%, each man;s se !-interest is in accord with that o! e"er% other, and those o! a are mutua % !a"orab e, a the e!!orts that we now see 'o"ernments ma(in' to disru#t the action o! these natura aws o! societ% wou d better be de"oted to ea"in' to them their !u #ower< or rather no e!!ort wou d be needed at a , e?ce#t the e!!ort it ta(es not to inter!ere. 7n what does the inter!erence b% 'o"ernments consistK &his can be deduced !rom the end the% ha"e in "iew. >hat is thatK &o remed% the ineCua it% that is thou'ht to s#rin' !rom ibert%. Bow there is on % one wa% to re-estab ish the ba ance: to ta(e !rom some to 'i"e to others. 2uch is, in !act, the mandate that 'o"ernments ha"e 'i"en themse "es or ha"e recei"ed, and it is the o'ica deduction !rom the #ro#osition: &he #ro!it o! the one is the oss o! the other. &his a?iom bein' he d as true, !orce must indeed re#air the dama'e done b% ibert%. &hus, 'o"ernments, which we thou'ht were instituted to 'uarantee e"er% man his ibert% and his #ro#ert%, ha"e ta(en it u#on themse "es to "io ate a ibert% and a #ro#ert% ri'hts, and with 'ood reason, i! in ibert% and #ro#ert% resides the "er% #rinci# e o! e"i . &hus, e"er%where we see them bus% chan'in' arti!icia % the e?istin' distribution o! abor, ca#ita , and res#onsibi it%. $.181 =n the other hand, a tru % inca cu ab e amount o! inte ectua ener'% is bein' wasted in the #ursuit o! contri"ed socia or'ani1ations. &o ta(e !rom some to 'i"e to others, to "io ate both ibert% and #ro#ert% ri'hts-this is a "er% sim# e ob.ecti"e< but the wa%s o! 'oin' about it can "ar% to in!init%. Hence these mu titudes o! s%stems, which throw a c asses o! wor(ers into consternation, since, b% the "er% nature o! their 'oa , the% menace a e?istin' interests. $.188 &here!ore, arbitrar% and com# icated 'o"ernments, the denia o! ibert% and #ro#ert% ri'hts, the anta'onism o! c asses and nations-a this is the o'ica out'rowth o! the a?iom: &he #ro!it o! the one is the oss o! the other. And, !or the same reason, sim# icit% in 'o"ernment administration, res#ect !or indi"idua di'nit%, !reedom o! abor and e?chan'e, #eace amon' nations, #rotection o! #erson and #ro#ert%-a this is the out'rowth o! this truth: A interests are harmonious, #ro"ided, howe"er, on % that this truth be 'enera % acce#ted.


$.189 2uch is !ar !rom the case. +an% #ersons, readin' the abo"e, are #rom#ted to sa% to me: Lou are brea(in' down an o#en door. >ho has e"er thou'ht serious % o! cha en'in' the su#eriorit% o! e?chan'e o"er iso ationK 7n what boo(, e?ce#t #erha#s ,ousseau;s, ha"e %ou encountered this stran'e #arado?K $.18$ &hose who sto# me with this obser"ation !or'et on % two thin's, two s%m#toms, or rather two as#ects, o! our modern societ%: the doctrines with which the theorists ! ood us, and the #ractices that 'o"ernments !oist u#on us. Bo, it must indeed be that the harmon% o! interests is not uni"ersa % reco'ni1ed, since, on the one hand, the !orce o! 'o"ernment is constant % inter"enin' to disru#t their natura combinations< and, on the other, the re#roach is e"er%where made that 'o"ernment does not inter"ene enou'h. $.185 &his is the Cuestion: 7s e"i (it is c ear that 7 here re!er to e"i that is not the necessar% conseCuence o! our ori'ina in!irmit%) traceab e to the action o! the natura aws o! societ% or to our #enchant !or disturbin' this actionK $.18A Bow, two !acts are coe?istent: e"i , and the !orce o! 'o"ernment directed a'ainst the natura aws o! societ%. 7s the !irst o! these two !acts the conseCuence o! the secondK /ersona %, 7 be ie"e it is< 7 wi e"en sa% that 7 am sure o! it. But at the same time 7 attest to this: as e"i s#reads, 'o"ernments see( the remed% in new inter!erences with the action o! these aws< and the theorists com# ain that the% sti do not inter!ere enou'h. Am 7 not, then, .usti!ied in conc udin' that there is itt e con!idence in the natura aws o! societ%K $.18E Les, without a doubt, i! the Cuestion is #osed as a choice between iso ation or e?chan'e, there is a'reement. But i! the choice is between !ree e?chan'e and !orced e?chan'e, is there i(ewise a'reementK 7s there nothin' arti!icia , !orced, restrained or constrained, in France, in the e?chan'e o! ser"ices re ati"e to commerce, credit, trans#ortation, arts, education, re i'ionK Are abor and ca#ita natura % distributed between a'ricu ture and industr%K >hen men are mo"ed out o! their norma channe s, are the% sti a owed to !o ow the natura direction o! their own se !-interestK 4o we not !ind obstructions e"er%whereK Are there not a hundred "ocations that are c osed to most o! usK 7s the 3atho ic not ob i'ed to #a% !or the ser"ices o! the Mewish rabbi, and the Mew !or the ser"ices o! the 3atho ic #riestKG$5 7s there one man in France who has had the education his #arents wou d ha"e 'i"en him i! the% had been !reeK Are not our minds, our wa% o! i!e, our ideas, our industr%, !ashioned under the ru e o! the arbitrar% or at east o! the arti!icia K Bow, 7 as(, is not such disturbin' o! the !ree e?chan'e o! ser"ices a wa% o! den%in' the harmon% o! interestsK =n what #rete?t am 7 de#ri"ed o! m% ibert% i! not that m% ibert% is .ud'ed to be harm!u to othersK 7t can hard % be said to be harm!u to me, !or that wou d be addin' but one anta'onism the more. And where on earth are we, in

F8 Hea"en;s name, i! Bature has # aced in e"er% man;s heart a #ermanent, indomitab e dri"e that im#e s him to harm both others and himse !K $.188 >e ha"e tried so man% thin's< when sha we tr% the sim# est o! a : !reedomK Freedom in a our acts that do not o!!end .ustice< !reedom to i"e, to de"e o#, to im#ro"e< the !ree e?ercise o! our !acu ties< the !ree e?chan'e o! our ser"ices. >hat a !ine and so emn s#ectac e it wou d ha"e been had the 'o"ernment brou'ht to #ower b% the Februar% ,e"o utionG$A s#o(en thus to the citi1ens: $.18F 5Lou ha"e in"ested me with the #ower o! authorit%. 7 sha use it on % in cases where the inter"ention o! !orce is #ermissib e. But there is on % one such case, and that is !or the cause o! .ustice. 7 sha reCuire e"er% man to remain within the imits set b% his ri'hts. E"er% one o! %ou ma% wor( in !reedom b% da% and s ee# in #eace at ni'ht. 7 ta(e u#on m%se ! the sa!et% o! %our #ersons and #ro#ert%. &hat is m% mandate< 7 sha !u !i it, but 7 acce#t no other. )et there be no misunderstandin' between us. Hence!orth %ou wi #a% on % the s i'ht assessment indis#ensab e !or the maintenance o! order and the en!orcement o! .ustice. But a so, # ease note, each one o! %ou is res#onsib e to himse ! !or his own subsistence and ad"ancement. &urn %our e%es toward me no on'er. 4o not as( me to 'i"e %ou wea th, wor(, credit, education, re i'ion, mora it%. 4o not !or'et that the moti"e #ower b% which %ou ad"ance is within %ourse "es< that 7 m%se ! can act on % throu'h the instrumenta it% o! !orce. A that 7 ha"e, abso ute % a , comes !rom %ou< conseCuent %, 7 cannot 'rant the s i'htest ad"anta'e to one e?ce#t at the e?#ense o! others. 3u ti"ate %our !ie ds, then, manu!acture and e?#ort %our #roducts, conduct %our business a!!airs, ma(e %our credit arran'ements, 'i"e and recei"e %our ser"ices !ree %, educate %our chi dren, !ind them a ca in', cu ti"ate the arts, im#ro"e %our minds, re!ine %our sentiments, stren'then %our bonds with one another, estab ish industria or charitab e associations, unite %our e!!orts !or %our indi"idua 'ood as we as !or the 'enera 'ood< !o ow %our inc inations, !u !i %our indi"idua destinies accordin' to %our endowments, %our "a ues, %our !oresi'ht. E?#ect !rom me on % two thin's: !reedom and securit%, and (now that %ou cannot as( !or a third without osin' these two.5 $.190 Les, 7 am con"inced, i! the Februar% ,e"o ution had #roc aimed these #rinci# es, we shou d not ha"e had another re"o ution. 3an we ima'ine citi1ens, otherwise com# ete % !ree, mo"in' to o"erthrow their 'o"ernment when its acti"it% is imited to satis!%in' the most "ita , the most (een % !e t o! a socia wants, the need !or .usticeK $.191 But, un!ortunate %, it was im#ossib e !or the Bationa Assemb % to !o ow this course or to s#ea( these words. &hese utterances were not in accord with the Assemb %;s thin(in' or with the #ub ic;s e?#ectations. &he% wou d ha"e s#read as much consternation throu'hout societ%, #erha#s, as wou d the #roc aimin' o! a socia ist state. Be res#onsib e !or ourse "esJ the% wou d ha"e said. )oo( to the state !or nothin' be%ond aw and orderJ 3ount on it !or no wea th, no en i'htenmentJ Bo more ho din' it res#onsib e !or our

F9 !au ts, our ne' i'ence, our im#ro"idenceJ 3ount on % on ourse "es !or our subsistence, our #h%sica , inte ectua , and mora #ro'ressJ +erci!u hea"ensJ >hat is 'oin' to become o! usK >on;t societ% 'i"e wa% to #o"ert%, i'norance, error, irre i'ion, and #er"ersit%K $.198 2uch, %ou wi a'ree, wou d ha"e been the !ears, "oiced on a sides, i! the Februar% ,e"o ution had #roc aimed ibert%, that is, the rei'n o! the natura aws o! societ%. Hence, either we do not (now these aws, or we do not trust them. >e cannot he # thin(in' that the moti"e !orces that 0od im# anted in man are essentia % #er"erse< that there is inte'rit% on % in the intentions and desi'ns o! 'o"ernment< that the tendencies o! man(ind ead to disorder, to anarch%< in a word, we be ie"e in the ine"itab e mutua anta'onism o! men;s interests. $.199 &here!ore, French societ% durin' the Februar% ,e"o ution, !ar !rom showin' the s i'htest desire !or a natura or'ani1ation, ne"er, #erha#s, turned its thou'hts and its ho#es so ardent % toward arti!icia contri"ances. >hat were the%K >e (now on % too we . 7t was #ro#osed, accordin' to the an'ua'e o! the time, to 'i"e it a tr%: Faciamus e?#erimentum in cor#ore "i i.G$E And the socia # anners seemed to ha"e such contem#t !or human #ersona it%, to identi!% man so com# ete % with inert matter, that the% s#o(e o! conductin' socia e?#eriments with man(ind as one wou d s#ea( o! ma(in' chemica e?#eriments with a (a is or acids. An initia e?#eriment was be'un at the )u?embour',G$8 we (now with what success. 2oon the 3onstituent Assemb % !ormed a 3ommittee on )abor which was de u'ed with a thousand socia # ans. A Fourier s#o(esman, in a seriousness, as(ed !or and and mone% (he undoubted % wou d not ha"e been s ow to as( !or men as we ) to im# ement his mode societ%. Another s#o(esman, an e'a itarian, o!!ered his reci#e, which was re.ected. &he manu!acturers, more !ortunate, succeeded in ha"in' theirs acce#ted. Fina %, at this .uncture, the e'is ati"e assemb % named a commission to set u# a #ub ic re ie! #ro'ram. $.19$ >hat is sur#risin' in a this is that those in #ower, sim# % to sta% in #ower, did not now and then #rotest: 5Lou are eadin' thirt%-si? mi ion citi1ens to ima'ine that we are res#onsib e !or e"er%thin', 'ood or bad, that ha##ens to them in this wor d. =n these terms, no 'o"ernment is #ossib e.5 $.195 7n an% case, howe"er much these "arious #ro#osa s, ' ori!ied as socia # annin', ma% di!!er !rom one another in their methods, the% are a #redicated on the same #ro#osition: &a(e !rom some to 'i"e to others. Bow, it is "er% c ear that such a #ro#osition cou d meet with so s%m#athetic a res#onse !rom the who e nation on % because o! the 'enera con"iction that men;s interests are natura % anta'onistic and human inc inations are essentia % #er"erse. $.19A

F$ &a(e !rom some to 'i"e to othersJ 7 (now that this is the wa% thin's ha"e been 'oin' !or a on' time. But, be!ore contri"in', in our e!!ort to banish #o"ert%, "arious means o! #uttin' this out andish #rinci# e into e!!ect, ou'ht we not rather to as( ourse "es whether #o"ert% is not due to the "er% !act that this #rinci# e has a read% been #ut into e!!ect in one wa% or anotherK Be!ore see(in' the remed% in the !urther disturbance o! the natura aw o! societ%, ou'ht we not !irst to ma(e sure that these disturbances are not themse "es the "er% cause o! the socia i s that we wish to cureK $.19E &a(e !rom some to 'i"e to othersJ /ermit me to #oint out the dan'er and the absurdit% o! the economic thin(in' in this so-ca ed socia as#iration, which we ed u# in the hearts o! the masses and !ina % burst !orth so "io ent % durin' the Februar% ,e"o ution. $.198 >hen there are a number o! strata in societ%, it is understandab e that the u##ermost one shou d en.o% #ri"i e'es at the e?#ense o! the others. &his is hate!u , but it is not i o'ica . $.19F &hen the second stratum !rom the to# wi not !ai to batter down these #ri"i e'es< and, with the he # o! the masses, wi sooner or ater sta'e a re"o ution. 7n that case, as #ower #asses into its hands, we can understand that it too creates #ri"i e'es !or itse !. &his is a wa%s detestab e, but it is not i o'ica < at east it is not un!easib e, !or #ri"i e'e is #ossib e so on' as it has the 'reat mass o! the #eo# e under it to su##ort it. 7! the third and the !ourth strata a so sta'e their re"o utions, the% too wi arran'e, i! the% can, to e?# oit the masses throu'h care!u % contri"ed #ri"i e'es. But now the 'reat masses o! the #eo# e, downtrodden, o##ressed, e?hausted, sta'e their re"o ution too. >h%K >hat do the% #ro#ose to doK Lou thin( #erha#s the% are 'oin' to abo ish a #ri"i e'e, inau'urate the rei'n o! uni"ersa .usticeK 4o %ou thin( that the% are 'oin' to sa%: 5An end to restrictions< an end to restraints< an end to mono#o %< an end to 'o"ernment inter!erence !or the bene!it o! one c ass< an end to hea"% ta?ation< an end to di# omatic and #o itica intri'ue5K Bo, their aim is "er% di!!erent. &he% become a #ressure 'rou#< the% too insist on becomin' #ri"i e'ed. &he%, the masses o! the #eo# e, imitatin' the u##er c asses, cr% in their turn !or #ri"i e'es. &he% demand their ri'ht to em# o%ment, their ri'ht to credit, their ri'ht to education, their ri'ht to #ensions. But at whose e?#enseK &hat is a Cuestion the% ne"er sto# to as(. &he% (now on % that bein' assured o! em# o%ment, credit, education, securit% !or their o d a'e, wou d be "er% # easant indeed, and no one wou d den% it. But is it #ossib eK A as, no, and at this #oint, 7 sa%, it is no on'er detestab e, but i o'ica to the hi'hest de'ree. $.1$0 /ri"i e'es !or the massesJ /eo# e o! the ower c asses, thin( o! the "icious circ e %ou are # acin' %ourse "es in. /ri"i e'e im# ies someone to #ro!it !rom it and someone to #a% !or it. >e can concei"e o! a #ri"i e'ed man or a #ri"i e'ed c ass< but can we concei"e o! a who e nation o! #ri"i e'ed #eo# eK 7s there another socia stratum under %ou that %ou can ma(e carr% the oadK >i %ou ne"er understand the weird hocus #ocus o! which %ou are the du#esK >i %ou ne"er understand that the state cannot 'i"e %ou somethin' with one

F5 hand without ta(in' that somethin', and a itt e more, awa% !rom %ou with the otherK 4o %ou not see that, !ar !rom there bein' an% #ossib e increase o! we -bein' in this #rocess !or %ou, its end resu t is bound to be an arbitrar% 'o"ernment, more 'a in', more medd in', more e?tra"a'ant, more #recarious, with hea"ier ta?es, more !reCuent in.ustices, more shoc(in' cases o! !a"oritism, ess ibert%, more ost e!!ort, with interests, abor, and ca#ita a misdirected, 'reed stimu ated, discontent !omented, and indi"idua initiati"e sti! edK $.1$1 &he u##er c asses become a armed, and not without reason, at this disturbin' attitude on the #art o! the masses. &he% sense in it the 'erm o! constant re"o ution, !or what 'o"ernment can endure when it has had the mis!ortune to sa%: 57 ha"e the !orce, and 7 sha use it to ma(e e"er%bod% i"e at the e?#ense o! e"er%bod% e se. 7 ta(e u#on m%se ! the res#onsibi it% !or the ha##iness o! a 5K But is not the consternation these c asses !ee a .ust #unishmentK Ha"e the% themse "es not set the bane!u e?am# e o! the attitude o! mind o! which the% now com# ainK Ha"e the% not a wa%s had their e%es !i?ed on !a"ors !rom the stateK Ha"e the% e"er !ai ed to bestow an% #ri"i e'e, 'reat or sma , on industr%, ban(in', minin', anded #ro#ert%, the arts, and e"en their means o! re a?ation and amusement, i(e dancin' and music-e"er%thin', indeed, e?ce#t on the toi o! the #eo# e and the wor( o! their handsK Ha"e the% not end ess % mu ti# ied #ub ic ser"ices in order to increase, at the #eo# e;s e?#ense, their means o! i"e ihood< and is there toda% the !ather o! a !ami % amon' them who is not ta(in' ste#s to assure his son a 'o"ernment .obK Ha"e the% e"er "o untari % ta(en a sin' e ste# to correct the admitted ineCua ities o! ta?ationK Ha"e the% not !or a on' time e"en e?# oited their e ectora #ri"i e'esK And now the% are ama1ed and distressed that the #eo# e !o ow in the same directionJ But when the s#irit o! mendicanc% has #re"ai ed !or so on' amon' the rich, how can we e?#ect it not to ha"e #enetrated to the ess #ri"i e'ed c assesK $.1$8 Howe"er, a 'reat re"o ution has ta(en # ace. /o itica #ower, the aw-ma(in' abi it%, the en!orcement o! the aw, ha"e a #assed, "irtua %, i! not %et com# ete % in !act, into the hands o! the #eo# e, a on' with uni"ersa su!!ra'e.G$F &hus, the #eo# e, who raise the #rob em, wi be ca ed u#on to reso "e it< and woe to the nation i!, !o owin' the e?am# e that has been 'i"en them, the% see( the so ution in #ri"i e'e, which is a wa%s the "io ation o! the ri'hts o! othersJ 3ertain % it wi resu t in 'reat disi usionment, and a so in a 'reat esson< !or, thou'h it is #ossib e to "io ate the ri'hts o! the man% !or the bene!it o! the !ew, how can we "io ate the ri'hts o! a !or the bene!it o! a K But at what #rice wi this esson be bou'htK >hat shou d the u##er c asses do to warn a'ainst this !ri'ht!u dan'erK &wo thin's: 'i"e u# their #ri"i e'es o! their own accord, and en i'hten the masses< !or there are but two thin's that can sa"e societ%: .ustice and en i'htenment. &he% shou d e?amine care!u % whether the% are not en.o%in' some mono#o %-i! so, et them renounce it< whether the% are not bene!itin' b% some arti!icia ineCuities-i! so, et them eradicate them< whether #au#erism is not due, in #art at east, to their disturbance o! the natura aw o! societ%-i! so, et them ma(e an end o! it in order that the% ma% show their hands to the #eo# e and sa%: &hese hands are not em#t%, but the% are c ean. 7s this what the% actua % doK 6n ess 7 am com# ete % b ind, the% do the e?act o##osite. &he%

FA be'in b% (ee#in' their mono#o ies and ha"e e"en been seen to ta(e ad"anta'e o! the ,e"o ution to increase them. A!ter thus #uttin' themse "es in the #osition where the% cannot te the truth and cannot in"o(e an% #rinci# es without a##earin' inconsistent, the% #romise to treat the #eo# e as the #eo# e wou d treat themse "es, and dan' e be!ore their e%es the ure o! #ri"i e'e. But the% !ee that the% are bein' "er% wi % in that toda% the% 'rant the #eo# e on % a sma #ri"i e'e-the ri'ht to #ensions-in the ho#e that the% ma% a"oid an% reCuest !or a 'reat #ri"i e'e-the ri'ht to em# o%ment. And the% do not see that b% e?tendin' and s%stemati1in' more and more the a?iom: &a(e !rom some to 'i"e to others, the% are encoura'in' the error that creates the di!!icu ties o! the #resent and dan'ers !or the !uture. $.1$9 )et us not e?a''erate, howe"er. >hen the u##er c asses see( in the e?tension o! #ri"i e'e the remed% !or the i s that #ri"i e'e has caused, the% act in 'ood !aith, and, 7 !ee sure, more throu'h i'norance than !rom a desire to commit in.ustice. &he !act that successi"e 'o"ernments in France ha"e a wa%s b oc(ed the teachin' o! #o itica econom% has done irre#arab e harm. E"en 'reater is the harm done b% our uni"ersit% s%stem, which !i s a our heads with ,oman #re.udices, that is, with e"er%thin' most incom#atib e with socia truth. &his is what eads the u##er c asses astra%. 7t is !ashionab e toda% to dec aim a'ainst them. For m% #art, 7 be ie"e that their intentions ha"e ne"er been more bene"o ent in an% a'e. 7 be ie"e that the% earnest % desire to so "e the #rob ems o! societ%. 7 be ie"e that the% wou d 'o !urther than 'i"e u# their #ri"i e'es and wou d wi in' % turn o"er to charitab e wor(s a #art o! the #ro#ert% the% ha"e acCuired, i!, b% so doin', the% !e t that the% cou d de!inite % end the hardshi#s o! the wor(in' c asses. /eo# e wi sa%, doubt ess, that the% are moti"ated b% se !-interest or !ear, and that there is no 'reat 'enerosit% in 'i"in' u# a #art o! one;s 'oods in order to sa"e the rest. 7t is the common# ace #rudence o! a man who (ee#s a !ire within bounds. )et us not thus abuse human nature. >h% re!use to admit an% ess se !ish moti"eK 7s it not Cuite natura !or the democratic attitudes that #re"ai in our countr% to ma(e men sensiti"e to the su!!erin' o! their !e owsK But, whate"er ma% be the moti"e, what cannot be denied is that e"er%thin' that re"ea s #ub ic o#inion-#hi oso#h%, iterature, #oetr%, the drama, the #u #it, #ar iamentar% debate, the #ress-indicates in the wea th% c ass more than a desire, an ardent on'in', to so "e the 'reat #rob em. >h%, then, does nothin' come !rom our e'is ati"e assemb iesK Because o! their i'norance. /o itica econom% o!!ers them this so ution: )e'a .ustice, #ri"ate charit%. But the% are o!! on a wron' scent and, without rea i1in' it, !o ow the socia ist in! uence< the% want to incor#orate charit% into the aw, that is, to banish .ustice !rom the aw, a course i(e % to destro% #ri"ate charit%, which is a wa%s Cuic( to 'i"e wa% be!ore e'a charit%. $.1$$ >h% do our e'is ators thus contra"ene a sound notions o! #o itica econom%K >h% do the% not ea"e thin's in their #ro#er # ace: a truism in its natura rea m, which is ibert%< and .ustice in its, which is awK >h% do the% not use the aw e?c usi"e % to !urther .usticeK 7t is not that the% do not o"e .ustice, but that the% ha"e no con!idence in it. Mustice is ibert% and #ro#ert%. But the% are socia ists without (nowin' it< !or achie"in' the #ro'ressi"e reduction o! #o"ert% and the #ro'ressi"e increase in wea th, the% ha"e no

FE !aith, whate"er the% ma% sa%, in ibert% or in #ro#ert% or, conseCuent %, in .ustice. And that is wh% we see them in a 'ood !aith see(in' to achie"e the 'ood b% the constant "io ation o! the ri'ht. $.1$5 >e can ca the natura aws o! societ% that bod% o! #henomena, considered !rom the stand#oint o! their moti"ations and their resu ts, which 'o"ern the !ree transactions o! men. $.1$A =nce this is #ostu ated, the Cuestion is: +ust we #ermit these aws to !unction, or must we #re"ent them !rom !unctionin'K $.1$E &his Cuestion is tantamount to as(in': $.1$8 +ust we reco'ni1e the ri'ht o! e"er% man to his #ro#ert%, his !reedom to wor( and to e?chan'e on his own res#onsibi it%, whether to his #ro!it or his oss, in"o(in' the aw, which is !orce, on % !or the #rotection o! his ri'hts< or can we reach a hi'her # ane o! socia we -bein' b% "io atin' #ro#ert% ri'hts and ibert%, re'u atin' abor, disru#tin' e?chan'e, and shi!tin' res#onsibi it% awa% !rom the indi"idua K $.1$F 7n other words: $.150 +ust the aw en!orce strict .ustice, or be the instrument o! or'ani1ed con!iscation administered more or ess inte i'ent %K $.151 7t is Cuite e"ident that the answer to these Cuestions is de#endent on the stud% and (now ed'e o! the aws o! societ%. >e cannot ma(e an% reasonab e #ronouncement unti we (now whether #ro#ert%, ibert%, the "aried #attern o! ser"ices !ree % e?chan'ed, ead men !orward toward their im#ro"ement, as economists assert, or bac(ward toward their debasement, as the socia ists a!!irm. 7n the !irst case, the i s o! societ% must be attributed to inter!erence with the o#eration o! natura aws, to the e'a i1ed "io ation o! the ri'ht to ibert% and #ro#ert%. 7t is this inter!erence and "io ation, then, that must be sto##ed, and the #o itica economists are ri'ht. 7n the second case, we do not %et ha"e enou'h 'o"ernment inter!erence. Forced and arti!icia #atterns o! e?chan'e ha"e not %et su!!icient % re# aced the !ree and natura #attern< too much res#ect is sti #aid to .ustice, #ro#ert%, and ibert%. =ur awma(ers ha"e not %et attac(ed them "io ent % enou'h. >e are not %et ta(in' enou'h !rom some to 'i"e to others. 2o !ar we ha"e ta(en on % !rom the man% to 'i"e to the !ew. Bow we must ta(e !rom a to 'i"e to a . 7n a word, we must or'ani1e con!iscation, and !rom socia ism wi come our sa "ation.GG10

F8 $.158 4isastrous Fa acies 4eri"ed !rom E?chan'e E?chan'e is societ%. 3onseCuent % economic truth is the com# ete "iew, and economic error is the #artia "iew, o! e?chan'e. $.159 7! man did not e?chan'e, e"er% #art o! the economic #rocess wou d ta(e # ace in the indi"idua , and it wou d be "er% eas% !or us to set down !rom obser"ation its 'ood and bad e!!ects. $.15$ But e?chan'e has brou'ht about a di"ision o! abor, or, to s#ea( ess earned %, the estab ishment o! #ro!essions and trades. E"er% ser"ice (or e"er% #roduct) in"o "es two #ersons, the one who #ro"ides it, and the one who recei"es it. $.155 6ndoubted %, at the end o! the e"o utionar% #rocess, man in societ%, i(e man in iso ation, is at once #roducer and consumer. But the di!!erence must be c ear % noted. +an in iso ation is a wa%s the #roducer o! what he consumes. &his is a most ne"er true o! man in societ%. 7t is an incontestab e #oint o! !act that e"er%one can "eri!% !rom his own e?#erience. &his is so because societ% is sim# % an e?chan'e o! ser"ices. $.15A >e are a #roducers and consumers, not o! the thin', but o! the "a ue that we ha"e #roduced. >hi e we e?chan'e thin's, we a wa%s remain the owners o! their "a ue. $.15E From this circumstance are deri"ed a economic misconce#tions and !a acies. 7t is certain % not su#er! uous to indicate here the course o! men;s thin(in' on this sub.ect. $.158 >e can 'i"e the 'enera name o! obstac e to e"er%thin' that, comin' between our wants and our satis!actions, ca s !orth our e!!orts. $.15F &he interre ations o! these !our e ements-want, obstac e, e!!ort, satis!action-are #er!ect % e"ident and understandab e in the case o! man in a state o! iso ation. Be"er, ne"er in the wor d, wou d it occur to us to sa%: $.1A0 57t is too bad that ,obinson 3rusoe does not encounter more obstac es< !or, in that case, he wou d ha"e more out ets !or his e!!orts< he wou d be richer.

FF $.1A1 57t is too bad that the sea has cast u# on the shore o! the 7s e o! 4es#air use!u artic es, boards, #ro"isions, arms, boo(s< !or it de#ri"es ,obinson 3rusoe o! an out et !or his e!!orts< he is #oorer. $.1A8 57t is too bad that ,obinson 3rusoe has in"ented nets to catch !ish or 'ame< !or it essens b% that much the e!!orts he e?erts !or a 'i"en resu t< he is ess rich. $.1A9 57t is too bad that ,obinson 3rusoe is not sic( o!tener. 7t wou d 'i"e him the chance to #ractice medicine on himse !, which is a !orm o! abor< and, since a wea th comes !rom abor, he wou d be richer. $.1A$ 57t is too bad that ,obinson 3rusoe succeeded in #uttin' out the !ire that endan'ered his cabin. He has ost an in"a uab e o##ortunit% !or abor< he is ess rich. $.1A5 57t is too bad that the and on the 7s e o! 4es#air is not more barren, the s#rin' not !arther awa%, the sun not be ow the hori1on more o! the time. ,obinson 3rusoe wou d ha"e more troub e #ro"idin' himse ! with !ood, drin(, i'ht< he wou d be richer.5 $.1AA Be"er, 7 sa%, wou d #eo# e ad"ance such absurd #ro#ositions as orac es o! truth. 7t wou d be too com# ete % e"ident that wea th does not consist in the amount o! e!!ort reCuired !or each satis!action obtained, but that the e?act o##osite is true. >e shou d understand that "a ue does not consist in the want or the obstac e or the e!!ort, but in the satis!action< and we shou d readi % admit that a thou'h ,obinson 3rusoe is both #roducer and consumer, in order to 'au'e his #ro'ress, we must oo(, not at his abor, but at its resu ts. 7n brie!, in statin' the a?iom that the #aramount interest is that o! the consumer, we shou d !ee that we were sim# % statin' a "eritab e truism. $.1AE How ha##% wi nations be when the% see c ear % how and wh% what we !ind !a se and what we !ind true o! man in iso ation continue to be !a se or true o! man in societ%J $.1A8 Let it is certain % a !act that the !i"e or si? #ro#ositions that a##eared so absurd when we a## ied them to the 7s e o! 4es#air seem so incontestab % true when a## ied to France that the% ser"e as the basis o! a our economic e'is ation. And, on the contrar%, the a?iom that seemed truth itse ! when a## ied to the indi"idua is ne"er mentioned without #ro"o(in' a disdain!u smi e. $.1AF

100 3ou d it be true, then, that e?chan'e so a ters us that what ma(es !or the #o"ert% o! the indi"idua ma(es !or the wea th o! societ%K $.1E0 Bo, this is not true. But, it must be said, it is # ausib e, "er% # ausib e indeed, since it is 'enera % be ie"ed. $.1E1 2ociet% consists in the !act that we wor( !or one another. >e recei"e more ser"ices either as we 'i"e more or as those we 'i"e are assi'ned 'reater "a ue, are more in demand, that is to sa%, are better #aid. =n the other hand, the di"ision o! abor causes each one o! us to a## % his e!!orts to conCuerin' obstac es that b oc( the satis!actions o! others. &he !armer attac(s the obstac e ca ed hun'er< the doctor, the obstac e ca ed i ness< the #riest, the obstac e ca ed "ice< the writer, the obstac e ca ed i'norance< the miner, the obstac e ca ed co d< etc., etc. $.1E8 And, since the more (een % a those about us are aware o! the obstac es that stand in their wa%, the more 'enerous % the% are inc ined to remunerate our e!!orts, it !o ows that we are a dis#osed, !rom this #oint o! "iew, as #roducers, to dedicate ourse "es a most re i'ious % to e?a''eratin' the im#ortance o! the obstac es that it is our business to combat. >e consider ourse "es richer i! these obstac es are increased, and we immediate % conc ude that what is to our #ersona 'ain is !or the 'enera 'ood.GG11 $.1E9 3ha#ter 5 =n @a ue A on' discourse is a wa%s borin', and a on' discourse on "a ue must be doub % so. 5.1 &here!ore, natura % enou'h, e"er% ine?#erienced writer, when con!ronted with a #rob em in economics, tries to so "e it without in"o "in' himse ! in a de!inition o! "a ue. 5.8 But ine"itab % it does not ta(e him on' to disco"er how "er% inadeCuate such a #rocedure is. &he theor% o! "a ue is to #o itica econom% what a numerica s%stem is to arithmetic. How ho#e ess % con!usin' Be1outG50 wou d ha"e become i!, to s#are his students tedium, he had tried to teach them the !our !undamenta o#erations o! arithmetic -addition, subtraction, mu ti# ication, and di"ision-and the theor% o! #ro#ortions without !irst e?# ainin' to them how the ten di'its b% their sha#e and #osition re#resent numerica "a uesJ

101 5.9 7! on % the reader cou d !oresee the !ascinatin' conc usions to be deduced !rom the theor% o! "a ue, he wou d acce#t the tiresome e?# anation o! the basic #rinci# es, .ust as he resi'ns himse ! to the du chore o! earnin' the e ementar% #rinci# es o! 'eometr% b% (ee#in' in mind the e?citin' #ros#ect o! thin's to come. 5.$ But in the !ie d o! #o itica econom% one does not intuiti"e % antici#ate an%thin' o! this sort. &he more #ains 7 sha ta(e to ma(e c ear the distinctions between "a ue and uti it%, and between "a ue and abor, in order to e?# ain how natura it was !or ear % economic theor% to ha"e run a'round on these treacherous shoa s, the more sure % the reader wi !ind in m% care!u ana %sis mere steri e and id e subt eties, o! no #ossib e interest to an%one, e?ce#t #erha#s #ro!essiona s in the !ie d. 5.5 Lou are aborious % considerin', he wi sa% to me, whether wea th resides in the uti it% o! thin's or in their "a ue or in their scarcit%. 7s not this i(e the Cuestion as(ed b% the 2cho astics: 4oes !orm reside in the substance or in the accidentK Are %ou not a!raid o! bein' #arodied in a "aude"i e s(it b% some wou d-be +o iDreK 5.A And %et 7 must sa%: From the "iew#oint o! #o itica econom% societ% is e?chan'e. &he #rimar% e ement o! e?chan'e is the notion o! "a ue, and conseCuent % the connotations that we 'i"e to this word, whether true or erroneous, ead us to truth or error in a our socia thin(in'. 5.E 7 ha"e underta(en in this wor( to show the harmon% o! the #ro"identia aws that 'o"ern human societ%. &hese aws are harmonious rather than discordant because a the e ements, a the moti"e !orces, a the s#rin's o! action, a the se !-re'ardin' im#u ses within man, wor( to'ether toward attainin' a 'reat !ina resu t that he wi ne"er com# ete % reach, because o! his innate im#er!ection, but which he wi constant % a##roach because o! his indomitab e ca#acit% !or im#ro"ement< and this resu t wi be the #ro'ressi"e mer'in' o! a c asses at a hi'her and hi'her e"e -in other words, the eCua i1in' o! a indi"idua s in the 'enera en.o%ment o! a hi'her standard o! i"in'. 5.8 But, to succeed in m% e!!ort, 7 must e?# ain two thin's, name %: 1) 6ti it%-that is, the ser"ice a thin' renders tends to cost ess and ess, to become more 'enera % a"ai ab e, as it 'radua % #asses outside the domain o! indi"idua ownershi#. 8) @a ue, on the contrar%, which a one can be c aimed as a #ossession, which a one, in aw and in !act, constitutes #ro#ert%, tends to decrease in #ro#ortion to the amount o! uti it% it re#resents.


5.F 3onseCuent %, i! 7 base m% demonstration both on #ri"ate ownershi#, but e?c usi"e % on #ri"ate ownershi# o! "a ue, and on #ub ic ownershi#, but e?c usi"e % on #ub ic ownershi# o! uti it%, 7 shou d be ab e, #ro"ided m% reasonin' is "a id, to satis!% and reconci e a schoo s, since 7 reco'ni1e that a ha"e had a ' immerin' o! the truth, but on % o! a #art o! the truth seen !rom di!!erent #oints o! "iew. 5.10 Economists, %ou de!end #ri"ate ownershi#. 7n the socia order no #ri"ate ownershi# e?ists sa"e the ownershi# o! "a ue, and it cannot be ca ed into Cuestion. 5.11 2ocia ists, %ou dream o! #ub ic ownershi#. Lou ha"e it. &he socia order ma(es a uti ities common to a , #ro"ided the e?chan'e o! #ri"ate % owned "a ues remains !ree. 5.18 Lou are i(e architects ar'uin' o"er a bui din' o! which each one has seen on % one side. &he% do not see #oor %, but the% do not see a . &o reach an a'reement, the% need on % to wa ( around the entire edi!ice. 5.19 But how can 7 reconstruct this socia edi!ice and #resent it to the #ub ic in a its beauti!u harmon% i! 7 re.ect its twin cornerstones-uti it% and "a ueK How cou d 7 e!!ect the muchto-be-desired reconci iation o! a schoo s o! thou'ht on the common 'round o! truth i! 7 shou d %ie d to m% re uctance to ana %1e these two ideas, whose con!used inter#retations ha"e un!ortunate % 'i"en rise to so much disa'reementK 5.1$ A #reamb e o! this (ind has been necessar% to #ersuade the reader, i! #ossib e, to arm himse ! !or a short whi e with the concentration and the #atience to endure some de'ree o! tiresomeness, and a asJ o! boredom. 6n ess 7 am much mista(en, the beaut% o! the conc usions wi rich % com#ensate !or the du ness o! the #remises. 7! Bewton had a owed himse !, in the be'innin', to be deterred !rom the stud% o! mathematics b% his distaste !or its e ementar% #rinci# es, his heart wou d ne"er ha"e Cuic(ened with admiration at the "ision o! the harmonies o! the ce estia uni"erse< and 7 insist that we ha"e on % to wor( our wa% man!u % throu'h a !ew e ementar% notions o! #o itica econom% to rea i1e that 0od has not been ess a"ish in bestowin' touchin' 'oodness, admirab e sim# icit%, and ma'ni!icent s# endor u#on the socia uni"erse. 5.15 7n the !irst cha#ter we saw that man is both #assi"e and acti"e< that wants and satis!actions, bein' concerned e?c usi"e % with sensation, are, b% their nature, #ersona , intimate, and nontrans!erab e< that e!!ort, on the contrar%, the in( between want and satis!action, the mean between the e?tremes o! moti"e cause and end resu t, stemmin' as

109 it does !rom our acti"it%, our im#u se, our wi , can be transmitted b% mutua a'reement !rom one indi"idua to another. 7 (now that this assertion cou d be cha en'ed on meta#h%sica 'rounds, and that it cou d be maintained that e!!ort a so is #ersona and indi"idua . 7 ha"e no desire to become in"o "ed in an% such ideo o'ica debate, and 7 ho#e that m% thou'ht wi be acce#ted without contro"ers% when e?#ressed in this nontechnica !orm: >e cannot !ee another #ersons; wants< we cannot !ee another #erson;s satis!actions< but we can render ser"ices to one another. 5.1A &his transmission o! e!!ort, this e?chan'e o! ser"ices, !orms the sub.ect matter o! #o itica econom%< and since, on the other hand, #o itica econom% can be summed u# in the word "a ue, which is the thin' it see(s to e?# ain in a its detai , it !o ows that our notion o! "a ue wi be an im#er!ect one, an erroneous one, i!, ne' ectin' the mean, we base it on the e?tremes, which are #henomena o! our sensations-wants and satis!actions, which are intimate, nontrans!erab e, not sub.ect to measurement !rom one indi"idua to another -instead o! !oundin' it on our acti"it%, our e!!ort, our e?chan'e o! reci#roca ser"ices, since these are ca#ab e o! com#arison, a##raisa , e"a uation, and can indeed be e"a uated !or the "er% reason that the% are e?chan'ed. 5.1E 7n the same cha#ter we arri"ed at these conc usions: 5.18 6ti it% (the abi it% o! certain acts or thin's to ser"e us), is com#osite, one #art o! it bein' due to the action o! Bature, the other #art to the action o! man. &he more Bature has done to e!!ect a 'i"en resu t, the ess there is !or human abor to do. Bature;s contribution is essentia % 'ratuitous< man;s contribution, whether inte ectua or #h%sica , e?chan'ed or not e?chan'ed, co ecti"e or indi"idua , is essentia % onerous, as is im# ied b% the "er% word 5e!!ort.5 5.1F And since what is 'ratuitous cannot ha"e "a ue, the notion o! "a ue im# %in' acCuisition throu'h e!!ort, it !o ows that "a ue too wi be misunderstood i! we e?tend its meanin' to inc ude, in who e or in #art, those thin's that are recei"ed as 'i!ts !rom Bature, instead o! restrictin' its meanin' to the human contribution on %. 5.80 &hus, !rom two #oints o! "iew, !rom two di!!erent a##roaches, we reach the conc usion that "a ue must ha"e re!erence to the e!!orts made b% men in order to secure the satis!action o! their wants. 5.81 7n cha#ter 9 we noted that man cannot i"e in the state o! iso ation. But i!, in our thin(in', we con.ure u# this ima'inar% case, this state contrar% to nature, to which the ei'hteenth centur% #aid homa'e under the name o! the state o! nature, we rea i1e at once that, a thou'h it e?hibits the acti"e #henomenon that we ha"e named e!!ort, it sti does not

10$ re"ea the notion o! "a ue. &he reason is sim# e: "a ue im# ies com#arison, a ratin', an e"a uation, a measure. For two thin's to be measured, the% must be commensurate< and to be commensurate, the% must be o! the same (ind. 7n the state o! iso ation, to what can e!!ort be com#aredK &o wantsK &o satis!actionsK &his can ead us on % to 'rant to e!!ort a 'reater or a esser de'ree o! time iness, o! a##ro#riateness. 7n the socia state we com#are the e!!ort o! one man with the e!!ort o! another man (and !rom this com#arison arises the idea o! "a ue), two #henomena o! the same (ind, and hence measurab e. 5.88 &hus, the de!inition o! the word 5"a ue,5 to be accurate, must ha"e re!erence not on % to human e!!orts, but a so to e!!orts that are e?chan'ed or e?chan'eab e. E?chan'e does more than ta(e note o! "a ues or measure them< it creates them. 7 do not mean that it creates the acts or the thin's that are e?chan'ed, but it im#arts the idea o! "a ue to them. 5.89 2o, when two men e?chan'e their #resent e!!ort, or the !ruits o! their #ast e!!ort, the% are ser"in' each other< the% are renderin' each other mutua ser"ice. 5.8$ 7 there!ore sa%: @a ue is the re ationshi# e?istin' between two ser"ices that ha"e been e?chan'ed. 5.85 &he idea o! "a ue !irst entered the wor d when a man said to his brother, 54o this !or me, and 7 wi do that !or %ou,5 and the brother a'reed< !or then, !or the !irst time, men were ab e to sa%, 5&wo ser"ices that are e?chan'ed are eCua to each other.5 5.8A 7t is curious to note that the true theor% o! "a ue, which is to be sou'ht in "ain in man% a thic( "o ume, is !ound in the de i'ht!u itt e !ab e o! F orian, the B ind +an and the /ara %tic: Aidons-nous mutue ement, )a char'e des ma heurs en sera # us 'Dre. . . . . . . . . . R nous deu? Bous #ossdons e bien S chacun ncessaire. M;ai des .ambes, et "ous des %eu?. +oi, .e "ais "ous #orter< "ous, "ous sere1 mon 'uide: Ainsi, sans Cue .amais notre amiti dcide Qui de nous deu? rem# it e # us uti e em# oi, Me marcherai #our "ous, "ous % "erre1 #our moi.G51 5.8E

105 &his is "a ue identi!ied and de!ined with ri'orous economic accurac%, e?ce#t !or the touchin' re!erence to !riendshi#, which ta(es us into another rea m. >e can we understand how two handica##ed #ersons can render each other mutua ser"ice without undue concern as to which one #er!orms the more use!u !unction. &he s#ecia circumstances in"ented b% the !ab er #roduce a stron' sense o! s%m#ath% that #re"ents the two men !rom tr%in' to assess the re ati"e im#ortance o! the ser"ices the% e?chan'e, a thou'h this assessment is indis#ensab e in order to brin' com# ete % into !ocus the notion o! "a ue in this transaction. &his idea wou d become !u % a##arent i! a men, or most men, were stric(en with #ara %sis or b indness< !or then the ine?orab e aw o! su## % and demand wou d ta(e o"er, and, e iminatin' the e ement o! "o untar% sacri!ice on the #art o! the one #er!ormin' the more use!u !unction, wou d re-estab ish the transaction on the so id 'round o! .ustice. 5.88 >e are a ha t or b ind in some res#ect< and we readi % understand that b% mutua aid the burden o! our i s wi be the i'hter. Hence e?chan'e. >e wor( to #ro"ide !ood, c othin', od'in', i'ht, hea th, de!ense, education !or one another. Hence reci#rocit% o! ser"ices. &hese ser"ices we com#are, we discuss, we e"a uate. Hence "a ue. 5.8F A host o! circumstances can increase the re ati"e im#ortance o! a ser"ice. >e !ind it 'reater or ess in #ro#ortion to its use!u ness to us< to the number o! #ersons read% to #er!orm it !or us< to the amount o! abor, #ains, s(i , time, #re#aration it reCuires, to the de'ree to which it re ie"es us o! the necessit% o! #ro"idin' these same thin's !or ourse "es. @a ue de#ends not on % on these circumstances but a so on the estimate we ma(e o! them< !or it can ha##en, and o!ten does, that we rate a 'i"en ser"ice "er% hi'h %, because we .ud'e it to be "er% use!u , whereas in rea it% it is detrimenta . For this reason, "anit%, i'norance, error # a% their #art in in! uencin' this essentia % e astic and ! uctuatin' re ationshi# that we ca 5"a ue5< and one cou d sa% that the e"a uation o! ser"ices tends to come c oser to abso ute truth and .ustice as men #ro'ress in (now ed'e and mora it%. 5.90 6# to now the #rinci# e o! "a ue has been sou'ht in those circumstances that increase or essen it, in materia Cua it%, wear, use!u ness, scarcit%, abor, inaccessibi it%, sub.ecti"e .ud'ment, etc.-thin's that !rom the "er% be'innin' ha"e 'i"en the science o! #o itica econom% a wron' direction, !or the accident that modi!ies the #henomenon is not the #henomenon itse !. +oreo"er, e"er% writer has set himse ! u# as the 'od!ather, so to s#ea(, o! the #articu ar one o! these circumstances that he considered the most si'ni!icant -the ine"itab e outcome o! the tendenc% to 'enera i1e< !or the who e uni"erse is in e"er%thin', and there is nothin' that a word cannot be made to inc ude i! on % its meanin' is su!!icient % broadened. &hus, the #rinci# e o! "a ue !or Adam 2mith is in materia Cua it% and wear (durabi it%)< !or 2a%, in uti it%< !or ,icardo, in abor< !or 2enior, in scarcit%< !or 2torch, in sub.ecti"e .ud'ment< etc.G58 5.91

10A >hat ha##ened, ine"itab %, was that these writers in a innocence wea(ened the authorit% and di'nit% o! the science o! #o itica econom% b% 'i"in' the im#ression o! contradictin' one another, whereas in rea it% each one was correct !rom his own #oint o! "iew. Furthermore, the% enmeshed the #rimar% notion o! #o itica econom% in a ma1e o! ine?tricab e di!!icu ties, since the same words did not connote !or a o! them the same meanin'< and, a thou'h one set o! circumstances mi'ht be dec ared !undamenta , the% a so noted other !actors at wor( that were too im#ortant to be ne' ected, and thus their de!initions became more and more in"o "ed. 5.98 &his boo( is not desi'ned to add to the contro"ers%, but to be an e?#osition o! #rinci# es. 7 #oint out what 7 see, not what others ha"e seen. 7 cannot, howe"er, re!rain !rom ca in' the reader;s attention to the circumstances on which the idea o! "a ue has been based. But be!ore #roceedin' with this to#ic, 7 sha turn to a series o! concrete i ustrations o! the nature o! "a ue, !or it is throu'h di!!erent a## ications o! it that we 'ras# the meanin' o! a theor%. 5.99 7 sha show how e"er% transaction can be reduced to a barterin' o! ser"ices. But the reader must (ee# in mind what was said about barter in the #re"ious cha#ter. 7t is rare % a sim# e transaction< sometimes it is accom# ished throu'h #roducts or commodities circu ated amon' se"era contractin' #arties< more o!ten it is accom# ished b% means o! mone%, in which case it can be bro(en down into two !actors, sa e and #urchase< but, since this com# icatin' !eature does not in an% wa% a ter the nature o! the transaction, et me assume, !or the sa(e o! sim# icit%, an immediate and direct barter between two #arties. 7n this wa% we ma% a"oid an% misconce#tion as to the nature o! "a ue. 5.9$ >e are a born with one o"erwhe min' #h%sica want, which must be satis!ied on #ain o! death: the need to breathe. =n the other hand, we are a # aced in an en"ironment that #ro"ides !or this want, 'enera % s#ea(in', without reCuirin' an% e!!ort !rom us. Air, then, has uti it%, but no "a ue. 7t has no "a ue, because, since it occasions no e!!ort, it ca s !or no ser"ice. ,enderin' a ser"ice im# ies s#arin' someone #ains< and when no #ains are reCuired to achie"e a satis!action, there are none to be s#ared. 5.95 But i! a man 'oes down to the bottom o! a ri"er in a di"in' be , a !orei'n bod% is introduced between the air and his un's< to re-estab ish connections, the #um# must be set in motion< then there is e!!ort to be e?erted, #ains to be ta(en< and certain % the man wi be read% to co-o#erate, !or his i!e is at sta(e, and no ser"ice to him cou d be 'reater. 5.9A 7nstead o! ma(in' this e!!ort himse !, he reCuests me to ma(e it< and, in order to induce me to do so, he #romises in his turn to ta(e #ains that wi #rocure me satis!action. >e discuss the matter, and we come to an a'reement. >hat do we ha"e hereK &wo wants,

10E two satis!actions, that are not mutua % e?c usi"e< two e!!orts that are the sub.ect o! a "o untar% transaction< two ser"ices that are e?chan'ed-and "a ue ma(es its a##earance. 5.9E Bow, it is said that uti it% is the basis o! "a ue< and as uti it% is inherent in air, we are to assume that this is i(ewise true o! "a ue. &here is ob"ious con!usion here. Air, b% its com#osition, has #h%sica #ro#erties that are ada#ted to one o! our bodi % or'ans, the un's. >hat 7 ta(e out o! the atmos#here to !i the di"in' be is not chan'ed in an% wa%< it is sti o?%'en and nitro'en. &here is no combinin' to !orm a new #h%sica Cua it%< no rea'ent brin's !orth a new e ement ca ed "a ue. &he !act is that "a ue comes on % !rom the ser"ice that has been rendered. 5.98 >hen someone states the a?iom that uti it% is the basis o! "a ue, 7 ha"e no Cuarre with him i! he means that ser"ice has "a ue because it is use!u to the one who recei"es it and #a%s !or it. &his is a truism that adds nothin' new to the idea o! the word 5ser"ice.5 5.9F But we must not con!use uti it% o! the t%#e #ro"ided b% the air with the uti it% o! a ser"ice. &hese two are distinct, o! di!!erent orders and natures, and do not necessari % ha"e an% common denominator or re ationshi#. 6nder certain conditions, 7 can do someone a ser"ice that is tri! in', as !ar as the e!!ort it costs me or sa"es him is concerned, and %et, b% so doin', 7 can # ace at his dis#osa somethin' o! "er% 'reat intrinsic uti it%. 5.$0 )et us see how the two contractin' #arties wou d 'o about e"a uatin' the ser"ice that the one renders the other in sendin' air down to him. &here must be a common 'round !or com#arison, and it can on % be in the ser"ice that the di"er has #romised to 'i"e in return. >hat the% demand wi de#end on their res#ecti"e situations, the ur'enc% o! their wants, the re ati"e ease with which one can 'et a on' without the other, and man% other circumstances that demonstrate that "a ue is in the ser"ice, since both increase in the same ratio. 5.$1 7! the reader so desires, he can easi % thin( u# !or himse ! other e?am# es o! this (ind that wi con"ince him that "a ue is not necessari % commensurate with the amount o! e!!ort e?#ended. &his is a remar( that 7 throw out here in antici#ation o! ater discussion, !or 7 e?#ect to #ro"e that "a ue no more resides in abor than it does in uti it%. 5.$8 Bature has seen !it to ma(e me in such a wa% that 7 shou d die i! 7 did not Cuench m% thirst !rom time to time< and the s#rin' to which 7 must 'o !or water is two mi es !rom m% "i a'e. &here!ore, e"er% mornin' 7 must ta(e the troub e o! 'oin' a!ter m% itt e su## % o! water, !or 7 !ind in water those use!u Cua ities that ha"e the #ower to assua'e that t%#e

108 o! su!!erin' (nown as thirst. >ant, e!!ort, satis!action-the% are a there. 7 am !ami iar with the uti it% 7 deri"e !rom this act< 7 do not %et (now its "a ue. 5.$9 Howe"er, su##ose m% nei'hbor a so 'oes to the s#rin', and 7 sa% to him, 52#are me the troub e o! ma(in' this tri#< do me the ser"ice o! brin'in' me some water. >hi e %ou are so en'a'ed, 7 wi do somethin' !or %ou< 7 wi teach %our chi d to s#e .5 7t ha##ens that this suits both o! us. &his is the e?chan'e o! two ser"ices, and we can sa% that the one is eCua to the other. Bote that what is com#ared here are the two e!!orts, not the two wants or the two satis!actions< !or on what basis can we com#are the re ati"e merits o! ha"in' a drin( o! water and earnin' how to s#e K 5.$$ 2oon 7 sa% to m% nei'hbor, 5&eachin' %our chi d is becomin' a bore< 7 #re!er to do somethin' e se !or %ou. Lou wi continue to brin' me water, and 7 wi 'i"e %ou !i"e sous.5 7! the o!!er is acce#ted, the economist ma% sa% without !ear o! error: &he ser"ice is worth !i"e sous. 5.$5 A!ter a whi e m% nei'hbor no on'er waits !or me to as( him. He (nows, b% e?#erience, that 7 need to drin( e"er% da%. He antici#ates m% want. And whi e he is at it, he #ro"ides water !or other "i a'ers. 7n a word, he becomes a water-se er. &hen we be'in to #ut it this wa%: >ater is worth !i"e sous. 5.$A But has the water rea % chan'edK Has the "a ue, which so recent % was in the ser"ice, now become a materia thin', a new chemica e ement added to the waterK Has a s i'ht chan'e that m% nei'hbor and 7 made in our arran'ements been #ower!u enou'h to u#set the #rinci# e o! "a ue and a ter its natureK 7 am not so #edantic as to ob.ect to sa%in' that water is worth !i"e sous, an% more than to sa%in' that the sun sets. But we must rea i1e that both are e?am# es o! meton%m%< that meta#hors do not a ter !acts< that scienti!ica %, since, a!ter a , we are dea in' with a science, it is no more true that "a ue is contained in water than that the sun sets in the sea. 5.$E )et us there!ore assi'n to thin's the Cua ities that are #ro#er to them: to water, to air, uti it%< to ser"ices, "a ue. )et us sa%: >ater has uti it% because it has the #ro#ert% o! Cuenchin' thirst< the ser"ice is the thin' that has "a ue, because it is the sub.ect o! the a'reement. &his truth is a##arent when we re! ect that whate"er ma% be our distance !rom the s#rin', the uti it% o! the water remains constant, but its "a ue "aries. >h%K Because the ser"ice becomes 'reater or sma er. @a ue, then, is in the ser"ice, since "a ue chan'es as the ser"ice does and in the same de'ree.

10F -------------------------------------------------------------------------------5.$8 &he diamond # a%s an im#ortant ro e in the boo(s written b% economists. &he% use it to e ucidate the aws o! "a ue or to indicate the so-ca ed disturbances o! these aws. 7t is a shinin' wea#on that a schoo s use in their combat. &he En' ish schoo sa%s: 5@a ue consists in abor.5 &he French schoo #roduces a diamond and sa%s: 5Here is a #roduct that reCuires no abor and is %et o! immense "a ue.5 &hen, i! the French schoo a!!irms that "a ue resides in uti it%, the En' ish schoo cites the diamond, a on' with air, i'ht, and water, as #roo! to the contrar%. 5Air is "er% use!u and has no "a ue< the diamond;s uti it% is hi'h % Cuestionab e, and %et it is worth more than the who e atmos#here.5 And the reader can on % sa% with Henr% 7@, 5=n m% word, the%;re both ri'ht.5G59 E"entua % the% reach common a'reement in the !o owin' error, which is worse than the other two: >e must admit that the handiwor( o! 0od has "a ue, and that "a ue, then, is materia . 5.$F &hese anoma ies disa##ear, it seems to me, on the basis o! m% de!inition, which is corroborated rather than in"a idated b% the e?am# e in Cuestion. 5.50 7 ta(e a stro a on' the seashore. A stro(e o! 'ood uc( #uts a su#erb diamond into m% hand. 7 ha"e come into #ossession o! a considerab e amount o! "a ue. >h%K Am 7 'oin' to contribute somethin' 'reat to humanit%K Ha"e 7 toi ed on' and arduous %K Beither the one nor the other. >h%, then, does the diamond ha"e such "a ueK Because the #erson to whom 7 'i"e it be ie"es that 7 am renderin' him a 'reat ser"ice, a the 'reater because man% rich #eo# e wou d i(e to ha"e it, and 7 a one can render it. &heir .ud'ment is o#en to Cuestion, 'ranted. 7t is based on "anit% and o"e o! dis# a%, 'ranted a'ain. But the .ud'ment e?ists in the mind o! a man read% to act in accordance with it, and that is enou'h. 5.51 >e cou d sa% that this .ud'ment is !ar !rom bein' based on a reasonab e e"a uation o! the diamond;s uti it%< indeed, it is Cuite the contrar%. But ma(in' 'reat sacri!ices !or the use ess is the "er% nature and #ur#ose o! ostentation. 5.58 @a ue, !ar !rom ha"in' an% necessar% re ation to the abor #er!ormed b% the #erson renderin' the ser"ice, is more i(e % to be #ro#ortionate, we ma% sa%, to the amount o! abor s#ared the #erson recei"in' the ser"ice< and this is the aw o! "a ues. 7t is a 'enera aw and uni"ersa % acce#ted in #ractice, a thou'h, as !ar as 7 (now, not ta(en into account b% the theorists. >e sha describe ater the admirab e mechanism that tends to (ee# "a ue and abor in ba ance when the atter is !ree< but it is nonethe ess true that "a ue is determined ess b% the e!!ort e?#ended b% the #erson ser"in' than b% the e!!ort s#ared the #erson ser"ed.

110 5.59 &he transaction re atin' to the diamond ma% be su##osed to 'i"e rise to a dia o'ue o! this nature: 5.5$ 5)et me ha"e %our diamond, # ease.5 5.55 57 am Cuite wi in'< 'i"e me %our who e %ear;s abor in e?chan'e.5 5.5A 5But, m% dear sir, 'ettin' it didn;t cost %ou a minute;s time.5 5.5E 5>e , then, the wa% is o#en to %ou to !ind that (ind o! minute.5 5.58 5But, in a .ustice, we ou'ht to e?chan'e on terms o! eCua abor.5 5.5F 5Bo, in a .ustice, %ou set a #rice on %our ser"ices, and 7 set one on mine. 7 am not !orcin' %ou< wh% shou d %ou !orce meK 0i"e me a who e %ear;s abor, or 'o !ind %our own diamond.5 5.A0 5But that wou d entai ten %ears o! #ain!u search, and #robab e disa##ointment at the end. 7 !ind it wiser and more #ro!itab e to s#end ten %ears in some other wa%.5 5.A1 5And that is .ust wh% 7 !ee that 7 am sti doin' %ou a ser"ice when 7 as( on % !or one %ear. 7 am sa"in' %ou nine %ears, and !or that reason 7 consider this ser"ice o! 'reat "a ue. 7! 7 a##ear demandin' to %ou, it is because %ou consider on % the abor 7 ha"e #er!ormed< but consider a so the abor that 7 sa"e %ou, and %ou wi !ind that 7 am a most too eas%.5 5.A8 5Be"erthe ess, %ou are ma(in' a #ro!it !rom what is a wor( o! Bature.5 5.A9 5And i! 7 et %ou ha"e m% uc(% !ind !or nothin' or ne?t to nothin', %ou wou d be the one to ma(e the #ro!it. Besides, i! this diamond has 'reat "a ue, it is not because Bature has been toi in' awa% on it since the be'innin' o! time< Bature does as much !or a dewdro#.5 5.A$ 5Les, but i! diamonds were as # enti!u as dewdro#s, %ou wou d not be a%in' down the aw to me.5

111 5.A5 53ertain %, because in that case %ou wou d not be a##ea in' to me, or %ou wou d not be dis#osed to #a% me a hi'h #rice !or a ser"ice that %ou cou d easi % #er!orm !or %ourse !.5 5.AA >e see !rom this dia o'ue that "a ue resides no more in the diamond than it does in water or in air< it resides entire % in the ser"ices #er!ormed and recei"ed in connection with these thin's and is determined a!ter !ree discussion b% the contractin' #arties. 5.AE 0o throu'h what the economists ha"e to sa%< read, com#are their de!initions. 7! an% one o! them can account !or air and the diamond, two cases a##arent % so o##osite, then throw this boo( o! mine into the !ire. But i! m% de!inition, sim# e as it is, reso "es the di!!icu t%, or rather, e iminates it, then, reader, in a 'ood conscience, %ou are bound to read me throu'h to the end< !or so 'ood an introduction to the science we are stud%in' cannot !ai to ho d #romise !or the rest. 5.A8 7 as( indu 'ence to cite other e?am# es, in order both to c ari!% m% thou'ht and to !ami iari1e the reader with a new de!inition. Besides, this attention to the #rinci# e o! "a ue, showin' it in a its as#ects, wi #a"e the wa% !or m% conc usions, which wi #ro"e to be, 7 "enture to #redict, no ess im#ortant than une?#ected. 5.AF Amon' the wants to which we are sub.ect because o! our #h%sica nature is the need !or !ood< and one o! the best commodities !or satis!%in' it is bread. 5.E0 Batura %, since it is 7 who e?#erience the need to eat, it is 7 who shou d #er!orm a the o#erations that wi #roduce the amount o! bread 7 reCuire. 7 cannot as( m% !e ow men to #er!orm this ser"ice !or me 'ratis, since the% too are sub.ect to the same want and are ob i'ed to ma(e the same e!!ort. 5.E1 7! 7 were to ma(e m% own bread, 7 shou d ha"e to #er!orm a series o! tas(s much i(e those in"o "ed in 'ettin' water !rom the we , but much more com# icated. &he e ements o! which bread is com#osed e?ist, o! course, e"er%where in Bature. As Mean-Ba#tiste 2a% so wise % obser"ed, man has neither the need nor the abi it% to create an%thin'. 0ases, minera s, e ectricit%, # ant i!e a e?ist about me< 7 need on % brin' them to'ether, he # them a on', combine and trans#ort them, with the aid o! that 'reat aborator% which we ca the earth, so !u o! m%sterious thin's that science has bare % be'un to disco"er. E"en thou'h the sum tota o! a the o#erations 7 must 'o throu'h in #ursuit o! m% ob.ecti"e is Cuite com# icated, each indi"idua o#eration is as sim# e as drawin' water !rom the s#rin' where Bature has # aced it. Each one o! m% e!!orts, there!ore, is mere % a ser"ice that 7 #er!orm !or m%se !< and i!, throu'h an a'reement !ree % arri"ed at, other #ersons s#are me some or a o! these e!!orts, 7 ha"e recei"ed that amount o! ser"ices. &he sum o!

118 these ser"ices, in com#arison with those that 7 #er!orm in return, constitutes and determines the "a ue o! m% bread. 5.E8 A con"enient intermediate a'ent is introduced to !aci itate this e?chan'e o! ser"ices and to measure their re ati"e im#ortance, "i1., mone%. But the !undamenta nature o! thin's remains the same, e"en as in mechanics #ower is transmitted in accordance with the same aws, whether it be #assed throu'h one or se"era sets o! 'ears. 5.E9 >e can see the truth o! a this in the !o owin' i ustration. 7! a 'ood accountant were to ana %1e the e ements enterin' into the "a ue o! m% oa! o! bread costin', sa%, !our sous, he wou d e"entua % identi!%, in the course o! searchin' throu'h man% com# icated transactions, a the indi"idua s whose ser"ices had contributed to determinin' this "a ue, a who had sa"ed troub e !or the #erson who, in the ast ana %sis, #a%s !or the bread because he is the consumer. First, there wou d be the ba(er, who (ee#s a twentieth #art, and out o! his twentieth #a%s the mason who bui t his o"en, the woodcutter who #re#ared his !irewood, etc.< then, there wou d be the mi er, who wou d recei"e not on % enou'h to #a% !or his own abor but a so somethin' !or the Cuarr%man who made his mi stone, the wor(man who bui t the ban(s !or his mi race, etc. =ther #arts o! the tota "a ue wou d 'o to the thresher, the har"ester, the cu ti"ator, the # anter, unti the account was com# ete to the ast centime. But no #art o! it, none whatsoe"er, wou d 'o to #a% 0od or Bature. 2uch an assum#tion is absurd, on the !ace o! it, and %et o'ica % it is im# icit in the theories o! those economists who attribute to matter or the !orces o! Bature an% #art o! the "a ue o! a #roduct. Bo, once a'ain, what has "a ue here is not the oa! o! bread, but the series o! ser"ices that made the bread a"ai ab e to me. 5.E$ 7t is Cuite true that, amon' the constituent #arts o! the oa!;s "a ue, our boo((ee#er wi !ind one #art that he wi ha"e troub e itemi1in' as a ser"ice, at east as a ser"ice reCuirin' e!!ort. He wi !ind that out o! his twent% centimes, which ma(e u# his tota o! !our sous, one or two 'o to the owner o! the and, to the #ossessor o! the !ie d o! o#erations. &his sma #art o! the bread;s "a ue constitutes what is ca ed the and rent< and, con!used b% the e?#ression, b% the meton%m% that we a'ain encounter here, our accountant wi #erha#s be tem#ted to ist this as the share due the !orces o! Bature, due, that is, to the and itse !. 5.E5 7 maintain, howe"er, that i! he is a 'ood accountant, he wi rea i1e that e"en this item is actua % the cost o! true ser"ices i(e a the others. &his !act wi be conc usi"e % demonstrated when we stud% rea #ro#ert%. For the moment, 7 sha sim# % remind the reader that here 7 am dea in', not with #ro#ert%, but with "a ue. 7 am not inCuirin' whether a ser"ices are "a id and e'itimate, or whether some men ha"e succeeded in recei"in' #a%ment !or ser"ices the% did not render. A!ter a , the wor d is !u o! in.ustices o! this sort, but rent shou d not be inc uded amon' them.

119 5.EA A that 7 am see(in' to demonstrate here is that the so-ca ed "a ue o! thin's is, in !act, on % the "a ue o! the ser"ices, rea or !ancied, that are transmitted throu'h the medium o! thin's< that "a ue does not reside in the thin's themse "es, and is no more to be !ound in bread than in diamonds, in water, or in air< that Bature recei"es no #a%ment !or "a ue< that the entire amount, #aid b% the u timate consumer, is distributed amon' men< and that the consumer is wi in' to ma(e them this #a%ment on % because the% ha"e rendered him ser"ices, cases o! !raud and "io ence e?ce#ted. 5.EE &wo men thin( that ice is a 'ood thin' in summer, and that coa is a better thin' in winter. &he one coo s us, and the other warms us, both thus answerin' to two o! our wants. 7 cannot insist too much that the uti it% o! these ob.ects consists in certain #h%sica #ro#erties that are ada#ted to our #h%sica or'ans. )et us note that neither "a ue nor an%thin' i(e it is inc uded amon' these #ro#erties, which #h%sics or chemistr% cou d iso ate. How, then, cou d an%one ha"e reached the conc usion that "a ue resides in matter and is itse ! materia K 5.E8 7! these two men wish to satis!% their wants inde#endent %, each one wi ha"e to abor at storin' u# his own su## % o! both ice and coa . 7! the% come to an understandin', one wi 'o to the mines to 'et enou'h coa !or both o! them, the other to the mountains !or enou'h ice !or both. But in that case an a'reement has to be reached. &he two ser"ices e?chan'ed must be care!u % e"a uated and com#ared. A the circumstances must be ta(en into account: the di!!icu ties to be o"ercome, the dan'ers to be !aced, the time to be ost, the #ains to be ta(en, the s(i reCuired, the ris(s to be run, the #ossibi it% o! satis!%in' the want in some other wa%, etc., etc. >hen the two men reach a'reement, the economist wi sa% that the two ser"ices that are e?chan'ed are eCui"a ent< but the common wa% o! #uttin' it, b% meton%m%, wi be: 2o much coa is worth so much ice, as thou'h "a ue has #assed #h%sica % into these ob.ects. &hou'h it is eas% to rea i1e that the common e?#ression indicates the resu t we enou'h, on % the scienti!ic statement 'i"es a true idea o! the cause. 5.EF 7nstead o! two ser"ices and two #ersons, the a'reement ma% inc ude a 'reat number o! ser"ices and #ersons, substitutin' indirect or roundabout e?chan'e !or direct barter. 7n that case mone% wi be introduced to !aci itate the act o! e?chan'e. Beed 7 sa% that the #rinci# e o! "a ue wi not be dis# aced or a tered in the #rocessK 5.80 But 7 do need to add a comment about the coa . 7t mi'ht we be that there is on % one mine in the re'ion, and that one man has 'ot #ossession o! it. 7n that case, this man wi ma(e his own terms, that is to sa%, he wi set a hi'h #rice on his ser"ices or his so-ca ed ser"ices. 5.81

11$ >e ha"e not %et come to the Cuestion o! aw and .ustice, o! distin'uishin' between rea ser"ices and !raudu ent ser"ices. For the moment, what concerns us is to e ucidate the true theor% o! "a ue and rid it o! the error !rom which the science o! economics has su!!ered. >hen we sa%, 5>hat Bature has done, or 'i"en, it has done, or 'i"en, 'ratis< conseCuent % these thin's ha"e no "a ue,5 #eo# e answer b% 'i"in' us a cost ana %sis o! coa or an% other natura #roduct. &he% admit readi % enou'h that the #rice, in most cases, inc udes human ser"ices. =ne man has du' the earth< another has drained o!! the water< this man has brou'ht the coa u# !rom the mine< another one has de i"ered it< and the sum tota o! a these actions constitutes, the% sa%, a most a the "a ue o! the coa . Let there sti remains a #art o! the "a ue that does not corres#ond to an% abor, to an% ser"ice. &hat is the #rice o! the coa %in' under'round, sti untouched, as the% sa%, b% human abor. &his is the owner;s share< and since this #art o! the "a ue is not created b% man, it must indeed be created b% Bature. 5.88 7 re.ect this conc usion, and 7 warn the reader that i! he acce#ts it in an% 'uise whatsoe"er, he wi ma(e no !urther #ro'ress in the science o! #o itica econom%. Bo, "a ue is no more created b% an act o! Bature than matter is created b% the action o! man. =ne o! two thin's must be true: either the owner has contributed to the !ina resu t and has #er!ormed rea ser"ices, in which case the #art o! the "a ue that he has set on the coa !a s ri'ht % within m% de!inition< or e se he has entered the transaction as a #arasite and, in that case, has been shar# enou'h to recei"e #a%ment !or ser"ices that he did not #er!orm< the #rice o! the coa is im#ro#er % raised. &his situation #ro"es that in.ustice has cre#t in< but it cannot u#set the theor% to the #oint o! warrantin' the assertion that that #ortion o! "a ue is materia , that it has combined, i(e a #h%sica e ement, with the 'ratuitous 'i!ts o! /ro"idence. And here is the #roo!: /ut an end to the in.ustice, i! there is in.ustice, and the corres#ondin' amount o! "a ue wi disa##ear. 2uch wou d not be the case, certain %, i! "a ue were inherent in matter and created b% Bature.

-------------------------------------------------------------------------------5.89 )et us now #ass to the second o! our most e ementa wants: securit%. 5.8$ A certain number o! men and on an inhos#itab e shore. &he% set to wor(. But not one o! them e"er (nows at what moment he wi ha"e to sto# his wor( to de!end himse ! a'ainst sa"a'e beasts or men more sa"a'e sti . Be%ond the time and e!!ort s#ent direct % in de!endin' themse "es, more is reCuired to #ro"ide arms and munitions. &he% !ina % rea i1e that the tota oss in e!!ort wou d be in!inite % ess i! some o! them 'a"e u# their other wor( and de"oted themse "es entire % to this ser"ice. &he% wou d assi'n to it those with the most s(i , coura'e, and stren'th. &hese atter wou d #er!ect themse "es in an art

115 that wou d be their constant occu#ation< and whi e the% watched o"er the sa!et% o! the communit%, the others wou d brin' in !rom their abors more satis!actions !or e"er%bod% than wou d ha"e been #ossib e i! ten o! their number had not been remo"ed !rom the 'enera wor(in' !orce. 3onseCuent %, the arran'ement is carried out. >hat can we see in this e?ce#t more #ro'ress in the direction o! the di"ision o! abor, introducin' and reCuirin' an e?chan'e o! ser"icesK 5.85 Are the ser"ices o! these troo#s, so diers, mi itiamen, 'uards-ca them what %ou wi #roducti"eK 6ndoubted %, since the arran'ement is made so e % in order to increase the ratio o! tota satis!actions to the 'enera e!!ort. 5.8A 4o these ser"ices ha"e "a ueK &he% do indeed, since the% are a##raised, assi'ned a #rice, e"a uated, and, a!ter a , #aid !or b% other ser"ices a'ainst which the% are com#ared. 5.8E &he !orm under which the remuneration is sti#u ated, the manner o! assessment, the #rocedure whereb% the terms o! the arran'ement are discussed and a'reed u#on, a this in no wise a ters the #rinci# e. 4o some sa"e the others e!!ortK 4o some #rocure satis!actions !or the othersK 7! so, then there is e?chan'e, com#arison, e"a uation o! ser"ices, and there is "a ue. 5.88 2er"ices o! this t%#e, in a com# e? societ%, o!ten ead to terrib e conseCuences. 2ince the "er% nature o! the ser"ices demanded !rom this c ass o! wor(ers reCuires that !orce be # aced in their hands, and enou'h !orce to o"ercome a resistance, those to whom it has been entrusted ma% abuse it and turn it a'ainst the communit% itse !. 7t can a so ha##en, since the% recei"e !rom the communit% ser"ices that are #ro#ortionate to the communit%;s need !or securit%, that the% !oment a sense o! insecurit% and, throu'h o"ercunnin' di# omac%, in"o "e their !e ow citi1ens in continua war!are. 5.8F A this has been (nown to ha##en and sti ha##ens. 7t resu ts, 7 admit, in u#settin' !ri'ht!u % the .ust ba ance o! reci#roca ser"ices. But it does not resu t in a terin' in an% wa% the !undamenta #rinci# e or the scienti!ic theor% o! "a ue.

-------------------------------------------------------------------------------5.F0 =ne or two more e?am# es. 7 be' the reader to be ie"e that 7 am .ust as aware as he is o! the wearisomeness and du ness o! this series o! h%#othetica cases, a #resentin' the

11A same #roo!s, a reachin' the same conc usions, a couched in the same terms. 7 am sure that it wi be rea i1ed that this #rocedure, i! not the most entertainin' in the wor d, is the surest wa% to estab ish the true theor% o! "a ue and thus o#en the road that we must tra"e . 5.F1 >e are in /aris. &his "ast metro#o is seethes with count ess desires< it a so abounds with the means o! satis!%in' them. A host o! men, wea th% or we -o!!, turn their ener'ies to industr%, the arts, #o itics< and, when e"enin' comes, the% are ea'er !or an hour;s di"ersion and re a?ation. First amon' the # easures so a"id % sou'ht a!ter is that o! hearin' +me. +a ibranG5$ sin' ,ossini;s beauti!u music or ,ache inter#ret ,acine;s admirab e #oetr%.G55 =n % two women in a the wor d can #ro"ide such nob e and e?Cuisite # easure< and, un ess recourse cou d be had to "io ence or torture, which #robab % wou d not succeed, the% wi #er!orm on % on their own terms. &hus, the ser"ices reCuested !rom +a ibran and ,ache wi ha"e 'reat "a ue. &his e?# anation is #rosaic enou'h, but nonethe ess true. 5.F8 )et a wea th% ban(er decide that, to 'rati!% his "anit%, he wi ha"e one o! these 'reat artists a##ear at his home, and he wi disco"er, throu'h #ersona e?#erience, that m% theor% is correct in a res#ects. He see(s a 'reat satis!action< he desires it (een %< a sin' e #erson in the wor d can #ro"ide it. &he on % means o! inducin' the #erson to acce#t is b% o!!erin' a "er% considerab e remuneration. 5.F9 >hat are the e?treme imits within which the transaction wi be conductedK &he ban(er wi 'o to the #oint o! #re!errin' to do without the satis!action rather than #a% the #rice demanded !or it< the di"a, to the #oint o! #re!errin' the #rice o!!ered to not bein' #aid at a . &he #oint o! ba ance between these two e?tremes wi determine the "a ue o! this s#ecia ser"ice, as it does a others. 7n man% cases it ha##ens that usa'e ma% ha"e !i?ed this de icate #oint. /eo# e in hi'h societ% ha"e too much 'ood taste to ha'' e o"er certain ser"ices. 7t ma% e"en ha##en that the remuneration wi be 'a ant % dis'uised to miti'ate the crassness o! economic aw. Let economic aw #resides o"er this transaction .ust as sure % as it does o"er the most common# ace transactions, and the nature o! "a ue is not chan'ed because the e?#erience or urbanit% o! the contractin' #arties enab es them to dis#ense with certain detai s o! the bar'ainin'. 5.F$ &hus are e?# ained the "ast !ortunes earned b% 'reat artists o! e?ce#tiona ta ent. Another circumstance !a"ors them. &he nature o! their ser"ices is such that the% can be rendered, !or the same e!!ort, be!ore a 'reat mu titude o! #ersons. Howe"er ar'e ma% be the auditorium, #ro"ided ,ache ;s "oice can !i it, e"er% s#ectator there recei"es the !u im#act o! her inimitab e rendition. &his, we can see, !orms the basis o! a new arran'ement. &hree or !our thousand #ersons sharin' the same desire can sett e u#on a certain amount to be contributed b% each one< and the sum tota o! their combined ser"ices re#resented b% this contribution, which is o!!ered as a tribute to the 'reat tra'ic

11E actress, e?act % ba ances the uniCue ser"ices that she renders simu taneous % to a her isteners. &his is "a ue. 5.F5 Must as a 'reat number o! auditors ma% reach an a'reement to isten, so a 'rou# o! actors ma% reach an a'reement to sin' in an o#era or #resent a # a%. A'ents ma% be ca ed in to s#are the contractin' #arties count ess #ett% detai s o! #roduction. @a ue is mu ti# ied, is made more com# e?, is rami!ied, is distributed more wide %< but its nature does not chan'e. 5.FA )et us end with what are ca ed e?ce#tiona cases. &he% are the acid test o! 'ood theories. >hen a ru e is correct, the e?ce#tion does not wea(en it, but con!irms it. 5.FE Here is an o d #riest wa (in' a on', #ensi"e, a sta!! in his hand, a bre"iar% under his arm. How serene his !eaturesJ How e?#ressi"e his countenanceJ How ra#t his oo(J >here is he 'oin'K 4o %ou not see the church s#ire on the hori1onK &he %oun' "i a'e "icar does not %et trust his own #rowess< he has ca ed the o d missionar% to his aid. But, be!ore he cou d do so, a number o! arran'ements had to be made. &he e der % #reacher wi indeed !ind bread and board at the rector%. But between one )ent and another, one has to i"e< it is the common aw. &here!ore the %oun' "icar has ta(en u# a co ection, modest, but su!!icient, !rom the rich o! the "i a'e< !or the o d #astor was not demandin', and in res#onse to the etter he had been written he re# ied: 5+% dai % bread, that is m% necessar% e?#ense< a sou to 'i"e as a ms to the #oor, that is m% u?ur%.5 5.F8 &hus, the economic #rereCuisites are du % satis!ied< !or #o itica econom% insists on s i##in' in e"er%where and is in"o "ed in e"er%thin', and 7 rea % be ie"e that to it shou d be attributed the Cuotation: Bi humani a me a ienum #uto.G5A 5.FF )et us #ursue this i ustration a itt e !urther, !rom the economic #oint o! "iew, natura %. 5.100 &his is a true e?chan'e o! ser"ices. =n the one hand, an o d man a'rees to de"ote his time, his ener'ies, his ta ents, his hea th, to brin' some de'ree o! en i'htenment to the minds o! a sma number o! "i a'ers, to raise their mora e"e . =n the other hand, bread !or a !ew da%s, a su#erb bomba1ine cassoc(, and a new broad-brimmed hat are 'uaranteed the man who #reaches the word o! 0od. 5.101 But there is somethin' e se here. &here is a "eritab e bombardment o! sacri!ices. &he o d #riest re!uses e"er%thin' that is not abso ute % indis#ensab e to him. =! this #oor #ittance ha ! is ta(en care o! b% the "icar< and the other ha ! is raised b% the 3roesuses o! the

118 "i a'e, re ie"in' the other "i a'ers o! the cost o! #ro"idin' their share, who ne"erthe ess wi be edi!ied b% the sermons. 5.108 4o these sacri!ices in"a idate our de!inition o! "a ueK Bot in the east. E"er% man is !ree to render his ser"ices on his own terms. 7! the terms are e?treme % eas%, or indeed 'ratis, what is the resu tK &he ser"ice retains its uti it%, but oses its "a ue. &he o d #riest is con"inced that his e!!orts wi recei"e their reward in another wor d. He does not e?#ect it here be ow. He (nows, doubt ess, that he renders his auditors a ser"ice b% s#ea(in' to them< but he a so thin(s that the% render him a ser"ice b% istenin' to him. 7t !o ows that the transaction is made on a basis ad"anta'eous to one o! the contractin' #arties, and with the consent o! the other. &hat is a . 7n 'enera , e?chan'es o! ser"ices are moti"ated and e"a uated b% considerations o! se !-interest, but sometimes, than( Hea"en, b% the #rom#tin's o! a truism. 7n such cases either we surrender to others satis!actions that we had the ri'ht to (ee# !or ourse "es, or we e?ert !or them e!!orts that we cou d ha"e de"oted to ourse "es. 0enerosit%, o%a t%, se !-sacri!ice are im#u ses o! our nature that, i(e man% other !actors, in! uence the current "a ue o! a ser"ice contracted !or, but do not chan'e the 'enera aw o! "a ue. 5.109 7n contrast to this reassurin' e?am# e, 7 cou d introduce another o! a Cuite di!!erent character. For a ser"ice to ha"e "a ue in the economic sense o! the word, that is, actua "a ue, it is not ob i'ator% that the ser"ice be rea , conscientious % rendered, or use!u < a that is necessar% is that it be acce#ted and #aid !or b% a ser"ice in return. &he wor d is !u o! #eo# e who !oist u#on the #ub ic and recei"e !rom it #a%ment !or ser"ices o! hi'h % Cuestionab e worth. E"er%thin' de#ends on the .ud'ment #assed on the ser"ices, and !or that reason mora it% wi a wa%s be the best au?i iar% o! #o itica econom%. 5.10$ 2ome ro'ues succeed in s#readin' a !a se be ie!. &he% are, the% sa%, the s#ecia emissaries o! Hea"en. &he% can o#en as the% choose the 'ates o! /aradise or o! He . >hen this be ie! has ta(en root, the% sa%, 5Here are some itt e ima'es to which we ha"e 'i"en such #ower that the% can ma(e those who wear them ha##% throu'h a eternit%. 0i"in' %ou one o! these ima'es is renderin' %ou an immense ser"ice< 'i"e us, there!ore, ser"ices in return.5 5.105 &his is a created "a ue. 7t is based on an erroneous a##raisa , %ou wi sa%< that is true. &he same can be said o! man% materia thin's whose "a ue is indis#utab e, !or the% wou d !ind #urchasers i! the% were #ut u# !or auction. &he science o! economics wou d be im#ossib e i! it reco'ni1ed as "a ues on % those "a ues that are .udicious % a##raised. At e"er% ste# it wou d be necessar% to re#eat a course in #h%sics or the mora sciences. 7n the state o! iso ation, a man ma%, b% reason o! de#ra"ed desires or #oor .ud'ment, #ursue with 'reat e!!ort an unrea satis!action, a de usion. 2imi ar %, in societ%, it ha##ens, as a #hi oso#her said, that sometimes we #urchase our re'rets at a "er% hi'h #rice. 7! it is in the nature o! human inte i'ence to be more dis#osed to truth than to error, a these

11F !rauds are destined to disa##ear, these !a se ser"ices to be re!used, to ose their "a ue. 3i"i i1ation in the on' run wi #ut a thin's and a men in their #ro#er # ace.

-------------------------------------------------------------------------------5.10A 7 must, howe"er, terminate this o"er en'th% ana %sis. &he wants o! breathin', drin(in', eatin'< the wants o! "anit%, o! the mind, o! the heart, o! #ub ic o#inion, o! we -!ounded or 'round ess ho#es-we ha"e sou'ht "a ue in a o! them, and we ha"e disco"ered it where"er ser"ices are e?chan'ed. >e ha"e !ound it to be e"er%where o! identica nature, based on a c ear, sim# e, abso ute #rinci# e, a thou'h a!!ected b% a mu titude o! "ar%in' circumstances. 7! we had #assed a our other wants in re"iew-i! we had summoned the cabinetma(er, the mason, the manu!acturer, the tai or, the doctor, the doorman, the aw%er, the businessman, the #ainter, the .ud'e, the /resident o! the ,e#ub ic-we shou d ha"e disco"ered nothin' more: sometimes materia thin's, sometimes !orces !urnished 'ratis b% Bature, but a wa%s human ser"ices e?chan'ed !or other human ser"ices, bein' measured, estimated, a##raised, e"a uated b% com#arison with one another, and a one e"idencin' the resu t o! this e"a uation, that is, "a ue. 5.10E &here is, ne"erthe ess, one o! our wants o! a "er% s#ecia nature, which binds our societ% to'ether, which is both the cause and the e!!ect o! a our transactions and the #erennia #rob em o! #o itica econom%. 7 wish to sa% a !ew words about it. 7 mean the want o! e?chan'in'. 5.108 7n the #recedin' cha#ter we described the mar"e ous e!!ects o! e?chan'e. &he% are such that men are natura % dis#osed to !aci itate e?chan'e e"en at the #rice o! 'reat sacri!ice. For that reason there are hi'hwa%s, cana s, rai roads, wa'ons, shi#s, businessmen, merchants, ban(ers< and it is im#ossib e to be ie"e that humanit%, in order to !aci itate e?chan'e, wou d ha"e sub.ected itse ! to such a tremendous e"% on its ener'ies i! it had not !ound a ar'e measure o! com#ensation in the act o! e?chan'e. 5.10F >e ha"e a so seen that sim# e barter cou d ma(e #ossib e nothin' more than "er% incon"enient and imited transactions. 5.110 For this reason men thou'ht o! the idea o! brea(in' u# barter into two !actors, bu%in' and se in', throu'h the medium o! an intermediate commodit%, easi % di"isib e and, abo"e a , #ossessin' "a ue, so that it wou d in its own ri'ht commend itse ! to the #ub ic;s con!idence. &his commodit% is mone%.


5.111 >hat 7 wish to note here is that what we ca , b% e i#sis or meton%m%, the "a ue o! 'o d and si "er, rests on the same #rinci# e as the "a ue o! air, water, the diamond, the sermons o! our o d missionar%, or the tri s o! +me. +a ibran< that is, on ser"ices rendered or recei"ed. 5.118 0o d, which is wide % distributed a on' the !a"ored ban(s o! the 2acramento, does indeed deri"e !rom Bature man% o! its desirab e Cua ities: ma eabi it%, wei'ht, beaut%, bri iance, e"en uti it%, i! %ou wish. But one thin' Bature did not 'i"e 'o d, because Bature is not concerned with it, and that is "a ue. A man (nows that 'o d corres#onds to a much !e t want, that it is 'reat % desired. He 'oes to 3a i!ornia to oo( !or 'o d, .ust as m% nei'hbor a itt e whi e a'o went to the we to 'et water. He e?erts strenuous e!!orts, he di's, he sho"e s, he washes awa% 'ra"e , he me ts the ore, and then comes to me and sa%s, 57 wi do %ou the ser"ice o! turnin' this 'o d o"er to %ou< what ser"ice wi %ou render me in returnK5 5.119 >e discuss the matter< each one #onders o"er the !actors that enter into the decision< at ast we come to an a'reement< and there we ha"e "a ue made mani!est and de!inite. 4ecei"ed b% the abbre"iated e?#ression, 50o d has "a ue,5 we mi'ht we be ie"e that 'o d contains "a ue .ust as it does wei'ht or ma eabi it%, and that Bature too( the #ains to # ace it there. 7 trust that the reader is now con"inced that this is a misa##rehension. He wi become con"inced ater that it is a de# orab e misa##rehension. 5.11$ &here is a so another error in"o "in' 'o d, or rather mone%. 2ince it is customari % the intermediate a'ent in a transactions, the mean term between the two e?tremes in roundabout or indirect barter, since its "a ue is a wa%s the standard o! com#arison when two ser"ices are to be e?chan'ed, it has become the measure o! "a ue. /ractica %, it cannot be otherwise. But our science shou d ne"er ose si'ht o! the !act that mone%, as !ar as "a ue is concerned, is sub.ect to the same ! uctuations as an% other #roduct or ser"ice. 2cience does ose si'ht o! this !act !reCuent %, and it is not sur#risin'. E"er%thin' seems to cons#ire to cause mone% to be considered the measure o! "a ue in the same sense that the itre is a measure o! ca#acit%. 7t # a%s an ana o'ous ro e in transactions. >e are not conscious o! its ! uctuations because the !ranc, a on' with its ar'er and sma er com#onents, a wa%s retains the same denomination. And e"en arithmetica tab es cons#ire to encoura'e the con!usion b% istin' the !ranc, i(e a measure, a on'side the metre, the itre, the are, the stere, the 'ramme, etc.



5.115 7 ha"e de!ined "a ue, at east as 7 concei"e it. 7 ha"e sub.ected m% de!inition to the test o! "arious and sundr% cases< no one o! them, it seems to me, has dis#ro"ed it. Fina %, the scienti!ic sense that 7 ha"e 'i"en the word is in accord with common usa'e, a !act that constitutes no ne' i'ib e ad"anta'e or tri! in' 'uarantee< !or what is science e?ce#t e?#erience "iewed in the i'ht o! reasonK >hat is theor% e?ce#t the methodica #resentation o! uni"ersa #racticeK 5.11A &he reader must #ermit me now to ' ance ra#id % at the s%stems that ha"e been acce#ted u# to the #resent time. 7t is not in a s#irit o! contro"ers%, and e"en ess o! criticism, that 7 underta(e this sur"e%, and 7 shou d ' ad % abandon it i! 7 were not con"inced that it can cast new i'ht on the centra thou'ht o! this boo(. 5.11E >e ha"e seen that writers on the sub.ect ha"e sou'ht to ocate the #rinci# e o! "a ue in one or more o! the accidenta #henomena that in! uence it 'reat %-#h%sica com#osition (materia it%), durabi it%, uti it%, scarcit%, abor, etc.-as a #h%sio o'ist mi'ht see( to ocate the #rinci# e o! i!e in one or more o! the e?terna #henomena that encoura'e its de"e o#ment: air, water, sun i'ht, e ectricit%, etc. 5.118 /h%sica 3om#osition (+ateria it%) o! @a ue 5+an,5 sa%s +. de Bona d, 5is an inte ect ser"ed b% bodi % or'ans.5 7! the economists o! the materia istic schoo had mere % tried to sa% that men can render one another ser"ices on % throu'h a #h%sica medium, in order to conc ude that there is a wa%s a materia e ement in these ser"ices, and conseCuent % in "a ue, 7 shou d carr% the matter no !urther, since 7 ha"e a wa%s had a horror o! those Cuibb in's and subt eties in which our minds are on % too #rone to de i'ht. 5.11F But this is not what the% meant. &he% be ie"ed that "a ue was communicated to matter, either b% men;s abor or b% the action o! Bature. 7n a word, decei"ed b% the e i#tica e?#ressions, 50o d is worth so much,5 5wheat is worth so much,5 etc., the% were ed to see in matter a Cua it% ca ed "a ue, as the #h%sicist !inds in it densit% and wei'ht-and e"en these attributes ha"e been Cuestioned. 5.180 Howe"er that ma% be, 7 most #ositi"e % Cuestion the attribution o! "a ue to it. 5.181

188 At the outset we must admit that matter and "a ue are rare % se#arated. >hen we sa% to a man, 54e i"er this etter,5 5Fetch me some water,5 5&each me this science or that techniCue,5 50i"e me ad"ice on m% i ness or m% awsuit,5 50uard m% sa!et% whi e 7 wor( or s ee#,5 what we as( !or is a ser"ice, and in this ser"ice we reco'ni1e, be!ore the who e wor d, that there is "a ue, since we wi in' % #a% !or it with an eCui"a ent ser"ice. 7t wou d be stran'e i! we shou d re!use to admit in theor% what uni"ersa assent admits in #ractice. 5.188 7t is true that our transactions o!ten in"o "e materia ob.ects< but what does this #ro"eK 7t #ro"es that men, b% e?ercisin' !oresi'ht, o!ten 'et read% to render ser"ices that the% (now wi be as(ed o! them. >hether 7 bu% a suit read%-made or brin' in a tai or to wor( at m% house b% the da%, in what res#ect does this chan'e the #rinci# e o! "a ue, #articu ar % to the e?tent o! ma(in' it reside at one time in the suit and at another time in the ser"iceK 5.189 Here we cou d as( a subt e Cuestion: +ust we see the #rinci# e o! "a ue in the materia ob.ect, and there!ore, b% ana o'%, attribute it to the ser"iceK 7 maintain that it is .ust the contrar%< we must reco'ni1e that it is in the ser"ices, and then attribute it, i! %ou wi , b% meton%m%, to the materia ob.ect. 5.18$ Besides, the numerous e?am# es that 7 ha"e #resented to the reader re ie"e me o! the necessit% o! carr%in' this discussion !urther. But 7 cannot re!rain !rom tr%in' to .usti!% m%se ! !or ha"in' brou'ht it u#, b% showin' to what dan'erous conc usions we can be ed b% an error, or, i! %ou #re!er, b% a ha !-truth, that we encounter at the be'innin' o! our scienti!ic stud%. 5.185 &he east o! the drawbac(s to the de!inition that 7 am assai in' is that it has muti ated and stunted #o itica econom%. 7! "a ue is attributed to matter, then, where there is no matter there is no "a ue. &hus, the #h%siocrats used the term 5steri e5 c asses to desi'nate three!ourths o! the #o#u ation, whi e Adam 2mith so!tened it to 5un#roducti"e5 c asses. 5.18A And %et, since in the ast ana %sis !acts are stron'er than de!initions, these c asses sim# % had to be brou'ht bac(, b% some route or other, into the orbit o! economic stud%. &he materia ists did it b% wa% o! ana o'%< but their scienti!ic an'ua'e, created !or other data, was a read% so materia istic in tone that the ana o'ies the% used resu ted in a shoc(in' e?tension o! the meanin' o! their terms. >hat do such #hrases as these mean: &o consume an immateria #roductK +an is accumu ated ca#ita K 2ecurit% is a commodit%K 5.18E

189 &he% not on % made their an'ua'e a materia istic .ar'on, but the% were a so reduced to o"er oadin' it with subt e distinctions in their attem#t to reconci e ideas that the% had erroneous % se#arated. &he% in"ented "a ue in use in contrast to "a ue in e?chan'e. 5.188 Fina %, and this is a serious error indeed, the conce#ts o! the two 'reat socia #henomena, #ri"ate #ro#ert% and the communa domain, were so con!used that the !ormer cou d not be .usti!ied, and the atter cou d not be discerned. 5.18F 7n #oint o! !act, i! "a ue resides in matter, then it is mi?ed with those other #h%sica Cua ities o! an ob.ect that constitute its use!u ness to man. Bow, these Cua ities are o!ten # aced in the ob.ect b% Bature. &here!ore, Bature he #s to create "a ue, and hence we must attribute "a ue to those thin's that in essence are !ree o! char'e and common to a . >here, then, is the basis o! #ro#ert% to be !oundK >hen the #a%ment that 7 ma(e to acCuire a materia #roduct, wheat, !or e?am# e, is distributed to a the wor(ers who, in its #roduction, ha"e rendered me ser"ices, who shou d recei"e the share corres#ondin' to the amount o! "a ue that is due to Bature and that man had nothin' to do withK 2hou d it be #aid to 0odK Bobod% su##orts this idea, and 0od has ne"er been (nown to c aim His wa'es. 2hou d it be #aid to a manK =n what 'rounds, since, accordin' to the h%#othesis that "a ue resides in matter, he has done nothin' to earn itK 5.190 )et no one thin( that 7 am e?a''eratin', that in the interest o! m% own de!inition 7 am tr%in' to !orce the economists; de!inition to its ri'orous % o'ica conc usions. =n the contrar%: the% themse "es "er% e?# icit % ha"e drawn these conc usions under the #ressure o! o'ic. 5.191 &hus, 2enior has 'one so !ar as to sa%: 5&hose who ha"e a##ro#riated the resources o! Bature recei"e com#ensation in the !orm o! rent without ha"in' made an% sacri!ices. &heir ro e consists mere % o! ho din' out their hands !or contributions !rom the rest o! the communit%.5 2cro#e asserts:G5E 5=wnershi# o! and is an arti!icia restriction # aced on the en.o%ment o! the 'i!ts that 0od had intended to be used !or the satis!action o! the wants o! a men.5 2a% a!!irms: 57t wou d seem that arab e and shou d be counted as natura wea th, since it is not o! human creation but is 'i"en 'ratis to man b% Bature. But as this wea th is not !u'iti"e i(e air or water, since a !ie d is a !i?ed and circumscribed area that certain men ha"e mana'ed to a##ro#riate to themse "es, e?c udin' a other men who ha"e 'i"en assent to the a##ro#riation, and, which was a 'ratuitous asset o! Bature, has become socia wea th, which must be #aid !or i! used.5 5.198 3ertain %, i! this is true, /roudhonG58 was ri'ht in as(in' this terrib e Cuestion, to which he 'i"es an answer more terrib e %et: 5.199

18$ 5&o whom shou d the rent o! the and be #aidK &o the one who #roduced the and, o! course. >ho made the andK 0od. 7n that case, andowner, withdraw.5 5.19$ Les, throu'h a !au t% de!inition, #o itica econom% has #ut o'ic on the side o! the socia ists. 7t is a terrib e wea#on, but 7 sha brea( it in their hands, or rather, the% sha ' ad % surrender it to me. Bothin' wi remain o! their conc usions a!ter 7 ha"e destro%ed their ori'ina #rinci# e. And 7 #ro#ose to #ro"e that, whi e Bature combines with man;s acts to #roduce wea th, %et what Bature does remains !ree o! char'e and common to a b% its "er% essence, and on % what man does re#resents ser"ices, "a ue< it a one reCuires #a%ment< it a one is the !oundation, the e?# anation, and the .usti!ication o! #ri"ate #ro#ert%. 7n a word, 7 maintain that, in their re ation to one another, men are owners on % o! the "a ue o! thin's< and that, as the% #ass #roducts !rom hand to hand, what the% bar'ain !or is on % "a ue, that is, reci#roca ser"ices, addin' as a 'ratuitous 'i!t, into the bar'ain, a the Cua ities, #ro#erties, and uti ities im#arted to these #roducts b% Bature. 5.195 7! #o itica economists, b% misunderstandin' this !undamenta consideration, ha"e wea(ened the theoretica basis o! the de!ense o! the ri'ht to #ri"ate #ro#ert%, re#resentin' it as an unnatura institution, necessar%, but un.ust, the% ha"e at the same time ne' ected and e!t com# ete % unnoticed another admirab e #henomenon, the most mo"in' e"idence o! 0od;s bounti!u /ro"idence toward His creature, man, name %, the #henomenon o! the #ro'ressi"e trend toward more and more 'ratuitous and common uti it%. 5.19A >ea th (ta(in' this word in its 'enera % acce#ted sense) stems !rom the combination o! two (inds o! o#erations, those o! Bature and those o! man. &he !ormer are !ree o! char'e and common to a , b% di"ine 'i!t, and ne"er cease to be so. &he atter a one #ossess "a ue, and conseCuent % the% a one can be c aimed as #ri"ate #ro#ert%. But in the course o! the de"e o#ment o! human inte i'ence and the #ro'ress o! ci"i i1ation, the action o! Bature # a%s a ar'er and ar'er ro e in the creation o! an% 'i"en uti it%, and the action o! man, a #ro#ortionate % sma er one. Hence, it !o ows that the area o! 'ratuitous and common uti it% constant % increases amon' men at the e?#ense o! the area o! "a ue and #ri"ate #ro#ert%-a !ruit!u and reassurin' obser"ation that is entire % ost si'ht o! as on' as #o itica economists attribute an% "a ue to the action o! Bature. 5.19E 7n a re i'ions 0od is than(ed !or His bount%. &he !ather b esses the bread that he brea(s and 'i"es to his chi dren-a mo"in' tradition that wou d not be .usti!ied i! the b essin's o! /ro"idence were not 'i"en 'ratis. 5.198 4urabi it% o! @a ue

185 4urabi it%, that so-ca ed sine Cua non o! "a ue, is connected with what 7 ha"e .ust discussed. For "a ue to e?ist, Adam 2mith be ie"ed, it must be !i?ed in some ob.ect that can be e?chan'ed, accumu ated, #reser"ed-conseCuent % in somethin' materia . 5.19F 5&here is one (ind o! abor,5 he sa%s, 5that increasesGG18 the "a ue o! the ob.ect on which it is e?#ended. &here is another (ind that does not ha"e this e!!ect.5 5.1$0 5&he abor that 'oes into manu!actured 'oods,5 2mith adds, 5is !i?ed and ta(es concrete !orm in some sa ab e artic e o! merchandise, which asts at east !or some time a!ter the wor( is com# eted. &he wor( o! ser"ants, on the contrar% Hand the author ists so diers, ma'istrates, musicians, teachers, etc., under this headin'I is not !i?ed in an% sa ab e merchandise. &he ser"ices disa##ear as ra#id % as the% are #er!ormed and ea"e no trace o! "a ue behind them.5 5.1$1 >e see that it is im# ied here that "a ue re!ers to the modi!ication o! thin's rather than to men;s satis!actions. &his is a co ossa error< !or i! it is 'ood that the !orm o! thin's be modi!ied, it is so e % in order to attain the satis!action that is the 'oa , the end, the consummation o! a e!!ort. 7!, then, we achie"e the satis!action b% immediate and direct e!!ort, the resu t is the same< i!, moreo"er, the e!!ort can be trans!erred, e?chan'ed, e"a uated, it contains the #rinci# e o! "a ue. 5.1$8 As !or the time inter"a between the e!!ort and the satis!action, 2mith 'i"es it too much im#ortance when he sa%s that the e?istence or none?istence o! "a ue de#ends on it. 5&he "a ue o! an artic e o! sa ab e merchandise,5 he sa%s, 5 asts at east !or some time.5 5.1$9 Les, indubitab %, it asts unti the artic e has !u !i ed its !unction, i.e., to satis!% a want, which is e?act % the case with a ser"ice. As on' as this dish o! strawberries sta%s on the side tab e, it wi retain its "a ue. But wh%K Because it is the resu t o! a ser"ice 7 decided to render m%se ! or that others rendered me in consideration o! #a%ment, and a ser"ice o! which 7 ha"e not %et a"ai ed m%se !. As soon as 7 a"ai m%se ! o! it, b% eatin' the strawberries, the "a ue wi disa##ear. &he ser"ice wi ha"e "anished, ea"in' no trace o! "a ue behind it. E?act % the same thin' ho ds true o! a #ersona ser"ice. &he consumer causes the "a ue to "anish, because it was created !or this end. 7t ma(es itt e di!!erence to the notion o! "a ue whether the #ains ta(en toda% satis!% a want immediate % or tomorrow or ne?t %ear. 5.1$$ 2u##ose 7 am a!! icted with a cataract. 7 ca an ocu ist. &he instrument he uses has "a ue, because it is durab e, but not the o#eration, a thou'h 7 #a% !or it, ar'ue about the !ee, and e"en com#are it with the !ees o! other ocu istsJ But such an assum#tion is contrar% to the

18A most ordinar% !acts, the most wide % acce#ted notions< and what (ind o! theor% is it that, when it cannot e?# ain uni"ersa #ractice, dismisses it as o! no accountK 5.1$5 7 be' the reader to be ie"e that 7 am not a owin' m%se ! to be carried awa% b% undue o"e o! contro"ers%. 7! 7 dwe on certain e ementar% ideas, 7 do so in order to #re#are the wa% !or most im#ortant conc usions that wi be e"ident ater. 7 do not (now whether or not 7 am "io atin' the aws o! method b% antici#atin' these conc usions, but in an% case 7 #ermit m%se ! this minor in!raction !or !ear o! tr%in' the reader;s #atience. For this reason at an ear ier #oint in m% boo( 7 re!erred in an antici#ator% wa% to #ri"ate #ro#ert% and common uti it%. For the same reason 7 sha now sa% a word about ca#ita . 5.1$A Adam 2mith, who made wea th an attribute o! matter, cou d concei"e o! ca#ita on % as an accumu ation o! materia ob.ects. How, then, can "a ue be assi'ned to ser"ices that cannot be accumu ated or turned into ca#ita K 5.1$E Amon' those thin's ca ed ca#ita 'oods we # ace too s, machines, industria eCui#ment, at the head o! the ist. &he% ser"e to a## % the !orces o! Bature to the wor( o! #roduction, and since the #ower o! creatin' "a ue was attributed to these !orces, economists were ed to be ie"e that these too s o! #roduction, in themse "es, #ossessed the same !acu t%, inde#endent % o! an% human ser"ice. &hus, the s#ade, the # ow, the steam en'ine, were su##osed to wor( to'ether simu taneous % with natura resources and human !orces in creatin' not on % uti it%, but "a ue as we . But a "a ue is #aid !or in e?chan'e. >ho, then, was to be #aid !or that #art o! "a ue which is inde#endent o! human ser"iceK 5.1$8 7t is !or this reason that /roudhon;s schoo , a!ter Cuestionin' the e'itimac% o! and rent, is ed to Cuestion interest on ca#ita as we -a broader conce#t, since it embraces the !irst. 7 maintain that the /roudhon !a ac%, !rom the scienti!ic #oint o! "iew, has its ori'ins in 2mith;s. 7 sha show that ca#ita , i(e natura resources, ta(en b% itse ! and in re!erence to its own action, creates uti it%, but ne"er "a ue. @a ue, in its essence, is the #roduct o! a e'itimate ser"ice. 7 sha show a so that, in the socia order, ca#ita is not an accumu ation o! materia ob.ects, de#endent on the durabi it% o! matter, but an accumu ation o! "a ues, that is, o! ser"ices. Hence, this recent attac( on the idea o! the #roducti"it% o! ca#ita wi be re#u sed-"irtua % at east, b% destro%in' its !oundationand, moreo"er, in a wa% that shou d !u % satis!% the "er% #eo# e who insti'ated it< !or i! 7 #ro"e that the #henomenon o! e?chan'e is nothin' but a s%stem o! mutua ser"ices, +. /roudhon must own himse ! beaten b% the "er% trium#h o! his own #rinci# e. 5.1$F )abor

18E Adam 2mith and his disci# es ha"e ascribed "a ue to abor under the condition o! materia it%. &his is contradictor% to their other theor% that the !orces o! Bature ha"e some share in the #roduction o! "a ue. 7 ha"e no need here to re!ute the contradictions that are e"ident in a their un!ortunate conc usions when these authors s#ea( o! and rent or o! interest on ca#ita . 5.150 Howe"er this ma% be, in !indin' the #rinci# e o! "a ue in abor, the% wou d be comin' Cuite c ose to the truth i! the% did not ma(e re!erence to manua abor. 7 said, in !act, at the be'innin' o! this cha#ter that "a ue must be re ated to e!!ort, an e?#ression that 7 #re!erred to 5 abor,5 since it is more 'enera and inc udes the who e area o! human acti"it%. But 7 hastened to add that it cou d ha"e its source on % in e!!orts that were e?chan'ed, or reci#roca ser"ices, because it is not somethin' e?istin' b% itse !, but so e % as an e?#ression o! a re ationshi#. 5.151 &here are, then, strict % s#ea(in', two ! aws in 2mith;s de!inition. &he !irst is that it does not ta(e e?chan'e into account, without which "a ue can neither be created nor concei"ed o!< the second, that it uses a word, 5 abor,5 which is too narrow in its meanin', un ess that meanin' is e?tended be%ond its norma imits to inc ude not on % the de'ree o! intensit% and the en'th o! time e?#ended, but a so the s(i and sa'acit% o! the wor(er, and e"en the 'ood or bad !ortune he ha##ens to encounter. 5.158 Bote that the word 5ser"ice,5 which 7 substitute in the de!inition, e iminates these two ! aws. 7t necessari % im# ies the idea o! transmission, since a ser"ice cannot be rendered un ess it is recei"ed< and it a so im# ies the idea o! an e!!ort without assumin' a corres#ondin' amount o! "a ue. 5.159 Here is where the En' ish economists; de!inition !ai s most serious %. &o sa% that "a ue resides in abor is to su''est that the two are in a reci#roca re ation, that there is a direct #ro#ortion between them. 7n this res#ect, the de!inition is contrar% to the !acts, and a de!inition contrar% to the !acts is a !au t% one. 5.15$ @er% !reCuent % a #iece o! wor( that is considered insi'ni!icant in itse ! is acce#ted b% the wor d as ha"in' tremendous "a ue (e?am# es: the diamond, a #rima donna;s sin'in', a !ew stro(es o! a ban(er;s #en, a shi##er;s uc(% s#ecu ation, the ines o! a ,a#hae ;s brush, a #a#a bu o! indu 'ence, the eas% duties o! a Cueen o! En' and, etc.)< e"en more !reCuent % a s ow, e?haustin' tas( ends in disa##ointment, in a non"a ue. 7! such is the case, how can we estab ish a corre ation, a !i?ed ratio, between "a ue and aborK 5.155 +% de!inition e iminates the di!!icu t%. 7t is ob"ious that there are circumstances under which one ma% render a 'reat ser"ice that does not reCuire 'reat #ains< others under

188 which, a!ter ta(in' 'reat #ains, one !inds that no ser"ice has been rendered to an%one, and there!ore it is more e?act, !rom this #oint o! "iew a so, to sa% that "a ue resides in ser"ice rather than in abor, since it e?ists in direct #ro#ortion to the !ormer and not to the atter. 5.15A 7 'o !urther. 7 maintain that "a ue is a##raised at east as much in consideration o! the abor it can s#are the user as o! the abor it has cost the #roducer. 7 as( the reader to be 'ood enou'h to reca the dia o'ue between the two contractin' #arties in the ne'otiations o"er the diamond. 7t was not #rom#ted b% e?ce#tiona circumstances, and 7 "enture to sa% that in substance it is at the heart o! a transactions. 7t must not be !or'otten that we are assumin' that the two contractin' #arties ha"e com# ete !reedom to e?ercise their wi and .ud'ment. Each o! them is induced to a'ree to the e?chan'e !or "arious reasons, !irst amon' them, certain %, bein' the di!!icu t% that the reci#ient o! the diamond wou d e?#erience in obtainin' direct % the satis!action that the other o!!ers him. &his di!!icu t% is ta(en into account b% both #arties, ma(in' the one more or ess conci iator% and the other more or ess e?actin'. &he #ains that the one o!!erin' the diamond went to a so in! uence the ne'otiation< it is one o! the e ements, but not the on % one. &here!ore, it is not e?act % correct to sa% that "a ue is determined b% abor. @a ue is determined b% a 'reat man% considerations, a inc uded in the word 5ser"ice.5 5.15E 7t is "er% true that, under the in! uence o! com#etition, "a ues tend to be re ated e!!orts, or the rewards to the deserts. &his is one o! the beauti!u harmonies o! the socia order. But, as !ar as "a ue is concerned, this e"e in' tendenc% e?erted b% com#etition is entire % e?traneous< and sound o'ic does not #ermit us to con!use the in! uence e?erted on a #henomenon b% an e?traneous e ement with the #henomenon itse !.GG19 5.158 6ti it% Mean-Ba#tiste 2a%, un ess 7 am mista(en, was the !irst writer to sha(e o!! the %o(e o! the conce#t o! the materia it% o! "a ue. @er% e?# icit % he made "a ue a mora Cua it%-an e?#ression that #erha#s o"ershoots the mar(, !or "a ue is neither #h%sica nor mora < it is sim# % a re ationshi#. 5.15F But the 'reat French economist had himse ! said, 57t is not 'ranted to an% man to arri"e at the outermost imits o! (now ed'e. 2cho ars c imb u#on one another;s shou ders to e?# ore a hori1on that (ee#s on e?tendin' !arther and !arther.5 /erha#s 2a%;s ' or% (as !ar as the #resent Cuestion is concerned, !or in other res#ects his c aims to !ame are as numerous as the% are im#erishab e) is to ha"e #assed on to his successors a !ruit!u insi'ht into the sub.ect. 5.1A0

18F 2a%;s a?iom was this: &he basis o! "a ue is uti it%. 5.1A1 7! it were a Cuestion here o! uti it% as re ated to human ser"ices, 7 shou d ha"e no ar'ument with him. At the "er% most 7 cou d sa% that the a?iom is so se !-e"ident as to be su#er! uous. 7t is Cuite c ear that no one consents to #a% !or a ser"ice un ess, ri'ht % or wron' %, he considers it use!u . &he word ser"ice is so com# ete % inc uded in the idea o! uti it% that it is sim# % the trans ation, and e"en the itera carr%in' o"er, o! the )atin word uti, to ser"e. 5.1A8 But, un!ortunate %, this is not the wa% 2a% meant it. He !ound the #rinci# e o! "a ue not on % in human ser"ices rendered throu'h the medium o! thin's, but a so in the use!u Cua ities that Bature im#arts to thin's. B% so doin', he a'ain # aced u#on his nec( the %o(e o! materia it%, and, we must add, he did nothin' to tear awa% the harm!u "ei that the En' ish economists had thrown o"er the Cuestion o! #ri"ate #ro#ert%. 5.1A9 Be!ore discussin' 2a%;s a?iom on its own merits, 7 must indicate what its o'ica im# ications are, so as to a"oid the re#roach that 7 in"o "ed m%se ! and the reader in a tedious dissertation. 5.1A$ &here can be no doubt that the uti it% 2a% s#ea(s o! is the uti it% that resides in materia thin's. 7! wheat, wood, coa , c oth ha"e "a ue, it is because these #roducts ha"e Cua ities that !it them !or our use, to satis!% our need to be !ed, warmed, c othed. 5.1A5 &his bein' the case, since Bature creates uti it%, it a so creates "a ue-a most harm!u con!usion o! ideas that the enemies o! #ri"ate #ro#ert% ha"e !or'ed into a terrib e wea#on. 5.1AA 2u##ose 7 bu% a #roduct-wheat, !or e?am# e-at the mar(et !or si?teen !rancs. A ar'e #art o! the si?teen !rancs is distributed, throu'h count ess rami!ications, throu'h an inestimab e ma1e o! ad"ances and re#a%ments, amon' a the men, !ar and near, who ha"e he #ed to #ut the wheat at m% dis#osa . &here is somethin' !or the man who # owed the !ie d, the man who sowed the seed, who rea#ed the cro#, who threshed the 'rain, who carted it awa%, as we as !or the smith and the wa'oner who made the eCui#ment. 6# to this #oint there is no disa'reement, whether one is an economist or a communist. 5.1AE But 7 #ercei"e that !our o! m% si?teen !rancs 'o to the owner o! the and, and 7 ha"e e"er% ri'ht to as( whether this man, i(e a the others, has rendered me a ser"ice assurin' him, i(e a the others, an unCuestioned ri'ht to com#ensation.

190 5.1A8 Accordin' to the doctrine that it is the #ur#ose o! this boo( to estab ish, the answer is cate'orica . 7t is a "er% em#hatic %es. Les, the owner has rendered me a ser"ice. >hat is itK 7t consists in the !act that he or his ancestor has c eared the and and !enced it o!!< he has c eared out the weeds and drained o!! the sta'nant water< he has !erti i1ed the "e'etab e 'arden< he has bui t a house, barns, and stab es. A this re#resents on' hours o! abor that he has #er!ormed himse ! or, what amounts to the same thin', #aid others to #er!orm !or him. &hese are certain % ser"ices !or which, b% "irtue o! the .ust aw o! reci#rocit%, he shou d be reimbursed. Bow, this owner has ne"er been remunerated, at east to the !u e?tent. Bor cou d he be, since he cou d not char'e the who e amount to the !irst man who came a on' and bou'ht a bushe o! wheat. >hat, then, is the arran'ement that has been wor(ed outK &ru %, the most in'enious, the most e'itimate, and the most eCuitab e in the wor d. 7t is this: >hoe"er wishes to bu% a sac( o! wheat wi #a% not on % !or the ser"ices o! the wor(ers we ha"e .ust enumerated but a so !or a sma #art o! the ser"ices rendered b% the owner< in other words, the "a ue o! the owner;s ser"ices wi be distributed o"er a the sac(s o! wheat that come !rom this !ie d. 5.1AF Bow, we ma% as( whether this remuneration, set here at !our !rancs, is too much or too itt e. 7 re# %: &his Cuestion does not concern the science o! #o itica econom%, which notes that the "a ue o! the ser"ices o! the owner o! rea #ro#ert% is 'o"erned b% e?act % the same aws as a other ser"ices< and that is su!!icient. 5.1E0 2ome ma% ob.ect that this s%stem o! #iecemea reimbursement wou d e"entua % resu t in the com# ete amorti1ation o! the owner;s out a%, and conseCuent % shou d ead to the cance ation o! his #ro#ert% ri'hts. &hose who ma(e this ob.ection are not aware that it is the nature o! ca#ita to #roduce #er#etua income, as we sha earn ater. 5.1E1 For the moment, howe"er, 7 must not stra% on'er !rom the sub.ect, and 7 sha obser"e (!or this is the 'ist o! the matter) that out o! m% si?teen !rancs there is not a centime that is not used to #a% !or human ser"ices, that there is not one that corres#onds to the soca ed "a ue that Bature is su##osed to ha"e im#arted to the wheat b% 'i"in' it uti it%. 5.1E8 But, i!, basin' %our ar'ument on the a?iom o! 2a% and the En' ish economists, %ou assert, 5=ut o! the si?teen !rancs, twe "e 'o to the # owmen, sowers, rea#ers, wa'ondri"ers, etc.< two to #a% !or the owner;s #ersona ser"ices< then two others re#resent a "a ue that has as its basis the uti it% created b% 0od, b% natura resources, without an% human co-o#eration5< do %ou not see that %ou wi at once be as(ed, 5>ho is to #ro!it !rom this #art o! "a ueK >ho has a ri'ht to this remunerationK 0od does not come !orward to c aim it. >ho wi dare stand in His # aceK5 5.1E9

191 &he more 2a% tries to e?# ain #ri"ate #ro#ert% accordin' to this h%#othesis, the more "u nerab e his #osition becomes. First, Cuite #ro#er %, he com#ares the and to a aborator% where chemica e?#eriments are conducted with resu ts use!u to man(ind. 5&he and,5 he adds, 5is there!ore the #roducer o! a uti it%, and when it Hthe andI e?acts #a%ment in the !orm o! a #ro!it or a rent !or the owner, it has indeed 'i"en somethin' to the consumer in return !or what the consumer 'i"es it. 7t has 'i"en him a uti it% that it has #roduced, and because it has #roduced this uti it%, the and is .ust as #roducti"e as abor is.5 5.1E$ &hus, the assertion is c ear-cut. Here are two c aimants who come !orward to di"ide the #a%ment the consumer owes !or the wheat, name %, and and abor. &he% ha"e identica ri'hts, !or the and, sa%s 2a%, is .ust as #roducti"e as abor is. )abor demands #a%ment !or a ser"ice, the and !or a uti it%< %et the and does not reCuest the #a%ment !or itse ! (under what !orm cou d it be madeK), but !or its owner. 5.1E5 >hereu#on /roudhon summons the owner, who ca s himse ! the and;s authori1ed a'ent, to #roduce his credentia s.G5F 5.1EA Lou te me to #a% %ou, in other words, to render %ou a ser"ice, sa%s /roudhon, !or recei"in' uti it% #roduced b% natura resources, without assistance !rom man, who has a read% been #aid se#arate %. 5.1EE But 7 insist on as(in': >ho wi #ro!it !rom m% #a%ment, that is, m% ser"icesK 5.1E8 >i it be the #roducer o! the uti it%, that is, the andK &hat is absurd, and 7 can bide m% time Cuite easi % unti the and sends the bai i!! a!ter me. 5.1EF >i it be a manK =n what 'roundsK 7! it is !or ha"in' rendered me a ser"ice, we and 'ood. But in that case %ou share m% #oint o! "iew. Human ser"ice is the thin' that has "a ue, not Bature;s< that is the conc usion to which 7 wished to ead %ou. 5.180 Howe"er, that is contrar% to %our own h%#othesis. Lou sa% that the human ser"ices are #aid !ourteen !rancs, and that the two !rancs that com# ete the #a%ment !or the wheat corres#ond to the "a ue created b% Bature. 7n that case, 7 re#eat m% Cuestion: B% what ri'ht can an% man a% c aim to themK And is it not un!ortunate % on % too c ear that, i! %ou a## % s#eci!ica % the name o! andowner to the man who c aims the two !rancs, %ou are .usti!%in' that too-!amous ma?im: /ro#ert% is the!tK 5.181

198 And et no one thin( that this con!usion between uti it% and "a ue is imited to underminin' the !oundations o! rea #ro#ert%. A!ter Cuestionin' the e'itimac% o! the idea o! and rent, it eads a so to Cuestionin' interest on ca#ita . 5.188 +achines, too s o! #roduction, are, in !act, i(e the and, #roducers o! uti it%. 7! this uti it% has "a ue, it must be #aid !or< !or the word 5"a ue5 im# ies a ri'ht to #a%ment. But to whom is it #aidK &o the owner o! the machine, o! course. 7s it !or a #ersona ser"iceK &hen sim# % sa% that the "a ue is in the ser"ice. But i! %ou sa% that there must be !irst a #a%ment !or the ser"ice, and then a second !or the uti it% #roduced b% the machine, inde#endent % o! an% human action a read% #aid !or, we as( %ou to whom does this second #a%ment 'o, and how can the man who has a read% been #aid !or a his ser"ices ha"e the ri'ht to demand somethin' moreK 5.189 &he truth is that the uti it% #roduced b% Bature is !ree o! char'e, and there!ore common to a , .ust i(e the uti it% #roduced b% the too s o! #roduction. 7t is !ree o! char'e and common to a on one condition: that we ta(e the #ains, that we #er!orm the ser"ice, o! he #in' ourse "es to it< or, i! we as( someone e se to ta(e the #ains or #er!orm the ser"ice !or us, that we render him an eCui"a ent ser"ice in return. &he "a ue resides in these com#arati"e ser"ices, and not at a in the natura uti it%. &he #ains can be 'reat or sma , a !act that chan'es the "a ue, but not the uti it%. >hen we are near a 'ushin' s#rin', the water is !ree to a , #ro"ided we are wi in' to stoo# down to 'et it. 7! we commission a nei'hbor to 'o to this troub e !or us, then 7 see an a'reement, a bar'ain, a "a ue, but the water remains !ree o! char'e, ne"erthe ess. 7! we are an hour;s distance !rom the s#rin', the terms o! the bar'ain wi be di!!erent in de'ree, but not in #rinci# e. @a ue wi not on that account ha"e #assed into the water or into its uti it%. &he water wi continue to be !ree o! char'e on condition that we 'o and 'et it or #a% those who, a!ter !ree bar'ainin', consent to s#are us this troub e b% assumin' it themse "es. 5.18$ &he same ho ds true !or e"er%thin'. 6ti ities are e"er%where about us, but we ha"e to stoo# to #ic( them u#. &his e!!ort, sometimes "er% sim# e, is o!ten "er% com# icated. Bothin' is easier, in most cases, than he #in' ourse "es to water, whose uti it% has been #re#ared b% Bature. 7t is not so eas% to 'ather in wheat, whose uti it% has a so been #re#ared b% Bature. &hat is wh% the "a ue o! these two e!!orts di!!ers in de'ree, but not in #rinci# e. &he ser"ice is more or ess e?actin'< conseCuent %, it is worth more or ess. &he uti it% is and a wa%s remains !ree o! char'e. 5.185 2u##ose a too o! #roduction is introduced, what then is the resu tK &he uti it% is more easi % made a"ai ab e. &here!ore, the ser"ice has ess "a ue. >e certain % #a% ess !or boo(s since the in"ention o! #rintin'. An admirab e and misunderstood #henomenonJ Lou sa% that too s o! #roduction #roduce "a ue. Lou are wron'. Lou shou d rather sa% that it is uti it%, and 'ratuitous uti it%, that the% #roduce< as !or "a ue, !ar !rom #roducin' an%, the% #ro'ressi"e % destro% it.


5.18A 7t is true that the ma(er o! the machine has rendered a ser"ice. He recei"es a remuneration that increases the "a ue o! the #roduct. 7t is !or this reason that we are inc ined to thin( that we #a% !or the uti it% #roduced b% the machine, but this is a de usion. >e #a% !or the ser"ices contributed b% a those who had a #art in ma(in' it or o#eratin' it. 2o itt e "a ue resides in the uti it% that has been #roduced that, e"en a!ter we ha"e #aid !or the new ser"ices, we obtain the uti it% on better terms than be!ore. 5.18E )et us, then, earn to distin'uish between uti it% and "a ue. An understandin' o! the science o! economics comes on % at this #rice. 7 maintain, without !ear o! indu 'in' in #arado?, that the ideas o! uti it% and "a ue, !ar !rom bein' identica or e"en reconci ab e, are o##osites. >ant, e!!ort, satis!action-this, we ha"e said, is man !rom the economic #oint o! "iew. 6ti it% is re ated to want and satis!action. @a ue is re ated to e!!ort. 6ti it% is the 'ood that terminates want with satis!action. @a ue is the e"i , !or it is born o! the obstac e that inter"enes between want and satis!action. 7! it were not !or obstac es, there wou d be no e!!orts to be made or e?chan'ed< uti it% wou d be in!inite, unconditiona % !ree o! char'e and common to a , and the notion o! "a ue wou d ne"er ha"e been brou'ht into the wor d. Because o! the #resence o! obstac es, uti it% is !ree o! char'e on % on condition that there be an e?chan'e o! e!!orts, which, when com#ared with one another, constitute "a ue. &he more obstac es are reduced b% the bount% o! Bature or the #ro'ress o! science, the nearer uti it% comes to bein' abso ute % !ree o! char'e and common to a < !or the cost in terms o! e!!ort and, conseCuent %, the "a ue decrease a on' with the obstac es. 7 shou d consider m%se ! !ortunate indeed i!, throu'h a these dissertations, which ma% we a##ear unnecessari % subt e, which !i me with mis'i"in's because o! their en'th and at the same time because o! their conciseness, 7 shou d succeed in 'ainin' acce#tance !or this reassurin' truth: /ri"ate ownershi# o! "a ue is e'itimate< and this other com!ortin' truth: 6ti it% tends constant % to become the 'ratuitous and common #ossession o! a . 5.188 2ti another obser"ation: E"er%thin' that ser"es us is use!u (uti, 5to ser"e5). Accordin' %, it is hi'h % doubt!u whether an%thin' e?ists in the uni"erse, whether !orce or matter, that is not use!u to man. 5.18F 7n an% case, we can a!!irm, without !ear o! bein' mista(en, that count ess thin's are use!u to us without our bein' aware o! the !act. 7! the moon were # aced hi'her or ower in the hea"ens, it is Cuite #ossib e that the minera (in'dom, conseCuent % the "e'etab e (in'dom, and conseCuent % a so the anima (in'dom, wou d be #ro!ound % modi!ied. 7! it were not !or this star shinin' so bri'ht % in the s(% as 7 write, #erha#s the human race cou d not e?ist. Bature has surrounded us with uti ities. >e reco'ni1e this Cua it% o! bein' use!u in man% substances and #henomena< science and e?#erience re"ea it to us in others e"er% da%< in sti others it e?ists, thou'h com# ete % and #erha#s !or a time un(nown to us.


5.1F0 >hen these substances and these #henomena e?ert their use!u action u#on us, but without our a'enc%, we ha"e no interest in com#arin' the de'ree o! uti it% the% ha"e !or us< and, what is more to the #oint, we hard % ha"e the means o! doin' so. >e (now that o?%'en and nitro'en are use!u to us, but we do not tr%, and shou d #robab % tr% in "ain, to determine in what #ro#ortion. &he% do not !urnish us with the e ements necessar% !or e"a uation, !or "a ue. 7 cou d sa% the same thin' !or the sa ts, the 'ases, the !orces that abound throu'hout Bature. >hen a these a'ents mo"e and combine so as to #roduce uti it% !or us, but without our contributin' to it, we en.o% this uti it% without e"a uatin' it. >hen our co-o#eration is introduced and, abo"e a , is e?chan'ed, then and on % then a##raisa and "a ue ma(e their a##earance, but the% are a## ied to our co-o#eration, not to the uti it% o! substances or #henomena o! which we are !reCuent % i'norant. 5.1F1 &hat is wh% 7 sa%: @a ue is the a##raisa o! ser"ices e?chan'ed. &hese ser"ices ma% be "er% com# e?. &he% ma% ha"e reCuired "ast amounts and "arious t%#es o! abor in times remote or recent. &he% ma% be transmitted !rom one hemis#here or 'eneration to another hemis#here or 'eneration, in"o "in' numerous contractin' #arties, necessitatin' credits, the ad"ancin' o! !unds, "aried arran'ements, be!ore the 'enera ba ance is arri"ed at. Let the #rinci# e o! "a ue a wa%s resides in them, and not in the uti it% o! which the% are the "ehic e, a uti it% which is essentia % !ree o! char'e, which #asses !rom hand to hand into the bar'ain, i! 7 ma% be #ermitted the e?#ression. 5.1F8 A!ter a , i! an%one #ersists in attributin' the basis o! "a ue to uti it%, 7 ha"e no Cuarre with him< but et it be we understood that we do not mean that uti it% which is in thin's and #henomena b% the 'i!t o! /ro"idence or the #ower o! science, but the uti it% o! human ser"ices com#ared and e?chan'ed. 5.1F9 2carcit% Accordin' to 2enior, o! a the circumstances that in! uence "a ue, scarcit% is the most decisi"e. 7 ha"e no ob.ection to ma(e to this remar(, un ess it is that b% its !orm it assumes that "a ue is inherent in thin's-an h%#othesis that 7 wi cha en'e i! it is e"en hinted at. Fundamenta %, the word 5scarcit%,5 as used in connection with the sub.ect with which we are dea in', e?#resses in abrid'ed !orm this idea: =ther thin's bein' eCua , a ser"ice has 'reater "a ue accordin' to the di!!icu t% we shou d e?#erience in #er!ormin' it !or ourse "es, and conseCuent %, accordin' to the more e?actin' terms we encounter when we as( someone e se to do it !or us. 2carcit% is one o! these di!!icu ties. 7t is one more obstac e to surmount. &he 'reater it is, the more we #a% those who surmount it !or us. 2carcit% o!ten occasions "er% hi'h remunerations< and that is wh% 7 re!used to a'ree a itt e ear ier in this wor( with the En' ish economists; #osition that "a ue is in direct

195 #ro#ortion to abor. >e must ta(e into account Bature;s miser iness toward us in certain res#ects. &he word 5ser"ice5 embraces a these meanin's and shades o! meanin'. 5.1F$ Mud'ment 2torch attributes "a ue to the .ud'ment that enab es us to discern it. =! course, e"er% time we are con!ronted with a Cuestion o! the re ation between two thin's, we must com#are and .ud'e. Be"erthe ess, the re ation is one thin', and the .ud'ment we #ass on it is another. >hen we com#are the hei'ht o! two trees, their hei'hts and the di!!erence between their hei'hts are distinct !rom our e"a uation o! them. 5.1F5 But in determinin' "a ue, what is the re ation that we are to .ud'eK 7t is the re ation between two ser"ices that are e?chan'ed. 7t is a Cuestion o! (nowin', when ser"ices are rendered and recei"ed, what is the "a ue o! the one in res#ect to the other. 7t is a Cuestion o! (nowin', when ser"ices, in"o "in' the trans!er o! acts or the e?chan'e o! thin's, are rendered and recei"ed, what the one is worth in res#ect to the other, (ee#in' in mind a the circumstances, rather than concernin' ourse "es with the amount o! intrinsic uti it% these acts or these thin's ma% contain< !or this uti it% ma% !a #artia % outside the rea m o! human acti"it% and there!ore outside the rea m o! "a ue. 5.1FA 2torch is not aware o! the !undamenta error that 7 am attac(in', when he sa%s: 5.1FE 5=ur .ud'ment enab es us to discern the re ation that e?ists between our wants and the uti it% o! thin's. &he "erdict that our .ud'ment #ronounces on the uti it% o! thin's constitutes their "a ue.5 5.1F8 And, !urther on: 5.1FF 57n order to create "a ue, three circumstances must coincide: (1) +an e?#eriences, or concei"es, a want. (8) 2omethin' e?ists that is ca#ab e o! satis!%in' the want. (9) His .ud'ment #ronounces a !a"orab e "erdict on the uti it% o! the thin'. Hence, the "a ue o! thin's is their re ati"e uti it%.5 5.800 4urin' the da% i'ht hours 7 e?#erience the want o! seein' c ear %. 2omethin' e?ists that is ca#ab e o! satis!%in' the want, sun i'ht. +% .ud'ment #ronounces a !a"orab e "erdict on this thin';s uti it%, and .... it has no "a ue. >h%K Because 7 en.o% it without ha"in' to as( a ser"ice !rom an%one.


5.801 At ni'ht 7 e?#erience the same want. 2omethin' e?ists that is ca#ab e o! satis!%in' it "er% im#er!ect %, a cand e. +% .ud'ment #ronounces a "erdict on the uti it%, but on the re ati"e % s i'ht uti it% o! this thin', and it has "a ue. >h%K Because the #erson who too( the #ains to ma(e the cand e is unwi in' to render me the ser"ice o! ettin' me ha"e it un ess 7 render him an eCui"a ent ser"ice. 5.808 >hat we must com#are and .ud'e, to determine "a ue, is not, there!ore, the re ati"e uti it% o! the thin's, but the re ation between the two ser"ices. 5.809 E?#ressed in these terms, 7 do not re.ect 2torch;s de!inition.

-------------------------------------------------------------------------------5.80$ )et us summari1e brie! % to show that m% de!inition inc udes a that is true in m% #redecessors; de!initions and corrects a that is erroneous throu'h their inc usion o! too much or too itt e. 5.805 &he #rinci# e o! "a ue, as 7 ha"e said, resides in a human ser"ice. 7t is deri"ed !rom the a##raisa and com#arison o! two ser"ices. @a ue must be connected to e!!ort. 2er"ice im# ies an e!!ort o! some sort. 7t su##oses a com#arison o! e!!orts that are e?chan'ed, or at east e?chan'eab e. 2er"ice im# ies the term 'i"in' and recei"in'. 5.80A 7n !act, howe"er, it is not #ro#ortiona to intensit% o! e!!ort. 2er"ice does not necessari % im# % such a #ro#ortion. 5.80E +an% outside circumstances in! uence "a ue without becomin' "a ue themse "es. &he word 5ser"ice5 ta(es a these circumstances into account in their #ro#er measure. 5.808 +ateria it%

19E >hen the ser"ice consists o! the trans!er o! a materia ob.ect, there is no reason !or not sa%in', b% meton%m%, that the ob.ect has "a ue. But we must not ose si'ht o! the !act that this is a mere tro#e, or !i'ure o! s#eech, b% which we attribute to the ob.ect the "a ue arisin' !rom the ser"ices connected with it. 5.80F 4urabi it% >hether ha"in' materia it% or not, "a ue asts unti the want is satis!ied, and no on'er. 7ts nature is not chan'ed b% an% time 'a#, 'reat or sma , arisin' between the e?ertin' o! the e!!ort and the satis!%in' o! the want, nor b% the (ind o! ser"ice, whether #ersona or inc udin' materia commodities. 5.810 Accumu ation >hat can be accumu ated b% sa"in', in the socia order, is not thin's, but "a ue, or ser"ices.GG1$ 5.811 6ti it% 7 a'ree with 2a% that uti it% is the basis o! "a ue, #ro"ided that we mean the re ati"e uti it% o! ser"ices, not the uti it% that resides in thin's. 5.818 )abor 7 a'ree with ,icardo that abor is the basis o! "a ue, #ro"ided !irst that we ta(e the word 5 abor5 in its most 'enera sense, and, second, that we do not 'i"e it a ratio to "a ue out o! (ee#in' with a the !acts< in other words, #ro"ided we substitute the word 5ser"ice5 !or the word 5 abor.5 5.819 2carcit%

198 7 a'ree with 2enior that scarcit% in! uences "a ue. But wh%K Because it ma(es ser"ice a the more "a uab e. 5.81$ Mud'ment 7 a'ree with 2torch that "a ue resu ts !rom an act o! .ud'ment, #ro"ided that we mean the .ud'ment that we #ass on the uti it% o! ser"ices, not on the uti it% o! thin's.

-------------------------------------------------------------------------------5.815 &hus, economists o! a #ersuasions shou d own themse "es satis!ied. 7 sa% that a are ri'ht, because a ha"e ' im#sed one side o! the truth. Error, to be sure, a% on the other side. &he reader must decide whether m% de!inition ta(es into account the who e truth and re.ects a the errors. 5.81A 7 must not conc ude without sa%in' a word about that economic eCui"a ent o! the sCuarin' o! a circ e: the measure o! "a ue< and here 7 sha re#eat, e"en more em#hatica %, the obser"ation that ends the #recedin' cha#ters. 5.81E 7 said that our wants, our desires, our tastes, ha"e no imits or e?act measure. 5.818 7 said that our means o! satis!%in' them, the 'i!ts o! Bature, our !acu ties, our acti"it%, !oresi'ht, discernment, ha"e no e?act measure. Each one o! these e ements is itse ! a "ariab e Cuantit%< it di!!ers !rom man to man, and within each indi"idua it di!!ers !rom minute to minute, thus !ormin' in its entiret% what is the "er% essence o! "ariabi it%. 5.81F 7!, now, we consider what the circumstances are that in! uence "a ue, such as uti it%, abor, scarcit%, .ud'ment, and i! we rea i1e that there is not one o! these that does not "ar% in!inite %, how can we stubborn % #ersist in see(in' a !i?ed measure o! "a ueK 5.880 7t wou d be stran'e indeed i! we shou d !ind !i?it% in a mean term com#osed o! "ariab e e ements, in a mean term that is mere % a re ation between two e?tremes more "ariab e sti J


5.881 Economists who see( an abso ute measure o! "a ue are there!ore #ursuin' a wi -o;-thewis#, and, not on % that, somethin' entire % use ess. B% uni"ersa #ractice 'o d and si "er ha"e been ado#ted as this measure, e"en thou'h their "ariabi it% has not 'one unreco'ni1ed. But o! what im#ortance is the "ariabi it% o! the measure, i!, since it a!!ects in i(e manner the two ob.ects that are e?chan'ed, it does not a ter the !airness o! the e?chan'eK 7t is a mean #ro#ortiona , which can rise or !a , without on that account !ai in' in its #ur#ose, which is to re'ister e?act % the re ation that e?ists between the two e?tremes. 5.888 &he science o! #o itica econom% does not, i(e e?chan'e, ha"e as its 'oa the estab ishment o! the current ratio between two ser"ices, !or in that case mone% wou d su!!ice. >hat it does see( to estab ish is the ratio o! e!!ort to satis!action< and, in this res#ect, a measure o! "a ue, e"en i! it e?isted, wou d te us nothin'< !or e!!ort, in attainin' its satis!action, a wa%s em# o%s a "ariab e amount o! 'ratuitous uti it% that has no "a ue. 7t is because this e ement o! socia we -bein' has been ost si'ht o! that writers ha"e de# ored the absence o! a measure o! "a ue. &he% ha"e !ai ed to rea i1e that the measure wou d in no wise answer the Cuestion #ro#ounded: >hat is the re ati"e wea th, or #ros#erit%, o! two c asses, two nations, two 'enerationsK 5.889 &o so "e this Cuestion, #o itica econom% needs a measure ca#ab e o! showin', not the re ation between two ser"ices, which can ser"e as the "ehic e !or transmittin' 'reat % "ar%in' amounts o! 'ratuitous uti it%, but the re ation between e!!ort and satis!action< and this measure cou d on % be e!!ort, or abor, itse !. 5.88$ But how can abor ser"e as a measureK 7s it not itse ! one o! the most "ariab e o! e ementsK 7s it not characteri1ed b% "ar%in' de'rees o! s(i , #h%sica e?ertion, uncertaint%, dan'er, distaste!u nessK 4oes it not ha"e to be com# emented b% certain inte ectua !acu ties and mora "irtuesK 4oes it not, b% reason o! a these circumstances, ead to in!inite % "aried amounts o! remunerationK 5.885 &here is one (ind o! abor that in a times, in a # aces, is identica with itse !, and this is the one that must ser"e as the norm. 7t is the sim# est, the crudest, the most #rimiti"e, the most muscu ar, the one most ac(in' in he # !rom Bature;s resources, the one e"er% man can #er!orm, which renders those ser"ices that each can render to himse !, which reCuires neither e?ce#tiona stren'th nor s(i nor a##renticeshi#-wor( o! the (ind #er!ormed b% the !irst members o! the human race, that, in a word, o! the sim# e da% aborer. &his (ind o! wor( is a wa%s the most # enti!u , the east s#ecia i1ed, the most uni!orm, and the east we #aid. A wa'es are sca ed and 'raded with this as a base< when circumstances are !a"orab e to da% abor, the rate o! other wa'es increases a so.

1$0 5.88A 7!, then, we wish to com#are two societies, we must not turn to a measure o! "a ue, !or two most o'ica reasons: !irst, because none e?ists< second, because i! one did e?ist, it wou d 'i"e us on % a wron' answer to our Cuestion, an answer that wou d i'nore an im#ortant !actor contributin' to #ro'ress in human we -bein': 'ratuitous uti it%. 5.88E >hat we must do, on the contrar%, is to !or'et "a ue com# ete %, es#ecia % mone%, and as(: 7n a 'i"en countr%, at a 'i"en time, how much s#ecia uti it% o! e"er% cate'or% is there, and how does the sum tota o! a these uti ities re ate to a 'i"en amount o! uns(i ed aborK 7n other words: How much com!ort and we -bein' can the ordinar% da% aborer obtain in e?chan'e !or his ser"icesK 5.888 >e ma% sa% that the natura socia order is #er!ectib e and harmonious i!, on the one hand, the number o! men en'a'ed in uns(i ed abor and recei"in' the owest #ossib e wa'es is continua % decreasin', and i!, on the other, these wa'es, measured, not in "a ue or in mone%, but in materia satis!actions, are continua % increasin'.GG15 5.88F &he ancients we described a the #ossib e combinations o! e?chan'e: 4o ut des (#roduct e?chan'ed !or #roduct), do ut !acias (#roduct !or ser"ice), !acio ut des (ser"ice !or #roduct), !acio ut !acias (ser"ice !or ser"ice).GA0 5.890 2ince #roducts and ser"ices are interchan'ed, the% must necessari % ha"e somethin' in common, somethin' a'ainst which the% can be com#ared and a##raised, name %, "a ue. 5.891 But "a ue is a wa%s identica with itse !. >hether in a #roduct or in a ser"ice, it has the same ori'in, the same cause. 5.898 &his bein' the case, does "a ue e?ist ori'ina %, essentia %, in the #roduct, and is the notion that it e?ists a so in the ser"ice an e?tension, b% ana o'%, o! its meanin'K 5.899 =r rather, on the contrar%, does "a ue reside in the ser"ice, and is it incor#orated in the #roduct so e % and #recise % because the ser"ice itse ! is incor#orated in the #roductK 5.89$ 2ome #ersons seem to thin( that this Cuestion is mere % a Cuibb e. >e sha see about that #resent %. For the time bein' 7 sha sa% on % that it wou d be stran'e i! in #o itica econom% a 'ood or a bad de!inition o! "a ue were a matter o! indi!!erence. 5.895

1$1 7t a##ears indubitab e that ori'ina % #o itica economists be ie"ed that "a ue resided in the #roduct, and, more than that, in the materia o! the #roduct. &he #h%siocrats attributed "a ue e?c usi"e % to the and and ca ed a c asses steri e that added nothin' to matter< so c ose % in their e%es were matter and "a ue in(ed to'ether. 5.89A 7t wou d seem that Adam 2mith shou d ha"e re!uted this notion, since he deri"ed "a ue !rom abor. 4o not nonmateria ser"ices reCuire abor, and there!ore do the% not im# % "a ueK &hou'h so near the truth, 2mith did not 'ras# it< !or, in addition to sa%in' em#hatica % that, !or abor to ha"e "a ue, it must be a## ied to matter, somethin' #h%sica % tan'ib e and ca#ab e o! accumu ation, we a (now that, i(e the #h%siocrats, he #uts on the un#roducti"e ist a those c asses o! societ% whose acti"it% is imited to ser"ices. 5.89E 2mith does, in !act, de"ote a 'reat dea o! attention to these c asses in his treatise on wea th (&he >ea th o! Bations). But does this not mere % #ro"e that, a!ter !ormu atin' his de!inition, he !ound it cram#in', and, that conseCuent %, his de!inition was wron'K 2mith wou d not ha"e won his 'reat and .ust renown i! he had not written his ma'ni!icent cha#ters on education, the c er'%, #ub ic ser"ices, and i!, in writin' on wea th, he had con!ined himse ! within the imits o! his de!inition. Ha##i % he esca#ed, b% bein' inconsistent, !rom the %o(e o! his own #remises. &his is the wa% it a wa%s ha##ens. A man o! 'enius, when he starts !rom a !a se #remise, ne"er esca#es the char'e o! inconsistenc%< without it, his "iews wou d become increasin' % absurd, and, !ar !rom bein' a man o! 'enius, he wou d not e"en be a man o! ordinar% inte i'ence. 5.898 Must as 2mith went a ste# be%ond the #h%siocrats, so 2a% went a ste# !arther than 2mith. )itt e b% itt e, 2a% came to reco'ni1e that "a ue resides in ser"ices, but on % b% ana o'%, b% e?tension. He attributed "a ue in its true essence to #roducts, and nothin' #ro"es this better than the bi1arre headin' under which he isted ser"ices: 5nonmateria #roducts,5 two words that c ash strident % when #ut to'ether. 2a% started !rom 2mith;s #remises, as is #ro"ed b% the !act that the !u theor% o! the master is !ound re ated in the !irst ten ines o! the wor(s o! the disci# e.GG1A But he thou'ht dee# %, and his thin(in' #ro'ressed durin' the ne?t thirt% %ears. &hus, he came nearer the truth, but he ne"er reached it. 5.89F +oreo"er, we cou d we be ie"e that he !u !i ed his mission as an economist, en ar'in', as he did, the notion o! "a ue so as to inc ude ser"ices as we as #roducts, and tracin' its transmission throu'h ser"ices to #roducts, i! the socia ists; #ro#a'anda, which was !ounded on his own deductions, had not come to re"ea the shortcomin's and dan'ers o! his !undamenta h%#othesis. 5.8$0 2u##ose, then, that 7 were as(ed this Cuestion: 2ince certain #roducts ha"e "a ue, since certain ser"ices a so ha"e "a ue, and since "a ue, bein' a wa%s identica where"er !ound,

1$8 can ha"e on % one ori'in, one cause, one identica e?# anation< is this ori'in, this e?# anation, to be !ound in #roducts or in ser"icesK 5.8$1 7 dec are con!ident %, the answer is not !or an instant doubt!u , and !or this irre!utab e reason: !or a #roduct to ha"e "a ue, a ser"ice is im# ied< whereas a ser"ice does not necessari % im# % a #roduct. 5.8$8 &his answer seems to me conc usi"e, as certain as a demonstration in mathematics. 5.8$9 >hether or not a ser"ice has materia !orm, it has "a ue, since it is a ser"ice. 5.8$$ 7! a materia ob.ect renders a ser"ice !or someone, it has "a ue< i! it renders no ser"ice, it has no "a ue. 5.8$5 Hence, "a ue is not transmitted !rom the materia ob.ect to the ser"ice, but !rom the ser"ice to the materia ob.ect. 5.8$A Bor is this a . Bothin' is more easi % e?# ained than this #reeminence, this #riorit%, where "a ue is concerned, o! ser"ices o"er #roducts. >e sha see that it is due to a circumstance which it was eas% to obser"e, but which was not obser"ed, !or the "er% reason that it was so ob"ious. &he circumstance is none other than man;s natura !oresi'ht, which dis#oses him not to sto# at #er!ormin' the ser"ices that are as(ed o! him, but to read% himse ! in ad"ance to #er!orm the ser"ices that he antici#ates wi be as(ed o! him. &hus, whi e the !acio ut !acias t%#e o! e?chan'e remains the (e% !actor, the dominant !actor, in an% transaction, it tends to be trans!ormed into the do ut des t%#e. 5.8$E Mohn sa%s to /eter, 57 want a mu'. 7 shou d ma(e it< but i! %ou are wi in' to ma(e it !or me, %ou wi be doin' me a ser"ice, and 7 wi do %ou an eCui"a ent ser"ice in return.5 5.8$8 /eter acce#ts. He 'oes in search o! the #ro#er (inds o! c a%, he mi?es them, he (neads them< in a word, he does what Mohn wou d ha"e had to do. 5.8$F 7t is Cuite e"ident here that it is the ser"ice that determines the "a ue. &he (e% word in the transaction is !acio. And i! ater "a ue is incor#orated in the #roduct, it is on % because it is the outcome o! the ser"ice, which is the combination o! the abor #er!ormed b% /eter and o! the abor that Mohn has been s#ared.

1$9 5.850 Bow, it can ha##en that Mohn o!ten ma(es the same #ro#osa to /eter, and other #ersons ma% ma(e it a so, so that /eter ma% !oresee that he is certain to be as(ed to #er!orm ser"ices o! this (ind and ma% 'et read% to #er!orm them. He can sa% to himse !: 7 ha"e acCuired a certain s(i in ma(in' mu's. E?#erience te s me that the mu's corres#ond to a want that cra"es satis!action. 7 can there!ore manu!acture them in ad"ance. 5.851 Hence!orth Mohn wi ha"e to sa% to /eter, not !acio ut !acias, but !acio ut des. 7! he, i(ewise, has !oreseen /eter;s wants and has wor(ed at #ro"idin' them in ad"ance, he wi sa%, do ut des. 5.858 But, 7 as(, in what res#ect does this #ro'ress, which stems !rom man;s !oresi'ht, chan'e the ori'in and nature o! "a ueK 4oes not ser"ice sti remain its cause and its measureK >hat di!!erence does it ma(e, as !ar as the true idea o! "a ue is concerned, whether /eter waits to be as(ed be!ore he ma(es a mu', or whether he ma(es it ahead o! time, antici#atin' that he wi be as(edK 5.859 / ease bear this in mind: 7n the histor% o! man(ind, ine?#erience and im#ro"idence #recede e?#erience and !oresi'ht. =n % in the course o! time ha"e men come to antici#ate their mutua wants !u % enou'h to #re#are !or them. )o'ica %, the !acio ut !acias #attern had to #recede the do ut des. &he atter is both the resu t and the outward si'n o! some 'rowth o! (now ed'e, o! a certain amount o! e?#erience, o! #o itica securit%, o! !aith in the !uture-in a word, o! some de'ree o! ci"i i1ation. &his !oresi'ht on the #art o! societ%, this !aith in the demand that induces men to #re#are the su## %, this (ind o! intuiti"e statistica sense, to be !ound in a men, which estab ishes such a sur#risin' ba ance between wants and the means o! satis!%in' them, is one o! the most #ower!u stimu ants to human #ro'ress. &han(s to it, we ha"e the di"ision o! abor, or at east as !ar as trades and #ro!essions are concerned. &han(s to it, we ha"e one o! the b essin's men most ardent % desire: !i?ed rewards !or ser"ices, in the !orm o! wa'es !or abor and interest on ca#ita . &han(s to it, we ha"e credit, on'-ran'e !inancin', #ro.ects in"o "in' shared ris(s, etc. 7t is sur#risin' that !oresi'ht, that nob e attribute o! man, has been so much ne' ected b% the economists. 7t is due, as ,ousseau said, to the di!!icu t% we ha"e in obser"in' the en"ironment in which we are immersed and which !orms our natura habitat. =n % unusua #henomena stri(e us, and we a ow to #ass unnoticed those that, constant % at wor( around us, u#on us, and within us, modi!% us and our societ% so #ro!ound %. 5.85$ &o return to our sub.ect: 7t ma% be that man;s !oresi'ht, in its in!inite rami!ications, tends more and more to substitute the do ut des !or the !acio ut !acias< but et us, ne"erthe ess, remember that it is in the #rimiti"e and necessar% !orm o! e?chan'e that the notion o! "a ue is !irst !ound, that this !orm is that o! reci#roca ser"ice, and that, a!ter a , !rom the #oint o! "iew o! e?chan'e, a #roduct is on % a ser"ice that has been antici#ated.


5.855 Ha"in' once estab ished that "a ue is not inherent in matter and cannot be c assi!ied amon' its attributes, 7 am !ar !rom den%in' that "a ue #asses !rom the ser"ice into the #roduct, or commodit%, in such a wa% as to become incor#orated, so to s#ea(, in it. 7 be' those who disa'ree with me to rea i1e that 7 am not such a #edant that 7 wou d e?c ude !rom our an'ua'e such !ami iar e?#ressions as: 50o d has "a ue,5 5>heat has "a ue,5 and 5)and has "a ue.5 7 be ie"e on % that 7 am within m% ri'hts in as(in' !or a scienti!ic e?# anation< and i! the answer is 5Because 'o d, wheat, and, ha"e an intrinsic "a ue,5 then 7 be ie"e 7 ha"e the ri'ht to sa%: 5Lou are wron', and %our error is dan'erous. Lou are wron', because there is 'o d, and there is and, that is "a ue ess-the 'o d and the and that has not %et been the occasion o! an% human ser"ice. Lour error is dan'erous because it eads to c assi!%in' as a usur#ation o! 0od;s 'ratuitous 'i!ts to men what is actua % man;s sim# e ri'ht to e?chan'e his ser"ices with other men.5 5.85A 7 am there!ore read% to admit that #roducts ha"e "a ue, #ro"ided others wi admit with me that "a ue has no necessar% connection with #roducts, that, on the contrar%, it is re ated to and deri"ed !rom ser"ices. 5.85E From this truth there !o ows a "er% im#ortant (in #o itica econom% a !undamenta % im#ortant) conc usion, which hereto!ore has not been and cou d not be drawn, name %: >hen "a ue has #assed !rom the ser"ice to the #roduct, it sti remains sub.ect to a the "icissitudes that can a!!ect the "a ue o! an% ser"ice. 7t is not !i?ed in the #roduct, as wou d be the case i! it were one o! the #roduct;s intrinsic e ements< no, it is essentia % "ariab e. 7t can (ee# risin' inde!inite %, or it can !a to 1ero, accordin' to the t%#e o! ser"ice !rom which it ori'inated. 5.858 &he man who ma(es a mu' now to be so d a %ear !rom now im#arts "a ue to it undoubted %< and this "a ue is determined b% the "a ue o! the ser"ice-not b% the #resent "a ue o! the ser"ice, but b% the "a ue it wi ha"e in a %ear. 7!, at the moment o! sa e, this (ind o! ser"ice is more in demand, the mu' wi be worth more< it wi de#reciate i! the contrar% is true. 5.85F &hat is wh% man is constant % stimu ated to e?ercise !oresi'ht, to #ut it to 'ood ad"anta'e. He a wa%s e?#ects, throu'h the a##reciation or de#reciation o! his ser"ice, to be rewarded !or what he has correct % antici#ated and to be #unished !or his misca cu ations. And note that his successes or his !ai ures wi coincide with the 'enera #ros#erit%. 7! he has ca cu ated #ro#er %, he is #re#ared in ad"ance to o!!er societ% ser"ices more sou'ht a!ter, more hi'h % thou'ht o!, more e!!icient, which satis!% more (een % !e t wants< he has contributed to reducin' scarcit%, to increasin' the su## % o! ser"ices o! this t%#e, to # acin' them within the reach o! a ar'er number o! #ersons with ess economic hardshi#. 7!, on the contrar%, he is mista(en in his estimate o! the !uture, he

1$5 de#resses sti !urther the "a ue o! ser"ices !or which the demand is a read% wea(< he ma(es, at some cost to himse !, a mere % ne'ati"e contribution, that o! warnin' the #ub ic that ser"ices o! a certain t%#e do not at the #resent time reCuire a 'reat amount o! its acti"it%, that e!!ort directed into this channe wi %ie d #oor returns. 5.8A0 &his si'ni!icant !act-that "a ue incor#orated in a #roduct, i! 7 ma% so describe it, continues to be identica with the "a ue o! the ser"ice to which it 'i"es rise-is o! the 'reatest im#ortance, not on % because it con!irms the theor% that the #rinci# e o! "a ue resides in the ser"ice, but a so because it readi % e?# ains #henomena that other s%stems c assi!% as abnorma . 5.8A1 7s there a 'enera human tendenc% to ower rather than to raise the "a ue o! a #roduct once it is # aced on the wor d mar(etK &his is another wa% o! as(in' whether the t%#e o! ser"ices that has created the #articu ar "a ue tends to recei"e better or #oorer remuneration. Both are eCua % #ossib e, and the !act that this is so o!!ers imit ess o##ortunities to men;s !oresi'ht. 5.8A8 >e ma% note, howe"er, that !or bein's endowed with a ca#acit% !or e?#erimentin', earnin', and im#ro"in', #ro'ress is the 'enera aw. &he #robabi it% is, there!ore, that at a 'i"en moment in histor% a 'i"en e?#enditure o! time and e!!ort wi obtain better resu ts than at a #re"ious moment in histor%< hence, we ma% conc ude that the #re"ai in' trend is toward a decrease in the "a ue incor#orated in a #roduct. For e?am# e, i! the mu' that 7 .ust used as a s%mbo !or #roducts was made se"era %ears a'o, it most #robab % has under'one de#reciation. &he !act is that toda%, !or the #roduction o! an identica mu', we ha"e more s(i , more resources, better too s, more readi % a"ai ab e ca#ita , and more hi'h % s#ecia i1ed abor. &here!ore, the #ros#ecti"e #urchaser o! the mu' does not sa% to the se er, 5&e me what the abor on this mu' cost %ou in Cuantit% and Cua it%, and 7 wi #a% accordin' %.5 Bo. He sa%s, 5&oda%, than(s to the #ro'ress o! this art, 7 can ma(e !or m%se ! or #rocure throu'h e?chan'e a simi ar mu' !or a certain amount o! abor o! a certain Cua it%, and that is the imit that 7 wi a'ree to #a% %ou.5 5.8A9 &he end resu t o! this is that a "a ue attached to a commodit%, that is to sa%, a accumu ated abor, a ca#ita , tends to de#reciate as it encounters ser"ices that are natura % #er!ectib e and increasin' % #roducti"e< and that, in an e?chan'e between current abor and #re"ious abor, the ad"anta'e is 'enera % on the side o! current abor, as it shou d be, since it renders the 'reater ser"ices. 5.8A$ And this shows how em#t% are the tirades we constant % hear a'ainst the "a ue o! rea #ro#ert%. &his "a ue is no di!!erent !rom an% other in its ori'in or in its nature or in its obedience to the 'enera aw o! s ow de#reciation. 7t re#resents ser"ices #er!ormed a on' time a'o: draina'e, c earin', stonewor(, 'radin', !encin', additions to "e'etab e 'ardens,

1$A bui din', etc.< and its !unction is to co ect #a%ment !or them. But the amount to be co ected is not determined out o! consideration !or the wor( that went into them. &he rea -estate owner does not sa%, 50i"e me in e?chan'e !or this and as much abor as went into its de"e o#ment.5 (&his is how he wou d ha"e e?#ressed himse ! i! "a ue came !rom abor, as Adam 2mith theori1ed, and were #ro#ortiona to it.) E"en ess does he sa%, as ,icardo and a number o! other economists su##ose, 50i"e me !irst as much abor as went into this 'round, then a certain additiona amount as the eCui"a ent o! a its natura resources.5 Bo, the owner o! the #ro#ert%, s#ea(in' !or a the #re"ious owners, as !ar bac( as the one who ori'ina % c eared it, is reduced to this humb e statement: 5.8A5 5>e ha"e #re#ared ser"ices, and we as( to e?chan'e them !or eCui"a ent ser"ices. 7n times #ast we wor(ed hard< !or in our da% %our #ower!u modern de"ices were un(nown: there were no hi'hwa%s< we were com#e ed to do e"er%thin' with the stren'th o! our own arms. Beneath these !urrows ie buried the toi #er!ormed b% the sweat o! man% brows, the e!!ort o! man% human i"es. But we do not demand toi !or toi < we shou d ha"e no means o! obtainin' such terms. >e (now that abor on the and as it is #er!ormed toda%, whether in France or e sewhere, is much more e!!icient and more #roducti"e. >hat we as( and what ob"ious % cannot be denied us, is !or our #ast abor to be e?chan'ed !or #resent abor on a basis #ro#ortiona , not to their duration or their intensit%, but to their resu ts, so that we ma% recei"e the same remuneration !or the same ser"ice. B% this arran'ement we are the osers !rom the #oint o! "iew o! our abor, since, to #er!orm the same ser"ice, it ta(es two or #erha#s three times as much o! our abor as o! %ours. But it is an arran'ement that #er!orce we must acce#t< !or we no more ha"e the means o! im#osin' other terms than %ou do o! re!usin' these.5 5.8AA And, in #oint o! !act, this is the wa% thin's are done. 7! we cou d ma(e an e?act accountin' o! the amount o! incessant e!!ort, drud'er%, toi , and sweat that were reCuired to brin' e"er% acre o! the soi o! France to its #resent e"e o! #roducti"it%, we shou d be thorou'h % con"inced that the #urchaser does not #a% at the rate o! eCui"a ent amounts o! abor-at east in ninet%-nine cases out o! a hundred. 5.8AE 7 add this reser"ation, !or we must not ose si'ht o! the !act that a ser"ice incor#orated in a commodit% can acCuire "a ue as we as ose it. And a thou'h the 'enera trend is toward de#reciation, %et the contrar% #henomenon does occur occasiona %, in e?ce#tiona circumstances, in"o "in' and as we as other thin's, without, howe"er, doin' "io ence to the aws o! .ustice or warrantin' an% hue and cr% a'ainst mono#o %. 5.8A8 7n !act, ser"ices are a wa%s at hand to re"ea the #resence o! "a ue. 7t can 'enera % be assumed that #ast abor renders ess ser"ice than #resent abor< but this is not an abso ute aw. 7! #ast abor renders ess ser"ice, which is a most a wa%s the case, than #resent abor, it ta(es more o! the !ormer than o! the atter to estab ish a ba ance, since, 7 re#eat, eCui"a ence is determined b% ser"ices. But, on the other hand, when it ha##ens that it is

1$E the #ast abor that renders the 'reater ser"ice, then a 'reater amount o! the #resent ser"ice wi be reCuired in #a%ment. 5.8AF 3ha#ter A >ea th &hus, in e"er%thin' that is ca cu ated to satis!% our wants and desires, two thin's must be considered and di!!erentiated: what Bature has done and what man has done, what is !ree o! char'e and what is acCuired throu'h e!!ort, the 'i!t o! 0od and man;s ser"ice, uti it% and "a ue. 7n the same ob.ect one o! them can be immense, and the other im#erce#tib e. >hi e uti it% ma% remain constant, "a ue can and does decrease steadi % as in'enious new de"ices enab e us to achie"e an identica resu t with ess e!!ort. A.1 At this #oint, e"en as we be'in the stud% o! #o itica econom%, we can !oresee one o! the 'reatest di!!icu ties, one o! the most !erti e sources o! misunderstandin', contro"ers%, and error. A.8 >hat is wea thK A.9 Are we rich in #ro#ortion to the uti ities we ha"e at our dis#osa , that is, accordin' to the wants and desires that we can satis!%K 5A man is rich or #oor,5 wrote Adam 2mith, 5accordin' to the number o! use!u thin's he is ab e to en.o%.5 A.$ Are we rich in #ro#ortion to the "a ues we #ossess, that is, the ser"ices we ha"e at our dis#osa K 5>ea th,5 said Mean-Ba#tiste 2a%, 5e?ists in direct #ro#ortion to "a ue. >ea th is 'reat i! the tota "a ue that it contains is considerab e< it is sma i! the tota "a ue is sma .5 A.5 6nin!ormed #eo# e 'i"e two meanin's to the word 5wea th.5 2ometimes we hear them sa%: 5&he abundance o! water in such and such a countr% is a source o! wea th to it,5 when the% are thin(in' on % in terms o! uti it%. But when someone o! them tries to ascertain his own wea th, he #re#ares what is ca ed an in"entor%, in which he rec(ons "a ue on %. A.A >ith a due res#ect !or the e?#erts, 7 be ie"e that, in this instance, the unin!ormed are ri'ht. >ea th, in !act, can be either rea or re ati"e. From the !ormer #oint o! "iew, it is

1$8 rec(oned accordin' to our satis!actions. +an(ind;s wea th is 'reater or ess accordin' to its e"e o! #ros#erit%, whate"er ma% be the "a ue o! the ob.ects that maintain it. But su##ose we want to (now each man;s indi"idua share in the 'enera #ros#erit%, in other words, his re ati"e wea thK &his is a sim# e ratio, which "a ue a one re"ea s, because "a ue is itse ! a re ati"e term. A.E /o itica econom% is a science that concerns itse ! with men;s 'enera #ros#erit% and materia com!ort, with the ratio o! their e!!orts to their satis!actions, a ratio that is im#ro"ed b% the increase in the amount o! 'ratuitous uti it% a"ai ab e !or the wor( o! #roduction. 7n #o itica econom%, there!ore, we cannot e?c ude this !actor !rom our idea o! wea th. 2cienti!ica % s#ea(in', rea wea th is not to be !ound in the sum tota o! "a ues, but in the sum o! 'ratuitous uti it% or onerous uti it% contained in these "a ues. From the #oint o! "iew o! our satis!actions, that is, as !ar as our rea wea th is concerned, we are as much enriched b% the "a ue that we ha"e ost throu'h #ro'ress in the means o! #roduction as b% the "a ue that we sti #ossess. A.8 7n the transactions o! e"er%da% i!e we no on'er ta(e uti it% into account, in so !ar as, throu'h the decrease in "a ue, it becomes !ree o! char'e. >h%K Because what is !ree o! char'e is common to a , and what is a common #ossession has no e!!ect on each #erson;s indi"idua share o! the tota rea wea th. Bo e?chan'e is made o! what is he d b% a in common< and since, in business transactions, we need to (now on % that #ro#ortion which is constituted b% "a ue, that is a we concern ourse "es with. A.F A debate arose between ,icardo and Mean-Ba#tiste 2a% on this Cuestion. ,icardo used 5wea th5 in the sense o! uti it%< 2a%, in the sense o! 5"a ue.5 Beither o! them cou d #ossib % win a com# ete "ictor%, because the word has both meanin's, de#endin' on whether one "iews wea th as rea or re ati"e. A.10 But we must add a word o! caution, a the more im#ortant because 2a%;s authorit% is so 'reat in such matters< !or i! we identi!% wea th (meanin' the rea , e!!ecti"e e"e o! our materia com!orts) with "a ue, i!, in #articu ar, we a!!irm that wea th and "a ue are in direct #ro#ortion to each other, we run the ris( o! #uttin' our economic thin(in' on the wron' trac(. &he wor(s o! second-rate economists and o! the socia ists #ro"e this on % too we . &his is an un!ortunate startin' #oint, since it oses si'ht o! what is, in !act, humanit%;s nob est herita'e< !or we must consider as none?istent that #art o! our materia we -bein' which, throu'h #ro'ress, has been rendered common to a , and we e?#ose our minds to the 'reatest o! a dan'ers-that o! becomin' in"o "ed in a #etitio #rinci#ii, in which we assume as true what we are tr%in' to #ro"e, o! oo(in' at #o itica econom% bac(wards and constant % con!usin' the 'oa that we wish to reach with the obstac e that b oc(s our wa%. A.11

1$F 7n !act, without these obstac es there wou d be no "a ue. @a ue is the si'n, the s%m#tom, the testimon%, the #roo! o! our natura in!irmit%. 7t constant % reminds us o! the sentence ori'ina % #ronounced u#on us: 57n the sweat o! th% !ace sha t thou eat bread.5 For the =mni#otent the words e!!ort, ser"ice, and, conseCuent %, "a ue, do not e?ist. As !or us, howe"er, we are # aced in a wor d o! uti ities, o! which man% are !ree o! char'e, but others are to be had on % at the #rice o! our toi . =bstac es stand between these uti ities and the wants that the% can satis!%. >e are condemned to doin' without the uti it% or o"ercomin' the obstac e b% our e!!orts. 2weat must indeed !a !rom our brows, or !rom the brows o! those who toi !or our #ro!it. A.18 &he more "a ues a societ% #ossesses, there!ore, the c earer the e"idence that it has surmounted obstac es, but the c earer the e"idence, a so, that it had obstac es to surmount. 2ha we 'o so !ar as to sa% that these obstac es create wea th, since without them the "a ues wou d not e?istK A.19 >e can ima'ine the case o! two nations. =ne has more satis!actions than the other, but it has !ewer "a ues, because Bature has !a"ored it and # aced !ewer obstac es in its wa%. >hich nation is the richerK A.1$ >e can carr% this !urther: )et us ta(e the same nation at two sta'es in its histor%. &he obstac es to be o"ercome are the same. But toda% it o"ercomes them with such ease, it has become so e!!icient in its trans#ortation, a'ricu ture, te?ti e #roduction, !or e?am# e, that the "a ues o! these thin's ha"e been considerab % reduced. 7t has, there!ore, been ab e to choose one o! these two courses: either to be content with the same satis!actions as be!ore, trans atin' its im#ro"ed methods into increased eisure (and in that case sha we sa% that its wea th has dec ined because it has !ewer "a uesK)< or e se it can choose to a## % the sur# us e!!orts new % made a"ai ab e to it to the tas( o! increasin' its satis!actions, and shou d we be .usti!ied in conc udin' that because its tota "a ues remain stationar%, its wea th has a so remained stationar%K &his is what comes o! identi!%in' "a ue with wea th. A.15 &his is indeed a treacherous shoa !or the #o itica economist. 7s wea th to be measured b% the satis!actions achie"ed or b% the "a ues createdK A.1A 7! there were no obstac es between uti ities and wants, there wou d be no e!!orts, ser"ices, "a ues, an% more than there are !or 0od< and, whi e measurin' wea th in terms o! satis!actions, man(ind wou d be in #ossession o! in!inite wea th< %et in terms o! "a ue, it wou d ha"e no wea th at a . &hus, two economists, accordin' to the de!inition the% chose, mi'ht sa%: +an(ind is in!inite % rich, or +an(ind is in!inite % #oor. A.1E

150 &he in!inite, it is true, is in no res#ect an attribute o! humanit%. But man(ind is ne"er static< it a wa%s mo"es in some direction< it e?erts e!!orts< it e?hibits tendencies< it 'ra"itates toward steadi % increasin' wea th or steadi % increasin' #o"ert%. Bow, how can #o itica economists come to a common understandin', i! this successi"e reduction o! e!!ort in re ation to satis!action, o! #ains to be ta(en or rewarded, that is, "a ue, is considered b% some an ad"ance toward wea th and b% others a descent into #o"ert%K A.18 Let i! the di!!icu t% mere % concerned economists, we cou d sa%: )et them ha"e their ar'uments. But e'is ators and 'o"ernments are dai % reCuired to ta(e measures that e?ercise a "er% rea in! uence o"er human a!!airs. And what a # i'ht we are in i! these measures are ta(en in i'norance so com# ete that wea th cannot be distin'uished !rom #o"ert%J A.1F 2o, 7 ma(e this dec aration: &he theor% that de!ines wea th in terms o! "a ue is, in the ast ana %sis, a mere ' ori!ication o! the ro e o! obstac es. 7t rests on the !o owin' s% o'ism: >ea th is #ro#ortiona to "a ue, "a ue to e!!ort, e!!ort to obstac es< there!ore, wea th is #ro#ortiona to obstac es. A.80 7 ma(e this !urther dec aration: Because o! the di"ision o! abor, which assi'ns e"er% man to a trade or a #ro!ession, this i usion is "er% di!!icu t to destro%. >e a i"e b% the ser"ices that we render in o"ercomin' obstac es, satis!%in' wants, or remo"in' #ain: the doctor b% combattin' disease< the !armer, hun'er< the te?ti e manu!acturer, co d< the carria'e-ma(er, distance< the aw%er, in.ustice< the so dier, dan'er to the countr%< and so com# ete is the ist that there is not a sin' e obstac e whose e imination wou d not seem most ino##ortune and most incon"enient to someone, and e"en disastrous to societ% at ar'e, since it wou d a##ear that a source o! ser"ices, "a ue, and wea th was to be destro%ed. @er% !ew economists ha"e com# ete % resisted this !a se notion, and, i! #o itica econom% e"er succeeds in dis#e in' it, on that score a one its #ractica mission in the wor d wi ha"e been accom# ished< !or 7 now ma(e this third dec aration: =ur #ub ic #o ic% is stee#ed in this notion, and whene"er 'o"ernments !ee ob i'ed to ma(e s#ecia concessions to some c ass, #ro!ession, or industr%, the% !o ow no other #rocedure than to erect obstac es desi'ned to encoura'e the de"e o#ment o! a certain t%#e o! e!!orts, in order to increase arti!icia % the number o! ser"ices societ% wi be ob i'ed to ca !or, and thus to increase "a ue and, su##osed %, wea th. A.81 And, in !act, it is "er% true that this #rocedure is use!u !or the c ass recei"in' the s#ecia !a"or. >e see the ensuin' se !-con'ratu ation and a## ause, and what ha##ensK &he same s#ecia concessions are successi"e % 'ranted a other c asses. A.88 First identi!% uti it% with "a ue, then "a ue with wea th. >hat cou d be more natura K /o itica economists ha"e ne"er been ta(en more unawares. For what has ha##enedK At

151 e"er% ste# a on' the #ath o! #ro'ress, the% ha"e reasoned thus: 5&he obstac e is essened< there!ore, e!!ort is reduced< there!ore, "a ue is owered< there!ore, uti it% is decreased< there!ore, our wea th is diminished< there!ore, we are the most un!ortunate o! men !or e"er ha"in' bethou'ht ourse "es o! in"entin' and e?chan'in', !or ha"in' !i"e !in'ers instead o! three, and two arms instead o! one< hence, we must set the 'o"ernment, which has !orce at its dis#osa , at correctin' these abuses.5 A.89 &his t%#e o! #o itica econom% in re"erse su##orts a ar'e number o! news#a#ers and man% sessions o! our e'is ati"e assemb ies. 7t mis ed the honest and #hi anthro#ic 2ismondi<GA1 it is e?#ounded "er% o'ica % in +. de 2aint-3hamans; boo(.GA8 A.8$ 5A nation has two (inds o! wea th,5 he sa%s. 57! we consider on % use!u commodities !rom the #oint o! "iew o! their Cuantit%, their su## %, we dea with wea th that #rocures societ% thin's that it can consume, and this 7 sha there!ore term consumers; wea th. A.85 57! we consider commodities !rom the #oint o! "iew o! their e?chan'eab e "a ue, or sim# % their "a ue, we dea with wea th that brin's societ% "a ue, and this 7 there!ore term "a ue wea th. A.8A 5/o itica econom% dea s #rimari % with "a ue wea th< and it is with it #rimari % that 'o"ernment ma% #ro#er % dea .5 A.8E &his bein' 'ranted, what can #o itica econom% and 'o"ernment doK /o itica econom% can indicate the means o! increasin' "a ue wea th< and 'o"ernment can #ut these means into e!!ect. A.88 But "a ue wea th is in #ro#ortion to e!!orts, and e!!orts are in #ro#ortion to obstac es. /o itica econom% must there!ore show the wa%, and 'o"ernment must em# o% a its resources to mu ti# % the obstac es. &his is the o'ica conc usion, and +. de 2aint3hamans !aces it sCuare %. A.8F 4oes e?chan'e ma(e it easier !or men to acCuire more consumers; wea th !or ess "a ue wea thK &hen we must restrain e?chan'e.GG1E A.90 7s there an% amount o! 'ratuitous uti it% that we can re# ace with onerous uti it%-!or e?am# e, b% e iminatin' a too or a machineK >e must not ne' ect the o##ortunit%, !or it is ob"ious, he sa%s, that i! machines increase consumers; wea th, the% decrease "a ue

158 wea th. 5)et us b ess the obstac es that the hi'h cost o! !ue in our countr% #uts in the wa% o! the mu ti# ication o! steam en'ines.5GG18 A.91 Has Bature !a"ored us in an% wa%K 7t is our oss, !or, b% so doin', she has de#ri"ed us o! a chance to wor(. 57 admit that it is Cuite #ossib e !or me to desire to see done b% hand, sweat and toi , and !orced e!!ort, what can be #roduced s#ontaneous % and without #ains.5GG1F A.98 >hat a shame, there!ore, that Bature has not ob i'ed us to manu!acture drin(in' waterJ 7t wou d ha"e been a wonder!u o##ortunit% to #roduce "a ue wea th. +ost !ortunate %, we e"en the score with wine. 5Find the secret o! ma(in' wine ! ow as abundant % as water !rom s#rin's in the earth, and %ou wi disco"er that this !ine s%stem o! thin's wi ban(ru#t one Cuarter o! France.5GG80 A.99 >ithin the 'amut o! ideas that our economist so nai"e % runs, there are innumerab e means, a "er% sim# e, o! reducin' men to the e"e where the% ma% create "a ue wea th. A.9$ &he !irst is to ta(e it awa% !rom them as ra#id % as the% acCuire it: 57! ta?es con!iscate mone% !rom areas where it is # enti!u , in order to a ocate it to areas where it is scarce, the% ser"e a use!u #ur#ose, and this action, !ar !rom re#resentin' a oss to the state, re#resents a 'ain.5GG81 A.95 &he second is, a!ter ta(in' it, to throw it awa%. 5)u?ur% and e?tra"a'ance, so disastrous to the wea th o! #ri"ate indi"idua s, are ad"anta'eous to the wea th o! the nation. ;&hat;s a !ine mora doctrine %ou are #reachin',; #eo# e wi sa% to me. 7 ma(e no such c aims. >e are dea in' with #o itica econom%, not mora s. >e are see(in' means o! ma(in' nations richer, and 7 #reach the 'os#e o! u?ur%.5GG88 A.9A An e"en !aster means is to destro% it b% a !ew 'ood wars. 57! %ou wi admit with me that the e?tra"a'ances o! a s#endthri!t are as #roducti"e as an% other e?#enditures< that 'o"ernment s#endin' is eCua % #roducti"e, .... %ou wi not be sur#rised at En' and;s wea th, a!ter this "er% cost % war o! hers.5GG89 A.9E But a these means o! encoura'in' the creation o! "a ue wea th-ta?es, u?ur%, war, etc. -must %ie d the #a m to a much more e!!ecti"e de"ice: con! a'ration. A.98 53onstruction is a 'reat source o! wea th, because it brin's re"enue to the se ers o! bui ders; su## ies, to wor(men, and to "arious c asses o! artisans and artists. +e onGA9

159 Cuotes 2ir >i iam /ett%GA$ who c asses as nationa #ro!it the wor( done !or the rebui din' o! )ondon a!ter the !amous !ire that destro%ed two-thirds o! the cit%, and he estimates it Hthis #ro!itJI at a mi ion #ounds ster in' (18AA "a ue) #er %ear !or !our %ears without in.urin' other businesses in an% wa%. >ithout acce#tin' this e?act !i'ure as a com# ete % accurate estimate o! this #ro!it,5 adds +. de 2aint-3hamans, 5we ma% be certain at east, that this e"ent did not ha"e an ad"erse e!!ect on En' and;s wea th at this #eriod..... 2ir >i iam /ett%;s estimate is not im#ossib e, since the need to rebui d )ondon must ha"e created "ast sources o! new re"enue.5GG8$ A.9F Economists who start !rom the #remise that wea th is "a ue wou d ine"itab % arri"e at the same conc usions as +. de 2aint-3hamans, i! the% were o'ica < but the% are not o'ica , because on the road to absurdit% a o! us sto# short o! the !ina destination, some a itt e sooner, some a itt e ater, accordin' to the re ati"e reasonab eness o! our minds. +. de 2aint-3hamans himse ! seems to ha"e drawn bac( .ust a shade !rom the !u conseCuences o! his theor% when he !inds that the% ead to #raise o! con! a'ration as a road to wea th. >e see him hesitate and content himse ! with #er!unctor% a##ro"a . )o'ica % he shou d ha"e carried his reasonin' to its u timate conc usion and stated o#en % what he c ear % im# ies. A.$0 =! a economists, +. 2ismondi is certain % the one who most distressin' % !a s a!ou o! this di!!icu t%. )i(e +. de 2aint-3hamans, he started with the idea that "a ue is one o! the com#onent e ements o! wea th< i(e him he erected on this !oundation a #o itica econom% in re"erse, de# orin' e"er%thin' that reduces "a ue. He too #raises obstac es< bans machiner%< anathemati1es e?chan'e, com#etition, and !reedom< ' ori!ies u?ur% and ta?es< and !ina % reaches this conc usion, that the more abundant % men ha"e e"er%thin', the more com# ete % the% ha"e nothin'. A.$1 Let +. de 2ismondi seems, !rom be'innin' to end, to ha"e a subconscious !ee in' that he is mista(en, and that a "ei that he cannot i!t ma% ha"e inter#osed itse ! between his mind and the truth. He does not Cuite dare to draw e?# icit %, i(e +. de 2aint-3hamans, the u timate conc usions inherent in his theories< he is disturbed, he hesitates. He wonders sometimes i! it is #ossib e !or a men, since the be'innin' o! the wor d, to ha"e been in error and on the road to suicide, in see(in' to decrease the ratio o! e!!ort to satis!action, that is, in see(in' to decrease "a ue. A !riend and %et an enem% o! ibert%, he !ears it, since, b% creatin' the abundance that reduces "a ue, it eads to #o"ert%< and, at the same time, he does not (now how to 'o about destro%in' this !ata ibert%. &hus, he reaches the outer imits o! socia ism and arti!icia socia orders< he su''ests that 'o"ernment and the socia sciences must re'u ate and restrict e"er%thin'< then he rea i1es the dan'er o! his ad"ice, retracts, and !ina % 'i"es wa% to des#air, sa%in': 5)ibert% eads to a bottom ess #it< restraint is as im#ossib e as it is ine!!ecti"e< there is no wa% out.5 And there is none, indeed, i! "a ue constitutes wea th, that is, i! obstac es to our we -bein' constitute our we -bein', that is, i! ad"ersit% is #ros#erit%.

15$ A.$8 &he atest writer, to m% (now ed'e, to stir u# this Cuestion is +. /roudhon. 7t was a wind!a !or his boo(, Economic 3ontradictions. Be"er was there a !iner o##ortunit% to sei1e an antinom%, a contradiction, b% the hair and shout de!iance at the science o! #o itica econom%. Be"er was there a !iner o##ortunit% to as(, 54o %ou "iew increase in "a ue as a 'ood thin' or as an e"i K QuidCuid di?eris ar'umentabor.5GA5 7 ea"e it to the reader to ima'ine what a !ine time he must ha"e hadJGG85 A.$9 57 ca u#on e"er% res#onsib e economist,5 he said, 5to te me, other than b% rewordin' or re#eatin' m% Cuestion, !or what reason "a ue decreases as #roduction increases, and "ice "ersa..... 7n technica terms, "a ue in use and "a ue in e?chan'e, a thou'h necessar% to each other, e?ist in in"erse ratio to each other..... @a ue in use and "a ue in e?chan'e a wa%s remain, then, ine?tricab % in(ed to each other, a thou'h b% their nature the% a wa%s tend to be mutua % e?c usi"e. A.$$ 5&here is no assi'nab e cause or #ossib e e?# anation !or this contradiction inherent in the notion o! "a ue..... 7! we 'rant that man has need o! a 'reat "ariet% o! commodities that he must obtain throu'h abor, we are necessari % !aced with a con! ict between "a ue in use and "a ue in e?chan'e, and !rom this con! ict a contradiction arises at the "er% outset o! our stud% o! #o itica econom%. Bo inte i'ence, no wi , either di"ine or human, can #re"ent it. &hus, instead o! see(in' a use ess e?# anation, et us be content to note the !act that the contradiction is ine"itab e.5 A.$5 >e (now that the 'reat disco"er% with which we can credit +. /roudhon is that e"er%thin' is both true and !a se, 'ood and bad, e'a and i e'a < that there is no #rinci# e that is not se !-contradictor%< and that the contradiction is not in erroneous theories, but in the "er% essence o! thin's and #henomena: 57t is the e?#ression o! #ure necessit%, the inner aw o! bein', etc.5< conseCuent %, it is ine"itab e, and it wou d be theoretica % irremediab e, but !or the series o! contradictor% e ements, and #ractica % irremediab e but !or the banCue du #eu# e.GAA 0od, a contradiction< ibert%, a contradiction< #ro#ert%, a contradiction< "a ue, credit, mono#o %, common ownershi#, contradiction on contradictionJ >hen +. /roudhon made this tremendous disco"er%, his heart must sure % ha"e ea#ed !or .o%< !or since contradiction is in a thin's, there is a wa%s somethin' to contradict, which !or him is the su#reme ha##iness. He once said to me, 57;d be #er!ect % wi in' to 'o to hea"en, but 7;m a!raid that e"er%bod% a'rees u# there, and 7 cou dn;t !ind an%one to ar'ue with.5 A.$A 7t must be admitted that the sub.ect o! "a ue 'a"e him an e?ce ent o##ortunit% to indu 'e in contradiction to his heart;s content. But, be''in' his #ardon, the contradictions and the con! icts that this word 5"a ue5 su''ests stem !rom erroneous theories, and not at a , as he asserts, !rom the nature o! the #henomenon.

155 A.$E &heorists !irst be'an b% con!usin' "a ue with uti it%, that is, b% con!usin' the i s with the bene!its (!or uti it% is the means to the end sou'ht-the bene!it-and "a ue comes !rom the obstac e-the i -that stands between the end and the desire). &his was the initia error, and when the% saw its conseCuences, the% thou'ht that the% cou d sa"e the situation b% thin(in' u# a distinction between "a ue in use and "a ue in e?chan'e, a cumbersome tauto o'% that in"o "ed the !a ac% o! a## %in' the same word, 5"a ue,5 to two o##osite #henomena. A.$8 But i!, settin' aside these subt eties, we (ee# to the !acts, what do we seeK 3ertain %, on % somethin' "er% natura and !ar !rom contradictor%. A.$F 2u##ose that a man wor(s e?c usi"e % !or himse !. 7! he acCuires s(i , i! his ca#acities and his inte i'ence de"e o#, i! Bature becomes more 'enerous, or he earns to uti i1e it better !or his needs, he has more com!orts and we -bein' and 'oes to !ewer #ains. >here do %ou see an% contradiction, and where do %ou !ind an%thin' to ma(e such #rotests aboutK A.50 Bow, instead o! bein' a one, this man has contacts with other men. &he% e?chan'e, and 7 re#eat m% obser"ation: 7n #ro#ortion as the% acCuire s(i , e?#erience, ca#acit%, inte i'ence, in #ro#ortion as Bature, becomin' more 'enerous, or bein' made more amenab e, co-o#erates more e!!ecti"e %, the% ha"e more com!orts and we -bein' and 'o to !ewer #ains< there is a 'reater amount o! 'ratuitous uti it% at their dis#osa < in their transactions the% o!!er one another a ar'er #ro#ortion o! usab e resu ts !or a 'i"en amount o! abor. >here, then, is the contradictionK A.51 AhJ i! %ou ma(e the error, i(e Adam 2mith and a his successors, o! a## %in' the same term 5"a ue5 both to resu ts obtained and to troub e ta(en, then, the antinom%, or the contradiction, a##ears. But, %ou ma% be sure, it ies entire % in %our erroneous e?# anation, and not at a in the !acts. A.58 +. /roudhon wou d, there!ore, ha"e had to !ormu ate his #ro#osition in this wa%: 0ranted man;s need !or a 'reat "ariet% o! commodities and the necessit% o! #ro"idin' them throu'h his abor and his #recious 'i!t o! earnin' and im#ro"in', nothin' in the wor d is more natura than the stead% increase o! resu ts in re ation to e!!orts, and it is not at a contradictor% that a 'i"en "a ue transmits more in the wa% o! a"ai ab e uti ities. A.59 For, once a'ain, uti it% is, !or man, the 'ood side o! the coin< "a ue, the bad side. 6ti it% re ates on % to our satis!actions< "a ue, to the #ains we ta(e. 6ti it% ma(es #ossib e our

15A satis!actions and is in #ro#ortion to them< "a ue indicates our innate in!irmit%, is created b% obstac es, and is in #ro#ortion to them. A.5$ B% "irtue o! man;s #er!ectibi it%, 'ratuitous uti it% tends more and more to re# ace the onerous uti it% denoted b% the word 5"a ue.5 2uch is the #henomenon, and it most certain % #resents nothin' contradictor%. A.55 But there sti remains the Cuestion o! determinin' whether the word 5wea th5 is to inc ude both these uti ities ta(en to'ether or the second on %. A.5A 7! we cou d set u#, once and !or a , two c asses o! uti it%, #ut on one side a those that are 'ratuitous, and on the other a that are onerous, we shou d thus estab ish two c asses o! wea th that we shou d ca , with +. 2a%, natura wea th and socia wea th< or e se, with +. de 2aint-3hamans, consumers; wea th and "a ue wea th. &his done, we shou d, as these writers su''est, concern ourse "es no !urther with the !irst c ass. A.5E 5&he b essin's a"ai ab e to a ,5 sa%s +. 2a%, 5which a ma% en.o% as the% wi , without the necessit% o! #rocurin' them, without !ear o! e?haustin' them, such as air, water, sun i'ht, etc., ha"in' been 'i"en us 'ratis b% Bature, ma% be ca ed natura wea th. 2ince the% cannot be #roduced or distributed or consumed, the% do not !a within the sco#e o! #o itica econom%. A.58 5&hat t%#e o! wea th which it is the !unction o! #o itica econom% to stud% is com#osed o! those thin's that we #ossess ha"in' a reco'ni1ed "a ue. >e can ca it socia wea th, because it e?ists amon' men i"in' to'ether in societ%.5 A.5F 57t is with "a ue wea th,5 sa%s +. de 2aint-3hamans, 5that #o itica econom% is #rimari % concerned, and e"er% time 7 sha s#ea( in this boo( o! wea th without s#eci!%in' the t%#e, it wi be to this t%#e on % that 7 re!er.5 A.A0 A most a economists ha"e considered the matter in this i'ht. A.A1 5&he most stri(in' distinction that we encounter at the outset,5 sa%s 2torch, 5is that there are some "a ues that are ca#ab e o! a##ro#riation, and that there are others that are not.GG8A =n % "a ues o! the !irst t%#e be on' to the stud% o! #o itica econom%, !or ana %sis o! the others wou d !urnish no resu ts worth% o! the attention o! a statesman.5 A.A8

15E For m% own #art, 7 be ie"e that that #ortion o! uti it% which, as a resu t o! #ro'ress, ceases to be onerous, ceases to ha"e "a ue, but does not on that account cease to be uti it%, and !a s e"entua % within the domain ca ed common to a and !ree o! char'e, is the "er% one that must constant % attract the attention o! the statesman and the economist. =therwise, instead o! "iewin' with dee# and s%m#athetic understandin' the 'reat resu ts o! this #rocess that so in! uence and e e"ate humanit%, a that the #o itica economist wi see in it is a mere contin'ent #henomenon, unstab e, tendin' to decrease, i! not to disa##ear entire %, .ust a sim# e re ation, or, in a word, nothin' but another case o! "a ue. >ithout #ercei"in' what is ha##enin', he wi #ermit himse ! to be carried a on', content mere % to consider e!!ects, obstac es, the interests o! the #roducer, and worse %et, to con!use those interests with the #ub ic interest. &his, in !act, amounts to choosin' the i s instead o! the bene!its, and !ina %, under the eadershi# o! men i(e 2aint-3hamans and 2ismondi, endin' with a socia ist uto#ia or in /roudhon;s and o! contradiction. A.A9 Furthermore, is not the ine o! demarcation between these two uti ities entire % a !anci!u , arbitrar%, and im#ossib e oneK How do %ou #ro#ose to disso "e the union o! Bature and man, when the% are e"er%where min' ed, combined, !used, and, e"en more, when one o! them tends constant % to re# ace the other, and in so doin' becomes the source o! a #ro'ressK 7! the science o! economics, so dr% in some res#ects, can, in others, so ins#ire and enchant our minds, it is #recise % because it sets !orth the aws 'o"ernin' this association between man and Bature< because it shows how 'ratuitous uti it% re# aces onerous uti it% more and more, how man;s satis!actions increase as his toi and drud'er% decrease, how obstac es are constant % reduced, a on' with "a ue, how the #roducer;s osses are more than com#ensated b% the consumer;s increasin' #ros#erit%, how natura wea th, that is, wea th !ree o! char'e and common to a , ta(es the # ace o! wea th that is indi"idua and #ri"ate % owned. >ou d %ou, then, e?c ude !rom #o itica econom% the "er% e ement that constitutes its di"ine harmon%K A.A$ Air, water, sun i'ht are !ree o! char'e, %ou sa%. &hat is true, and i! we made use o! them on % in their natura !orms, i! we did not harness them to an% abor o! our own, we cou d e?c ude them !rom the domain o! #o itica econom%, .ust as we e?c ude the uti it% that ma%, Cuite #ossib %, e?ist in comets. But consider where man started and how !ar he has come. =ri'ina % he had a most im#er!ect notion o! how to ma(e air, water, sun i'ht, and other natura resources wor( !or him. His e"er% satis!action was bou'ht at the cost o! 'reat #ersona e!!ort, reCuired a 'reat amount o! abor !or the resu t obtained, cou d be surrendered to another on % as a 'reat ser"ice-re#resented, in a word, a 'reat amount o! "a ue. )itt e b% itt e these resources, water, air, i'ht, and others, i(e 'ra"itation, e asticit%, thermod%namics, e ectricit%, the ener'% o! # ant i!e, ha"e emer'ed !rom their re ati"e inertia. &he% ha"e become incor#orated more and more into our industr%. &he% ha"e been substituted more and more !or human abor. &he% ha"e accom# ished 'ratis what once cost much in terms o! human toi . >ithout im#airin' our satis!actions, the% ha"e annihi ated "a ue. &o e?#ress it in ordinar% terms, what used to cost ten da%s; wor( now reCuires one. A this annihi ated "a ue has #assed !rom the domain o! #ri"ate #ro#ert% to the domain o! what is !ree o! char'e and common to a . A considerab e

158 amount o! human e!!ort has been !reed and made a"ai ab e !or other enter#rises. &hus, !or eCua #ains, eCua ser"ices, eCua "a ue, man(ind has en ar'ed #rodi'ious % its circ e o! satis!actions, and %ou sa% that 7 shou d e iminate !rom #o itica econom% the stud% o! this 'ratuitous and common uti it%, which a one can e?# ain #ro'ress in a its hei'ht and breadth, i! 7 ma% so e?#ress m%se !, in a it brin's in #ros#erit% and eCua it%J

-------------------------------------------------------------------------------A.A5 )et us state as a conc usion, then, that we ma% 'i"e, and 'i"e e'itimate %, two meanin's to the word 5wea th5: A.AA E!!ecti"e >ea th, rea wea th, which #roduces satis!actions, that is, the sum o! the uti ities that human abor, with Bature;s he #, #uts at societ%;s dis#osa . A.AE ,e ati"e >ea th, that is, each indi"idua ;s share in the 'enera wea th, which share is determined b% "a ue. A.A8 Here, then, is the harmonious aw that can be e?#ressed thus: A.AF &hrou'h abor the action o! man is combined with the action o! Bature. A.E0 From this co-o#eration uti it% resu ts. A.E1 Each indi"idua ta(es !rom the 'enera store o! uti it% in #ro#ortion to the ser"ices that he renders-in the ast ana %sis, then, in #ro#ortion to the uti it% he himse ! re#resents.GG8E A.E8 &he +ora it% o! >ea th >e ha"e .ust studied wea th !rom the economic #oint o! "iew. 7t ma% be use!u a so to sa% somethin' about its mora e!!ects. A.E9

15F 7n a a'es wea th, !rom the mora stand#oint, has been a sub.ect o! contro"ers%. 3ertain #hi oso#hers, certain re i'ions ha"e decreed that it is to be des#ised< others ha"e auded moderation-aurea mediocritas (5the 'o den mean5). @er% !ew, i! an%, ha"e admitted that a burnin' ambition !or the en.o%ment o! a ar'e !ortune is a #ro#er mora attitude. A.E$ >ho is wron'K >ho is ri'htK 7t does not behoo"e #o itica econom% to treat this sub.ect o! indi"idua mora it%. 7 sa% on % this: 7 am a wa%s inc ined to be ie"e that in matters o! common, uni"ersa #ractice, the theorists, the scho ars, the #hi oso#hers are much more #rone to be mista(en than is common #ractice itse !, es#ecia % when in this word 5#ractice5 we inc ude not on % the actions o! the 'reat ma.orit% o! man(ind, but their sentiments and their ideas as we . A.E5 Bow, what does common #ractice show usK 7t shows us a men stru'' in' to emer'e !rom #o"ert%, which is their startin' #oint< a #re!errin' the e?#erience o! satis!action to that o! want, wea th to #ri"ation-a o! them, 7 sa%, inc udin', with !ew e?ce#tions, the "er% ones who dec aim so e oCuent % to the contrar%. A.EA &he desire !or wea th is tremendous, constant, uni"ersa , o"erwhe min'. 7n a most a #arts o! the wor d it has trium#hed o"er our instincti"e a"ersion to wor(. 7t ta(es the !orm, whate"er one ma% sa%, o! e"en baser 'reed amon' sa"a'es and barbarians than amon' ci"i i1ed #eo# es. A the "o%a'ers who e!t Euro#e imbued with the idea that ,ousseau had made #o#u ar in the ei'hteenth centur% that in the anti#odes the% wou d encounter the natura man, the unse !ish, 'enerous, hos#itab e man, were struc( with the ra#acious a"arice b% which these #rimiti"e men were de"oured. 7n our time, our so diers ha"e been ab e to testi!% as to the o#inion we shou d ho d o! the much "aunted unse !ishness o! the Arab tribes. A.EE =n the other hand, a men, e"en those whose conduct is at "ariance with it, a'ree in #rinci# e that we shou d honor unse !ishness, 'enerosit%, se !-contro , and shou d casti'ate that e?cessi"e o"e o! wea th which eads us to stoo# to an% means to secure it. And %et with the same unanimit% a men a"ish their #raise on the #erson who, whate"er his wa ( o! i!e, stri"es b% honest and #erse"erin' toi to better his ot and his !ami %;s #osition in societ%. From this co ection o! !acts, o#inions, and attitudes, we must, it seems to me, arri"e at the .ud'ment we shou d #ass on wea th as it a!!ects indi"idua mora it%. A.E8 First o! a , we must reco'ni1e that the moti"atin' !orce that dri"es us toward wea th comes !rom Bature< it is the creation o! /ro"idence and is there!ore mora . 7t has its roots in that ori'ina and common state o! destitution which wou d be the ot o! a o! us were it not !or the desire that it creates in us to !ree ourse "es !rom the chains o! want. >e must reco'ni1e, second %, that the e!!orts that a men ma(e to brea( these chains, #ro"ided

1A0 the% remain within the bounds o! .ustice, are res#ectab e and commendab e, since the% are e"er%where commended and res#ected. Furthermore, no one wi den% that there is a mora side to abor itse !. &his is e?#ressed in the #ro"erb that be on's to a nations: 57d eness is the mother o! a "ices.5 (52atan sti !inds wor( !or id e hands to do.5) And we shou d !a into shoc(in' contradiction i! we said, on the one hand, that abor is indis#ensab e to men;s mora it%, and, on the other, that men are immora when the% wor( to 'ain wea th. A.EF 7n the third # ace, we must reco'ni1e that the desire !or wea th becomes immora when it 'oes be%ond the bounds o! .ustice and eCuit%, and that the 'reater the wea th o! the 'reed%, the more se"ere % is 'reed itse ! censured. A.80 2uch is the .ud'ment that is #ronounced, not b% a !ew #hi oso#hers or sects, but b% the "ast ma.orit% o! man(ind, and 7 acce#t it. A.81 7 must remar(, howe"er, that it is #ossib e, without contradiction, !or this .ud'ment not to be the same toda% as it was in antiCuit%. A.88 Both the Essenes and the 2toics i"ed in a societ% in which wea th was obtained at the #rice o! o##ression, #i a'e, and "io ence. 7t was immora not on % in itse !, but, b% "irtue o! the immora it% o! the means b% which it was acCuired, it re"ea ed the immora it% o! the men who en.o%ed it. A reaction a'ainst it, e"en an e?a''erated one, was Cuite natura . +odern #hi oso#hers who dec aim a'ainst wea th without ta(in' into account the di!!erence in the means o! acCuirin' it i(en themse "es to 2eneca or 3hrist. &he% are mere #arrots re#eatin' words that the% do not understand. A.89 But the Cuestion that #o itica econom% raises is this: 4oes wea th re#resent mora 'ood or mora e"i !or man(indK 4oes the stead% increase in wea th im# %, !rom the #oint o! "iew o! mora it%, #ro'ress or decadenceK A.8$ &he reader can antici#ate m% answer, and he rea i1es that 7 ha"e a read% had to sa% a !ew words about #ersona mora it% in order to a"oid the !o owin' contradictor%, or rather im#ossib e, conc usion: >hat is immora !or the indi"idua is mora !or societ% at ar'e. A.85 >ithout ha"in' recourse to statistics, without consu tin' #rison records, we ma% e?#ress our #rob em in these terms: A.8A

1A1 4oes man de'enerate in #ro#ortion as he 'ains 'reater contro o"er materia thin's and Bature, as he harnesses them to his needs, as he uses them to create 'reater eisure !or himse !, and as, !reein' himse ! !rom the demands o! his most #ressin' bodi % needs, he is ab e to rescue !rom the inertia where the% a% dormant mora and inte ectua !acu ties that undoubted % were not 'i"en him with the intent that he shou d et them remain in eterna ethar'%K A.8E 4oes man de'enerate in #ro#ortion as he #asses !rom the most inor'anic state, so to s#ea(, and rises toward the most s#iritua state o! which he is ca#ab eK A.88 &o #ose the #rob em thus is to so "e it. A.8F 7 'rant that when wea th is accumu ated b% immora means, its in! uence is immora , as was the case with the ,omans. A.F0 7 a so a'ree that when it is amassed and distributed with 'reat ineCua it%, di''in' dee#er and dee#er chasms between the socia c asses, it has an immora in! uence and 'i"es rise to sub"ersi"e #assions. A.F1 But can the same thin' be said !or wea th that is the !ruit o! honest abor and o! !ree transactions, when it is distributed in a uni!orm manner amon' a c assesK 3ertain % such a #osition is not tenab e. A.F8 Be"erthe ess, the boo(s o! the socia ists are !u o! denunciations o! the rich. A.F9 7 cannot rea % understand how these schoo s o! thou'ht, so di"er'ent in other res#ects, but so unanimous on this #oint, can !ai to see the contradiction into which the% !a . A.F$ =n the one hand, wea th, accordin' to the eaders o! these schoo s, has a de eterious, demora i1in' in! uence that withers the sou , hardens the heart, and ea"es on % a taste !or de#ra"ed # easures. &he rich ha"e a the "ices. &he #oor ha"e a the "irtues. &he% are .ust, sensib e, 'enerous< such is the ine ado#ted. A.F5 And, on the other hand, a the socia ists; #owers o! ima'ination, a the s%stems that the% in"ent, a the aws that the% tr% to !oist u#on us, ha"e the e!!ect, i! we are to be ie"e them, o! turnin' #o"ert% into wea th.....

1A8 A.FA &he mora it% o! wea th is #ro"ed b% this ma?im: the #ro!it o! one is the #ro!it o! the other.....GG88 A.FE 3ha#ter E 3a#ita Economic aws act in accordance with the same #rinci# e, whether the% a## % to 'reat masses o! men, to two indi"idua s, or e"en to a sin' e indi"idua condemned b% circumstances to i"e in iso ation. E.1 An indi"idua in iso ation, #ro"ided he cou d sur"i"e !or an% en'th o! time, wou d be at once ca#ita ist, entre#reneur, wor(man, #roducer, and consumer. &he entire economic c%c e wou d run its course in him: want, e!!ort, satis!action, 'ratuitous and onerous uti it%. =bser"in' each o! these e ements, he wou d ha"e some notion o! the wor(in's o! the who e mechanism, e"en thou'h it wou d be reduced to its sim# est !orm. E.8 Bow, i! there is an%thin' in the wor d that is c ear, it is that he cou d ne"er con!use what is 'ratis with what reCuires e!!ort. &hat wou d im# % a contradiction in terms. He wou d (now !u we when materia s or !orces were #ro"ided b% Bature, without need !or abor on his #art, e"en in those cases where their addition made his own abor more #roducti"e. E.9 An indi"idua i"in' in iso ation wou d ne"er dream o! obtainin' throu'h his own abor somethin' that he cou d 'et direct % !rom Bature. He wou d not wa ( two mi es !or water i! he had a s#rin' beside his cabin. For the same reason, in e"er% instance where his own abor mi'ht be ca ed u#on, he wou d tr% to substitute Bature;s he # as much as #ossib e. E.$ &hat is wh%, i! he were bui din' a boat, he wou d uti i1e the i'htest wood in order to use to ad"anta'e the s#eci!ic 'ra"it% o! water. He wou d tr% to ri' u# a sai , so that the wind mi'ht s#are him the troub e o! rowin', etc. E.5 7n order thus to harness the !orces o! Bature, he needs too s and instruments. E.A At this #oint we #ercei"e that our iso ated man wi ha"e to do some ca cu atin'. He wi as( himse ! this Cuestion: At #resent 7 obtain a certain satis!action !or a 'i"en amount o! e!!ort. >hen 7 ha"e the #ro#er too , wi 7 obtain the same satis!action !or ess tota e!!ort,

1A9 countin' both the e!!ort sti to be e?erted to obtain the satis!action and the e!!ort reCuired to ma(e the too K E.E Bo man is wi in' to waste his stren'th !or the mere # easure o! wastin' it. =ur ,obinson 3rusoe wi not, there!ore, set about ma(in' the too un ess he can !oresee, when the wor( is done, a de!inite sa"in' o! his abor in re ation to his satis!action, or an increase in satis!actions !or the same amount o! abor. E.8 A circumstance that wi 'reat % in! uence his ca cu ations is the number o! #roducts his too wi he # him turn out and the number o! times he wi be ca ed on to use it durin' its i!es#an. ,obinson 3rusoe has a standard !or his com#arison, which is his #resent e!!ort, the e!!ort he must 'o to i! he tries to obtain the satis!action direct % and without he # o! an% (ind. He estimates that the too wi sa"e him e!!ort each time he uses it< but it ta(es abor to ma(e the too , and he wi menta % distribute this abor o"er the tota number o! occasions on which he ma% use it. &he 'reater the number, the stron'er wi be his inc ination to en ist the aid o! the natura resource. 7t is here, in this distribution o! an ad"ance out a% o"er the tota number o! #roducts to be made, that we !ind the #rinci# e and the basis o! interest. E.F =nce ,obinson 3rusoe has decided to ma(e a too , he disco"ers that his inc ination to ma(e it and the uses he can #ut it to are not enou'h. 7t ta(es too s to ma(e too s< it ta(es iron to hammer iron, and so on, as he mo"es !rom one di!!icu t% to another, unti he reaches the !irst one, which seems to be inso ub e. &his c%c e ma(es us aware o! the e?treme % s ow #rocess b% which ca#ita must ori'ina % ha"e been !ormed and o! the tremendous amount o! human e!!ort that was reCuired !or e"er% satis!action. E.10 Bor is this a . E"en i! the too s needed to ma(e too s are a"ai ab e, the materia s o! #roduction are sti reCuired. E"en thou'h the% are !urnished 'ratis b% Bature, i(e stone, the% sti ha"e to be co ected, which in"o "es 'oin' to some troub e. But near % a wa%s the #ossession o! these materia s #resu##oses on' and com# icated ear ier abor, as !or e?am# e, #rocessin' woo , inen, iron, ead, etc. E.11 And e"en this is not a . >hi e a man is wor(in' thus !or the so e #ur#ose o! ma(in' his !uture wor( easier, he is doin' nothin' !or his #resent needs. Bow, these be on' to an order o! #henomena in which Bature broo(s no interru#tion. E"er% da% he must !eed, c othe, and house himse !. ,obinson 3rusoe wi there!ore #ercei"e that he can do nothin' about harnessin' the !orces o! Bature unti he has accumu ated #ro"isions. E"er% da% he is huntin' he must redoub e his e!!orts< he must a% aside #art o! his 'ame< then he must im#ose #ri"ations on himse ! so as to ha"e time to ma(e the too he has in mind. 6nder these circumstances, it is more i(e % that he wi content himse ! with ma(in' a "er% crude and im#er!ect too , bare % adeCuate !or its intended use.


E.18 >ith time, a his means and !aci ities wi im#ro"e. ,e! ection and e?#erience wi ha"e tau'ht our ,obinson 3rusoe, stranded on his is and, better wor(in' methods< the !irst too itse ! wi !urnish him with the means o! ma(in' others and o! 'atherin' his su## ies more Cuic( %. E.19 &oo s, materia s, #ro"isions, a constitute what he wi doubt ess ca his ca#ita , and he wi readi % 'rant that the ar'er this ca#ita , the better the contro he wi ha"e o"er the !orces o! Bature, that the more he harnesses them to his abor, the 'reater, in a word, wi be his satis!actions in re ation to his e!!orts. E.1$ )et us #ass now to the socia order. Here, too, ca#ita wi be com#osed o! the too s and instruments o! #roduction, o! the materia s and #ro"isions without which no on'-ran'e underta(in' is #ossib e either in iso ation or in societ%. &he #ossessors o! this ca#ita ha"e it on % because the% ha"e created it either b% their e!!orts or their #ri"ations< and the% ha"e e?erted their e!!orts (o"er and be%ond their current wants), the% ha"e under'one these #ri"ations, on % !or the sa(e o! !uture ad"anta'e, in order, !or e?am# e, to turn to their use a ar'e number o! natura resources. &o surrender this ca#ita wou d mean !or them to 'i"e u# the ad"anta'e the% had sou'ht to obtain. 7t wou d mean surrenderin' this ad"anta'e to others< it wou d be renderin' a ser"ice. 3onseCuent %, we must either disre'ard the sim# est considerations o! reason and .ustice, or we must admit that the% ha"e a #er!ect ri'ht to turn o"er this ca#ita on % in e?chan'e !or some other ser"ice !ree % bar'ained !or and "o untari % a'reed to. 7 do not be ie"e that there is a man on earth who wi contest the eCuit% o! reci#rocit% o! ser"ices, !or reci#rocit% o! ser"ices means eCuit% in other terms. >i it be said that the transaction cannot #ossib % be !ree, because the one who has ca#ita is in a #osition to im#ose his own terms on the one who does notK But how shou d the transaction be carried onK How can an eCui"a ence o! ser"ices be determined e?ce#t b% an e?chan'e "o untari % a'reed toK And is it not c ear, moreo"er, that the borrower, bein' !ree to consent or not to consent, wi re!use, un ess it is to his ad"anta'e to acce#t, and un ess the oan can im#ro"e his situationK 7t is c ear that this is the Cuestion he wi as( himse !: >i the use o! this ca#ita a!!ord me ad"anta'es that wi more than com#ensate !or the terms that are sti#u atedK =r e se: 7s the e!!ort that 7 am now reCuired to ma(e !or a 'i"en satis!action 'reater or ess than the sum tota o! the e!!orts to which 7 sha be ob i'ated b% the oan, !irst to render the ser"ices that are as(ed o! me, and then to rea i1e the satis!action with the aid o! the borrowed ca#ita K 7!, a thin's considered, there is no ad"anta'e, he wi not borrow< he wi be content with his #resent situation< and in that case, how has he been wron'edK He can be mista(en, someone wi sa%. &rue enou'h. >e can be mista(en in e"er% ima'inab e transaction. 4oes this mean, then, that no transaction can e"er be !reeK Assumin' !or the moment that such is the case, wi someone (ind % te us what shou d be #ut in the # ace o! !ree wi and !ree consentK 2ha it be coercionK For, a#art !rom !ree wi , 7 (now o! nothin' but coercion. Bo, someone sa%s, it wi be the .ud'ment o! a third #art%. 7 am #er!ect % wi in', on three conditions. First, that the decision o! this #erson, whate"er name he be

1A5 'i"en, not be e?ecuted b% !orce. 2econd, that he be in!a ib e, !or it is not worth the troub e to re# ace one !a ib e #erson b% another< and the !a ib e #ersons whom 7 distrust the east are the interested #arties themse "es. Fina %, the third condition is that this #erson recei"e no #a%< !or it wou d be a stran'e wa% o! showin' one;s 'ood wi toward the borrower to de#ri"e him o! his ibert% and then # ace an added burden on his shou ders in com#ensation !or this #hi anthro#ic ser"ice. But et us !or'et e'a Cuestions and return to #o itica econom%. E.15 3a#ita , whether com#osed o! materia s, #ro"isions, or too s, #resents two as#ects: uti it% and "a ue. 7 ha"e e?# ained the theor% o! "a ue "er% bad % i! the reader has not com#rehended that the one who surrenders a certain amount o! ca#ita demands #a%ment !or its "a ue on %, that is, !or the ser"ice he #ut into #roducin' it, the #ains he too(, # us the e!!ort sa"ed the reci#ient. 3a#ita , indeed, is a commodit% i(e an% other. 7t recei"es its name on % !rom the !act that it is desi'ned !or !uture consum#tion. 7t is a 'reat error to be ie"e that ca#ita is in itse ! a distinct entit%. A sac( o! wheat is a sac( o! wheat, e"en thou'h, de#endin' on the #oint o! "iew, it is re"enue !or the se er and it is ca#ita !or the bu%er. E?chan'e wor(s on this in"ariab e #rinci# e: "a ue !or "a ue, ser"ice !or ser"ice< and a the 'ratuitous uti it% that 'oes into the transaction is 'i"en into the bar'ain, inasmuch as what is 'ratis has no "a ue, and transactions are concerned on % with "a ue. 7n this res#ect, transactions in"o "in' ca#ita are no di!!erent !rom an% others. E.1A &here are some remar(ab e im# ications !or the socia order in a this, thou'h 7 can re!er to them on % brie! % here. +an in iso ation has ca#ita on % when he has co ected materia s, #ro"isions, and too s. 2uch is not the case with man in societ%. He needs on % to ha"e rendered ser"ices in order to ha"e the means o! recei"in' !rom societ%, throu'h the mechanism o! e?chan'e, eCui"a ent ser"ices. >hat 7 mean b% the mechanism o! e?chan'e is mone%, #romissor% notes, ban( notes, and e"en ban(ers themse "es. >hoe"er has rendered a ser"ice and has not %et recei"ed the corres#ondin' satis!action is the bearer o! a to(en, which either itse ! has "a ue, i(e mone%, or is !iduciar%, i(e ban( notes. &his to(en entit es him to co ect !rom societ%, when and where he wi s, and in whate"er !orm he wi s, an eCui"a ent ser"ice. &hese circumstances do not in an% wa%, in #rinci# e, in e!!ect, in #oint o! e'a it%, a ter the 'reat aw that 7 see( to e ucidate: 2er"ices are e?chan'ed !or ser"ices. 7t is sti barter in embr%o-de"e o#ed, 'rown, and become com# e?, but without osin' its identit%. E.1E &he bearer o! the to(en ma% there!ore co ect !rom societ%, at his # easure, either an immediate satis!action or an ob.ect that, !or him, has the character o! ca#ita . &his is a matter with which the one who surrenders the to(en has no concern whatsoe"er. A that matters in an% wa% is that the ser"ices be eCua . =r, a'ain, he ma% surrender his to(en to another #erson to use it as he # eases, sub.ect to the doub e condition that it be returned to him a on' with a ser"ice, and at a 'i"en date. 7! we ana %1e this transaction care!u %, we !ind that in this case the one who surrenders the to(en de#ri"es himse !, in !a"or o! the borrower, either o! an immediate satis!action that he wi #ost#one !or a !ew %ears or o!

1AA an instrument o! #roduction that wou d ha"e increased his own resources, harnessed the !orces o! Bature, and im#ro"ed the ratio o! his e!!orts to his satis!actions. He de#ri"es himse ! o! these ad"anta'es in order to bestow them u#on another. &his is certain % renderin' a ser"ice, and it is im#ossib e to den% that in a .ustice this ser"ice is entit ed to somethin' in return. &he mere return o! the thin' ad"anced, at the end o! a %ear, cannot be considered a #a%ment !or the s#ecia ser"ice. &hose who maintain such a "iew !ai to understand that this transaction is not a sa e, in which, since de i"er% is immediate, the #a%ment is a so immediate. /a%ment is de!erred, and this de!erment is itse ! a s#ecia ser"ice, since it im#oses a sacri!ice on the #art o! the one 'rantin' it, and bestows a !a"or on the one reCuestin' it. &here are, there!ore, 'rounds !or remuneration< otherwise we shou d ha"e to ne'ate this su#reme aw o! societ%: 2er"ice !or ser"ice. &his remuneration is ca ed b% di!!erent names accordin' to circumstances: hire, rent, insta ments, but its 'eneric name is interest.GG8F E.18 &hus, than(s to the mar"e ous de"ice o! e?chan'e, a remar(ab e thin' ta(es # ace, !or e"er% ser"ice is, or ma% become, ca#ita . 7! wor(men are to be'in a rai road ten %ears hence, we cannot set aside now the actua wheat that wi !eed them, the te?ti es that wi c othe them, and the whee barrows that the% wi use durin' this on'-ran'e o#eration. But we can set aside and de i"er to them the eCui"a ent "a ue o! these thin's. &o do so, we need on % at the #resent time render societ% ser"ices and recei"e in return to(ens or certi!icates, which ten %ears !rom now we can con"ert into wheat or te?ti es. And we are not e"en !orced to et these to(ens ie id e and un#roducti"e durin' this #eriod. &here are businessmen and ban(ers, there is the necessar% machiner% in societ%, to render the ser"ice, in e?chan'e !or ser"ices in return, o! assumin' these sacri!ices in our # ace. E.1F >hat is sti more ama1in' is that we can re"erse this #rocedure, im#ossib e as this ma% seem at !irst ' ance. >e can turn into too s, rai roads, and houses, ca#ita that has not %et been #roduced, uti i1in' !or this #ur#ose ser"ices that wi not be rendered unti the ne?t centur%. &here are ban(ers who wi ma(e the necessar% ad"ances on the !aith that wor(ers and tra"e ers o! the third or !ourth 'eneration to come wi #ro"ide the #a%ment< and these chec(s drawn on the !uture are #assed !rom hand to hand and ne"er remain un#roducti"e. 7 do not be ie"e, !ran( %, that the in"entors o! arti!icia socia orders, howe"er numerous the% ma% be, cou d e"er ima'ine a s%stem at once so sim# e and so com# e?, so in'enious, and so .ust. 2ure %, the% wou d 'i"e u# their du and stu#id uto#ias i! the% did but (now the beauti!u harmonies o! the d%namic socia mechanism instituted b% 0od. &here was a so once a (in' o! Ara'on who wondered what ad"ice he wou d ha"e 'i"en /ro"idence on the runnin' o! the ce estia mechanism i! he had been ca ed into consu tation.GAE 2uch a #resum#tuous thou'ht wou d not ha"e occurred to Bewton. E.80 But, it must be em#hasi1ed, a transmission o! ser"ices !rom one #oint to another, in time or s#ace, rests u#on this assum#tion: &o 'rant a #ost#onement o! #a%ment is to render a ser"ice< in other words, on the assum#tion that it is e'itimate to char'e interest. &he

1AE manGA8 who, in our da%, tried to su##ress interest did not understand that he was #ro#osin' to ta(e e?chan'e bac( to its #rimiti"e, embr%onic !orm o! sim# e, direct barter with no #ro"ision !or time #ast or time to come. He did not rea i1e that, whi e considerin' himse ! the most !orward- oo(in' o! men, he was actua % the most bac(ward, since he wished to rebui d societ% on the crudest and most #rimiti"e # an. He desired, so he said, reci#rocit% o! ser"ices. But he #ro#osed to be'in b% re!usin' to admit as ser"ices the "er% t%#e o! ser"ices that in(, bind to'ether, and unite a times and a # aces. =! a the socia ists he is the one who, des#ite the bo dness o! his resoundin' a#horisms, has best understood and most res#ected the #resent socia order. His re!orms are imited to a sin' e #ro#osa , which is ne'ati"e. 7t consists o! remo"in' !rom societ% the most #ower!u and most remar(ab e o! its mo"in' #arts. E.81 7 ha"e e?# ained e sewhere the e'itimac% and the #er#etuit% o! interest. 7 sha m%se ! here to remindin' the reader that: imit

1) &he e'itimac% o! interest is based on the !act that the #erson who 'rants credit renders a ser"ice. Hence, interest is e'itimate, b% "irtue o! the #rinci# e o! ser"ice !or ser"ice. 8) &he #er#etuit% o! interest is based on the additiona !act that the #erson who borrows must re#a% in !u at the date o! e?#iration. Bow, i! the ob.ect or the "a ue is returned to its owner, he can re end it. 7t wi be returned a second time< he can end it a third time< and so on #er#etua %. >hat one o! the succeedin' and "o untar% borrowers can ha"e an% cause !or com# aintK But, since the e'itimac% o! interest has so !reCuent % been contested in these times as to a arm ca#ita and dri"e it awa% or into hidin', et me show how sense ess a this stran'e u#roar is. E.88 Bow, !irst o! a , wou d it not be Cuite as absurd as it wou d be un.ust i! no interest were char'ed at a or i! the interest #a%ment were the same whether the terms a'reed u#on were !or a #eriod o! one %ear, two %ears, or ten %earsK 7!, under the in! uence o! the soca ed e'a itarian doctrine, our ci"i code shou d, un!ortunate %, so decree, it wou d mean the immediate su##ression o! an entire cate'or% o! human transactions. &here wou d sti be barter transactions and cash sa es, but there wou d no on'er be insta ment bu%in' or oans. &he e'a itarians wou d, indeed, i!t !rom the borrowers the burden o! interest, but b% den%in' them the oan. =n this ana o'% we can a so re ie"e men o! the #ain!u necessit% o! #a%in' !or what the% #urchase. >e ha"e on % to !orbid them to bu%, or, what amounts to the same thin', ma(e the aw dec are that #rices are i e'a . E.89 &he e'a itarian #rinci# e does indeed ha"e an e'a itarian e ement in it. First, it wou d #re"ent the accumu ation o! ca#ita < !or who wou d want to a% u# sa"in's !rom which no return cou d be rea i1edK 2econd %, it wou d reduce wa'es to 1ero< !or, where there is no ca#ita (too s, materia s and #ro"isions), there can be no #ro"ision !or !uture abor, and

1A8 so, no wa'es. >e shou d there!ore soon reach the state o! #er!ect and abso ute eCua it%: no one wou d ha"e an%thin'. E.8$ But can an% man be so b ind as not to see that de!erment o! #a%ment is in itse ! an onerous act, and, there!ore, sub.ect to remunerationK But e"en aside !rom the Cuestion o! oans, does not e"er%one in a transactions tr% to shorten the de a%s he must e?#erienceK 7t is, in !act, the ob.ect o! our constant concern. E"er% entre#reneur oo(s ahead to the time when the ad"ances he has made wi brin' a return. >e se at a hi'her or a ower #rice with this in "iew. &o be indi!!erent to this consideration, we shou d ha"e to be unaware o! the !act that ca#ita is a !orce< !or, i! we do (now it, we natura % desire to ha"e it accom# ish as Cuic( % as #ossib e the tas( to which we ha"e assi'ned it, so that we ma% reassi'n it to sti another. E.85 &he% are #oor economists indeed who be ie"e that we #a% interest on ca#ita on % when we borrow. &he 'enera ru e, and a .ust one, is that he who en.o%s the satis!action must #a% a that it costs to #roduce it, the incon"eniences o! de a% inc uded, whether he #er!orms the ser"ice himse ! or has another #er!orm it !or him. &he man in iso ation, who, o! course, carries on no transaction with an%one e se, wou d consider as onerous an% situation that wou d de#ri"e him o! his wea#ons !or a %ear. >h%, there!ore, wou d not a simi ar situation be considered onerous in societ%K 7! one man "o untari % under'oes this #ri"ation !or the bene!it o! another man who "o untari % a'rees to com#ensate him, how can this com#ensation be considered i e'itimateK E.8A Bothin' wou d be done in this wor d, no enter#rise reCuirin' ad"ance out a%s wou d be carried throu'h to com# etion, men wou d not # ant, sow, or # ow, i! de a%s and #ost#onements were not in themse "es considered as onerous, to be treated and #aid !or as such. 0enera a'reement is so unanimous on this #oint that there is no e?chan'e in which it is not the 'uidin' #rinci# e. E?tensions o! time and #ost#onements enter into the a##raisa o! ser"ices, and, conseCuent %, into the amount o! "a ue the% #ossess. E.8E &hus, in their crusade a'ainst interest, the e'a itarians tram# e under!oot not on % the most basic notions o! .ustice, not on % their own #rinci# e o! ser"ice !or ser"ice, but a so a human #recedent and uni"ersa #ractice. How dare the% dis# a%, !or a to see, such inordinate e'otism and #resum#tionK And is it not a stran'e and sorr% si'ht to see these 1ea ots im# icit % and e?# icit % ta(e as their motto: 2ince the wor d be'an a men ha"e been wron', e?ce#t m%se !. =mnes, e'o non.GAF E.88 7 as( the reader to !or'i"e me !or ha"in' so much insisted on the e'itimac% o! interest, which is based on this a?iom: 2ince #ost#onements cost somethin', the% must be #aid !or, cost and #a%ment bein' corre ati"e terms. &he !au t ies in the s#irit o! our a'e. >e

1AF must, in the !ace o! the attac(s made b% a !ew !anatica inno"ators, ta(e our stand c ear % on the side o! those "ita truths that a humanit% acce#ts. For the writer who see(s to demonstrate the harmon% o! a economic #henomena, it is a most #ain!u thin', be ie"e me, to be com#e ed to sto# at e"er% ste# to e?# ain the most e ementar% conce#ts. >ou d )a# aceGE0 ha"e been ab e to e?# ain the so ar s%stem in a its !undamenta sim# icit%, i! there had not been certain areas o! common understandin' amon' his readers, i!, in order to #ro"e that the earth rotates, he had !irst been ob i'ed to teach them to countK 2uch is the crue di emma o! the economist in our da%. 7! he does not sto# to #resent !u % the rudiments o! his sub.ect, he is not understood< and i! he does e?# ain them, the beaut% and sim# icit% o! the who e is swa owed u# in a torrent o! detai s. E.8F 7t is tru % !ortunate !or man(ind that interest is e'itimate. E.90 =therwise man too wou d !ace a di!!icu t di emma: either, b% remainin' .ust, to #erish< or, throu'h in.ustice, to #ros#er. E.91 E"er% industr% re#resents a union o! e!!orts. But amon' these e!!orts there is an essentia distinction to be made. 2ome are directed toward ser"ices that are to be #er!ormed immediate %< others, toward an inde!inite series o! ser"ices o! a simi ar nature. )et me e?# ain. E.98 &he #ains a watercarrier 'oes to in the course o! a da% must be #aid !or b% those who are bene!ited b% them< but the #ains he too( #re"ious % to ma(e his cart and his waterbarre must be distributed, as re'ards #a%ment, amon' an inde!inite number o! users. E.99 2imi ar %, weedin', # owin', harrowin', rea#in', threshin' concern on % the #resent har"est< but !ences, c earin's, draina'e, bui din's and im#ro"ements concern and !aci itate an inde!inite number o! !uture har"ests. E.9$ Accordin' to the 'enera aw o! ser"ice !or ser"ice, those who recei"e the satis!action must recom#ense the e!!orts e?erted !or them. 7n re'ard to the !irst t%#e o! e!!ort, there is no di!!icu t%. Bar'ainin' and e"a uatin' are carried on between the one who e?erts the e!!ort and the one who bene!its !rom it. But how can ser"ices o! the second t%#e be e"a uatedK How can a !air #ro#ortion o! the #ermanent out a%, 'enera e?#enses, !i?ed ca#ita , as the economists ca it, be distributed o"er the entire series o! satis!actions that these thin's are desi'ned to e!!ectK B% what method can their wei'ht be made to !a e"en % on the shou ders o! a those who use the water, unti the cart is worn out< on those who consume the wheat, as on' as the !ie d remains #roducti"eK E.95

1E0 7 do not (now how the% wou d so "e this #rob em in 7caria or in the #ha anster%, but 7 am inc ined to be ie"e that the in"entors o! societies, who are so #ro i!ic in their arti!icia arran'ements and so read% to ha"e them !oisted on the #ub ic b% aw-which means, whether the% admit it or not, b% !orce-cou d not ima'ine a more in'enious so ution than the entire % natura #rocedure that men ha"e disco"ered !or themse "es (how #resum#tuous o! themJ) since time immemoria , the #rocedure that it is now #ro#osed to !orbid them to use, name %, that deri"ed !rom the aw o! interest. E.9A )et us assume that a thousand !rancs ha"e been s#ent in rea #ro#ert% im#ro"ements< et us assume a so an interest rate o! !i"e #er cent and an a"era'e har"est o! !i"e thousand iters. B% this rec(onin' one !ranc is to be char'ed a'ainst each hundred iters o! wheat. E.9E &his !ranc is e"ident % the e'itimate #a%ment !or an actua ser"ice rendered b% the andowner (who cou d a so be ca ed the wor(er) .ust as much to the man who wi recei"e a hundred iters o! 'rain ten %ears !rom now as to the man who bu%s it toda%. &here!ore, the aw o! strict .ustice is obser"ed. E.98 2u##ose, now, that the #ro#ert% im#ro"ements or the cart or the waterbarre has a i!es#an that can be determined on % within a##ro?imate imits< then, #ro"ision !or a sin(in' !und is added to the interest, so that the owner wi not su!!er a oss but ma% continue to o#erate. &his is sti in accordance with .ustice. E.9F >e must not assume that this one-!ranc interest char'ed a'ainst each hundred iters o! wheat is an in"ariab e amount. =n the contrar%, it re#resents "a ue and obe%s the 'enera aw o! "a ue. 7t increases or decreases accordin' to the ! uctuations o! su## % and demand, that is, accordin' to the #articu ar #ressures o! the moment and the 'enera #ros#erit% o! societ%. E.$0 >e are usua % inc ined to be ie"e that this t%#e o! remuneration tends to increase, i! not !or industria im#ro"ements, at east !or a'ricu tura im#ro"ements. E"en admittin' that this rent was ori'ina % !air, it is said, it !ina % becomes e?orbitant, !or the andowner therea!ter stands b% in id eness whi e his rent continues to rise !rom %ear to %ear, sim# % because the #o#u ation is increasin', and there!ore the demand !or wheat a so. E.$1 &his tendenc% e?ists, 7 a'ree, but it is not con!ined to and rent< it is common to a t%#es o! abor. &he "a ue o! e"er% (ind o! abor increases with the densit% o! the #o#u ation, and the common da% aborer earns more in /aris than in Brittan%. E.$8

1E1 But we must a so bear in mind that this tendenc% is counter-ba anced, as !ar as and rent is concerned, b% an o##osite trend, which is that o! #ro'ress. 7m#ro"ements made toda% b% better methods, with ess human abor, and at a time when the interest rate has !a en, #re"ent too hi'h a rent !rom bein' as(ed !or #re"ious im#ro"ements. &he andowner;s !i?ed ca#ita , i(e the manu!acturer;s, deteriorates in the on' run as more and more e!!icient abor-sa"in' de"ices a##ear. &his is a remar(ab e aw, which o"erturns ,icardo;s ' oom% theor%< it wi be ana %1ed more com# ete % when we discuss rea #ro#ert%. E.$9 Bote that the #rob em o! the distribution o! ser"ices to be #er!ormed in #a%ment !or #ermanent im#ro"ements cou d not be so "ed without the aw o! interest. &he owner cou d not distribute his actua ca#ita o"er an inde!inite number o! successi"e users< !or where wou d he sto#, since the e?act number cannot be determinedK &he ear ier ones wou d ha"e #aid !or the ater ones, which is not .ust. Furthermore, a time wou d ha"e come when the owner wou d ha"e been in #ossession o! both his ca#ita out a% and his im#ro"ements, which is not .ust either. )et us ac(now ed'e, then, that the natura machiner% de"ised b% societ% is in'enious enou'h so that we do not ha"e to su## ant it with an% arti!icia de"ice. E.$$ 7 ha"e #resented the #henomenon in its sim# est !orm in order to 'i"e a c ear idea o! its nature. 7n #ractice thin's do not occur in Cuite this wa%. E.$5 &he andowner does not himse ! wor( out the distribution, and he does not decide that a char'e o! one !ranc, more or ess, wi be # aced on each hundred iters o! wheat. He !inds that men ha"e a read% decided these matters, both the #re"ai in' #rice o! wheat and the rate o! interest. =n this in!ormation he decides how he wi in"est his ca#ita . He wi use it to im#ro"e his and i! he estimates that the #rice o! wheat wi #ermit him to rea i1e the norma rate o! interest. 7! such is not the case, he wi in"est it in an industr% that #romises a better return, and is, !ortunate % !or societ%, more i(e % to attract ca#ita !or that "er% reason. &his is the wa% the #rocess rea % o#erates in reachin' the same resu t as s(etched abo"e, and it o!!ers us sti another harmon% o! economic aw. E.$A &he reader wi understand that 7 ha"e con!ined m%se ! to one #articu ar case sim# % as a means o! i ustratin' a 'enera aw that a## ies to a #ro!essions and occu#ations. E.$E A aw%er, !or e?am# e, cannot ma(e the !irst c ient who comes his wa% reimburse him !or a he has s#ent on his education, his #robation, his aw o!!ice-#erha#s amountin' to as much as twent% thousand !rancs. &his wou d not on % be un.ust< it wou d be im#ossib e. &he !irst c ient wou d ne"er #ut in his a##earance, and our buddin' 3u.asGE1 wou d be reduced to imitatin' the host who, when he saw that no one had come to his !irst ba , dec ared: 5Be?t %ear 7 sha be'in b% #uttin' on m% second ba .5


E.$8 &he same thin' a## ies to the businessman, the doctor, the shi#owner, the artist. 7n e"er% ca in' these two t%#es o! e!!ort are to be !ound< the second t%#e must, without !ai , be distributed o"er an indeterminate number o! consumers, and 7 de!% an%one to contri"e a method o! distribution other than the mechanism o! interest.

-------------------------------------------------------------------------------E.$F 7n recent times 'reat #ains ha"e been ta(en to stir u# #ub ic resentment a'ainst that in!amous, that diabo ica thin', ca#ita . 7t is #ictured to the masses as a ra"enous and insatiab e monster, more dead % than cho era, more terri!%in' than riots, as a "am#ire whose insatiab e a##etite is !ed b% more and more o! the i!e-b ood o! the bod% #o itic. @ires acCuirit eundo.GE8 &he ton'ue o! this b ood-suc(in' monster is ca ed 5rent,5 5usur%,5 5hire,5 5ser"ice char'es,5 5interest.5 A writer whose 'reat ta ents cou d ha"e made him !amous had he not #re!erred to use them to coin the #arado?es that ha"e brou'ht him notoriet% has seen !it to cast this #arado? be!ore a #eo# e a read% tormented b% the !e"er o! re"o ution. 7 too ha"e an a##arent #arado? to o!!er the reader, and 7 be' him to decide whether it is not both a 'reat and a reassurin' truth. E.50 But, be!ore #resentin' it, 7 must sa% a word about the manner in which +. /roudhon and his schoo e?# ain what the% ca the in.ustice o! interest. E.51 3a#ita 'oods are too s o! #roduction. &oo s o! #roduction are desi'ned to harness the 'ratuitous !orces o! Bature. &hrou'h the steam en'ine we uti i1e the #ressure o! "o ati e 'ases< throu'h the watch s#rin', the e asticit% o! stee < throu'h wei'hts or water-!a s, 'ra"itation< throu'h @o ta;s batter%, the s#eed o! the e ectric s#ar(< throu'h the soi , the chemica and #h%sica combinations that we ca "e'etation< etc., etc. Bow, con!usin' uti it% with "a ue, the% thin( o! these natura resources as ha"in' an inherent "a ue o! their own, and conseCuent % assume that those who a##ro#riate these resources recei"e #a%ment !or the #ri"i e'e o! usin' them, !or "a ue im# ies #a%ment. &he% assume that commodities are char'ed with one item !or man;s ser"ices, which is acce#ted as .ust, and with another item !or Bature;s ser"ices, which is re.ected as un.ust. >h%, the% sa%, reCuire #a%ment !or 'ra"itation, e ectricit%, "e'etation, e asticit%, etc.K E.58 &he answer is !ound in the theor% o! "a ue. &hat c ass o! socia ists who ta(e the name o! e'a itarians con!use the e'itimate "a ue o! the too o! #roduction, which is #roduced b% human ser"ice, with the use!u resu t it accom# ishes, which is in !act a wa%s 'ratis, once

1E9 this e'itimate "a ue, or the interest on it, has been deducted. >hen 7 #a% a !armer, a mi er, a rai road com#an%, 7 'i"e nothin', abso ute % nothin', !or the #ro#erties o! "e'etation, 'ra"itation, steam #ressure. 7 #a% !or the human abor that has 'one into the too s that ha"e harnessed these !orces< or, what is more ad"anta'eous !or me, 7 #a% the interest on this abor. 7 #a% !or ser"ice with ser"ice, and thereb% the use!u action o! these !orces is turned to m% #ro!it and without !urther cost. &he who e transaction is i(e an e?chan'e, i(e a sim# e act o! barter. &he #resence o! ca#ita does not a ter this aw, !or ca#ita is mere % accumu ated "a ue, or ser"ices whose s#ecia !unction is to en ist the coo#eration o! Bature. E.59 And now !or m% #arado?: E.5$ =! a the e ements that ma(e u# the tota "a ue o! an% #roduct, the one we shou d #a% !or most ' ad % is that "er% e ement ca ed interest on ad"ance out a%s or on ca#ita . E.55 And wh% is thatK Because where"er this e ement ma(es us #a% once, it sa"es us !rom #a%in' twice. Because, b% its "er% #resence, it ser"es notice that the !orces o! Bature ha"e contributed to the !ina resu t and are not bein' #aid !or their contribution< because, as a resu t, the same 'enera amount o! uti it% has been made a"ai ab e to us, but with this di!!erence, that, !ortunate % !or us, a certain #ro#ortion o! 'ratuitous uti it% has re# aced onerous uti it%< and, in a word, because the #rice o! the #roduct has 'one down. >e obtain it !or a sma er #ro#ortion o! our own abor, and what ha##ens to societ% as a who e is what wou d ha##en to a man in iso ation i! he #roduced some in'enious in"ention. E.5A 3onsider the case o! a wor(in'man in modest circumstances who earns !our !rancs #er da%. For two !rancs, that is, !or a ha !-da%;s abor, he bu%s a #air o! cotton soc(s. 7! he tried to obtain them direct % and b% his own abor, 7 tru % be ie"e that his who e i!e wou d not be on' enou'h !or him to do so. How does it ha##en, then, that his ha !-da%;s abor #a%s !or a the human ser"ices that were rendered to him !or this commodit%K 7n (ee#in' with the aw o! ser"ice !or ser"ice, wh% was he not reCuired to contribute se"era %ears o! aborK E.5E &he reason is that in the ma(in' o! this #air o! soc(s the #ro#ortion o! human ser"ices has been enormous % reduced, than(s to ca#ita , b% the use o! natura resources. =ur wor(man, ne"erthe ess, #a%s not on % !or a the abor now reCuired to #er!orm this tas( but a so !or the interest on the ca#ita that en isted the co-o#eration o! Bature< and we must note that had this ast item not been a"ai ab e, or had it been dec ared i e'a , ca#ita wou d not ha"e been em# o%ed in con.unction with natura resources, the commodit% wou d ha"e been #roduced b% onerous uti it% on %, that is, e?c usi"e % b% human abor,

1E$ and our wor(man wou d sti be .ust where he started, that is, with the choice o! either 'oin' without the soc(s or e se o! #a%in' !or them with se"era %ears o! toi . E.58 7! our wor(man has earned to ana %1e what he sees, he wi certain % ma(e his #eace with ca#ita when he #ercei"es how much he owes it. Abo"e a , he wi be con"inced that 0od;s 'ratuitous 'i!ts to him are sti 'ratuitous, that the% ha"e e"en been a"ished u#on him with a 'enerosit% that is not due to his own merits, but to the e?ce ent o#eration o! the natura socia order. 3a#ita is not the "e'etati"e !orce o! Bature that ma(es the cotton 'erminate and b oom, but the #ains ta(en b% the # anter< ca#ita is not the wind that !i ed the sai s o! the shi#, nor the ma'netic !orce to which the com#ass reacted, but the #ains ta(en b% the sai ma(er and com#ass-ma(er< ca#ita is not the com#ression o! the steam that turns the s#ind es o! the mi , but the #ains ta(en b% the bui der o! the mi . 0ermination, the #ower o! the winds, ma'netic attraction, stream #ressure-a these thin's are certain % !ree o! char'e, and that is wh% the "a ue o! the soc(s is so ow. As !or the combined #ains ta(en b% the # anter, the sai ma(er, the com#ass-ma(er, the shi#bui der, the sai or, the manu!acturer, the businessman, the% are distributed, or rather, in so !ar as ca#ita is concerned in the o#eration, the interest on them is distributed, o"er count ess #urchasers o! soc(s< and that is wh% the amount o! abor #er!ormed b% each one o! them in return !or the soc(s is so sma . E.5F &ru %, modern re!ormers, when 7 see %ou tr%in' to re# ace this admirab e order b% a contri"ance o! %our own in"ention, there are two thin's (or rather two as#ects o! the same thin') that utter % con!ound me: %our ac( o! !aith in /ro"idence and %our 'reat !aith in %ourse "es< %our i'norance and %our arro'ance.

-------------------------------------------------------------------------------E.A0 7t is c ear !rom the !ore'oin' ana %sis that the #ro'ress o! humanit% coincides with the ra#id !ormation o! ca#ita < !or, when new ca#ita is created, obstac es that once were surmounted b% abor, that is, onerous %, are now o"ercome b% Bature, without e!!ort< and this is done, be it noted, not to the #ro!it o! the ca#ita ists, but to the #ro!it o! the communit%. E.A1 &his bein' the case, it is the #aramount interest o! a men (!rom the economic #oint o! "iew, o! course) that the ra#id !ormation o! ca#ita be encoura'ed. But ca#ita increases o! its own accord, s#ontaneous %, so to s#ea(, under the tri# e in! uence o! a d%namic societ%, !ru'a it%, and securit%. >e can hard % e?ert direct action on the ener'% and !ru'a it% o! our !e ow men, e?ce#t throu'h #ub ic o#inion, throu'h an inte i'ent

1E5 e?#ression o! our i(es and our dis i(es. But we can do a 'reat dea !or the creation o! securit%, without which ca#ita , !ar !rom e?#andin', 'oes into hidin', ta(es ! i'ht, or is destro%ed< and conseCuent % we see how a most suicida is the ardor !or disturbin' the #ub ic #eace that the wor(in' c asses sometimes dis# a%. &he% must earn that ca#ita has !rom the be'innin' o! time wor(ed to !ree men !rom the %o(e o! i'norance, want, and t%rann%. &o !ri'hten awa% ca#ita is to ri"et a tri# e chain around the arms o! the human race. E.A8 &he "ires acCuirit eundo #ara e is com# ete % a## icab e to ca#ita and the bene!icia in! uence it e?erts. &he creation o! new ca#ita a wa%s and necessari % re eases both abor and the resources !or #a%in' abor and ma(es them a"ai ab e !or other enter#rises. 3a#ita , there!ore, contains within itse ! a stron' #ro'ressi"e tendenc%-somethin' i(e the aws o! momentum. And this is a !urther ar'ument that can be used a'ainst the "er% di!!erent (ind o! #ro'ressi"e tendenc% that +a thus notes, a thou'h #o itica economists, to m% (now ed'e, ha"e ne' ected it unti now. But this is a harmon% that cannot be de"e o#ed here. >e reser"e it !or the cha#ter on #o#u ation. E.A9 7 must arm the reader in ad"ance a'ainst a s#ecious ob.ection. 7! the !unction o! ca#ita , it wi be said, is to ha"e Bature #er!orm what was hitherto #er!ormed b% human abor, re'ard ess o! the 'ood it brin's to humanit% as a who e, it must be harm!u to the wor(in' c asses, es#ecia % those who i"e on wa'es< !or an%thin' that adds to the number o! em# o%ab e wor(ers increases their com#etition !or .obs, and this is doubt ess the secret reason !or the #ro etarians; hosti it% to ca#ita ists. 7! this ob.ection were we !ounded, there wou d indeed be a discordant note in the socia harmon%. E.A$ &he misconce#tion here in"o "ed consists in osin' si'ht o! this truth: For e"er% amount o! human e!!ort that ca#ita re eases as it e?tends its o#erations, it i(ewise ma(es a"ai ab e a corres#ondin' amount o! mone% !or wa'es, so that these two e ements meet and com# ement each other. )abor is not made #ermanent % id e< when re# aced in one s#ecia cate'or% b% 'ratuitous ener'%, it turns its attac( a'ainst other obstac es on the main road to #ro'ress, a the more sure % because its remuneration is a read% a"ai ab e within the communit%. E.A5 And there!ore, returnin' to the i ustration 'i"en abo"e, we can readi % see that the #rice o! soc(s ( i(e the #rice o! boo(s, trans#ortation, and e"er%thin' e se) 'oes down, under the in! uence o! ca#ita , on % b% ea"in' a #art o! the !ormer #rice in the hands o! the #urchaser. &his is so ob"ious that e"en to state it is a most chi dish % redundant< the wor(er who now #a%s two !rancs !or what used to cost si? has, there!ore, !our !rancs e!t o"er. Bow this is the e?act #ro#ortion o! human abor that has been re# aced b% the !orces o! Bature. &hese !orces are, there!ore, a #ure and sim# e 'ain, and the ratio between abor and a"ai ab e remuneration has not been a tered at a . 7 ma(e bo d to remind the reader that the answer to this ob.ection was a read% 'i"enGG90 when, as we

1EA were stud%in' man in iso ation, or e se sti de#endent on the #rimiti"e aw o! barter, 7 #ut the reader on his 'uard a'ainst the wides#read !a ac% that 7 am now attem#tin' to re!ute. E.AA )et us, there!ore, ha"e no Cua ms about a owin' ca#ita to !orm and increase in accord with its own tendencies and those o! the human heart. )et us not ima'ine that, when the ru''ed wor(man sa"es !or his o d a'e, when the !ather # ans a career !or his son or a dowr% !or his dau'hter, b% thus e?ercisin' man;s nob e !acu t% o! !oresi'ht the% are .eo#ardi1in' the 'enera we !are. 2uch wou d be the case, #ri"ate "irtues wou d indeed be anta'onistic to the #ub ic wea , i! the interests o! ca#ita and abor were incom#atib e. E.AE >e must rea i1e that humanit% is !ar !rom bein' sub.ect to this contradiction, rather, this im#ossibi it% (!or how can we concei"e o! the constant deterioration o! the who e resu tin' !rom the constant im#ro"ement o! a its #artsK)< that, on the contrar%, /ro"idence, in its .ustice and 'oodness, has assi'ned, a on' the #ath o! #ro'ress, a !iner ro e to abor than to ca#ita , more e!!ecti"e incenti"es, more 'enerous com#ensations to him who now contributes the sweat o! his brow, than to him who i"es b% the sweat and toi o! his !athers. E.A8 &here!ore, ha"in' estab ished that e"er% increase in ca#ita is necessari % accom#anied b% an increase in the 'enera we !are, 7 "enture to #resent as incontro"ertib e the !o owin' a?iom re atin' to the distribution o! this #ros#erit%: E.AF As ca#ita increases, the ca#ita ists; abso ute share in the tota #roduction increases and their re ati"e share decreases. =n the other hand, the wor(ers; share increases both re ati"e % and abso ute %. E.E0 7 can e?#ress m% thou'ht more c ear % with !i'ures. E.E1 )et us re#resent societ%;s tota #roduction at successi"e #eriods in its histor% b% the numbers 1,000, 8,000, 9,000, $,000, etc. E.E8 7 state that ca#ita ;s share wi dro# successi"e % !rom 50T to $0T, to 95T, to 90T, and abor;s share wi conseCuent % rise !rom 50T to A0T, to A5T, to E0T< but in such a wa% that ca#ita ;s abso ute share at each #eriod wi be ar'er, a thou'h its re ati"e share wi be sma er. E.E9 &hus, the distribution wi be made in the !o owin' manner:

1EE 4istribution o! 2hares o! 7ncreased /roduction -------------------------------------------------------------------------------&ota /roduction 3a#ita ;s 2hare )abor;s 2hare First #eriod 1,000 500 500 2econd #eriod 8,000 800 1,800 &hird #eriod 9,000 1,050 1,F50 Fourth #eriod $,000 1,800 8,800 E.E5 2uch is the 'reat, admirab e, reassurin', necessar%, and in"ariab e aw o! ca#ita . B% #ro"in' it, it seems to me, we can utter % discredit those rantin's that ha"e been dinned into our ears !or so on' a'ainst the 'reed, the t%rann%, o! the most #ower!u instrument !or ci"i i1ation and eCua it% that has e"er been concei"ed. E.EA &his #roo! is di"ided into two #arts. First, we must #ro"e that ca#ita ;s re ati"e share does constant % decrease. E.EE &his wi not ta(e on', !or it amounts to sa%in': &he more # enti!u ca#ita is, the ower its interest rate. Bow, this #oint is not o#en to Cuestion, nor has it been Cuestioned. 7t not on % can be e?# ained scienti!ica %< it is se !-e"ident. E"en the most unorthodo? schoo s o! thou'ht admit it< in !act, the schoo that has s#eci!ica % set itse ! u# as the enem% o! what it ca s diabo ica ca#ita ma(es this !act the basis o! its theor%< since, !rom the e"ident !act o! the dec ine in the rate o! interest, it conc udes that ca#ita is ine"itab % doomed. For, this schoo sa%s, since its e?tinction is ine"itab e, since it is sure to ha##en within a certain #eriod o! time, since this da% wi usher in the rei'n o! una o%ed b iss, we must hasten and encoura'e its comin'. &his is not the # ace to re!ute these theories and their im# ications. 7 ca attention on % to the !act that a schoo s o! thou'hteconomists, socia ists, e'a itarians, and others-admit that, in the natura order o! societ%, interest rates do indeed 'o down as ca#ita increases. And e"en i! the% chose not to admit it, the !act wou d not be the ess certain< !or it is su##orted b% the authorit% o! the who e o! human e?#erience, and the acCuiescence, #erha#s in"o untar%, o! a the ca#ita ists in the wor d. 7t is a !act that the interest rate is ower in 2#ain than in +e?ico, in France than in 2#ain, in En' and than in France, and in Ho and than in En' and. Bow, when interest 'oes down !rom 80T to 15T, then to 10T, to 8T, to AT, to $UT, to $T, to 9UT, to 9T, what does this !act ha"e to do with the Cuestion be!ore usK 7t means that ca#ita , !or its contribution, throu'h industr%, to the 'enera #ros#erit%, is content with, or i! %ou #re!er, is !orced to be content with, a share that becomes increasin' % sma er as more ca#ita is accumu ated. 4id ca#ita once recei"e a third o! the "a ue o! wheat, homes, inen, shi#s, cana sK 7n other words, when these thin's were so d, did one-third 'o to the ca#ita ists and two-thirds to the wor(ersK )itt e b% itt e the ca#ita ists recei"e on % a !ourth, a !i!th,

1E8 a si?th< their re ati"e share is constant % decreasin'< the wor(ers; share is risin' #ro#ortionate %, and thus the !irst #art o! m% demonstration is #ro"ed. E.E8 7t remains !or me to #ro"e that ca#ita ;s abso ute share constant % increases. 7t is true enou'h that interest rates tend to 'o down. But when and wh%K >hen and because ca#ita increases. 7t is, there!ore, entire % #ossib e !or the tota accumu ation o! ca#ita to increase, but !or the #ercenta'e to decrease. A man has more income with 800,000 !rancs at $T than with 100,000 !rancs at 5T, e"en thou'h, in the !irst case, he char'es ess !or the use o! his ca#ita . &he same thin' ho ds true !or a nation and !or a humanit%. Bow, 7 maintain that the #ercenta'e, in its tendenc% to dec ine, cannot and must not be reduced so ra#id % that the sum tota o! interest #aid is sma er when ca#ita is # enti!u than when it is scarce. 7 readi % admit that i! the ca#ita o! man(ind is re#resented b% 100 and the interest rate at 5, this rate wi not be more than $ when ca#ita reaches 800. Here we see that the two e!!ects are #roduced simu taneous %: a sma er re ati"e share, a ar'er abso ute share. But, on the same h%#othesis, 7 re!use to admit that the increase in ca#ita !rom 100 to 800 can cause the interest rate to !a !rom 5T to 8T, !or e?am# e. For, i! such were the case, the ca#ita ist who had 5,000 !rancs o! income on 100,000 !rancs o! ca#ita wou d now ha"e on % $,000 !rancs o! income on 800,000 !rancs-a contradictor% and im#ossib e resu t, a stran'e anoma % that wou d be corrected b% the sim# est and east #ain!u remed% ima'inab e< !or in order to raise his income, the ca#ita ist wou d need on % to waste ha ! o! his ca#ita . 2tran'e and ha##% a'e when we cou d become rich b% #au#eri1in' ourse "esJ E.EF >e must, there!ore, not ose si'ht o! the !act that the combined action o! these two corre ated #henomena-increase o! ca#ita , owerin' o! the rate o! interest-ta(es # ace necessari % in such a wa% that the tota #roduct constant % rises. E.80 And, it ma% be remar(ed in #assin', this !act destro%s utter % and abso ute % the !a ac% o! those who ima'ine that, because the interest rate !a s, it e"entua % wi disa##ear entire %. &he resu t o! this wou d be that the time wou d come when ca#ita wou d be accumu ated in such Cuantities that it wou d %ie d no return to its owners. )et us reassure ourse "es< be!ore that time comes, the owners o! ca#ita wi be Cuic( to dissi#ate it in order to restore their income. E.81 &his, then, is the 'reat aw o! ca#ita and abor, in so !ar as it re ates to their sharin' o! what the% #roduce .oint %. Each one has a ar'er and ar'er abso ute share, but ca#ita ;s #ro#ortiona share constant % decreases as com#ared with that o! abor. E.88 &here!ore, ca#ita ists and wor(ers, cease oo(in' at one another with en"% and distrust. 2hut %our ears to those absurd tirades, as "ain as the% are i'norant, which, under #retence o! brother % o"e in the !uture, be'in b% sowin' the seeds o! discord in the #resent.

1EF ,eco'ni1e that %our interests are common, identica < that, whate"er ma% be said to the contrar%, the% mer'e, the% wor( to'ether !or the common 'ood< that the toi and sweat o! our 'eneration min' e with the toi and sweat o! 'enerations 'one b%. ,eco'ni1e too, that some amount o! remuneration must indeed 'o to a those who ha"e #artici#ated in the tas(, and that the most inte i'ent as we as the most eCuitab e s%stem o! distribution is in o#eration amon' %ou, than(s to the wisdom o! the aws o! /ro"idence, in a s%stem o! !ree and "o untar% transactions. )et no #arasitica sentimenta ists im#ose their decrees u#on %ou to the #eri o! %our #h%sica we -bein', %our ibert%, %our securit%, and %our se !res#ect.

-------------------------------------------------------------------------------E.89 3a#ita has its roots in three attributes o! man: !oresi'ht, inte i'ence, and thri!t. For him to reso "e to a% aside ca#ita !unds, he must, in !act, antici#ate the needs o! the !uture, sacri!ice the #resent !or them, e?ercise contro o"er himse ! and his a##etites, resist not on % the a urements o! the # easures o! the moment, but a so the #ric(in's o! his "anit% and the whims o! #ub ic o#inion, which is a wa%s so indu 'ent toward the i'ht-minded and the e?tra"a'ant. He must a so in( cause and e!!ect in order to (now b% what means and b% what too s Bature wi become doci e and wi submit to the wor( o! #roduction. Abo"e a , he must be mo"ed b% a sense o! !ami % de"otion, so that he wi not draw bac( be!ore the sacri!ices whose bene!its wi be en.o%ed b% his o"ed ones when he is no more. &o accumu ate ca#ita is to #ro"ide !or the subsistence, the #rotection, the she ter, the eisure, the education, the inde#endence, the di'nit% o! 'enerations to come. Bone o! this can be done without #uttin' into #ractice a our most socia "irtues, and, what is harder, without ma(in' them our dai % habit. E.8$ 7t is Cuite common, howe"er, to attribute to ca#ita a (ind o! dead % e!!icienc% that wou d im# ant se !ishness, hardness, and +achia"e ian du# icit% in the hearts o! those who #ossess it or as#ire to #ossess it. But is this not con!used thin(in'K &here are countries where abor is main % !ruit ess. &he itt e that is earned must Cuic( % 'o !or ta?es. 7n order to ta(e !rom %ou the !ruit o! %our abor, what is ca ed the state oads %ou with !etters o! a (inds. 7t inter!eres in a %our acti"ities< it medd es in a %our dea in's< it t%ranni1es o"er %our understandin' and %our !aith< it de! ects #eo# e !rom their natura #ursuits and # aces them a in #recarious and unnatura #ositions< it #ara %1es the acti"ities and the ener'ies o! the indi"idua b% ta(in' u#on itse ! the direction o! a thin's< it # aces res#onsibi it% !or what is done u#on those who are not res#onsib e, so that itt e b% itt e the distinction between what is .ust and what is un.ust becomes b urred< it embroi s the nation, throu'h its di# omac%, in a the #ett% Cuarre s o! the wor d, and then it brin's in the arm% and the na"%< as much as it can, it #er"erts the inte i'ence o! the masses on economic Cuestions, !or it needs to ma(e them be ie"e that its e?tra"a'ances, its un.ust

180 a''ressions, its conCuests, its co onies, re#resent a source o! wea th !or them. 7n these countries it is di!!icu t !or ca#ita to be accumu ated in natura wa%s. &heir aim, abo"e a , is b% !orce and b% 'ui e to wrest ca#ita !rom those who ha"e created it. &he wa% to wea th there is throu'h war, bureaucrac%, 'amb in', 'o"ernment contracts, s#ecu ation, !raudu ent transactions, ris(% enter#rises, #ub ic sa es, etc. &he Cua ities needed to snatch ca#ita "io ent % !rom the hands o! the men who create it are e?act % the o##osite o! the Cua ities that are necessar% !or its creation. 7t is not sur#risin', there!ore, that in these countries ca#ita connotes ruth ess se !ishness< and this connotation becomes ineradicab e i! the mora .ud'ments o! the nation are deri"ed !rom the histor% o! antiCuit% and the +idd e A'es. E.85 But when we turn our attention, not to the "io ent and !raudu ent sei1ure o! ca#ita , but to its creation b% inte i'ence, !oresi'ht, and thri!t, we cannot !ai to see that its acCuisition b% these means is a bene!it !or societ% and an aid to mora it%. E.8A Bo ess bene!icia , socia % and mora %, than the !ormation o! ca#ita is its action. 7ts e!!ect is to harness Bature< to s#are man a that is most #h%sica , bac(brea(in', and brutish in the wor( o! #roduction< to ma(e mind master o"er matter< to #ro"ide more and more, 7 do not sa% id eness, but eisure< to ma(e our most #ure % #h%sica wants ess im#erious b% renderin' their satis!action easier< to re# ace them with # easures o! a hi'her order, more de icate, more re!ined, more aesthetic, more s#iritua . E.8E &hus, no matter what our #oint o! "iew, whether we consider ca#ita in its re ation to our wants, which it ennob es< to our satis!actions, which it re!ines< to Bature, which it tames !or us< to mora it%, which it ma(es habitua in us< to our socia consciousness, which it de"e o#s< to eCua it%, which it !osters< to ibert%, which is its i!e-b ood< to .ustice, which it 'uarantees b% the most in'enious methods< we sha #ercei"e a wa%s and e"er%where (#ro"ided on % that it be created and #ut to wor( in a socia order that has not been di"erted !rom its natura course) that ca#ita bears that sea and ha mar( o! a the 'reat aws o! /ro"idence: harmon%. E.88 3ha#ter 8 /ri"ate /ro#ert% and 3ommon >ea th >hi e !ree % 'rantin' to the and, to the !orces o! Bature, and to the too s o! #roduction what is their .ust due-the #ower o! creatin' uti it%-7 ha"e ta(en #ains to de#ri"e them o! what has been attributed erroneous % to them-the !acu t% o! creatin' "a ue-since this !acu t% resides e?c usi"e % in the ser"ices that men #er!orm !or one another throu'h e?chan'e.


8.1 &his sim# e correction wi at one and the same time stren'then the ro e o! #ro#ert% b% rede!inin' it accordin' to its true character and wi re"ea to #o itica economists a !act o! the 'reatest im#ortance, which, i! 7 am not mista(en, the% sti ha"e not noticed, name %, that o! common ownershi#, constitutin' a rea , essentia , and #ro'ressi"e % increasin' communa domain, which de"e o#s #ro"identia % in an% socia order that is 'uided b% the #rinci# es o! ibert%. 7ts mani!est destin% is to ead a men, as brothers, !rom their state o! ori'ina eCua it%, the eCua it% o! #ri"ation, want, and i'norance, toward u timate eCua it% in the #ossession o! #ros#erit% and truth. 8.8 7! this basic distinction between the uti it% o! thin's and the "a ue o! ser"ices is sound in #rinci# e as we as in the conseCuences 7 ha"e deduced !rom it, its si'ni!icance cannot be misunderstood< !or it means that the #romise o! uto#ia !a s within the sco#e o! #o itica econom%, and that a con! ictin' schoo s o! thou'ht wi be reconci ed in a common !aith, to the com# ete satis!action o! a minds and o! a hearts. 8.9 +en o! #ro#ert% and o! eisure, howe"er hi'h on the socia sca e %our achie"ements, %our honest%, %our se !-contro , %our thri!t, ma% ha"e carried %ou, %ou are sti stran'e % disturbed. >h%K Because the sweet-sme in' but dead % #er!ume o! uto#ia threatens %our wa% o! i!e. &here are men who sa%, who rant, that the com#etenc% %ou ha"e aid aside !or the Cuiet o! %our o d a'e, !or %our dai % bread, !or the education and the !uture o! %our chi dren, has been acCuired at the e?#ense o! %our brethren. &he% sa% that %ou ha"e stood between 0od and His 'i!ts to the #oor< that, i(e the 'reed% #ub icans o! o d, %ou ha"e e?acted a tribute on these 'i!ts in the name o! #ro#ert%, o! interest, o! rent, and hire. &he% ca u#on %ou to ma(e restitution. &o add to %our disma%, on % too o!ten %our own ad"ocates ma(e this im# icit admission in comin' to %our de!ense: &he usur#ation is indeed ! a'rant, but it is necessar%. 8.$ But 7 sa%, no, %ou ha"e not misa##ro#riated the 'i!ts o! 0od. Lou ha"e recei"ed them 'ratis !rom the hand o! Bature, it is true< but %ou ha"e a so #assed them on 'ratis to %our !e ow men and ha"e withhe d nothin'. &he% ha"e acted simi ar % toward %ou, and a that has #assed between %ou has been com#ensation !or menta or #h%sica e!!ort, !or sweat and toi e?#ended, !or dan'ers !aced, !or s(i s contributed, !or sacri!ices made, !or #ains ta(en, !or ser"ices rendered and recei"ed. Lou thou'ht on % o! %ourse "es, #erha#s, but e"en %our own se !-interest has become in the hands o! an in!inite % wise and a -seein' /ro"idence an instrument !or ma(in' 'reater abundance a"ai ab e to a men< !or, had it not been !or %our e!!orts, a the use!u e!!ects that Bature at %our command has transmitted without #a%ment amon' men wou d ha"e remained eterna % dormant. 7 sa%, without #a%ment< !or the #a%ment %ou recei"ed was on % the sim# e return to %ou o! the e!!orts %ou had e?#ended, and not at a a #rice e"ied on the 'i!ts o! 0od. )i"e, then, in #eace, without !ear and without Cua ms. Lou ha"e no other #ro#ert% in the wor d sa"e %our c aim to ser"ices due %ou !or ser"ices that %ou ha"e !air % rendered, and that %our

188 !e ow men ha"e "o untari % acce#ted. &his #ro#ert% o! %ours is e'itimate, unassai ab e< no uto#ia can #re"ai a'ainst it, !or it is #art and #arce o! our "er% nature. Bo new ideo o'% wi e"er sha(e its !oundations or wither its roots. 8.5 +en o! toi and hardshi#, %ou can ne"er shut %our e%es to this truth: that the startin' #oint !or the human race was a state o! com# ete communit%, a #er!ect eCua it% o! #o"ert%, want, and i'norance. B% the sweat o! its brow humanit% is re'enerated and directs its course toward another state o! communit%, one in which the 'i!ts o! 0od are obtained and shared at the cost o! ess and ess e!!ort< toward eCua it% o! another (ind, the eCua it% o! we -bein', o! en i'htenment, o! mora di'nit%. &o be sure, men;s ste#s a on' this road to a better and better i!e are not a o! eCua en'th, and to the de'ree that the ra#id strides o! the ad"ance 'uard mi'ht im#ede %our own, %ou wou d ha"e .ust cause !or com# aint. But the contrar% is the case. Bo s#ar( o! (now ed'e i umines another;s mind without castin' some sma ' eam o! i'ht u#on %our own< no #ro'ress is achie"ed b% others, #rom#ted b% the desire !or #ro#ert%, that does not contribute to %our #ro'ress< no wea th is created that does not wor( !or %our iberation, no ca#ita that does not increase %our en.o%ments and diminish %our toi , no #ro#ert% acCuired that does not ma(e it easier !or %ou to acCuire #ro#ert%, no #ro#ert% created that is not destined to increase the abundance shared b% a men. &he socia order has been so art!u % desi'ned b% the 4i"ine Arti!icer that those who ha"e mo"ed !arthest ahead a on' the road to #ro'ress e?tend a he #in' hand, wittin' % or unwittin' %< !or He has so contri"ed that no man can honest % wor( !or himse ! without at the same time wor(in' !or a . 7t is strict % accurate to sa% that an% attac( u#on this mar"e ous order wou d be on %our #art not on % an act o! homicide, but o! suicide as we . &he who e o! man(ind constitutes a remar(ab e chain wherein, miracu ous %, motion im#arted to the !irst in( is communicated with e"er increasin' s#eed ri'ht u# to the ast. 8.A +en o! 'ood wi , o"ers o! eCua it%, b ind de!enders and dan'erous !riends o! a who su!!er, who a' behind on the road to ci"i i1ation, %ou who see( to estab ish the state o! communit% in this wor d, wh% do %ou be'in b% unsett in' men;s minds and natura interestsK >h%, in %our #ride, do %ou as#ire to bend a wi s to the %o(e o! %our socia in"entionsK 4o %ou not see that this communit% !or which %ou %earn so ardent %, and which is to e?tend the (in'dom o! 0od o"er the who e wor d, has a read% been concei"ed and #ro"ided !or b% 0od Himse !< that He has not awaited %our comin' to ma(e it the herita'e o! His chi dren< that He does not need %our in"entions or %our acts o! "io ence< that e"er% da% His admirab e decrees ma(e it more and more a rea it%< that He has not turned !or 'uidance to the uncertainties o! %our chi dish ma(eshi!ts nor e"en to the increasin' e?#ression o! a truism mani!ested b% acts o! charit%, but has entrusted the accom# ishment o! His # ans to the most acti"e, the most #ersona , the most endurin' o! our ener'ies, our own se !-interest, con!ident that it is e"er a ertK 2tud%, there!ore, the machiner% o! societ%, as it came !rom the hands o! the 0reat Arti!icer, and %ou wi be con"inced that He e"idences a concern !or a men that 'oes !ar be%ond %our dreams and !antasies. &hen, #erha#s, instead o! #ro#osin' to redo the di"ine handiwor(, %ou wi be content to #a% it homa'e.


8.E &his does not mean that there is no room in the wor d !or re!orms or re!ormers. Bor does it mean that humanit% must not ea'er % recruit and 'enerous % encoura'e de"oted researchers and scho ars, o%a to the cause o! democrac%. &he% are sti most necessar%, not to sub"ert the aw o! societ%, but, on the contrar%, to o##ose the arti!icia obstac es that disturb and #er"ert its natura action. &ru %, it is di!!icu t to understand how #eo# e can continue to re#eat such trite statements as this: 5/o itica econom% is "er% o#timistic toward accom# ished !act< it a!!irms that whate"er is, is ri'ht< whether con!ronted with e"i or with 'ood, it is content to sa% aisse1 !aire.5 4o the% im# % that we do not (now that humanit% be'an in com# ete want and i'norance, and under the ru e o! brute !orce, or that we are o#timists concernin' accom# ished !acts such as theseK 4o the% su''est that we do not (now that the moti"e !orce o! human nature is a"ersion to a #ain, a drud'er%< and that, since abor is drud'er%, the !irst mani!estation o! se !-interest was the e!!ort to #ass this #ain!u burden a on' !rom one to anotherK 4o the% mean to sa% that the words 5canniba ism,5 5war,5 5s a"er%,5 5#ri"i e'e,5 5mono#o %,5 5!raud,5 5# under,5 5im#osture,5 ha"e ne"er reached our ears, or that we see in these abominations the ine"itab e rumb in's o! the machine on the road to #ro'ressK But are not the% themse "es to some e?tent wi !u % con!usin' the issue in order to accuse us o! con!used thin(in'K >hen we admire the #ro"identia aws that 'o"ern men;s transactions, when we sa% that the se !-interest o! e"er% man coincides with that o! e"er% other man, when we conc ude that the natura direction o! these coincident interests tends to achie"e re ati"e eCua it% and 'enera #ro'ress< ob"ious % it is !rom the o#eration o! these aws, not !rom inter!erence with their o#eration, that we antici#ate harmon%. >hen we sa%, aisse1 !aire, ob"ious % we mean: A ow these aws to o#erate< and not: A ow the o#eration o! these aws to be inter!ered with. Accordin' as these aws are con!ormed to or "io ated, 'ood or e"i is #roduced. 7n other words, men;s interests are harmonious, #ro"ided e"er% man remains within his ri'hts, #ro"ided ser"ices are e?chan'ed !ree %, "o untari %, !or ser"ices. But does this mean that we are unaware o! the #er#etua stru'' e between the wron' and the ri'htK 4oes this mean that we do not see, or that we a##ro"e, the e!!orts made in a #ast a'es, and sti made toda%, to u#set, b% !orce or b% !raud, the natura eCui"a ence o! ser"icesK &hese are the "er% thin's that we re.ect as breaches o! the socia aws o! /ro"idence, as attac(s a'ainst the #rinci# e o! #ro#ert%< !or, in our e%es, !ree e?chan'e o! ser"ices, .ustice, #ro#ert%, ibert%, securit%, are a mere % di!!erent as#ects o! the same basic conce#t. 7t is not the #rinci# e o! #ro#ert% that must be attac(ed, but, on the contrar%, the #rinci# e hosti e to it, the #rinci# e o! s#o iation and # under. +en o! #ro#ert% o! a ran(s, re!ormers o! a schoo s, this is the mission that must reconci e us and unite us. 8.8 7t is time, it is hi'h time, that this crusade shou d be'in. &he ideo o'ica war now bein' wa'ed a'ainst #ro#ert% is neither the most bitter nor the most dan'erous that it has had to contend with. 2ince the be'innin' o! the wor d there has a so been a rea war o! "io ence and cons#irac% wa'ed a'ainst it that 'i"es no si'n o! abatin'. >ar, s a"er%, im#osture, ineCuitab e ta?ation, mono#o %, #ri"i e'e, unethica #ractices, co onia ism, the ri'ht to em# o%ment, the ri'ht to credit, the ri'ht to education, the ri'ht to #ub ic aid, #ro'ressi"e

18$ ta?ation in direct or in"erse ratio to the abi it% to #a%-a are so man% batterin'-rams #oundin' a'ainst the totterin' co umn. 3ou d an%one assure me whether there are man% men in France, e"en amon' those who consider themse "es conser"ati"es, who do not, in one !orm or another, end a hand to this wor( o! destructionK 8.F &here are #eo# e in whose e%es #ro#ert% a##ears on % in the !orm o! a # ot o! and or a sac( o! coins. /ro"ided on % that the and;s sacrosanct boundaries are not mo"ed and that #oc(ets are not itera % #ic(ed, the% are Cuite content. But is there not a so #ro#ert% in men;s abor, in their !acu ties, in their ideas-in a word, is there not #ro#ert% in ser"icesK >hen 7 throw a ser"ice into the socia sca e, is it not m% ri'ht that it remain there, sus#ended, i! 7 ma% so e?#ress m%se !, unti , accordin' to the aws o! its own natura eCui"a ence, it can be met and counterba anced b% another ser"ice that someone is wi in' to tender me in e?chan'eK B% common consent we ha"e instituted !orces o! aw and order to #rotect #ro#ert%, so understood. >here are we, then, i! these "er% !orces ta(e it u#on themse "es to u#set this natura ba ance, under the socia istic #rete?t that !reedom be'ets mono#o %, that aisse1 !aire is hate!u and merci essK >hen thin's reach such a #ass, the!t b% an indi"idua ma% be rare and se"ere % dea t with, but # under is or'ani1ed, e'a i1ed, and s%stemati1ed. ,e!ormers, be o! 'ood cheer< %our wor( is not %et done< on % tr% to understand what it rea % is.

-------------------------------------------------------------------------------8.10 But, be!ore we #roceed to the ana %sis o! # under, #ub ic or #ri"ate, e'a or i e'a , its ro e in the wor d, the e?tent to which it is a socia #rob em, we must, i! #ossib e, come to a c ear understandin' o! what the communa domain and #ri"ate #ro#ert% are< !or as we sha see, #ri"ate #ro#ert% is bounded on one side b% # under e"en as it is bounded on the other b% the communa domain. 8.11 From what has been said in #re"ious cha#ters, notab % the one on uti it% and "a ue, we ma% deduce this !ormu a: 8.18 E"er% man en.o%s 'ratis a uti ities !urnished or #roduced b% Bature on condition that he ta(e the #ains to a"ai himse ! o! them, or that he #a% with an eCui"a ent ser"ice those who render him the ser"ice o! ta(in' #ains !or him. 8.19 7n this !ormu a two e ements are combined and !used to'ether, a thou'h the% are essentia % distinct.


8.1$ &here are, !irst, the 'i!ts o! Bature: 'ratuitous raw materia s and 'ratuitous !orces< these constitute the communa domain. 8.15 7n addition, there are the human e!!orts that 'o into ma(in' these materia s a"ai ab e, into directin' these !orces-e!!orts that are e?chan'ed, e"a uated, and #aid !or< these constitute the domain o! #ri"ate #ro#ert%. 8.1A 7n other words, in our re ations with one another, we are not owners o! the uti it% o! thin's, but o! their "a ue, and "a ue is the a##raisa made o! reci#roca ser"ices. 8.1E /ri"ate #ro#ert% and the communa domain are two corre ati"e ideas !ounded, res#ecti"e %, on those o! e!!ort and !reedom !rom e!!ort. 8.18 >hat is !ree o! e!!ort is he d in common, !or a men en.o% it and are #ermitted to en.o% it unconditiona %. 8.1F >hat is acCuired b% e!!ort is #ri"ate #ro#ert%, because ta(in' #ains is #rereCuisite to its satis!action, .ust as the satis!action is the reason !or ta(in' the #ains. 8.80 7! e?chan'e inter"enes, it is e!!ected b% the e"a uation o! two sets o! #ains ta(en, or two ser"ices rendered. 8.81 &his recourse to #ains im# ies the idea o! an obstac e. >e ma% then sa% that the resu t sou'ht comes c oser and c oser to the condition o! bein' 'ratis and common to a in #ro#ortion as the inter"enin' obstac e is reduced, since, accordin' to our #remise, the com# ete absence o! obstac es wou d im# % a condition o! bein' com# ete % 'ratis and common to a . 8.88 Bow, since human nature is d%namic in its dri"e toward #ro'ress and #er!ection, an obstac e can ne"er be considered as a !i?ed and abso ute Cuantit%. 7t is reduced. Hence, the #ains it entai s are reduced a on' with it, and the ser"ice a on' with the #ains, and the "a ue a on' with the ser"ice, and the #ro#ert% with the "a ue. 8.89 But the uti it% remains constant. Hence, what is !ree o! char'e and common to a is increased at the e?#ense o! what !ormer % reCuired e!!ort and was #ri"ate #ro#ert%.


8.8$ &o set man to wor(, a moti"e is necessar%< and that moti"e is the satis!action aimed at, or uti it%. 7t cannot be denied that he tends a wa%s and irresistib % to achie"e the 'reatest #ossib e satis!action with the east #ossib e amount o! wor(, that is, to ma(e the 'reatest amount o! uti it% corres#ond with the east amount o! #ro#ert%< conseCuent %, the !unction o! #ro#ert%, or rather o! the s#irit o! #ro#ert%, is continua % to en ar'e the communa domain. 8.85 2ince the human race started !rom the #oint o! 'reatest #o"ert%, that is, !rom the #oint where there were the most obstac es to be o"ercome, it is c ear that a that has been 'ained !rom one era to the ne?t has been due to the s#irit o! #ro#ert%. 8.8A &his bein' the case, can an%one be !ound an%where in the wor d who is hosti e to the idea o! #ro#ert%K 4oes not e"er%one see that it is im#ossib e to ima'ine a !orce in societ% that is at once more .ust and more democraticK &he !undamenta do'ma o! /roudhon himse ! is mutua it% o! ser"ices. =n this #oint we are in a'reement. &he #oint on which we di!!er is this: 7 ca this do'ma #ro#ert%, not mutua it% o! ser"ices, because care!u ana %sis assures me that men, i! the% are !ree, do not and cannot ha"e an% other #ro#ert% than the ownershi# o! "a ue, or their ser"ices. /roudhon, on the contrar%, i(e most economists, thin(s that certain natura resources ha"e an intrinsic "a ue o! their own, and that the% are conseCuent % a##ro#riated. But, as !or the idea that ser"ices constitute #ro#ert%, !ar !rom o##osin' it, he ma(es it his main artic e o! !aith. 4oes an%one desire to 'o !urther %etK As !ar as to sa% that a man shou d not be the owner o! the #ains he himse ! ta(es, that, in e?chan'e, it is not enou'h to turn o"er 'ratis the he # recei"ed !rom natura resources, that he must a so surrender 'ratis his own e!!ortsK But et him ta(e careJ &his wou d mean ' ori!%in' s a"er%< !or, to sa% that certain men must render ser"ices that are not #aid !or means that other men must recei"e ser"ices that the% do not #a% !or, which is certain % s a"er%. Bow, i! he sa%s that this 'ratuitous 'i!t must be reci#roca , he is mere % Cuibb in'< !or, either the e?chan'e wi be made with a certain de'ree o! .ustice, in which case the ser"ices wi be in some wa% or other e"a uated and #aid !or< or e se the% wi not be e"a uated and #aid !or, and, in that case, some wi 'i"e much and others itt e, and we are bac( to s a"er%. 8.8E 7t is there!ore im#ossib e to ar'ue a'ainst the idea that ser"ices e?chan'ed on the basis o! "a ue !or "a ue constitute e'itimate #ro#ert%. &o e?# ain that this #ro#ert% is e'itimate, we do not need to ha"e recourse to #hi oso#h% or .uris#rudence or meta#h%sics. 2ocia ists, economists, e'a itarians, be ie"ers in brother % o"e, 7 de!% %ou one and a to raise e"en the shadow o! an ob.ection a'ainst the e'itimac% o! a "o untar% e?chan'e o! ser"ices, and conseCuent % a'ainst #ro#ert%, as 7 ha"e de!ined it, and as it e?ists in the natura order o! societ%. 8.88

18E =! course, 7 (now that in #ractice the idea #rinci# e o! #ro#ert% is !ar !rom ha"in' !u swa%. A'ainst it are con! ictin' !actors: there are ser"ices that are not "o untar%, whose remuneration is not arri"ed at b% !ree bar'ainin'< there are ser"ices whose eCui"a ence is im#aired b% !orce or !raud< in a word, # under e?ists. &he e'itimac% o! the #rinci# e o! #ro#ert% is not thereb% wea(ened, but con!irmed. &he #rinci# e is "io ated< there!ore, it e?ists. >e must cease be ie"in' in an%thin' in this wor d, in !acts, in .ustice, in uni"ersa consent, in human an'ua'e< or e se we must admit that these two words, 5#ro#ert%5 and 5# under,5 e?#ress o##osite, irreconci ab e ideas that can no more be identi!ied than %es and no, i'ht and dar(, 'ood and e"i , harmon% and discord. &a(en itera %, the !amous !ormu a, #ro#ert% is the!t,GE9 is there!ore absurdit% raised to the nth de'ree. 7t wou d be no ess out andish to sa% that the!t is #ro#ert%< that what is e'a is i e'a < that what is, is not, etc. 7t is #robab e that the author o! this bi1arre a#horism mere % desired to catch #eo# e;s attention with a stri(in' #arado?, and that what he rea % meant to state was this: 3ertain men succeed in 'ettin' #aid not on % !or the wor( that the% do but a so !or the wor( that the% do not do, a##ro#riatin' to themse "es a one 0od;s 'i!ts, 'ratuitous uti it%, the common #ossession o! a . But in that case it wou d !irst be necessar% to #ro"e the statement, and then to sa%: &he!t is the!t. 8.8F &o stea , in common usa'e, means to ta(e b% !orce or !raud somethin' o! "a ue to the detriment and without the consent o! the #erson who has created it. 7t is eas% to understand how !a acious economic thin(in' was ab e to e?tend the meanin' o! this me ancho % word, 5stea .5 First, uti it% was con!used with "a ue. &hen, since Bature # a%s a #art in the creation o! uti it%, it was conc uded that Bature a so contributed to the creation o! "a ue, and, it was said, since this #art o! "a ue is the !ruit o! no one;s abor, it be on's to e"er%one. Fina %, notin' that "a ue is ne"er surrendered without com#ensation, the economists added: He stea s who e?acts #a%ment !or "a ue that has been created b% Bature, which is not in an% wa% a #roduct o! human abor, which is inherent in the nature o! thin's and is, b% #ro"identia desi'n, one o! the intrinsic Cua ities o! materia ob.ects, i(e s#eci!ic 'ra"it% or densit%, !orm or co or. 8.90 A care!u ana %sis o! "a ue o"erturns this e aborate structure o! subt eties, !rom which economists sou'ht to deduce a monstrous identi!ication o! # under with #ri"ate #ro#ert%. 8.91 0od #ut raw materia s and the !orces o! Bature at man;s dis#osa . &o 'ain #ossession o! them, either one has to ta(e #ains, or one does not ha"e to ta(e #ains. 7! no #ains are reCuired, no man wi wi in' % consent to bu% !rom another man at the cost o! e!!ort what he can # uc( !rom the hands o! Bature without e!!ort. 7n this case, no ser"ices, e?chan'e, "a ue, or #ro#ert% are #ossib e. 7! #ains must be ta(en, it is incumbent on the one who wou d recei"e the satis!action to ta(e them< hence, the satis!action must 'o to the one who has ta(en the #ains. &his is the #rinci# e o! #ro#ert%. Accordin' %, i! a man ta(es #ains !or his own bene!it, he becomes the owner o! a the combined uti it% created b% his #ains and b% Bature. 7! he ta(es the #ains !or the bene!it o! others, he sti#u ates that he be 'i"en in return a uti it% re#resentin' eCua #ains, and the resu tin' transaction

188 #resents us with two e!!orts, two uti ities that ha"e chan'ed hands, and two satis!actions. But we must not !or'et the im#ortant !act that the transaction is carried out b% the com#arison, b% the e"a uation, not o! two uti ities (the% cannot be e"a uated), but o! the two ser"ices that ha"e been e?chan'ed. 7t is there!ore accurate to sa% that, !rom his own indi"idua #oint o! "iew, man b% his abor becomes the owner o! the natura uti it% (this is the on % reason that he wor(s), whate"er ma% be the ratio (in!inite % "ariab e) o! his abor to the uti it%. But !rom the socia #oint o! @iew, in re'ard to the re ations o! one man with another, men can ne"er be owners o! an%thin' e?ce#t "a ue, which is based, not on the bount% o! Bature, but on human ser"ices, #ains ta(en, ris(s run, resource!u ness dis# a%ed in a"ai in' onese ! o! that bount%< in a word, as !ar as 'ratuitous and natura uti it% is concerned, the ast #erson to acCuire it, the one who u timate % recei"es the satis!action, is # aced, b% wa% o! e?chan'e, in e?act % the #osition o! the !irst wor(er. &he atter ha##ened to come u#on the 'ratuitous uti it% and went to the troub e o! ta(in' #ossession o! it< the u timate consumer remunerates him b% ta(in' an eCui"a ent amount o! #ains !or him in return and thus substitutes his ri'ht o! #ossession !or the ori'ina owner;s< the uti it% becomes his under the same terms, that is to sa%, 'ratis, #ro"ided he ta(es the necessar% #ains. 7n a this there is neither in semb ance nor in !act a usur#ation o! the 'i!ts o! 0od. 8.98 Hence, 7 con!ident % ad"ance this #ro#osition as incontro"ertib e: 8.99 7n their re ation to one another, men are owners on % o! "a ue, and "a ue re#resents on % ser"ices that are com#ared and "o untari % rendered and recei"ed. 8.9$ 7 ha"e a read% shown that, on the one hand, this is the true meanin' o! the word "a ue< and that, on the other, men ne"er are, ne"er can be, owners o! an%thin' e?ce#t "a ue, a conc usion to be drawn !rom o'ic as we as !rom e?#erience. From o'ic: !or wh% shou d 7 bu% !rom a man, usin' m% #ains as #a%ment, what 7 can obtain !rom Bature, either without #ains or with !ewer #ainsK From uni"ersa e?#erience, which is a wei'ht% ar'ument, since nothin' can 'i"e more su##ort to a theor% than the e?#ressed and tacit consent o! a men o! a times and a # aces: now, 7 a!!irm that uni"ersa a'reement acce#ts and a##ro"es the meanin' that 7 'i"e here to the word 5#ro#ert%.5 >hen a #ub ic o!!icia ma(es an in"entor% !o owin' a death, or orders one to be made< when a businessman, a manu!acturer, a !armer, ma(es a simi ar a##raisa on his own initiati"e< or when the recei"ers in a ban(ru#tc% case are reCuested to ma(e one< what is inscribed on the stam#ed #a'es o! the in"entor% as each item is #resentedK 7s it the item;s uti it%, its intrinsic worthK Bo, it is its "a ue< that is, the eCui"a ent amount o! e!!ort that an% #otentia #urchaser wou d ha"e to e?ert in order to obtain a simi ar item. 4o the a##raisers concern themse "es with decidin' whether a 'i"en ob.ect is more use!u than anotherK 4o the% ta(e into account the satis!actions that these ob.ects can 'i"eK 4o the% rate a hammer abo"e a #iece o! bric-a-brac because the hammer can admirab % turn the aw o! 'ra"it% to the ad"anta'e o! its ownerK =r do the% rate a ' ass o! water abo"e a diamond, because, ob.ecti"e % s#ea(in', the water can render more tan'ib e ser"iceK =r a

18F "o ume o! 2a% abo"e a "o ume o! Fourier, because 2a% 'i"es more astin' # easure and so id instructionK Bo< the% e"a uate, the% see( out the "a ue, ri'orous % !o owin', # ease note, m% de!inition. =r rather, m% de!inition !o ows their #ractice. &he% ta(e into account, not the natura ad"anta'es, or the 'ratuitous uti it%, contained in each item, but the ser"ices that an%one acCuirin' it wou d ha"e to #er!orm himse ! or ha"e another #er!orm !or him in order to obtain it. &he% do not a##raise-# ease #ardon the rather ! i# e?#ression-the troub e 0od went to, but the #ains that the #urchaser wou d ha"e to ta(e to obtain it. And when the a##raisa is !inished, when the #ub ic (nows the tota amount o! "a ue isted in the in"entor%, a sa% with one "oice: &his is what the heir owns. 8.95 2ince #ro#ert% inc udes on % "a ue, and since "a ue indicates on % re ationshi#s, it !o ows that #ro#ert% is itse ! a re ation. 8.9A >hen #eo# e, on com#arin' two in"entories, dec are one man to be richer than another, the% do not mean that this com#arison a## ies necessari % to the amounts o! abso ute wea th or materia we -bein' en.o%ed b% the two. 7n satis!actions, in abso ute we -bein', there is an e ement o! common uti it% that can 'reat % a!!ect this ratio. A men, in #oint o! !act, are eCua in their access to the i'ht o! da%, the air the% breathe, the warmth o! the sun< and an% ineCua it% between the two in"entories-e?#ressed b% the di!!erence in #ro#ert% or "a ue-can a## % on % to the amount o! onerous uti it%. 8.9E And so, as 7 ha"e a read% said man% times and sha doubt ess sa% man% times more (!or it is the 'reatest, the most admirab e, and #erha#s the most misunderstood o! a the socia harmonies, since it encom#asses a the others), it is characteristic o! #ro'ress (and, indeed, this is what we mean b% #ro'ress) to trans!orm onerous uti it% into 'ratuitous uti it%< to decrease "a ue without decreasin' uti it%< and to enab e a men, !or !ewer #ains or at sma er cost, to obtain the same satis!actions. &hus, the tota number o! thin's owned in common is constant % increased< and their en.o%ment, distributed more uni!orm % to a , 'radua % e iminates ineCua ities resu tin' !rom di!!erences in the amount o! #ro#ert% owned. 8.98 )et us ne"er wear% o! ana %1in' the resu t o! this socia mechanism.

-------------------------------------------------------------------------------8.9F How man% times, when considerin' the #henomena o! the socia order, ha"e 7 not had cause to a##reciate how #ro!ound % ri'ht ,ousseau was when he said, 57t ta(es a 'reat

1F0 dea o! scienti!ic insi'ht to obser"e what we see e"er% da%5J &hus it is that habit, that "ei which is s#read be!ore the e%es o! the ordinar% man, which e"en the attenti"e obser"er does not a wa%s succeed in castin' aside, #re"ents us !rom seein' the most mar"e ous o! a socia #henomena: rea wea th constant % #assin' !rom the domain o! #ri"ate #ro#ert% into the communa domain. 8.$0 )et us tr%, ne"erthe ess, to estab ish the !act that this democratic e"o ution does ta(e # ace, and, i! #ossib e, to # ot its course. 8.$1 7 ha"e said e sewhere that, i! we wished to com#are two di!!erent eras o! a nation;s histor% !rom the #oint o! "iew o! their actua #ros#erit%, we shou d ha"e to resort to manhours o! uns(i ed abor as our measure, as(in' ourse "es this Cuestion: >hat is the di!!erence in the amount o! satis!action that cou d be obtained in this societ%, at di!!erent sta'es o! its #ro'ress, b% a 'i"en amount, sa% one da%, o! uns(i ed aborK 8.$8 &his Cuestion im# ies two others: 8.$9 >hat was, at the dawn o! ci"i i1ation, the ratio between satis!actions and the sim# est (ind o! aborK 8.$$ >hat is this ratio toda%K 8.$5 &he di!!erence in the two wi measure the increase in 'ratuitous uti it% in re ation to the amount o! onerous uti it%, i.e., the e?tent o! the communa domain in re ation to that o! #ri"ate #ro#ert%. 8.$A 7 do not be ie"e that a man interested in #ub ic a!!airs can a## % himse ! to an% more interestin' or instructi"e #rob em. 7 as( the reader;s indu 'ence i! 7 seem to cite a tedious % on' ist o! e?am# es be!ore reachin' a satis!actor% so ution. 8.$E At the be'innin' o! this boo( 7 made a (ind o! tab e o! the most 'enera human wants: breathin', !ood, c othin', she ter, trans#ortation, education, amusement, etc. 8.$8 )et us !o ow this ist and see what satis!actions a common aborer cou d obtain !or a certain number o! da%s; wor( at the dawn o! societ% and what he can obtain now. 8.$F


Breathin' Here the satis!action is 'ratis and common to a !rom the "er% be'innin'. Bature, ha"in' ta(en care o! e"er%thin', ea"es us nothin' to do. Bo e!!orts, ser"ices, "a ue, #ro#ert%, #ro'ress are #ossib e. From the #oint o! "iew o! uti it%, 4io'enes is as rich as A e?ander< !rom the #oint o! "iew o! "a ue, A e?ander is as #oor as 4io'enes. 8.50 Food 7n the #resent state o! thin's, the "a ue o! a hundred iters o! wheat is worth, in France, !i!teen to twent% da%s o! the most uns(i ed (ind o! abor. &his is a !act and, whether (nown or not, is worth notin'. >e can state, there!ore, that toda% humanit%, as re#resented b% its most bac(ward e ement, the da% aborer, obtains the satis!actions re#resented b% a hundred iters o! wheat !or !i!teen da%s o! the most uns(i ed (ind o! abor. 7t is estimated that it ta(es three hundred iters o! wheat to !eed one man !or a %ear. &he uns(i ed aborer #roduces, there!ore, i! not his actua subsistence, at east (what amounts to the same thin') the "a ue o! his subsistence with !ort%-!i"e to si?t% da%s out o! his %ear;s abor. 7! we re#resent b% one the standard o! "a ue (which !or us is one da% o! uns(i ed abor), the "a ue o! a hundred iters o! wheat is re#resented b% 15, 18, or 80, de#endin' on the %ear % ! uctuations. &he ratio o! these two "a ues is one to !i!teen. 8.51 7n order to determine whether or not #ro'ress has been achie"ed and, i! so, to measure it, we must as( ourse "es what this same ratio was on the da% that men !irst made their a##earance. 7n truth, 7 wou d not dare ha1ard a !i'ure< but there is a wa% o! estab ishin' the un(nown ? o! this eCuation. >hen %ou hear someone dec aimin' a'ainst the socia order, a'ainst #ri"ate ownershi# o! the and, a'ainst rent, a'ainst machines, ta(e him to a "ir'in !orest or con!ront him with a !etid swam#. 2a% to him: 7 wish to !ree %ou !rom the %o(e that %ou com# ain o!< 7 wish to rescue %ou !rom the atrocious stru'' es o! anarchistic com#etition, !rom the con! icts o! anta'onistic interests, !rom the se !ishness o! wea th, !rom the t%rann% o! #ro#ert%, !rom the crushin' ri"a r% o! machines, !rom the sti! in' atmos#here o! societ%. Here is and i(e that encountered b% the men who !irst c eared the !orests and drained the swam#s. &a(e as much o! it as %ou want b% tens or hundreds o! acres. 3u ti"ate it %ourse !. A that %ou ma(e it #roduce is %ours. &here is on % one condition: %ou must ha"e no recourse to societ%, which, %ou sa%, has "ictimi1ed %ou. 8.58 &his man, # ease note, wou d !ind himse ! in the same #osition, in res#ect to the and, as man(ind itse ! was ori'ina % in. Bow, 7 dec are without !ear o! contradiction that he

1F8 wou d not raise one hundred iters o! wheat e"er% two %ears. &here!ore, the ratio is !i!teen to si? hundred. 8.59 &hus, #ro'ress can be measured. As !ar as wheat is concerned, and des#ite the !act that he is ob i'ed to #a% rent on his and, interest on ca#ita , and the cost o! hirin' his too s-or rather, because he does #a% !or these thin's-a da% aborer obtains !or !i!teen da%s; wor( what he cou d hard % ha"e secured in si? hundred da%s. &he "a ue o! wheat, measured in terms o! the most uns(i ed abor, has there!ore !a en !rom si? hundred to !i!teen, or !rom !ort% to one. A hundred iters o! wheat has !or man e?act % the same uti it% that it wou d ha"e had the da% a!ter the F ood< it contains the same amount o! nourishment< it satis!ies the same want and to the same de'ree. 7t re#resents the same abso ute wea th< it does not re#resent the same re ati"e wea th. 7ts #roduction has in ar'e measure been turned o"er to Bature. 7t is obtained !or ess e?#enditure o! human e!!ort< ess ser"ice is #er!ormed as it #asses !rom hand to hand< it has ess "a ue< in a word, it has become 'ratis, not com# ete %, but in the ratio o! !ort% to one. 8.5$ And it has not on % become 'ratis, but common to a b% the same ratio. 7t is not to the #ro!it o! the #roducer that thirt%-nine !ortieths o! the tota e!!ort ha"e been e iminated< but it is to the consumer;s #ro!it, whate"er ma% be his own ine o! wor(. 8.55 3 othin' &he same #henomenon occurs in the case o! c othin'. An ordinar% da% aborer 'oes into one o! the +araisGE$ warehouses and 'ets a suit that corres#onds to twent% da%s o! his wor(, assumed to be o! the most uns(i ed "ariet%. He cou d not ma(e the suit himse ! e"en i! he s#ent his who e i!e at it. 7n the time o! Henr% 7@ it wou d ha"e cost him three or !our hundred da%s; wor( to bu% a simi ar suit. >hat has ha##ened to the materia s in these two suits to ma(e such a di!!erence in their "a ue in terms o! man-hours o! uns(i ed aborK 7t has been annihi ated, because 'ratuitous !orces o! Bature ha"e ta(en o"er the .ob< and the annihi ation is to the ad"anta'e o! a man(ind. 8.5A For we must ne"er ose si'ht o! this !act: e"er% man owes to his !e ows ser"ices eCui"a ent to those that he recei"es. 7! the wea"er;s art had made no #ro'ress, i! his wor( were not now done in #art b% 'ratuitous !orces o! Bature, it wou d ta(e the wea"er two or three hundred da%s to wea"e the c oth, and our aborer wou d ha"e to contribute two or three hundred da%s o! his own abor to obtain it. And, since the wea"er cannot, howe"er much he mi'ht i(e to do so, #ersuade societ% to #a% him two or three hundred da%s; abor !or what is done !or nothin' b% the !orces o! Bature, that is, to #a% him !or the #ro'ress that man(ind has made, it is Cuite accurate to sa% that this #ro'ress has wor(ed

1F9 to the ad"anta'e o! the #urchaser, o! the consumer, and to the better satis!action o! man(ind as a who e. 8.5E &rans#ortation Be!ore the time when an% #ro'ress had been made, when the human race was sti reduced, i(e our h%#othetica da% aborer, to #rimiti"e and uns(i ed abor, i! a man wanted to ha"e a hundred-#ound oad trans#orted !rom /aris to Ba%onne, he wou d ha"e had on % this choice: either to #ut it on his own shou ders and carr% it o"er hi and da e to its destination, which wou d ha"e ta(en o"er a %ear o! s ow # oddin'< or to 'et someone e se to do this hard chore !or him. 2ince, 'i"en the conditions we ha"e out ined, the new carrier wou d ha"e used the same means and reCuired the same time, he wou d ha"e demanded a %ear;s abor in return. At this #eriod in histor%, there!ore, re#resentin' the "a ue o! uns(i ed abor as one, trans#ortation was worth three hundred #er hundred#ound wei'ht carried a distance o! !our hundred !i!t% mi es. 8.58 &hin's ha"e certain % chan'ed. 7n !act, there is no da% aborer in /aris who cou d not obtain the same resu t at a cost o! two da%s; abor. &he choice is sti the same. Either one must do the .ob onese ! or ha"e it done b% others and #a% them !or it. 7! our aborer does it himse !, it wi sti cost him a %ear o! hard # oddin'< but i! he turns to #ro!essiona hau ers, he wi !ind twent%, an% one o! whom wou d be wi in' to do it !or him !or three or !our !rancs, that is, !or the eCui"a ent o! two da%s; worth o! uns(i ed abor. &hus, the "a ue o! uns(i ed abor bein' re#resented as one, trans#ortation that was worth three hundred is now worth on % two. 8.5F How has this ama1in' re"o ution come aboutK 7t too( man% a centur%. 3ertain anima s had to be tamed, mountains tunne ed, "a e%s !i ed in, ri"ers s#anned. First s ed'es were used, then whee s< obstac es that had re#resented abor, ser"ices, "a ue, were essened< in a word, man reached the #oint where he cou d do, !or #ains eCua to two, what ori'ina % he cou d do on % !or #ains eCua to three hundred. A this #ro'ress was achie"ed b% men who were concerned on % with their own se !-interest. And %et toda% who rea#s the rewardK =ur #oor da% aborer and, a on' with him, e"er%one e se. 8.A0 )et no one sa% that this is not an e?am# e o! common ownershi#. 7 maintain that this is common ownershi# in the strictest sense o! the word. =ri'ina % this #articu ar satis!action was ba anced on the sca es o! the 'enera econom% b% three hundred da%s; worth o! uns(i ed abor or b% a sma er, but #ro#ortiona , amount o! more hi'h % s(i ed abor. Bow two hundred ninet%-ei'ht out o! three hundred #arts o! this e!!ort ha"e been ta(en o"er b% Bature, and humanit% has been corres#ondin' % re ie"ed o! it. Bow, ob"ious %, a men are eCua as re'ards those obstac es that ha"e been remo"ed, the

1F$ distance that has been annihi ated, the toi that has been e iminated, the "a ue that has been destro%ed, since the% a en.o% the resu t without #a%in' !or it. &he% #a% on % !or the Cuantit% o! human e!!ort sti reCuired, amountin' to two, with uns(i ed abor as the measure. 7n other words, !or the man who is uns(i ed and has on % his #h%sica stren'th to o!!er, two da%s o! abor are sti reCuired to obtain the satis!action desired. A other men obtain it !or ess wor( than that: a /aris aw%er, earnin' thirt% thousand !rancs a %ear, !or one twent%-!i!th #art o! a da%, etc. B% this reasonin', then, we see that men are eCua as re'ards the "a ue that has been destro%ed, and that what ineCua it% remains !a s within the domain o! the sur"i"in' "a ue, that is, within the domain o! #ri"ate #ro#ert%. 8.A1 For #o itica econom%, #roceedin' b% wa% o! e?am# e can mean wa (in' on dan'erous 'round. &he reader is a wa%s inc ined to be ie"e that the 'enera #henomenon that it is the author;s intention to describe ho ds true on % in the #articu ar case cited. But it is c ear that what has been said o! wheat, c othin', trans#ortation, is true o! e"er%thin' e se. >hen the author 'enera i1es, it is !or the reader to ma(e the concrete a## ication< and when the author #er!orms the du and unins#irin' tas( o! ana %sis, it is as(in' itt e enou'h that the reader 'i"e himse ! the # easure o! ma(in' the s%nthesis !or himse !. 8.A8 Essentia %, the basic aw can be stated thus: 8.A9 @a ue, which is socia #ro#ert%, is created b% e!!ort and obstac es. 8.A$ As obstac es decrease, e!!ort and "a ue, or the domain o! #ri"ate #ro#ert%, decreases #ro#ortiona %. 8.A5 As satis!actions are achie"ed, the domain o! #ri"ate #ro#ert% constant % decreases and the communa domain steadi % increases. 8.AA +ust we conc ude, as +. /roudhon does, that #ri"ate #ro#ert% is destined to disa##earK 0ranted that !or each s#eci!ic resu t obtained, each satis!action achie"ed, its ro e 'rows ess, as the e?tent o! the communa domain increases< does this mean that #ri"ate #ro#ert% wi e"entua % be com# ete % absorbed and destro%edK 8.AE &o draw such a conc usion is to misunderstand entire % the "er% nature o! man. >e encounter here a !a ac% simi ar to the one that we ha"e a read% re!uted concernin' interest on ca#ita . 7nterest rates tend to !a , it was said< hence, interest is u timate % bound to disa##ear a to'ether. @a ue and the domain o! #ri"ate #ro#ert% decrease, it is now said< there!ore, the% are u timate % bound to be e iminated entire %.

1F5 8.A8 &he who e !a ac% consists in o"er oo(in' the si'ni!icance o! these three crucia words: !or each s#eci!ic resu t. Les, it is Cuite true that men obtain s#eci!ic resu ts with ess e!!ort. 7t is because the% ha"e this !acu t% that the% are #er!ectib e and ca#ab e o! #ro'ress< and because o! this !acu t% we can state that the re ati"e domain o! #ri"ate #ro#ert% 'rows sma er and sma er, i! we consider its ro e in achie"in' a 'i"en satis!action. 8.AF But it is not true that the #otentia resu ts that are sti to be obtained are e"er e?hausted, and there!ore it is absurd to thin( that the abso ute domain o! #ri"ate #ro#ert% is im#aired b% the aws o! #ro'ress. 8.E0 >e ha"e said man% times and in e"er% concei"ab e wa%: E"er% e!!ort, in time, can ead to a 'reater tota amount o! 'ratuitous uti it%, without .usti!%in' us in conc udin' that men wi e"er sto# ma(in' e!!orts. A that we ha"e the ri'ht to conc ude is that, as their ener'ies are !reed, the% wi be turned a'ainst new obstac es and wi achie"e, !or the same e!!ort, new and hitherto unheard-o! satis!actions. 8.E1 7 em#hasi1e this idea the more, in that we must, in times i(e the #resent, be #ermitted to ea"e no room !or !a acious inter#retations when we use the terrib e words, 5#ri"ate #ro#ert%5 and 5the communa domain.5 8.E8 At an% 'i"en moment in his i!e man in a state o! iso ation has on % a imited amount o! e!!ort at his dis#osa . &his is true a so o! societ%. 8.E9 >hen man in a state o! iso ation achie"es #ro'ress in some !ie d b% ma(in' the !orces o! Bature co-o#erate with his own abor, he reduces corres#ondin' % the tota amount o! his e!!orts in re ation to the use!u e!!ect sou'ht !or. He wou d a so reduce his e!!orts in an abso ute sense, i!, content with his #resent ot, he con"erted his #ro'ress into increased eisure, re!usin' to a## % his new % re eased ener'ies toward #rocurin' other satis!actions. But this assumes that ambition, desire, as#irations, are strict % imited !orces< that the human heart is not in!inite % ca#ab e o! e?#eriencin' new im#u ses. 2uch, o! course, is not the case. Hard % has ,obinson 3rusoe been ab e to ma(e Bature do #art o! his wor( !or him when he turns to new #ro.ects. &he tota amount o! e!!ort he e?#ends remains the same< but he #uts it to better, more !ruit!u , more #roducti"e use, because he a"ai s himse ! o! more o! Bature;s 'ratuitous co aboration< and the same thin' occurs in societ%. 8.E$ Because the # ow, the harrow, the hammer, the saw, o?en and horses, the sai , water #ower, and steam ha"e successi"e % iberated man !rom a tremendous amount o! e!!ort he

1FA once had to e?#end, it does not necessari % !o ow that the ener'ies thus made a"ai ab e are a owed to atro#h%. )et us reca what was said about the inde!inite e asticit% o! human wants and desires. )et us oo( about us, and we sha not hesitate to admit that e"er% time man has succeeded in o"ercomin' an obstac e b% ma(in' use o! the !orces o! Bature, he has turned his own #owers a'ainst new obstac es. >e #rint more easi % now than we used to, but we do more #rintin'. E"er% boo( re#resents ess human e!!ort, ess "a ue, ess #ro#ert%< but there are more boo(s, and, in the tota rec(onin', .ust as much e!!ort and as much "a ue and #ro#ert%. 7 cou d sa% the same thin' !or c othin', housin', rai roads-!or a human commodities. 7t is not a case o! a decrease in the tota "a ue, but o! an increase in the tota uti it%. &he abso ute domain o! #ri"ate #ro#ert% has not shrun(, but the abso ute domain o! what is 'ratis and common to a has 'rown ar'er. /ro'ress has not #ara %1ed abor< it has distributed #ros#erit% more wide %. 8.E5 &hin's that are a"ai ab e without cost and are common to a constitute the domain o! the !orces o! Bature, and this domain is steadi % 'rowin'. &his truth is su##orted b% both reason and e?#erience. 8.EA @a ue and #ri"ate #ro#ert% constitute the domain o! human e!!orts, o! reci#roca ser"ices< and this domain is 'rowin' constant % sma er in re ation to an% #articu ar satis!action obtained, but not in re ation to the sum tota o! a satis!actions, because the number o! #otentia satis!actions o#en to man(ind is imit ess. 8.EE 7t is as true, there!ore, to sa% that re ati"e #ro#ert% constant % 'i"es wa% be!ore communa wea th as it is !a se to sa% that abso ute #ro#ert% tends to disa##ear entire %. /ro#ert%, i(e a #ioneer, accom# ishes its mission in one area, and then mo"es on to another. For it to disa##ear entire %, it wou d be necessar% that there be no more obstac es to cha en'e human abor< that a e!!ort become "ain< that men no on'er ha"e need to e?chan'e, to render one another ser"ices< that e"er%thin' be #roduced s#ontaneous %< that desire be immediate % !o owed b% satis!action< that we a become the eCua s o! the 'ods. &hen, it is true, e"er%thin' wou d be 'ratis and common to a . E!!ort, ser"ice, "a ue, #ro#ert%none o! the thin's that bear witness to our innate in!irmit% wou d ha"e an% reason !or e?istence. 8.E8 But howe"er hi'h man ma% rise, he is sti as !ar as e"er !rom omni#otence. >hat does it matter what #articu ar run' is his #erch on the adder o! in!init%K >hat characteri1es 0od, so !ar as it is 'i"en us to understand Him, is that no barrier stands between His wi and its accom# ishment: Fiat u?, et u? !acta est.GE5 And e"en this is e"idence o! man;s inabi it% to understand 0od;s omni#otence, !or +oses cou d not a"oid # acin' two words, which had to be #ronounced, as an obstac e between the di"ine wi and the comin' o! the i'ht. But whate"er #ro'ress is in store !or man because o! his #er!ectibi it%, we can a!!irm that his #ro'ress wi ne"er be so com# ete as to c ear awa% e"er% obstac e on the

1FE road to in!inite #ros#erit% and to render com# ete % use ess the wor( o! his hands and his mind. 8.EF &he reason is sim# e enou'h: as ra#id % as certain obstac es are o"ercome, new desires a##ear that encounter new obstac es reCuirin' new e!!orts. >e sha a wa%s, then, ha"e abor to #er!orm, to e?chan'e, to e"a uate. /ro#ert% wi there!ore e?ist unti the end o! time, a wa%s 'rowin' in its tota amount, as men become more acti"e and more numerous, a thou'h each e!!ort, each ser"ice, each "a ue, each unit o! #ro#ert%, wi , in #assin' !rom hand to hand, ser"e as the "ehic e o! an increasin' #ro#ortion o! 'ratuitous and common uti it%.

-------------------------------------------------------------------------------8.80 &he reader wi note that we use the word 5#ro#ert%5 in a "er% e?tended, but nonethe ess e?act, sense. /ro#ert% is the ri'ht to en.o% !or onese ! the !ruits o! one;s own e!!orts or to surrender them to another on % on the condition o! eCui"a ent e!!orts in return. &he distinction between #ro#ert% owner and #ro etarian is there!ore !undamenta % erroneous, un ess we assert that there is a c ass o! men who #er!orm no wor( or ha"e no ri'hts o"er their own e!!orts or o"er the ser"ices that the% render or o"er those that the% recei"e in e?chan'e. 8.81 7t is erroneous to restrict the term 5#ro#ert%5 to one o! its s#ecia !orms, i(e ca#ita or and, somethin' that #roduces interest or rent< and it is this erroneous de!inition that is used to di"ide men into two hosti e c asses. Ana %sis shows that interest and rent are the !ruit o! ser"ices rendered and ha"e the same ori'in, the same nature, and the same ri'hts as manua abor. 8.88 &he wor d is a "ast wor(sho# u#on which /ro"idence has a"ished raw materia s and !orces. Human abor a## ies itse ! to these materia s and !orces. /ast e!!orts, #resent e!!orts, and e"en !uture e!!orts or #romises o! !uture e!!orts are e?chan'ed. &heir re ati"e worth, estab ished b% e?chan'e and inde#endent % o! raw materia s and the 'ratuitous !orces o! Bature, determines "a ue< and e"er% man is the owner o! the "a ue he has #roduced. 8.89 7t ma% be ob.ected: >hat di!!erence does it ma(e that a man is the owner, as %ou sa%, on % o! the "a ue or o! the ac(now ed'ed worth o! his ser"iceK =wnershi# o! the "a ue carries with it ownershi# o! its concomitant uti it%. Mohn has two sac(s o! wheat< /eter,

1F8 on % one. Mohn, %ou sa%, is twice as rich in "a ue. @er% we , thenJ He is a so twice as rich in uti it%, and e"en in natura uti it%. He can eat twice as much. 8.8$ &rue enou'h, but has he not #er!ormed doub e the amount o! wor(K 8.85 But et us 'et at the roots o! the ob.ection. 8.8A Actua , abso ute wea th, as we ha"e a read% said, resides in uti it%. &his is what the word itse ! means. =n % uti it% renders ser"ice (uti, 5to ser"e5). =n % uti it% is re ated to our wants, and man has on % uti it% in mind when he wor(s. At east this is his s#eci!ic 'oa < !or thin's do not satis!% our hun'er or our thirst because the% contain "a ue, but because the% contain uti it%. 8.8E But note how this wor(s in societ%. 8.88 7n iso ation man see(s to obtain uti it%, with ne"er a thou'ht !or "a ue, which, in !act, he cou d not e"en concei"e o!. 8.8F 7n societ%, on the other hand, man see(s to obtain "a ue, with ne"er a thou'ht !or uti it%. &he thin' he #roduces is not intended to satis!% his own wants. Hence, he has itt e concern with how use!u it ma% be. &he #erson desirin' it must be the .ud'e on that score. As !ar as he, the #roducer, is concerned, a that counts is that, when it is bar'ained !or, as 'reat a "a ue as #ossib e be assi'ned to it, !or he is sure that the more "a ue he is credited with contributin', the more uti it% he wi recei"e in return. 8.F0 &he di"ision o! abor has brou'ht about a situation in which each one #roduces what he wi not consume and consumes what he has not #roduced. As #roducers we are concerned with "a ue< as consumers, with uti it%. 2uch is the uni"ersa e?#erience. &he #erson who #o ishes a diamond, embroiders ace, disti s brand%, or raises #o##ies, does not as( himse ! whether their consum#tion is reasonab e or unreasonab e. He does his wor(, and, #ro"ided his wor( brin's him "a ue in return, he is content. 8.F1 And, we ma% note in #assin', this state o! a!!airs #ro"es that mora it% or immora it% resides not in the wor( o! the #roducer o! a commodit%, but in the desire o! the consumer< and that the im#ro"ement o! societ%, there!ore, de#ends on the mora it% o! the consumer, not o! the #roducer. How o!ten ha"e we cried out a'ainst the En' ish !or raisin' o#ium in 7ndia with the e?#ress #ur#ose, it was said, o! #oisonin' the 3hineseJ 2uch an accusation re"ea s an i'norance o! the nature and sco#e o! mora it%. Be"er sha we succeed in

1FF #re"entin' the #roduction o! somethin' that, since it is in demand, has "a ue. 7t behoo"es the #erson see(in' a satis!action to rec(on the e!!ect it wi ha"e, and the attem#t to se#arate !oresi'ht !rom res#onsibi it% wi a wa%s be a "ain one. =ur wine'rowers ma(e wine and a wa%s wi ma(e it as on' as it has "a ue, without botherin' to !ind out whether or not it ma(es #eo# e drun( in France or eads them to commit suicide in America. 7t is the .ud'ment that men #ass on their wants and their satis!actions that determines the direction o! abor. &his is true e"en in iso ation< and i! a !oo ish "anit% had s#o(en more oud % to ,obinson 3rusoe than hun'er, instead o! s#endin' his time in huntin', he wou d ha"e s#ent it arran'in' !eathers in his headdress. 2imi ar %, a serious #o#u ation encoura'es serious industries< and a !ri"o ous #o#u ation, !ri"o ous industries.GG91 8.F8 But, to return to our sub.ect, 7 ma(e this statement: 8.F9 &he man who wor(s !or himse ! has uti it% as his ob.ecti"e. 8.F$ &he man who wor(s !or others has "a ue as his ob.ecti"e. 8.F5 Bow, #ro#ert%, as 7 ha"e de!ined it, is based on "a ue< and, since "a ue is on % a re ati"e term, #ro#ert% itse ! is on % a re ati"e term. 8.FA 7! there were on % one man on earth, the idea o! #ro#ert% wou d ne"er occur to him. 2ince he wou d be !ree to dis#ose as he wished o! a the uti ities about him and wou d ne"er be con!ronted with others; ri'hts imitin' his own, how cou d it enter his mind to sa%: &his is mineK &hese words #resu##ose the corre ati"e: &his is not mine, or &his be on's to another. +ine and thine are inse#arab e< and the word 5#ro#ert%,5 or 5ownershi#,5 necessari % im# ies a re ationshi#, since it indicates with eCua c arit% both that a thin' is owned b% one #erson, and that it is not owned b% another.GEA 8.FE 5&he !irst man, who, ha"in' #ut a !ence around a #iece o! and,5 said ,ousseau, 5too( it into his head to sa%, ;&his is mine,; was the true !ounder o! ci"i societ%.5GEE 8.F8 >hat does this !encin' o!! e?#ress e?ce#t an idea o! e?c usion and conseCuent % o! a re ation e?istin' between the owner and othersK 7! its so e #ur#ose were to #rotect the and !rom anima s, it wou d be a #recaution, not a si'n o! #ro#ert%< a boundar% mar(er, on the other hand, is a si'n o! #ro#ert%, and not o! #recaution. 8.FF

800 &hus, men are in rea it% owners on % in re ation to one another< and, once this is 'ranted, o! what are the% ownersK =! "a ue, as is c ear % e"idenced in the e?chan'es the% ma(e with one another. 8.100 )et us 'i"e, as is our custom, a "er% sim# e i ustration. 8.101 Bature has been at wor(, throu'h a eternit% #erha#s, in #uttin' into s#rin' water the Cua ities that enab e it to Cuench our thirst and, !rom our #oint o! "iew, to 'i"e it uti it%. &his is certain % not m% wor(, since the #rocess has been com# eted without m% #artici#ation or (now ed'e. 7n this res#ect, 7 can sa% that water, !or me, is a 'ratuitous 'i!t !rom 0od. >hat is m% own is the e!!ort 7 e?erted in order to #ro"ide m%se ! with a da%;s su## % o! water. 8.108 B% this act o! mine, o! what ha"e 7 become the ownerK 8.109 7n res#ect to m%se !, 7 am the owner, i! 7 ma% use that term, o! a the uti it% that Bature has # aced in this water. 7 can turn it to m% bene!it in an% wa% 7 see !it. 7t is, indeed, !or no other reason that 7 ha"e 'one to the troub e o! 'oin' a!ter it. &o cha en'e m% ri'ht to it wou d be to sa% that, a thou'h men must drin( to i"e, the% do not ha"e the ri'ht to drin( the water the% ha"e #rocured b% their own abor. 7 do not be ie"e that the communists, a thou'h the% 'o "er% !ar, wou d 'o Cuite that !ar< and e"en under the s%stem #ro#osed b% 3abet, the ambs o! 7caria wi be #ermitted, when the% are thirst%, to drin( !rom its streams o! #ure water. 8.10$ But in res#ect to other men, #resumab % !ree to do as 7 ha"e done, 7 am not, and cannot be, owner o! an%thin' more than what, b% meton%m%, is ca ed the "a ue o! the water, that is, the "a ue o! the ser"ice 7 render b% ettin' others ha"e it. 2ince m% ri'ht to drin( it is reco'ni1ed, it is im#ossib e to contest m% ri'ht to turn it o"er to someone e se. And since his ri'ht to 'o to the s#rin' to 'et it, as 7 did, is reco'ni1ed, it is im#ossib e to contest his ri'ht to acce#t the water that 7 !etched. 7! one man has the ri'ht to o!!er and another to acce#t, !or a #rice that has been !ree % arri"ed at, the !ormer is the owner, as !ar as the atter is concerned. 7t is tru % discoura'in' to be writin' in an a'e when it is im#ossib e to ta(e a ste# in the !ie d o! #o itica econom% without ha"in' to sto# !or such chi dish % ob"ious demonstrations. 8.105 But on what basis sha the arran'ement be madeK &his is what, abo"e e"er%thin' e se, we must (now i! we are to e"a uate !u % the socia si'ni!icance o! this word 5#ro#ert%,5 so distressin' to the #artisans o! #seudodemocratic sentimenta it%. 8.10A

801 But to continue m% i ustration: 7t is c ear, since both 7 and the man who wishes to #urchase the water 7 secured are !ree, that we sha ta(e into consideration the troub e 7 went to and the troub e that he wi be s#ared, as we as a other circumstances that create "a ue. >e sha ha'' e o"er the terms< and, i! the bar'ain is conc uded, it can be said without e?a''eration or undue subt et% that m% nei'hbor wi ha"e acCuired 'ratis, or, i! %ou wi , as near % 'ratis as 7 did, a the natura uti it% o! the water. 7s an% !urther #roo! reCuired that human e!!ort, and not intrinsic uti it%, determines the de'ree to which the conditions o! the transaction are onerousK 7t wi be 'ranted that the uti it% o! this water remains constant, whether the s#rin' be near at hand or !ar awa%. 7t is the #ains ta(en or to be ta(en that constitute the "ariab e, de#endin' on the distance, and since the remuneration "aries accordin' %, it is in the #ains, and not in the uti it%, that we !ind the #rinci# e o! re ati"e "a ue, i.e., o! #ro#ert%. 8.10E 7t is there!ore certain that, in re ation to others, 7 am not and cannot be owner o! an%thin' e?ce#t m% own e!!orts and m% own ser"ices. &hese ha"e nothin' in common with the m%sterious and un(nown #rocesses b% which Bature has communicated uti it% to the thin's that 7 use to render m% ser"ices. 7n s#ite o! a !urther c aims 7 mi'ht ma(e, m% #ro#ert% wi ne"er actua % 'o be%ond this imit< !or, i! 7 demand more !or m% ser"ice than its "a ue, m% nei'hbor wi #er!orm it !or himse !. &his imit is abso ute, de!inite, and im#assab e. 7t e?# ains and com# ete % .usti!ies #ro#ert%, which is necessari % restricted to the "er% natura ri'ht o! demandin' a ser"ice in e?chan'e !or a ser"ice. 7t ma(es it e"ident that to s#ea( o! the en.o%ment o! natura uti ities as 5#ro#ert%5 is to use the word in a "er% oose and #ure % nomina sense< that to use e?#ressions i(e, 5&he #ro#ert% in an acre o! and, in a hundredwei'ht o! iron, in a hundred iters o! wheat, in a meter o! c oth,5 is mere meton%m%, i(e the 5"a ue5 o! water, iron, etc.< that, in so !ar as Bature has # aced these thin's within men;s reach, the% are en.o%ed 'ratis and b% a < that, in a word, the idea o! a 'ratuitous communa domain can be harmonious % reconci ed with the idea o! #ri"ate #ro#ert%, since the 'i!ts o! 0od !a into the !irst cate'or%, and human ser"ices a one !orm the e'itimate domain o! the second. 8.108 +ere % because 7 ha"e chosen a "er% sim# e i ustration to show the ine o! demarcation between the communa domain and that o! #ri"ate #ro#ert%, we shou d not hasti % conc ude that this ine is b urred or e!!aced in more com# e? transactions. =n the contrar%< it remains c ear % "isib e and is a wa%s to be obser"ed in an% !ree transaction. 0oin' to the s#rin' !or water is admitted % a "er% sim# e act< but the act o! 'rowin' wheat, i! we consider it care!u %, is no more com# e?, e?ce#t that it inc udes a who e series o! eCua % sim# e acts, in an% one o! which Bature;s contribution and man;s are combined. &here!ore, the e?am# e 7 chose is com# ete % t%#ica . 7n the case o! water, wheat, dr% 'oods, boo(s, trans#ortation, #aintin', dance, music, certain circumstances, as we ha"e admitted, can 'i"e 'reat "a ue to certain ser"ices, but no man can e"er c aim #a%ment !or an%thin' e se, and es#ecia % !or Bature;s aid, as on' as one o! the contractin' #arties can sa% to the other: 7! %ou as( me more than %our ser"ice is worth, 7 sha oo( e sewhere, or 7 sha #er!orm it !or m%se !.

808 8.10F Bot content with .usti!%in' the idea o! #ri"ate #ro#ert%, 7 shou d i(e to ma(e it a##ea in' e"en to the most rabid #artisans o! #ub ic ownershi#. &o that end what must we doK >e must describe its contribution to democrac%, #ro'ress, and eCua it%< we must ma(e c ear, not on % that it does not 'i"e a mono#o % on the 'i!ts o! 0od to a !ew indi"idua s, but a so that its s#ecia !unction is to increase steadi % the e?tent o! the communa domain. 7n this res#ect, it is !ar more in'enious than the # ans thou'ht u# b% / ato, +ore,GE8 Fne on, or 3abet. 8.110 &hat there are certain thin's that men a"ai themse "es o! 'ratis and on a !ootin' o! #er!ect eCua it%, that there is in the socia order, under %in' #ri"ate #ro#ert%, a "er% rea communa domain, is a !act that no one dis#utes. >hether we are economists or socia ists, we ha"e on % to o#en our e%es to see that this is so. 7n certain res#ects a o! the chi dren o! 0od are treated a i(e. A are eCua be!ore the aw o! 'ra"itation, which ho ds them to the earth, and in res#ect to the air the% breathe, the i'ht o! da%, the rushin' water o! the torrent. &his "ast and immeasurab e store o! common #ossessions, which has nothin' to do with "a ue or #ro#ert%, is ca ed natura wea th b% 2a%, in contrast to socia wea th< b% /roudhon, natura #ossessions, as a'ainst acCuired #ossessions< b% 3onsidrant, natura ca#ita , as a'ainst created ca#ita < b% 2aint-3hamans, consumers; wea th, as a'ainst "a ue wea th< we ourse "es ha"e ca ed it 'ratuitous uti it%, as a'ainst onerous uti it%. Bame it what %ou wi , the im#ortant thin' is that it e?ists, that we are .usti!ied in sa%in' that there e?ists amon' men a common store o! 'ratuitous and eCua satis!actions. 8.111 And thou'h socia wea th, acCuired wea th, created wea th, onerous wea th, "a ue wea th -in a word, #ro#ert%-ma% be une"en % distributed, we cannot sa% that it is un.ust % distributed, since e"er% man;s share o! it is #ro#ortiona to his own ser"ices, !or it is based on them and recei"es its e"a uation !rom them. Furthermore, it is e"ident that this ineCua it% is essened b% the e?istence o! the common store o! 'ratuitous uti it%, in "irtue o! the !o owin' aw o! mathematics: &he re ati"e di!!erence between two uneCua numbers is essened i! the same number is added to each. 7!, then, our in"entories show that one man is twice as rich as another, we cannot consider this #ro#ortion as accurate when we ta(e into account both men;s share o! the common 'ratuitous uti it%< and e"en what ineCua it% we do disco"er wou d steadi % 'row ess i! the common store steadi % increased. 8.118 &he Cuestion, there!ore, is whether this common store is a !i?ed and in"ariab e Cuantit%, "ouchsa!ed once and !or a to man b% /ro"idence at the be'innin' o! time, on which is su#erim#osed a stratum o! #ri"ate #ro#ert%, in such a wa% that no connection or interaction e?ists between the two #henomena. 8.119

809 Economists ha"e conc uded that the socia order has no in! uence on this natura and common !und o! wea th and !or that reason ha"e e?c uded it !rom the stud% o! #o itica econom%. 8.11$ &he socia ists 'o !urther. &he% be ie"e that the socia order tends to trans!er to the domain o! #ri"ate #ro#ert% what is ri'ht!u % #art o! the common store, that it sanctions the usur#ation o! what be on's to a !or the #ro!it o! the !ew< and !or that reason the% attac( #o itica economists !or bein' unaware o! this disastrous tendenc%, and societ% !or #assi"e % submittin' to it. 8.115 7n !act, the socia ists ta? the economists with bein' inconsistent on this #oint, and with some reason< !or the economists, a!ter dec arin' that there was no connection between the communa domain and that o! #ri"ate #ro#ert%, went on to wea(en their own assertion and o#en the wa% !or the socia ists; 'rie"ances when, con!usin' "a ue with uti it%, the% dec ared that the !orces o! Bature, that is, the 'i!ts o! 0od, had intrinsic "a ue, "a ue on their own account, !or "a ue a wa%s and necessari % connotes #ri"ate #ro#ert%. =n the da% the economists made this error the% ost the ri'ht and the means to .usti!% o'ica % the ri'ht to #ri"ate #ro#ert%. 8.11A >hat 7 now sa%, what 7 dec are with con"iction as an abso ute certaint% in m% own mind, is this: Les, there is constant interaction between #ri"ate #ro#ert% and the communa domain< and in this res#ect the !irst assertion, that o! the economists, is wron'. But the second assertion, am# i!ied and e?# oited b% the socia ists, is e"en more dan'erous % erroneous< !or this interaction does not cause an% #art o! the communa domain to be a##ro#riated into the domain o! #ri"ate #ro#ert%, but, on the contrar%, constant % e?tends the !ormer at the e?#ense o! the atter. /ri"ate #ro#ert%, inherent % .ust and e'itimate, because it a wa%s is #ro#ortiona to ser"ices, tends to con"ert onerous uti it% into 'ratuitous uti it%. 7t is the s#ur that im#e s the human inte ect to rea i1e the atent #otentia o! the !orces o! Bature. 7t attac(s, to its own #ro!it admitted %, the obstac es that stand in the wa% o! 'ratuitous uti it%. And when the obstac e is surmounted to an% de'ree, we !ind that it resu ts in corres#ondin' bene!it to a . &hen, tire ess %, #ro#ert% attac(s new obstac es, and this #rocess continues with ne"er an interru#tion, steadi % raisin' the standard o! i"in', brin'in' the 'reat !ami % o! man nearer and nearer the 'oa s o! communit% and eCua it%. 8.11E 7n this consists the tru % mar"e ous harmon% o! the natura socia order. 6n!ortunate %, 7 cannot describe this harmon% without combattin' o d ob.ections that are a wa%s cro##in' u# or without becomin' tiresome % re#etitious. Bo matter< 7 sha set m%se ! to the tas(, and 7 be' the reader a so to e?ert himse ! to some de'ree. 8.118

80$ >e must 'ras# !u % this !undamenta idea: >hen no obstac e between desire and satis!action e?ists !or an%one (!or e?am# e, there is no obstac e between our e%es and the i'ht o! da%), there is no e!!ort to be made, no ser"ice to be #er!ormed !or onese ! or !or others< no "a ue, no #ro#ert% is #ossib e. But when an obstac e e?ists, the who e series is constituted. First, we !ind e!!ort comin' into # a%< then, the "o untar% e?chan'e o! e!!orts and ser"ices< then, the com#arati"e a##raisa o! ser"ices, or "a ue< and !ina %, the ri'ht o! each one to en.o% the uti ities contained in these "a ues, or #ro#ert%. 8.11F 7!, in this stru'' e a'ainst eCua obstac es, the contribution made b% Bature and b% abor a wa%s remained in the same #ro#ortion, #ri"ate #ro#ert% and the communa domain wou d !o ow #ara e ines with no chan'e in their re ati"e #ro#ortions. 8.180 But such is not the case. &he 'oa o! a men, in a their acti"ities, is to reduce the amount o! e!!ort in re ation to the end desired and, in order to accom# ish this end, to incor#orate in their abor a constant % increasin' #ro#ortion o! the !orces o! Bature. &his is the constant #reoccu#ation o! e"er% !armer, manu!acturer, businessman, wor(man, shi#owner, and artist on earth. A their !acu ties are directed toward this end< !or this reason the% in"ent too s or machines, the% en ist the chemica and mechanica !orces o! the e ements, the% di"ide their abors, and the% unite their e!!orts. How to do more with ess, is the eterna Cuestion as(ed in a times, in a # aces, in a situations, in a thin's. 3ertain % the% are moti"ated b% se !-interest< who can den% itK >hat other stimu ant wou d ur'e them !orward with the same de'ree o! ener'%K 2ince e"er% man here be ow bears the res#onsibi it% !or his own e?istence and #ro'ress, how cou d he #ossib % ha"e within him an% astin' moti"e !orce e?ce#t se !-interestK Lou cr% out in #rotest< but bear with me unti the end, and %ou wi see that, thou'h each man thin(s o! himse ! a one, 0od is mind!u o! a . 8.181 =ur constant concern is, there!ore, to decrease our e!!ort in re ation to the end we see(. But when e!!ort is diminished-whether b% the remo"a o! the obstac e or b% the use o! machines, the di"ision o! abor, .oint acti"it%, the harnessin' o! a !orce o! Bature, etc.this decreased e!!ort is assi'ned a #ro#ortionate % ower ratin' in re ation to other ser"ices. >e render a sma er ser"ice when we #er!orm it !or someone e se< it has ess "a ue, and it is Cuite accurate to sa% that the domain o! #ri"ate #ro#ert% has receded. Has the uti it% o! the end resu t been ost on that accountK Bo, nor can it be b% the "er% nature o! our h%#othesis. >hat, then, has ha##ened to the uti it%K 7t has #assed into the communa domain. As !or that #art o! human e!!ort which is no on'er reCuired, it does not on that account become steri e< it is directed toward other conCuests. Enou'h obstac es a##ear and a wa%s wi a##ear to thwart the satis!action o! our e"er new and increasin' #h%sica , inte ectua , and mora wants, so that our abor, when !reed in one area, wi a wa%s !ind somethin' to cha en'e it in another. And so, since the domain o! #ri"ate #ro#ert% a wa%s remains the same, the communa domain increases i(e a circ e whose radius is constant % en'thened.

805 8.188 =therwise how cou d we e?# ain #ro'ress and ci"i i1ation, howe"er im#er!ect the atter ma% beK )et us oo( u#on ourse "es and consider our wea(ness< et us com#are our stren'th and our (now ed'e with the "i'or and the (now ed'e that are #resu##osed b% the count ess satis!actions we are #ri"i e'ed to deri"e !rom societ%. 3ertain % we sha be con"inced that, i! we were reduced to our own e!!orts, we shou d not en.o% one hundred thousandth #art o! these satis!actions, e"en thou'h each one o! us had mi ions o! acres o! uncu ti"ated and at his dis#osa . 7t is there!ore certain that a 'i"en amount o! human e!!ort achie"es immeasurab % 'reater resu ts toda% than in the time o! the 4ruids. 7! this were true o! on % one indi"idua , the natura in!erence wou d be that he i"es and #ros#ers at others; e?#ense. But since the same thin' ha##ens !or a members o! the human !ami %, we are ed to the com!ortin' conc usion that somethin' outside ourse "es has come to our aid< that the 'ratuitous co-o#eration o! Bature has been #ro'ressi"e % added to our own e!!orts, and that, throu'hout a our transactions, it has remained 'ratuitous< !or i! it were not 'ratuitous, it wou d e?# ain nothin'. 8.189 From the #recedin' considerations we ma% deduce the !o owin' #ro#ositions: 8.18$ A #ro#ert% is "a ue< a "a ue is #ro#ert%. 8.185 >hat has no "a ue is 'ratuitous< what is 'ratuitous is common to a . 8.18A A dec ine in "a ue im# ies a 'reater amount o! 'ratuitous uti it%. 8.18E A 'reater amount o! 'ratuitous uti it% im# ies a #artia rea i1ation o! common ownershi#. 8.188 &here are times in our histor% when we cannot utter certain words without runnin' the ris( o! bein' misinter#reted. &here wi be no dearth o! #eo# e read% to cr% out, in #raise or in condemnation, accordin' to their economic #ersuasion: &he author s#ea(s o! a communa domain< there!ore he is a communist. 7 antici#ate it, and 7 am resi'ned to it. But thou'h resi'ned, 7 cannot re!rain !rom see(in' to a"oid the im#utation. 8.18F &he reader must indeed ha"e been inattenti"e (and it is !or this reason that the readers most to be !eared are those who do not read) i! he has not discerned the 'reat di"ide between the communa domain and communism. &hese two ideas are se#arated not on % b% the 'reat e?#anse o! #ri"ate #ro#ert% but a so b% that o! aw, ibert%, .ustice, and e"en o! human #ersona it%. 8.190

80A B% the communa domain is meant those thin's that we en.o% in common, b% the desi'n o! /ro"idence, without the need o! an% e!!ort to a## % them to our use. &he% can there!ore 'i"e rise to no ser"ice, no transaction, no #ro#ert%. /ro#ert% is based on our ri'ht to render ser"ices to ourse "es or to render them to others !or a remuneration. >hat the communist #ro#oses to ma(e common to a is not the 'ratuitous 'i!ts o! 0od, but human e!!ort, or ser"ice. He #ro#oses that each one turn o"er the !ruit o! his toi to the common !und and then ma(e the authorities res#onsib e !or this !und;s eCuitab e distribution. 8.191 Bow, one o! two thin's wi be done: either the distribution wi be based on each man;s contribution, or it wi be made on some other basis. 8.198 7n the !irst case, the communist ho#es, as !ar as the resu t is concerned, to re#roduce the e?istin' order, contentin' himse ! with substitutin' the arbitrar% decision o! a sin' e indi"idua !or the !ree consent o! a . 8.199 7n the second case, on what basis wi the distribution be madeK 3ommunism answers: =n the basis o! eCua it%. >hatJ ECua it% without re!erence to an% di!!erence in #ains ta(enK >e sha a ha"e an eCua share, whether we ha"e wor(ed si? hours or twe "e, mechanica % or inte ectua %J But o! a #ossib e t%#es o! ineCua it% this is the most shoc(in'< and !urthermore, it means the destruction o! a initiati"e, ibert%, di'nit%, and #rudence. Lou #ro#ose to (i com#etition, but ta(e care< %ou are on % redirectin' it. 6nder #resent conditions we com#ete to see who wor(s most and best. 6nder %our re'ime we sha com#ete to see who wor(s worst and east. 8.19$ 3ommunism !ai s to understand e"en man;s nature. E!!ort is o! itse ! #ain!u . >hat dis#oses us to e?ert itK 7t can on % be a sensation more #ain!u sti , a want to be satis!ied, a su!!erin' to be a"oided, a 'ood thin' to be en.o%ed. =ur moti"e !orce is, there!ore, se !interest. >hen we as( communism what it #ro#oses as a substitute, it answers in the words o! )ouis B anc: honor, and in the words o! +. 3abet: brotherhood. 7n that case %ou must at east ma(e me !ee other #eo# e;s sensations, so that 7 ma% (now to what end 7 shou d direct m% abor. 8.195 And then .ust what is this code o! honor and this sense o! brotherhood that is to be #ut to wor( in a man(ind at the insti'ation and under the watch!u e%es o! +essrs. )ouis B anc and 3abetK But it is not necessar% !or me to re!ute communism here. A that 7 desire to state is that it is the e?act o##osite in e"er% #articu ar o! the s%stem that 7 ha"e sou'ht to estab ish. 8.19A

80E >e reco'ni1e the ri'ht o! e"er% man to #er!orm ser"ices !or himse ! or to ser"e others accordin' to conditions arri"ed at throu'h !ree bar'ainin'. 3ommunism denies this ri'ht, since it # aces a ser"ices in the hands o! an arbitrar%, centra authorit%. 8.19E =ur doctrine is based on #ri"ate #ro#ert%. 3ommunism is based on s%stematic # under, since it consists in handin' o"er to one man, without com#ensation, the abor o! another. 7! it distributed to each one accordin' to his abor, it wou d, in !act, reco'ni1e #ri"ate #ro#ert% and wou d no on'er be communism. 8.198 =ur doctrine is based on ibert%. 7n !act, #ri"ate #ro#ert% and ibert%, in our e%es are one and the same< !or man is made the owner o! his own ser"ices b% his ri'ht and his abi it% to dis#ose o! them as he sees !it. 3ommunism destro%s ibert%, !or it #ermits no one to dis#ose !ree % o! his own abor. 8.19F =ur doctrine is !ounded on .ustice< communism, on in.ustice. &his is the necessar% conc usion !rom what we ha"e .ust said. 8.1$0 &here is, there!ore, on % one #oint o! contact between the communists and ourse "es: a certain simi arit% in the s% ab es com#osin' the words 5communism5 and the 5communa 5 domain. 8.1$1 But 7 trust that this simi arit% wi not ead the reader astra%. >hereas communism is the denia o! #ri"ate #ro#ert%, we see in our doctrine o! the communa domain the most e?# icit a!!irmation and the most com#e in' demonstration that can be 'i"en in su##ort o! #ri"ate #ro#ert%. 8.1$8 For, i! the e'itimac% o! #ri"ate #ro#ert% has a##eared doubt!u and ine?# icab e, e"en to those who were not communists, it seemed so because the% !e t that it concentrated in the hands o! some, to the e?c usion o! others, the 'i!ts o! 0od ori'ina % be on'in' to a . >e be ie"e that we ha"e com# ete % dis#e ed this doubt b% #ro"in' that what was, b% decree o! /ro"idence, common to a , remains common in the course o! a human transactions, since the domain o! #ri"ate #ro#ert% can ne"er e?tend be%ond the imits o! "a ue, be%ond the ri'hts aborious % acCuired throu'h ser"ices rendered. 8.1$9 And, when it is e?#ressed in these terms, who can den% the ri'ht to #ri"ate #ro#ert%K >ho but a !oo cou d assert that men ha"e no ri'hts o"er their own abor, that the% ma% not ri'ht!u % recei"e "o untar% ser"ices !rom those to whom the% ha"e rendered "o untar% ser"icesK

808 8.1$$ &here is another e?#ression that reCuires e?# anation, !or in recent times it has been stran'e % misused, "i1., 5'ratuitous uti it%.5 4o 7 need to sa% that 7 mean b% 5'ratuitous,5 not somethin' that does not cost one man an%thin' because he has ta(en it !rom another, but what does not cost an%bod% an%thin'K 8.1$5 >hen 4io'enes warmed himse ! in the sun, it cou d be said that he warmed himse ! 'ratis, !or he recei"ed !rom the di"ine bount% a satis!action that reCuired no abor either !rom himse ! or !rom an% o! his contem#oraries. 7 ma% add that this warmth !rom so ar radiation remains 'ratuitous when a andowner uses it to ri#en his wheat and his 'ra#es, since, o! course, when he se s his 'ra#es and wheat, he is #aid !or his own ser"ices and not !or the sun;s. &his inter#retation ma% #erha#s be !a acious (and i! it is, there is nothin' e!t to do but turn communist)< but, in an% case, such is the sense that the e?#ression 5'ratuitous uti it%5 ob"ious % has and the sense in which 7 use it. 8.1$A 2ince the estab ishment o! the ,e#ub icGEF #eo# e ha"e been ta (in' a 'reat dea about interest-!ree credit and education !ree o! char'e. But it is c ear that the% inc ude a terrib e !a ac% in this word. 3an the state ma(e instruction shine down, i(e the i'ht o! da%, on e"er% corner o! the and without reCuirin' an% e!!ort !rom an%bod%K 3an it co"er France with schoo s and teachers who do not reCuire #a%ment in an% !ormK A that the state can do is this: 7nstead o! a owin' each indi"idua to see( out and #a% !or ser"ices o! this t%#e that he wants, the state can, b% ta?ation, !orcib % e?act this remuneration !rom the citi1ens and then distribute the t%#e o! instruction it #re!ers without as(in' them !or a second #a%ment. 7n this case those who do not earn #a% !or those who do< those who earn itt e !or those who earn much< those who are #re#arin' !or trades !or those who wi enter the #ro!essions. &his is communism a## ied to one branch o! human acti"it%. 6nder this re'ime, on which 7 do not #ro#ose to #ass .ud'ment at this time, one ma% sa%, one must sa%: Education is common to a < but it wou d be ridicu ous to sa%: Education is !ree o! char'e. Free o! char'eJ Les, !or some o! those who recei"e it, but not !or those who #a% out the mone% !or it, i! not to the teacher, at east to the ta? co ector. 8.1$E &here is nothin' that the state cannot 'i"e 'ratis i! we !o ow this ine o! reasonin'< and i! this word were not mere hocus-#ocus, 'ratuitous education wou d not be the on % thin' we shou d as( o! the state, but 'ratuitous !ood as we , and 'ratuitous c othin', and 'ratuitous housin', etc. )et us beware. &he 'reat mass o! our citi1ens ha"e a most reached this #oint< at east there is no dearth o! a'itators demandin', in the name o! the common #eo# e, interest-!ree credit, 'ratuitous too s o! #roduction, etc., etc. 4ecei"ed b% the meanin' o! a word, we ha"e ta(en a ste# toward communism< wh% shou d we not ta(e a second, then a third, unti a ibert%, a #ro#ert%, a .ustice ha"e #assed awa%K >i it be a e'ed that education is so uni"ersa % necessar% that we are #ermitted !or its sa(e to com#romise with .ustice and our #rinci# esK But is not !ood e"en more im#ortant. /rimo "i"ere, deinde #hi oso#hari,G80 the common #eo# e wi sa%, and, in a truth, 7 do not (now what answer can be 'i"en them.


8.1$8 >ho (nowsK &hose inc ined to accuse me o! communistic eanin's because 7 ha"e noted the #ro"identia communit% o! 0od;s 'i!ts wi #erha#s be the "er% ones to "io ate the ri'ht to earn and to teach, that is, to "io ate in its essence the ri'ht to #ro#ert%. &hese inconsistencies are more sur#risin' than unusua . 8.1$F 3ha#ter F )anded /ro#ert% 7! the centra thesis o! this wor( is "a id, we must concei"e o! man(ind, in its re ation to the wor d about it, a on' the ines that 7 sha now indicate. F.1 0od created the wor d. =n the sur!ace and in the bowe s o! the earth, He # aced a host o! thin's that are use!u to man in that the% are ca#ab e o! satis!%in' his wants. F.8 7n addition, He im#arted to matter "arious !orces: 'ra"itation, e asticit%, densit%, com#ressibi it%, heat, i'ht, e ectricit%, cr%sta i1ation, # ant i!e. F.9 He # aced men in the midst o! these raw materia s and these !orces and bestowed them u#on him 'ratis. &o them men a## ied their ener'ies< and in so doin' the% #er!ormed ser"ices !or themse "es. &he% a so wor(ed !or one another< and in so doin' the% rendered reci#roca ser"ices. &hese ser"ices, when com#ared !or #ur#oses o! e?chan'e, 'a"e rise to the idea o! "a ue, and "a ue to the idea o! #ro#ert%. F.$ E"er% man, there!ore, became, in #ro#ortion to his ser"ices, a #ro#rietor. But the !orces and the raw materia s, ori'ina % 'i"en 'ratis to man b% 0od, remained, sti are, and a wa%s wi be, 'ratis, howe"er much, in the course o! human transactions, the% ma% #ass !rom hand to hand< !or, in the a##raisa s that their e?chan'e necessitates, it is human ser"ices, and not the 'i!ts o! 0od, that are e"a uated. F.5 From this it !o ows that there is not one amon' us who, #ro"ided on % our transactions be carried out in !reedom, e"er ceases to en.o% these 'i!ts. A sin' e condition is attached: we must ourse "es #er!orm the abor necessar% to ma(e them a"ai ab e to us, or, i! someone e se ta(es this troub e !or us, we must #a% him the eCui"a ent in other #ains that we ta(e !or him. F.A

810 7! what 7 assert is true, then certain % the ri'ht to #ro#ert% is unassai ab e. F.E &he uni"ersa instinct o! man(ind, which is more in!a ib e than the ucubrations o! an% one indi"idua cou d e"er be, had been to adhere to this #rinci# e without ana %1in' it. &hen the theorists came a on' and set themse "es to scrutini1in' the conce#ts under %in' the idea o! #ro#ert%. F.8 6n!ortunate %, at the "er% be'innin' the% made the error o! con!usin' uti it% with "a ue. &he% attributed inherent "a ue, inde#endent o! an% human ser"ice, to both raw materia s and the !orces o! Bature. =nce this error was made, the ri'ht to #ro#ert% cou d be neither understood nor .usti!ied. F.F For uti it% re#resents a re ation between thin's and ourse "es. Bo e!!orts, transactions, or com#arisons are necessari % im# ied< it can be concei"ed o! as an entit% in itse ! and in re ation to man in iso ation. @a ue, on the contrar%, re#resents a re ation between one man and another< to e?ist at a it must e?ist in two!o d !orm, since there is nothin' with which an iso ated thin' can be com#ared. @a ue im# ies that its #ossessor surrenders it on % !or eCua "a ue in return. &he theorists who con!use these two ideas there!ore ma(e the assum#tion that in e?chan'e a man trades "a ue su##osed % created b% Bature !or "a ue created b% other men, that is, uti it% reCuirin' no abor, !or uti it% that does reCuire abor-in other words, that he #ro!its !rom the abor o! others without contributin' abor o! his own. &he theorists !irst characteri1ed #ro#ert% so understood as a necessar% mono#o %, then mere % as a mono#o %, then as in.ustice, and !ina % as the!t. F.10 )anded #ro#ert% recei"ed the !irst brunt o! this attac(. 7t was ine"itab e. Bot that a industr% in its o#eration does not i(ewise use the !orces o! Bature< but in the e%es o! the mu titude these !orces # a% a much more stri(in' ro e in the #henomena o! # ant and anima i!e, in the #roduction o! !ood and what are im#ro#er % ca ed raw materia s, both o! which are the s#ecia #ro"ince o! a'ricu ture. F.11 +oreo"er, i! there is one mono#o % more re#u'nant to human conscience than an% other, it is undoubted % a mono#o % on the thin's most essentia to human i!e. F.18 &his #articu ar con!usion-e"ident % Cuite scienti!ica % # ausib e to be'in with, since, so !ar as 7 (now, no theorist a"oided !a in' into it-was rendered e"en more # ausib e b% e?istin' conditions. F.19 Quite !reCuent % the andowner i"ed without wor(in', and it was eas% to draw the conc usion that he must indeed ha"e !ound a means o! bein' #aid !or somethin' other

811 than his abor. And what cou d this somethin' be e?ce#t the !erti it%, the #roducti"it%, o! the and, the instrument that su## emented his own e!!ortsK Hence, and rent was assai ed b% "arious e#ithets, de#endin' on the times, such as 5necessar% mono#o %,5 5#ri"i e'e,5 5in.ustice,5 5the!t.5 F.1$ And it must be admitted that the theorists were in #art ed astra% b% the !act that !ew areas o! Euro#e ha"e esca#ed conCuest and a the abuses that conCuest has brou'ht with it. &he% understandab % con!used the #henomenon o! anded #ro#ert% that had been sei1ed b% "io ence with the #henomenon o! #ro#ert% as it wou d be !ormed natura % under norma conditions. F.15 But we must not ima'ine that the erroneous de!inition o! the word 5"a ue5 did no more than undermine anded #ro#ert%. &he #ower o! o'ic is ine?orab e and inde!ati'ab e, whether it be based on a true or a !a se #remise. Must as the and has i'ht, heat, e ectricit%, # ant i!e, etc., to aid it in #roducin' "a ue, does not ca#ita i(ewise ca u#on the wind, e asticit%, 'ra"itation to co-o#erate with it in the wor( o! #roductionK &here are, there!ore, other men, besides a'ricu turists, who recei"e #a%ment !or the use o! the !orces o! Bature. &his #a%ment comes to them in the !orm o! interest on ca#ita , .ust as rent comes to the andowner. &here!ore, dec are war on interest as we as on rentJ F.1A &hus, #ro#ert% has been attac(ed with e"er increasin' !orce b% economists and e'a itarians a i(e, in the name o! this #rinci# e, which 7 maintain is !a se: &he !orces o! Bature #ossess or create "a ue. For a schoo s are a'reed that it is true and di!!er on % in the "io ence o! their attac( and in the re ati"e timidit% or bo dness o! their conc usions. F.1E &he economists ha"e stated: )anded #ro#ert% is a #ri"i e'e, but it is necessar%< it must be maintained. F.18 &he socia ists: )anded #ro#ert% is a #ri"i e'e, but it is necessar%< it must be maintained, but reCuired to ma(e a re#aration, in the !orm o! ri'ht-to-em# o%ment e'is ation. F.1F &he communists and the e'a itarians: /ro#ert% in 'enera is a #ri"i e'e< it must be destro%ed. F.80 And 7 sa%, as em#hatica % as 7 (now how: /ro#ert% is not a #ri"i e'e. Lour common #remise is !a se< hence, %our three conc usions, thou'h con! ictin', are a so !a se. /ro#ert% is not a #ri"i e'e< there!ore, %ou cannot sa% that it must be to erated, that it must be reCuired to #ro"ide a re#aration, or that it must be destro%ed.


-------------------------------------------------------------------------------F.81 )et us re"iew brie! % the o#inions "oiced on this serious #rob em b% the "arious schoo s o! thou'ht. F.88 >e (now that the En' ish economists ha"e ad"anced this #rinci# e, with a##arent unanimit%: @a ue comes !rom abor. &he% ma% Cuite #ossib % be in a'reement with one another, but can their a'reement be ca ed consistent with their own reasonin'K )et the reader .ud'e !or himse ! whether or not the% ha"e attained this 'reat %-to-be-desired consistenc%. He wi note whether or not the% constant % and in"ariab % con!use 'ratuitous uti it%, which cannot be #aid !or, which contains no "a ue, with onerous uti it%, which comes on % !rom abor, and which a one, as the% themse "es sa%, #ossesses "a ue. F.89 Adam 2mith: 57n a'ricu ture, too, Bature abours a on' with man< and thou'h her abour costs no e?#ense, its #roduce has nonethe ess its "a ue, as we as that o! the most e?#ensi"e wor(men.5G81 F.8$ Here, then, we ha"e Bature #roducin' "a ue. And he who wou d #urchase wheat must #a% !or this "a ue, a thou'h it has not cost an%bod% an%thin', e"en in terms o! abor. >ho wi dare ste# !orward to c aim this so-ca ed "a ueK But !or this word 5"a ue5 substitute 5uti it%,5 and a becomes c ear, and #ri"ate #ro#ert% is "indicated and .ustice satis!ied. F.85 &his rent ma% be considered as the #roduce o! those #owers o! Bature, the use o! which the and ord ends to the !armer..... 7t Hthe rentJI is the wor( o! Bature, which remains a!ter deductin' or com#ensatin' e"er%thin' that can be re'arded as the wor( o! man. 7t is se dom ess than a !ourth and o!ten more than a third o! the who e #roduce. Bo eCua Cuantit% o! #roducti"e abour em# o%ed in manu!actures can e"er occasion so 'reat a re#roduction. 7n them Bature does nothin'< man does a .....G88 F.8A 7s it #ossib e to assemb e a 'reater number o! dan'erous errors in !ewer wordsK =n this rec(onin', a !ourth or a third o! the "a ue o! !ood #roducts must be attributed e?c usi"e % to the #owers o! Bature. And %et the andowner char'es the tenant, and the tenant the #ro etarian, !or this so-ca ed "a ue, which remains a!ter #a%ment is made !or the wor( o! man. And it is on this basis that %ou #ro#ose to .usti!% the ri'ht to #ro#ert%J >hat, then, do %ou #ro#ose to do with the a?iom: A "a ue comes !rom aborK


F.8E Furthermore, we ha"e the assertion that Bature does nothin' in manu!acturesJ 2o 'ra"itation, "o ati e 'ases, anima s do not aid the manu!acturerJ &hese !orces do the same thin' in the !actories that the% do on the and< the% #roduce 'ratis, not "a ue, but uti it%. =therwise #ro#ert% in ca#ita 'oods wou d be as much e?#osed to communist attac(s as anded #ro#ert%. F.88 Buchanan,G89 in his comment, whi e acce#tin' the theor% o! the master on rent, is ed b% the o'ic o! the !acts to critici1e him !or dec arin' it ad"anta'eous. F.8F 2mith, in re'ardin' as ad"anta'eous to societ% that #ortion o! the soi ;s #roduce which re#resents #ro!it on !arm and Hwhat an'ua'eJI does not re! ect that rent is on % the e!!ect o! hi'h #rice, and what the and ord 'ains in this wa% he 'ains on % at the e?#ense o! the consumer. 2ociet% 'ains nothin' b% the re#roduction o! #ro!it on and. 7t is one c ass #ro!itin' at the e?#ense o! the others.G8$ F.90 Here we !ind the o'ica deduction: rent is in.ustice. F.91 ,icardo: 5,ent is that #ortion o! the #roduce o! the earth which is #aid to the and ord !or #ossessin' the ri'ht to e?# oit the #roducti"e and indestructib e #owers o! the soi .5G85 F.98 And, in order that there be no mista(e, the author adds: F.99 ,ent is o!ten con!ounded with the interest and #ro!it o! ca#ita ..... 7t is e"ident that a #ortion on % o! the mone% .... re#resents the interest o! the ca#ita which had been em# o%ed in im#ro"in' the and, and in erectin' such bui din's as were necessar%, etc.< the rest is #aid !or the use o! the ori'ina and indestructib e #owers o! the soi . 7n the !uture #a'es o! this wor(, then, whene"er 7 s#ea( o! the rent o! and, 7 wish to be understood as s#ea(in' o! that com#ensation which the !armer #a%s to the owner o! the and !or the use o! the ori'ina and indestructib e #owers o! the soi . F.9$ +c3u och:G8A 5>hat is #ro#er % termed ,ent is the sum #aid !or the use o! the natura and inherent #owers o! the soi . 7t is entire % distinct !rom the sum #aid !or the use o! bui din's, enc osures, roads, or other im#ro"ements. ,ent is, then, a wa%s a mono#o %.5 F.95

81$ 2cro#e: 5&he "a ue o! and and its #ower o! %ie din' ,ent are due to two circumstances: !irst, the a##ro#riation o! its natura #owers< second, the abor a## ied to its im#ro"ement.5 F.9A &he conc usion is not on' in comin': F.9E 56nder the !irst o! these re ations rent is a mono#o %. 7t restricts the usu!ruct o! the 'i!ts that 0od has 'i"en to men !or the satis!action o! their wants. &his restriction is .ust on % in so !ar as it is necessar% !or the common 'ood.5 F.98 How 'reat must be the #er# e?it% o! those 'ood sou s who re!use to admit that an%thin' can be necessar% which is not .ustJ F.9F 2cro#e conc udes with these words: F.$0 5>hen it 'oes be%ond this #oint, it must be modi!ied on the same #rinci# e that caused it to be estab ished.5 F.$1 &he reader cannot !ai to #ercei"e that these authors ha"e ed us to the denia o! the ri'ht to #ro#ert%, and ha"e done so "er% o'ica % b% startin' with this #ro#osition: &he andowner e?acts #a%ment !or the 'i!ts o! 0od. Hence, and rent is an in.ustice that has been e'a i1ed under the #ressure o! necessit%< it can be modi!ied or abo ished as other necessities dictate. &his is what the communists ha"e a wa%s said. F.$8 2enior: 5&he instruments o! #roduction are abour and natura a'ents. Batura a'ents ha"in' been a##ro#riated, #ro#rietors char'e !or their use under the !orm o! ,ent, which is the recom#ense o! no sacri!ice whate"er, and is recei"ed b% those who ha"e neither aboured nor #ut b%, but who mere % ho d out their hands to acce#t the o!!erin's o! the rest o! the communit%.5 F.$9 Ha"in' dea t #ro#ert% this hea"% b ow, 2enior e?# ains that a #ortion o! rent corres#onds to interest on ca#ita , and then adds: F.$$ &he sur# us is ta(en b% the #ro#rietor o! the natura a'ent, and is his reward, not !or ha"in' aboured or abstained, but sim# % !or not ha"in' withhe d when he was ab e to withho d< !or ha"in' #ermitted the 'i!ts o! Bature to be acce#ted.


F.$5 >e see that this is sti the same theor%. &he andowner is #resumed to come between the hun'r% and the !ood 0od had intended !or them, #ro"ided the% were wi in' to wor(. &he owner, who had a share in its #roduction, char'es !or this abor, as is .ust, and then he char'es a second time !or Bature;s abor, !or the #roducti"e !orces, !or the indestructib e #owers o! the soi , which is un.ust. F.$A >e are sorr% to !ind this theor%, de"e o#ed b% Mohn 2tuart +i , +a thus, et a ., a so 'ainin' acce#tance on the 3ontinent. F.$E 5>hen one !ranc;s worth o! seed,5 sa%s 2cia o.a, 5%ie ds one hundred !ranc;s worth o! wheat, this 'reat increase in "a ue is due in ar'e #art to the and.5G8E F.$8 &his is con!usin' uti it% with "a ue. =ne mi'ht as we sa%: >hen water, which costs on % a sou ten %ards !rom the s#rin', costs ten sous at a hundred %ards, this increase in "a ue is due in ar'e #art to the he # o! Bature. F.$F F ore1 Estrada:G88 5,ent is that #art o! the #roduct o! a'ricu ture which is e!t a!ter a the costs o! its #roduction ha"e been met.5 F.50 Hence, the andowner recei"es somethin' !or nothin'. F.51 A the En' ish economists be'in b% assertin' this #rinci# e: @a ue comes !rom abor. &he% are there!ore mere % inconsistent when the% thereu#on attribute "a ue to !orces contained in the soi . F.58 &he French economists, !or the most #art, assi'n "a ue to uti it%< but, since the% con!use 'ratuitous uti it% with onerous uti it%, the harm the% do #ro#ert% is eCua % 'reat. F.59 Mean-Ba#tiste 2a%: F.5$ &he and is not the on % natura a'ent that is #roducti"e< but it is the on % one, or a most the on % one, that man has been ab e to a##ro#riate. &he waters o! the sea and o! the ri"ers, in bein' ab e to turn the whee s o! our machines, to #ro"ide us with !ish, to ! oat our shi#s, i(ewise ha"e #roducti"e #ower. &he wind and e"en the sun;s ra%s wor( !or us<

81A but, !ortunate %, no one has %et been ab e to sa%: &he wind and the sun be on' to me, and 7 must be #aid !or the ser"ice the% render. F.55 2a% a##arent % de# ores the !act that an%one can sa%: &he and be on's to me, and 7 must be #aid !or its ser"ice. Fortunate %, 7 maintain, the andowner can no more char'e !or the ser"ices o! the and than !or the wind;s or the sun;s. F.5A &he earth is a wondrous chemica wor(sho# wherein man% materia s and e ements are mi?ed to'ether and wor(ed on, and !ina % come !orth as 'rain, !ruit, ! a?, etc. Bature has #resented this "ast wor(sho# to man as a 'ratuitous 'i!t, and has di"ided it into man% com#artments suitab e !or man% di!!erent (inds o! #roduction. But certain men ha"e come !orth, ha"e aid hands on these thin's, and ha"e dec ared: &his com#artment be on's to me< that one a so< a that comes !rom it wi be m% e?c usi"e #ro#ert%. And, ama1in' % enou'h, this usur#ation o! #ri"i e'e, !ar !rom bein' disastrous to societ%, has turned out to be ad"anta'eous. F.5E =! course, the arran'ement has #ro"ed ad"anta'eousJ And wh%K Because it is neither #ri"i e'e nor usur#ation< because the one who said, 5&his com#artment is mine,5 cou d not add, 5>hat comes !rom it wi be m% e?c usi"e #ro#ert%,5 but instead, 5>hat comes !rom it wi be the e?c usi"e #ro#ert% o! an%one wishin' to bu% it, #a%in' me in return !or the #ains 7 ta(e, or that 7 s#are him< what Bature did !or me without char'e wi be without char'e to him a so.5 F.58 2a%, 7 be' the reader to note, distin'uishes in the "a ue o! wheat the shares that be on', res#ecti"e %, to #ro#ert%, to ca#ita , and to abor. >ith the best o! intentions he 'oes to 'reat #ains to .usti!% this !irst #ortion o! #a%ment which 'oes to the andowner and which is not char'ed a'ainst an% #re"ious or #resent abor. But he !ai s, !or, i(e 2cro#e, he !a s bac( on the wea(est and east satis!actor% o! a a"ai ab e ar'uments: necessit%. F.5F 7! it is im#ossib e !or #roduction to be carried on not on % without and and ca#ita , but a so without these means o! #roduction becomin' #ro#ert%, can we not sa% that their owners #er!orm a #roducti"e !unction, since without it #roduction cou d not be carried onK 7t is, indeed, a con"enient !unction, a thou'h in the #resent state o! societ% it reCuires an accumu ation o! ca#ita 'oods !rom #re"ious #roduction or sa"in's, etc. F.A0 &he con!usion here is ob"ious. For the andowner to be a ca#ita ist, there must be an accumu ation o! ca#ita 'oods-a !act that is neither Cuestioned nor to the #oint. But what 2a% oo(s on as 5con"enient5 is the ro e o! the andowner as such, as someone

81E char'in' !or the 'i!ts o! 0od. &his is the ro e that must be .usti!ied, and it entai s neither accumu ation nor sa"in's. F.A1 7!, there!ore, #ro#ert% in and and in ca#ita 'oods Hwh% associate thin's that are di!!erentKI is created b% #roduction, 7 can !ittin' % i(en #ro#ert% to a machine that wor(s and #roduces whi e its owner stands id % b%, char'in' !or its hire. F.A8 2ti the same con!usion. &he man who has made a machine owns ca#ita 'oods, !rom which he deri"es e'itimate #a%ment, because he char'es, not !or the wor( o! the machine, but !or the abor he himse ! has #er!ormed in ma(in' it. But the soi , which is anded #ro#ert%, is not the #roduct o! human abor. =n what 'rounds is a char'e made !or what it doesK &he author has here um#ed to'ether two di!!erent t%#es o! #ro#ert% in order to #ersuade us to e?onerate the one !or the same reasons that we e?onerate the other. F.A9 B anCui:G8F F.A$ &he !armer who # ows, !erti i1es, sows, and har"ests his !ie d, #ro"ides abor without which there wou d be nothin' to rea#. But the action o! the and in 'erminatin' the seed, and o! the sun in ri#enin' the cro#, are inde#endent o! this abor and co-o#erate with it to !orm the "a ue re#resented b% the har"est..... 2mith and man% other economists ha"e asserted that human abor is the on % source o! "a ue. &his is certain % not the case. &he !armer;s industr% is not the on % thin' that creates the "a ue in a sac( o! wheat or a bushe o! #otatoes. His s(i wi ne"er be so 'reat as to #roduce 'ermination, an% more than the a chemist;s #atience has disco"ered the secret o! ma(in' 'o d. &his is ob"ious. F.A5 7t is im#ossib e to con!use more com# ete %, !irst, uti it% with "a ue, and, second %, 'ratuitous uti it% with onerous uti it%. F.AA Mose#h 0arnier:GF0 F.AE ,ent #aid to the andowner is !undamenta % di!!erent !rom the #a%ments made to the wor(man !or his abor or to the entre#reneur as #ro!it on the out a%s made b% him, in that these two t%#es o! #a%ment re#resent com#ensation, to the one !or #ains ta(en, to the other !or sacri!ices or ris(s he has borne, whereas the andowner recei"es rent more

818 'ratuitous % and mere % b% "irtue o! a e'a con"ention that 'uarantees to certain indi"idua s the ri'ht to anded #ro#ert%.GG98 F.A8 7n other words, the wor(man and the entre#reneur are #aid, in the name o! .ustice, !or ser"ices that the% render< the andowner is #aid, in the name o! the aw, !or ser"ices that he does not render. F.AF &he most darin' inno"ators do nothin' more than #ro#ose to re# ace #ri"ate ownershi# b% co ecti"e ownershi#..... &he% ha"e reason on their side, it seems to me, as re'ards human ri'hts< but, #ractica % s#ea(in', the% are wron' unti such time as the% can demonstrate the ad"anta'es o! a better economic s%stem.....GG99 F.E0 But !or a on' time to come, e"en thou'h admittin' that #ro#ert% is a #ri"i e'e and a mono#o %, we must add that it is a use!u and natura mono#o %..... F.E1 7n short, it is a##arent % admitted b% #o itica economists Ha asJ %es, and herein ies the e"i I that #ro#ert% does not stem !rom di"ine ri'hts, or ri'hts o! demesne, or !rom an% other theoretica ri'hts, but sim# % !rom its #ractica ad"anta'es. 7t is mere % a mono#o % that is to erated in the interest o! a , etc. F.E8 &his is the identica .ud'ment #assed b% 2cro#e and re#eated b% 2a% in mi der terms. F.E9 7 be ie"e that 7 ha"e su!!icient % #ro"ed that the economists, ha"in' started !rom the !a se assum#tion that the !orces o! Bature #ossess or create "a ue, went on to the conc usion that #ri"ate #ro#ert% (in so !ar as it a##ro#riates and char'es !or this "a ue that is inde#endent o! a human ser"ices) is a #ri"i e'e, a mono#o %, a usur#ation, but a necessar% #ri"i e'e that must be maintained. F.E$ 7t remains !or me to show that the socia ists start !rom the same assum#tion but chan'e their conc usion to this: /ri"ate #ro#ert% is a necessar% #ri"i e'e< it must be maintained, but we must reCuire the #ro#ert% owner to !urnish com#ensation in the !orm o! a 'uarantee o! em# o%ment !or those who are without #ro#ert%. F.E5 A!ter this, 7 sha summon the communists, who dec are, sti ar'uin' !rom the same #remise: /ri"ate #ro#ert% is a #ri"i e'e< it must be abo ished.


F.EA And !ina %, at the ris( o! re#eatin' m%se !, 7 sha c ose b% re!utin', i! #ossib e, the common #remise !rom which a three conc usions are deri"ed: &he !orces o! Bature #ossess or create "a ue. 7! 7 succeed, i! 7 demonstrate that the !orces o! Bature, e"en when con"erted into #ro#ert%, do not create "a ue, but uti it%, which is #assed on b% the owner in its entiret%, reachin' the consumer without char'e, then economists, socia ists, communists wi a ha"e to a'ree to ea"e the wor d, in this res#ect, as it is. F.EE +. 3onsidrant writes:GG9$ F.E8 7n order to see how and under what conditions #ri"ate #ro#ert% can a##ear and de"e o# e'itimate %, we must understand the !undamenta /rinci# e o! /ro#ert% ri'hts: E"er% man =>B2 )E07&7+A&E)L &HE &H7B0 which his abor, his inte i'ence, or, more 'enera %, H72 A3&7@7&L HA2 3,EA&E4. F.EF &his #rinci# e is incontestab e, and it is we to note that im# icit % it reco'ni1es the ri'ht o! a men to the and. 7n !act, since the and was not created b% men, it ensues !rom the !undamenta /rinci# e o! /ro#ert% that the and, the common !und #resented to the s#ecies, can in no wise be e'itimate % the abso ute and e?c usi"e #ro#ert% o! an% #articu ar indi"idua s who ha"e not created this "a ue. )et us then !ormu ate the true &heor% o! /ro#ert%, estab ishin' it e?c usi"e % on the unassai ab e #rinci# e which bases the )e'itimac% o! /ro#ert% on the !act o! the 3,EA&7=B o! a thin' or o! the "a ue #ossessed b% it. 7n order to do this, et us consider the creation o! 7ndustr%, that is, the ori'in and de"e o#ment o! a'ricu ture, manu!acture, the arts, etc., in human societ%. F.80 )et us ima'ine that on the and o! a remote is and, on the soi o! a nation, or o"er the who e earth (the area o! the theater o! o#erations chan'es in no wa% the si'ni!icance o! the !acts), one 'eneration o! man(ind de"otes itse ! !or the !irst time to industr%, that is, !or the !irst time it !arms, manu!actures, etc. Each 'eneration, b% its abor, b% its inte i'ence, b% its own industr%, creates commodities, de"e o#s "a ues, that did not #re"ious % e?ist on the unim#ro"ed and. 7s it not #er!ect % e"ident that in this !irst industria 'eneration the #ossession o! /ro#ert% wi be in con!ormit% with Mustice, 7F the "a ue and wea th #roduced b% the industr% o! a is distributed amon' their #roducers 7B /,=/=,&7=B &= &HE 3=B&,7B6&7=B o! each one to the creation o! the 'enera wea thK &his is incontestab e. F.81

880 Bow, the resu ts o! this abor !a into two cate'ories that must be care!u % distin'uished. F.88 &he !irst cate'or% inc udes those thin's comin' !rom the soi that be on'ed to the !irst 'eneration b% ri'ht o! use: #roducts increased, re!ined, or manu!actured b% the abor and industr% o! this 'eneration. &hese #roducts, !inished or un!inished, consist either o! consumers; 'oods or o! too s o! #roduction. 7t is c ear that the #roducts are !u % and e'itimate % the #ro#ert% o! those who b% their industr% ha"e created them. Each one o! these #ersons has, there!ore, the ri'ht either to consume them immediate % or to #ut them awa% to be dis#osed o! accordin' to his subseCuent con"enience, whether it be to use them, e?chan'e them, or 'i"e them awa% or trans!er them to whomsoe"er desired, without need o! authori1ation !rom an%one. Accordin' to this h%#othesis, this #ro#ert% is ob"ious % e'itimate, res#ectab e, sacred. 7t cannot be attac(ed without attac(in' Mustice, ,i'ht, and indi"idua )ibert%-in a word, without committin' an act o! # under. F.89 2econd cate'or%. But not a the thin's created b% the industria acti"it% o! this !irst 'eneration !a into the abo"e cate'or%. Bot on % has this 'eneration created the #roducts that we ha"e .ust desi'nated (consumers; 'oods and too s o! #roduction), but it has a so added an additiona "a ue to the ori'ina "a ue o! the soi b% cu ti"atin' it, bui din' u#on it, and addin' #ermanent im#ro"ements. F.8$ &his additiona "a ue ob"ious % constitutes a #roduct, a "a ue, due to the !irst 'eneration;s industr%. Bow, i!, b% some means or other (we are not concerned here with the Cuestion o! means), the ownershi# o! this e?tra "a ue is distributed eCuitab %, that is, in #ro#ortion to each one;s abor in creatin' it, each one o! these #ersons wi #ossess e'itimate % the #ortion that !a s to him. He wi there!ore be ab e to dis#ose o! this e'itimate #ri"ate #ro#ert% as he sees !it, e?chan'in' it, 'i"in' it awa%, trans!errin' it, without an% o! the other indi"idua s, in other words, societ%, e"er ha"in' an% ri'ht or authorit% whatsoe"er o"er these "a ues. F.85 >e can understand #er!ect % we , there!ore, that, when the second 'eneration comes a on', it wi !ind u#on the and ca#ita o! two di!!erent t%#es: A. =ri'ina or Batura 3a#ita , which has not been created b% men o! the !irst 'eneration -that is, the "a ue o! the unim#ro"ed and. B. 3a#ita 3reated b% the !irst 'eneration, inc udin': !irst, the #roducts, 'oods, and im# ements that ha"e not been consumed or worn out b% the !irst 'eneration< second, the e?tra "a ue that the abor o! the !irst 'eneration ma% ha"e added to the "a ue o! the unim#ro"ed and.

881 F.8A 7t is there!ore e"ident, and the c ear and necessar% conseCuence o! the basic /rinci# e o! /ro#ert% ,i'hts, which has .ust been estab ished, that e"er% indi"idua o! the second 'eneration has eCua ri'hts to the =ri'ina or Batura 3a#ita , whereas he has no ri'ht to the other ca#ita , the 3a#ita 3reated b% the abor o! the !irst 'eneration. E"er% indi"idua member o! this !irst 'eneration can there!ore dis#ose o! his share o! the 3reated 3a#ita in !a"or o! an% #erson or #ersons o! the second 'eneration he chooses-chi dren, !riends, etc.-without an% indi"idua or e"en the 2tate itse !, as we ha"e .ust said, ha"in' an% c aim (in the name o! /ro#ert% ,i'hts) o"er such dis#osa made b% the donor or testator. F.8E )et us note that, !o owin' our h%#othesis, a member o! the second 'eneration is a read% !a"ored o"er a member o! the !irst 'eneration because, in addition to ri'hts to the =ri'ina 3a#ita , which ha"e been #reser"ed !or him, he ma% be !ortunate enou'h to recei"e a share o! the 3reated 3a#ita , that is, "a ue that has been #roduced not b% him, but b% #re"ious abor. F.88 )et us assume that 2ociet% is so constituted: 1. &hat the ,i'hts to =ri'ina 3a#ita , that is, to the resources o! the and in its unim#ro"ed !orm, are #reser"ed or that EQ67@A)EB& ,70H&2 are reco'ni1ed !or e"er% #erson born into this wor d in an% a'e whatsoe"er. 8. &hat 3reated 3a#ita is continua % distributed amon' men as ra#id % as it is created, in #ro#ortion to each #erson;s #artici#ation in its creation. F.8F 7! the machiner% o! the socia order meets these two conditions, /,=/E,&L, in such a re'ime, wou d be estab ished under conditions o! AB2=)6&E M62&73E. Fact and idea wou d then be in com# ete accord.GG95 F.F0 >e note that our socia ist author ma(es a distinction here between two (inds o! "a ue: created "a ue, which can e'itimate % be con"erted into #ro#ert%, and noncreated "a ue, a so ca ed the "a ue o! unim#ro"ed and, ori'ina ca#ita , natura ca#ita , which can become #ri"ate #ro#ert% on % b% an act o! usur#ation. Bow, accordin' to the theor% that 7 ad"ance, the ideas e?#ressed b% the words 5noncreated,5 5ori'ina ,5 5natura ,5 com# ete % e?c ude the ideas o! "a ue and ca#ita . &his is the error in the #remise that eads +. 3onsidrant to the !o owin' me ancho % conc usion: F.F1

888 6nder the 2%stem b% which /ro#ert% is estab ished in a ci"i i1ed nations, the common !und, to whose com# ete en.o%ment a humanit% has !u ri'hts, has been raided: it is now ta(en o"er b% a sma minorit%, to the e?c usion o! the 'reat ma.orit%. And tru %, i! on % one man were in !act de#ri"ed o! his ri'hts to the en.o%ment o! the common !und, this one e?c usion wou d in itse ! be a su!!icient "io ation o! Mustice to brand the s%stem o! /ro#ert% that sanctioned it as un.ust and i e'itimate. F.F8 Let +. 3onsidrant ac(now ed'es that the and cannot be cu ti"ated e?ce#t under the s%stem o! #ri"ate #ro#ert%. &his is necessar% mono#o %. How can a these thin's be reconci ed, and the ri'hts o! the #ro etariat to ori'ina , natura , noncreated ca#ita , or the "a ue o! the unim#ro"ed and, be #rotectedK F.F9 @er% we , et an industria 2ociet%, which has ta(en o"er the #ossession o! the )and and has de#ri"ed man o! the !acu t% o! e?ercisin' !ree % and at wi his !our natura ,i'hts< et such a 2ociet%, 7 sa%, 'rant the indi"idua as re#aration !or the ,i'hts that it has ta(en awa%, the ,70H& &= E+/)=L+EB&. F.F$ 7! an%thin' in the wor d is c ear, it is that this theor%, e?ce#t !or the conc usion, is e?act % the one he d b% the economists. &he #erson bu%in' a !arm #roduct #a%s !or three thin's: (1) current abor (nothin' more e'itimate)< (8) the additiona "a ue im#arted to the soi b% #re"ious abor (sti com# ete % e'itimate)< (9) !ina %, ori'ina ca#ita or natura or noncreated ca#ita , the 'ratuitous 'i!t o! 0od, ca ed b% 3onsidrant the "a ue o! the unim#ro"ed and< b% 2mith, the indestructib e #owers o! the soi < b% ,icardo, the #roducti"e and indestructib e #owers o! the and< b% 2a%, natura a'ents. &his is what has been usur#ed, accordin' to +. 3onsidrant< this is what has been usur#ed, asserts MeanBa#tiste 2a%. &his is what constitutes in.ustice and # under in the e%es o! the socia ists< this is what constitutes mono#o % and #ri"i e'e in the e%es o! the economists. &he% are !urther a'reed as to the necessit%, the use!u ness, o! this arran'ement. >ithout it, the and wou d not #roduce, sa% the disci# es o! 2mith< without it, we shou d return to the sa"a'e state, sa% the disci# es o! Fourier. F.F5 >e see that in theor%, at east as re'ards the 'reat Cuestion o! eCuit%, there is much more o! an entente cordia e between the two schoo s than mi'ht be ima'ined. &he% are di"ided on % in re'ard to the conc usions to be drawn !rom the !act on which the% a'ree and in re'ard to the e'is ati"e action to be ta(en. 52ince #ro#ert% is tainted with in.ustice, inasmuch as it assi'ns to the andowners remuneration that is not their .ust due, and since, on the other hand, it is necessar%, et us res#ect it but e?act re#arations !rom it.5 F.FA 5Bo,5 sa% the economists, 5a thou'h it is a mono#o %, et us res#ect it, since it is necessar%, and ea"e it a one.5 Let the% o!!er e"en this !eeb e de!ense "er% ha !-hearted %,

889 !or one o! their most recent s#o(esmen, +. 0arnier, adds: 5Lou are correct !rom the #oint o! "iew o! human ri'hts, but %ou are wron' !rom the #ractica stand#oint, unti %ou can show what cou d be done b% a better s%stem.5 F.FE &o which the socia ists do not !ai to re# %: 5>e ha"e !ound it. 7t is the ri'ht to em# o%ment. )et us tr% it.5 F.F8 At this .uncture +. /roudhon arri"es on the scene. 4o %ou ima'ine, #erha#s, that this ce ebrated contradictor is 'oin' to contradict the !undamenta #remise o! the socia ists and the economistsK Bot at a . He has no need to do so in order to demo ish the #rinci# e o! #ro#ert%. =n the contrar%: he sei1es ho d o! this #remise< he embraces it< he #resses it to his bosom, and sCuee1es !rom it its most o'ica conc usion. 5Aha,5 he sa%s, 5%ou admit that the 'i!ts o! 0od ha"e not on % uti it% but "a ue< %ou admit that the andowners usur# them and se them. &here!ore, #ro#ert% is the!t. &here!ore, it is not necessar% to maintain it or to e?act re#arations !rom it, but to abo ish it.5 F.FF +. /roudhon has mustered man% ar'uments a'ainst anded #ro#ert%. &he one that carries the most wei'ht, the on % one that carries an% wei'ht, is the one !urnished him b% those authors who ha"e con!used uti it% with "a ue. F.100 5>ho has the ri'ht,5 he as(s, to char'e !or the use o! the soi , !or wea th that was not made b% manK &o whom is due the rent on the andK &o the #roducer o! the and, o! course. >ho made itK 0od. 7n that case, and ord, %ou ma% withdraw. .... But the 3reator o! the earth does not se it. He 'i"es it awa% without char'e< and He 'i"es to a a i(e. How, then, is it that amon' His chi dren some are treated as e dest sons and others as bastardsK How does it ha##en, i! ori'ina % man;s ri'ht was eCua it% o! inheritance, that it has #osthumous % become ineCua it% o! statusK F.101 ,e# %in' to Mean-Ba#tiste 2a%, who has com#ared the and to a too o! #roduction, he sa%s: F.108 7 a'ree that the and is a too o! #roduction< but who wie ds itK 7s it the andownerK 7s he the one who b% the ma'ic o! #ro#ert% ri'hts im#arts to it stren'th and !erti it%K His mono#o % consists o! .ust this, that, thou'h he has not made the im# ement, he char'es !or the ser"ice it #er!orms. )et its +a(er a##ear and demand His rent, and we wi sett e with Him< or e se et the andowner, who c aims to ha"e !u tit e, #roduce his #ower o! attorne% !rom the +a(er.


F.109 E"ident % these three s%stems are in !act on % one. Economists, socia ists, e'a itarians, a direct the same re#roach a'ainst anded #ro#ert%, that o! char'in' !or somethin' that it has no ri'ht to char'e !or. 2ome ca this abuse mono#o %< others, in.ustice< and sti others, the!t. &hese are mere % di!!erent de'rees o! 'ui t in the same bi o! com# aint. F.10$ Bow, 7 a##ea to the attenti"e reader: 7s this com# aint we -'roundedK Ha"e 7 not demonstrated that on % one thin' stands between 0od;s 'i!ts and human hun'er, "i1., human ser"iceK F.105 Economists, %ou dec are: 5,ent is what is #aid to the andowner !or the use o! the #roducti"e and indestructib e #owers o! the soi .5 F.10A 7 answer: Bo. ,ent is what is #aid the water carrier !or the #ains he too( to ma(e his cart and his whee s, and the water wou d cost more i! he carried it on his bac(. 7n the same manner, wheat, ! a?, woo , wood, meat, !ruit wou d cost us more i! the andowner had not im#ro"ed the instrument that #roduces them. F.10E 2ocia ists, %ou sa%: 5=ri'ina % the masses en.o%ed their ri'ht to the and sub.ect to their abor. Bow the% are e?c uded and robbed o! their natura herita'e.5 F.108 7 re# %: Bo, the% are not e?c uded or robbed< the% do en.o% 'ratis the uti it% that the and has #roduced, sub.ect to their abor, that is, on condition that the% #a% b% their own abor those who s#are them abor. F.10F E'a itarians, %ou sa%: 5&he mono#o % o! the andowner consists in the !act that, whi e he did not ma(e the means o! #roduction, he char'es !or its ser"ice.5 F.110 7 answer: Bo, the and as a means o! #roduction, in so !ar as it is the wor( o! 0od, #roduces uti it%, and this uti it% is 'ratuitous< it is not within the owner;s #ower to char'e !or it. &he and, as a means o! #roduction, in so !ar as the andowner has #re#ared it, wor(ed on it, enc osed it, drained it, im#ro"ed it, added other necessar% im# ements to it, #roduces "a ue, which re#resents human ser"ices made a"ai ab e, and this is the on % thin' he char'es !or. Either %ou must reco'ni1e the .ustice o! this demand, or %ou must re.ect %our own #rinci# e o! reci#roca ser"ices. F.111

885 7n order to earn what the rea e ements are that constitute the "a ue o! the and, et us obser"e how anded #ro#ert% is created, not throu'h "io ence or conCuest, but accordin' to the aws o! abor and e?chan'e. )et us obser"e what conditions are i(e in this res#ect in the 6nited 2tates. F.118 Brother Monathan, an industrious water carrier in Bew Lor(, e!t !or the Far >est, carr%in' in his wa et a thousand do ars, the !ruit o! his abor and thri!t. F.119 He #assed throu'h man% !erti e areas in which the soi , the sun, and the rain #er!orm their mirac es, %et, in the economic and #ractica sense, im#art no "a ue to them. F.11$ As he was somethin' o! a #hi oso#her, he (e#t sa%in' as he went a on': 57n s#ite o! a that 2mith and ,icardo sa%, "a ue must be somethin' e se than the #roducti"e, natura , and indestructib e #ower o! the soi .5 F.115 Fina %, he reached the 2tate o! Ar(ansas and saw be!ore him a beauti!u !arm o! about a hundred acres, which the 'o"ernment had #ut u# !or sa e at a do ar an acre. F.11A 5A do ar an acreJ5 he said to himse !. 5&hat;s "er% itt e, so itt e, in !act, that it;s a most nothin'. 7; bu% this and, c ear it, se m% cro#s, and, instead o! bein' a water carrier as 7 once was, 7 too sha be a andownerJ5 F.11E Brother Monathan, who was a ruth ess % o'ica man, i(ed to ha"e a reason !or e"er%thin'. He said to himse !: 5But wh% is this and worth e"en a do ar an acreK Bo one has e"er aid a hand on it. 7t is "ir'in territor%. 3ou d 2mith, ,icardo, and a the rest o! the theorists down to /roudhon, #ossib % be ri'htK 3ou d it be that the and does ha"e "a ue inde#endent % o! an% abor, ser"ice, or other human inter"entionK +ust it be admitted that the #roducti"e and indestructib e #owers o! the soi are worth somethin'K >h%, then, are the% not "a uab e in the areas 7 ha"e .ust been throu'hK And, besides, since these mar"e ous #owers are so !ar su#erior to man;s ca#acit%, which wi ne"er be ab e to du# icate the #henomenon o! 'rowth, as +. B anCui has so #ro!ound % obser"ed, wh%, then, are the% worth on % a do arK5 F.118 But he was not on' in rea i1in' that this "a ue, i(e a "a ues, is an entire % human and socia creation. &he American 0o"ernment did indeed as( the #rice o! a do ar an acre, but, on the other hand, it 'uaranteed, at east to a certain de'ree, the sa!et% o! the #urchaser< it had constructed a road o! sorts in the "icinit%< it had arran'ed !or the de i"er% o! etters and #a#ers< etc.

88A F.11F 52er"ice !or ser"ice,5 said Monathan. 5&he 'o"ernment char'es me a do ar, but it !u % renders me the eCui"a ent. Hence!orth, be''in' ,icardo;s #ardon, 7 sha e?# ain the "a ue o! this and in human terms, and its "a ue wou d be e"en 'reater i! the hi'hwa% were nearer, the mai ser"ice more con"enient, m% sa!et% more assured.5 F.180 >hi e discoursin' thus, Monathan (e#t on wor(in'< !or, in a !airness to him, it must be said that he was a doer as we as a thin(er. F.181 A!ter he had in"ested the rest o! his do ars in bui din's, !ences, c earin's, trenchin's, draina'e, #re#arations, etc., a!ter he had du', # owed, harrowed, sowed, and har"ested, came the moment !or se in' the cro#. 5Bow at ast 7; (now,5 cried Monathan, sti obsessed with the #rob em o! "a ue, 5whether in becomin' a andowner 7 ha"e turned into a mono#o ist, a #ri"i e'ed aristocrat, a des#oi er o! m% !e ow men, or a usur#er o! the di"ine bount%.5 F.188 2o he too( his 'rain to mar(et and he d con"erse with a Lan(ee: 5+% !riend,5 he said, 5how much wi %ou 'i"e me !or this cornK5 F.189 5&he current #rice,5 said the other. F.18$ 5&he current #riceK But wi that 'i"e me somethin' be%ond the interest on m% in"estment and the com#ensation !or m% aborK5 F.185 57;m a merchant,5 said the Lan(ee, 5and 7 ha"e to be satis!ied with #a%ment !or m% #ast and #resent abor.5 F.18A 5And 7 was satis!ied with that when 7 was a water carrier,5 re# ied Monathan< 5but now 7;m an owner o! anded #ro#ert%. &he En' ish and French economists ha"e assured me that in that ca#acit%, 7 shou d recei"e, in addition to #a%ment !or m% #ast and #resent abor, a #ro!it !rom the #roducti"e and indestructib e #owers o! the soi . 7 shou d e"% a s#ecia tribute on the 'i!ts o! 0od.5 F.18E 5&he 'i!ts o! 0od be on' to e"er%one,5 said the merchant. 57 certain % use the #roducti"e #ower o! the wind to sai m% shi#s, but 7 don;t char'e !or it.5 F.188

88E 5And 7 #ro#ose that %ou #a% me somethin' !or these #owers, so that +essrs. 2enior, 3onsidrant, and /roudhon wi not !or nau'ht ha"e ca ed me a mono#o ist and a usur#er. 7! 7 am to bear the shame, 7 shou d at east ha"e the #ro!it.5 F.18F 57n that case, m% !riend, 7 bid %ou !arewe < 7; a##ea to other andowners !or m% corn, and i! 7 !ind that the% !ee as %ou do, 7; 'row some !or m%se !.5 F.190 &hus, Monathan earned that, under a s%stem o! ibert%, not e"er%one who wi ma% become a mono#o ist. 5As on' as there is and to be c eared in the 6nion,5 he said to himse !, 57 sha be on % the one who #uts these !amous natura and indestructib e !orces to wor(. 7 sha be #aid !or the #ains 7 ta(e and nothin' more, e?act % as in the o d da%s, when, as a water carrier, 7 was #aid !or the #ains 7 too( and not !or those that Bature too(. 7 see c ear % that the one who en.o%s the 'i!ts o! 0od is not the man who raises the 'rain, but the one who consumes it.5 F.191 A!ter se"era %ears Monathan became interested in another "enture and oo(ed around !or a tenant !or his !arm. &he con"ersation between the two #arties was "er% interestin' and wou d shed much i'ht on the Cuestion i! 7 were to Cuote it in its entiret%. F.198 But we must be content with the !o owin' e?cer#t: F.199 Monathan: >hatJ Lou don;t want to #a% me as rent an%thin' more than the interest, at the current rate, on m% ca#ita out a%K F.19$ &he tenant: Bot a #enn% more. F.195 Monathan: And wh%, i! %ou # easeK F.19A &he tenant: Because !or that amount o! ca#ita 7 can #ut another !arm in e?act % the same condition as %ours. F.19E Monathan: &hat seems to be a conc usi"e ar'ument. But consider that, when %ou be'in to !arm m% and, %ou wi ha"e not on % m% ca#ita but a so the natura and indestructib e #owers o! the soi wor(in' !or %ou. Lou wi ha"e at %our dis#osa the mar"e ous e!!ects o! the sun and the moon, o! natura a!!init% and e ectricit%. +ust 7 et %ou ha"e a these !or nothin'K

888 F.198 &he tenant: >h% not, since %ou #aid nothin' !or them, and deri"e nothin' !rom them, an% more than 7 sha K F.19F Monathan: 4eri"e nothin' !rom themK 0oodness 'racious, what do %ou meanK 7 deri"e e"er%thin' !rom them. >ithout these wonder!u #henomena a m% industr% wou dn;t raise a sin' e b ade o! 'rass. F.1$0 &he tenant: =! course. But remember the Lan(ee. He re!used to 'i"e %ou a #enn% !or a this he # o! Bature, .ust as the Bew Lor( housewi"es re!used to 'i"e %ou an%thin' !or the admirab e #rocess b% which Bature !eeds the s#rin'. F.1$1 Monathan: But ,icardo and /roudhon ..... F.1$8 &he tenant: >hat do 7 care about ,icardoK )et us dea on the terms 7 ha"e aid down, or e se 7 sha 'o and c ear some and beside %ours. &he sun and the moon wi wor( !or me there !or nothin'. F.1$9 7t was the same o d ar'ument, and Monathan be'an to understand that 0od has ta(en rather wise #recautions so that His 'i!ts shou d not be easi % interce#ted. F.1$$ Ha"in' somewhat ost his taste !or bein' a andowner, Monathan decided to direct his ener'ies e sewhere. He determined to #ut his !arm u# !or sa e. F.1$5 Beed ess to sa%, no one was wi in' to 'i"e him more than he had himse ! #aid. 4es#ite his citation o! ,icardo and his a usions to the so-ca ed "a ue inherent in the indestructib e #owers o! the soi , e"er%one 'a"e him the same answer: 5&here are other !arms besides %ours.5 And these !ew words si enced his demands e"en as the% destro%ed his i usions. F.1$A 7n this transaction there was, indeed, a !act o! 'reat economic im#ortance that has not been su!!icient % noted. F.1$E E"er%one rea i1es that i! a manu!acturer wished, a!ter ten or !i!teen %ears, to se his eCui#ment, e"en i! it were as 'ood as new, the #robabi it% is that he wou d be com#e ed to su!!er a oss. &he reason is sim# e: &en or !i!teen %ears rare % 'o b% without brin'in' some mechanica #ro'ress. For that reason the #erson who #uts a !i!teen-%ear-o d #iece o!

88F machiner% u# !or sa e can hard % e?#ect to be #aid !or a the wor( that went into it< because now, than(s to #ro'ress, better machines can be obtained !or the same amount o! abor-and this, et me sa% in #assin', is !urther #roo! that "a ue is #ro#ortiona , not to abor, but to ser"ice. F.1$8 Hence, we can conc ude that it is in the nature o! too s o! #roduction to ose some o! their "a ue throu'h the mere action o! time, inde#endent % o! an% wear and tear, and we ma% e?#ress this !act in the !o owin' #ro#osition: =ne o! the e!!ects o! #ro'ress is to decrease the "a ue o! e?istin' too s o! #roduction. F.1$F 7t is c ear, o! course, that the more ra#id the #ro'ress, the 'reater the di!!icu t% o! e?istin' im# ements in (ee#in' #ace with new ones. F.150 7 sha not sto# here to #oint out the harmonies su''ested b% this aw. A that 7 wish to ca attention to is the !act that anded #ro#ert% is no e?ce#tion to it. F.151 Brother Monathan made this disco"er% to his #ersona sorrow and oss. He had this con"ersation with his #ros#ecti"e bu%er: F.158 5&he #ermanent im#ro"ements 7 ha"e #ut into this and re#resent a thousand da%s o! abor. 7 #ro#ose, !irst, that %ou #a% me the eCui"a ent o! these thousand da%s, and then somethin' additiona !or the inherent "a ue o! the soi , which is inde#endent o! an% human abor.5 F.159 &he bu%er answered: F.15$ 57n the !irst # ace, 7 sha 'i"e %ou nothin' !or the "a ue o! the soi itse !, since this is mere % uti it%, which is as abundant in the surroundin' !arms as in %ours. 2o, as !ar as this inherent, e?trahuman uti it% 'oes, 7 can 'et it 'ratis, which #ro"es that it has no "a ue. F.155 57n the second # ace, !or the thousand da%s; abor that %our accounts show %ou #ut into brin'in' %our and to its #resent condition, 7 wi 'i"e %ou ei'ht hundred, and m% reason is that toda% !or ei'ht hundred da%s; abor 7 can do on ad.oinin' and what %ou in the #ast did on %ours in a thousand da%s. / ease bear in mind that in the #ast !i!teen %ears #ro'ress has been made in drainin', c earin', bui din', di''in' we s, constructin' stab es, and #ro"idin' trans#ortation. For e"er% .ob ess abor is needed, and 7 ha"e no desire to #a% %ou ten !or what 7 can 'et !or ei'ht, es#ecia % since the #rice o! 'rain has 'one down #ro#ortionate %, which is not to %our #ro!it or mine, but to that o! a man(ind.5


F.15A &hus, Monathan had no choice but to (ee# his and or se at a oss. F.15E =! course, the "a ue o! and is not sub.ect to an% one sin' e circumstance. =ther !actors, i(e the construction o! a cana or the !oundin' o! a town, can cause a rise in its "a ue. But the !actor that 7 ha"e mentioned, #ro'ress, a wa%s wor(s in the direction o! a !a in its "a ue. F.158 &he conc usion to be drawn !rom the !ore'oin' obser"ations is this: As on' as there is in a countr% an abundance o! and sti to be c eared, the andowner, whether he !arms it himse !, rents it, or se s it, en.o%s no #ri"i e'e, no mono#o %, no e?ce#tiona ad"anta'e, and, most notab %, rea#s no s#ecia wind!a !rom the bount% o! Bature. How cou d he, assumin' that men are !reeK 4oes not e"er%one ha"in' an% ca#ita and the stren'th o! his hands #ossess the ri'ht to !o ow the ca in' o! his choice-a'ricu ture, manu!acturin', commerce, !ishin', na"i'ation, the arts, or the #ro!essionsK And wou d not men with ca#ita and ca#acit% turn more ea'er % toward the careers that o!!ered e?ce#tiona returnsK And wou d the% not desert those i(e % to entai ossesK 7s not this ine"itab e distribution o! human ener'ies su!!icient, 'ranted our h%#othesis, to maintain in eCui ibrium the returns %ie ded in a branches o! enter#riseK 7n the 6nited 2tates do we see !armers ma(in' their !ortunes an% more ra#id % than businessmen, shi#owners, ban(ers, or doctors, as wou d ine"itab % ha##en i! the% recei"ed both #a%ment !or their own abor and a so, o"er and be%ond what others recei"e, a #a%ment, as has been a e'ed, !or the inca cu ab e abor o! BatureK F.15F @er% we , then, do %ou rea % want to (now how, e"en in the 6nited 2tates, a andowner cou d set u# a mono#o % !or himse !K 7 sha tr% to e?# ain. F.1A0 )et us ima'ine that Monathan assemb es a the andowners in the 6nion and s#ea(s to them thus: F.1A1 57 ha"e tried to se m% cro#s, and 7 ha"en;t been ab e to !ind an%one wi in' to 'i"e me a hi'h enou'h #rice !or them. 7 ha"e tried to rent m% and, and no one wi meet m% terms. 7 ha"e tried to se it and ha"e met with the same disa##ointment. +% demands ha"e uni!orm % been cut short with the same answer: &here is other and nearb%. &he resu t is, un!ortunate %, that m% ser"ices in the communit% are rated, i(e those o! e"er%one e se, at what the% are worth, des#ite a the sweet-soundin' #romises o! the theorists. 7 am a otted nothin', abso ute % nothin', !or this #roducti"e and indestructib e #ower o! the soi , !or those !orces o! Bature, so ar and unar radiations, rain, wind, dew, !rost, which 7 be ie"ed were m% #ro#ert%, but which, in rea it%, 7 own in name on %. 7s it not an iniCuitous thin' that 7 am #aid on % !or m% ser"ices, and e"en then on % at the rate to

891 which it has # eased m% com#etitors to ower themK Lou a su!!er !rom this same o##ression< %ou are a "ictims o! anarchistic com#etition. &hin's wou d not be in this state, as %ou can readi % understand, i! we were to or'ani1e anded #ro#ert%, i! we were to act concerted % to #re"ent an%one !rom herea!ter c earin' a sCuare inch o! American soi . &hen, when the #o#u ation, because o! its 'rowth, wou d be c amorin' !or the imited su## % o! !ood to be had, we wou d be in a #osition to set our own #rices and ma(e 'reat !ortunes, which, in turn, wou d be a 'reat boon to the other c asses, !or, bein' rich, we wou d #ro"ide them with em# o%ment.5 F.1A8 7!, on hearin' this discourse, the united and ords sei1ed contro o! the e'is ature and enacted a statute !orbiddin' a !urther c earin' o! the and, the% undoubted % wou d, !or a time, increase their #ro!its. 7 sa%, !or a time, because the natura aws o! societ% wou d be ac(in' in harmon% i! the #unishment did not s#rin' !rom the crime itse !. =ut o! res#ect !or scienti!ic accurac%, 7 sha not sa% that the new statute wou d im#art "a ue to the #ower o! the soi or to the !orces o! Bature (i! that were the case, the statute wou d wor( to the harm o! no one)< but 7 sha sa%: &he ba ance o! ser"ices wou d be "io ent % u#set< one c ass wou d e?# oit the other c asses< a s%stem o! s a"er% wou d be introduced into the countr%. F.1A9 )et us mo"e on to another h%#othesis, which, in !act, re#resents actua conditions in the ci"i i1ed nations o! Euro#e, where the and has a read% become #ri"ate #ro#ert%. F.1A$ >e must now consider whether, in this case too, the 'reat mass o! consumers, or the communit%, continues to en.o% 'ratis the #roducti"e #ower o! the soi and the !orces o! Bature< whether the ho ders o! the and are owners o! an%thin' be%ond its "a ue, that is, o! their honest ser"ices e"a uated accordin' to the aws o! com#etition< and whether, when the% char'e !or their ser"ices, the% are not !orced, i(e e"er%bod% e se, to inc ude 'ratis the 'i!ts o! 0od. F.1A5 2u##ose, then, the who e territor% o! Ar(ansas has been so d b% the 'o"ernment, di"ided into #ri"ate estates, and #ut under cu ti"ation. >hen Monathan o!!ers his 'rain or e"en his and !or sa e, does he "aunt the #roducti"e #ower o! the soi and tr% to inc ude it as #art o! the and;s "a ueK He can no on'er be sto##ed short, as in the #re"ious case, b% the crushin' retort: 5&here are unc eared ands ad.oinin' %ours.5 F.1AA &he new situation im# ies that the #o#u ation has 'rown. 7t is di"ided into two c asses: (1) the c ass that su## ies the communit% with a'ricu tura ser"ices< (8) the c ass that su## ies industria , inte ectua , or other ser"ices. F.1AE

898 >hat !o ows seems to me Cuite e"ident. /ro"ided the wor(ers (other than the andowners) who wish to 'et 'rain are #er!ect % !ree to a##ea to Monathan or to his nei'hbors or to andowners in nei'hborin' 2tates or e"en to c ear uncu ti"ated and outside o! Ar(ansas, it is abso ute % im#ossib e !or Monathan to !orce an un.ust aw u#on them. &he mere e?istence somewhere o! and without "a ue is an insu#erab e barrier to #ri"i e'e, and there!ore this h%#othetica case is the same as our #recedin' one: A'ricu tura ser"ices are sub.ect to the aw o! 'enera com#etition, and it is utter % im#ossib e to char'e more !or them than the% are worth. )et me add that the% are worth no more (ceteris #aribus) than ser"ices o! an% other (ind. Must as the manu!acturer, a!ter char'in' !or his time, his #ains, his troub e, his ris(s, his out a%, his s(i (a o! which constitute human ser"ice and are re#resented b% "a ue), can char'e nothin' !or the aw o! 'ra"itation or the e?#ansibi it% o! steam, o! whose aid he has a"ai ed himse !< so Monathan can rec(on as the a''re'ate "a ue o! his 'rain on % the sum tota o! his ser"ices, #ast and #resent, and can inc ude nothin' at a !or the he # he has recei"ed !rom the aws o! "e'etation. &he ba ance o! ser"ices is not im#aired as on' as the% are !ree % e?chan'ed on the mar(et at a mutua % a'reeab e #rice, and the 'i!ts o! 0od that transmit these ser"ices are e?chan'ed 'ratis a on' with the ser"ices and sta% in the communa domain. F.1A8 7t wi undoubted % be #ointed out that, as a matter o! !act, the "a ue o! the soi increases steadi %. &his is true. As the #o#u ation increases and becomes richer, as the means o! trans#ortation im#ro"e, the andowner recei"es a better #rice !or his ser"ices. 7s this a s#ecia aw a## icab e on % to him, or does it not rather a## % to a #roducersK For an eCua amount o! abor does not a doctor, a aw%er, a sin'er, a #ainter, or a da% aborer obtain more satis!actions in the nineteenth centur% than in the !ourth, in /aris than in Brittan%, in France than in +oroccoK But this increase in satis!action is not obtained at an%one;s e?#ense. &his much needs to be understood at east. Further discussion must wait unti we ana %1e this aw o! the "a ue (used here meton%mica %) o! the soi in another #art o! this wor( when we reach ,icardo;s theor%.GG9A F.1AF For the #resent, it is enou'h to note that Monathan, under the conditions o! this h%#othesis, cannot o##ress the industria c asses, #ro"ided the e?chan'e o! ser"ices is !ree, and that abor ma%, without an% e'a restraint, be distributed in Ar(ansas or e sewhere amon' a t%#es o! #roduction. &his !reedom stands in the wa% o! andowners who wou d di"ert to their #ro!it the 'ratuitous bene!its o! Bature. F.1E0 &his wou d no on'er be the case, howe"er, i! Monathan and his co ea'ues too( o"er the e'is ature and #rohibited or ham#ered the !reedom o! e?chan'e-i!, !or e?am# e, the% decreed that not a (erne o! !orei'n wheat cou d enter the territor% o! Ar(ansas. 7n that case the "a ue o! the ser"ices e?chan'ed between andowners and non andowners wou d no on'er be determined b% .ustice. &he non andowners wou d ha"e no #rotection a'ainst the demands o! the andowners. 2uch e'is ation wou d be as iniCuitous as the other measure we .ust re!erred to. &he e!!ect wou d be #recise % the same as i! Monathan, ha"in' o!!ered !or sa e a sac( o! wheat that wou d otherwise se !or !i!teen !rancs, drew a

899 #isto !rom his #oc(et, #ointed it at the bu%er, and said, 50i"e me three !rancs more, or 7 wi b ow %our brains out.5 F.1E1 &his #rocedure (which we must ca b% its ri'ht name) is e?tortion. >hether it be b% the e?ercise o! #ri"ate !orce or b% aw, it does not chan'e in character. 7! b% the e?ercise o! #ri"ate !orce, as in the case o! the #isto , it is an act a'ainst #ro#ert%. 7! b% aw, as in the case o! the ban, it is sti an act a'ainst #ro#ert%, and be%ond that, a denia o! the ri'ht to #ro#ert%. As we ha"e seen, one has #ro#ert% ri'hts on % o"er "a ues, and "a ue is the estimation o! two ser"ices that are !ree % e?chan'ed. Hence, it is not #ossib e to concei"e o! an%thin' more anta'onistic to the !undamenta ri'ht to #ro#ert% than an a teration, e!!ected in the name o! the aw, in the eCui"a ence o! e?chan'ed ser"ices. F.1E8 7t is #erha#s not id e to #oint out that aws o! this nature are iniCuitous and disastrous, whate"er ma% be the o#inion o! either o##ressed or o##ressor toward them. 7n some countries we see the wor(in' c asses c amorin' !or such restraints because the% brin' wea th to the andowners. &he% do not #ercei"e that it is at their e?#ense, and, as 7 (now b% e?#erience, it is not a wa%s #rudent to te them so. F.1E9 7t is indeed stran'e. &he common #eo# e isten ea'er % to the 1ea ots who #reach communism, which is s a"er%, since not to be master o! one;s own ser"ices is s a"er%< and %et the% disdain those who on a occasions de!end ibert%, which is the common sharin' o! 0od;s bount% to man. F.1E$ >e now reach the third h%#othetica case, wherein the entire arab e sur!ace o! the ' obe has become #ri"ate #ro#ert%. F.1E5 Here a'ain we obser"e two c asses: those who #ossess the soi and those who do not. >i those o! the !irst c ass be ab e to o##ress the members o! the secondK And wi the second not be !ore"er reduced to o!!erin' more and more abor !or the same Cuantit% o! !oodK F.1EA 7! 7 answer this ob.ection, it wi be, ob"ious %, !or the sa(e o! scienti!ic com# eteness, !or we are sti hundreds o! centuries awa% !rom the time when such a h%#othesis cou d become a rea it%. F.1EE But the !act is that e"er%thin' indicates that the time must come when the andowners; c aims cannot be (e#t within bounds b% the ma'ic words: &here is more and to be c eared.

89$ F.1E8 7 be' the reader to note that this h%#othesis a so im# ies that at that time the #o#u ation wi ha"e reached the e?treme imit o! the earth;s abi it% to #ro"ide sustenance. F.1EF &his adds a new and im#ortant e ement to the Cuestion. 7t is a most as i! 7 were as(ed: >hat wi ha##en when there is not enou'h air e!t to !i a the e?tra un's in the wor dK F.180 >hate"er theor% we ma% ho d on the #rob em o! #o#u ation, it is at east certain that the #o#u ation can increase, and e"en that it tends to increase, since it does increase. &he entire economic or'ani1ation o! societ% is such that it a##ears to antici#ate this trend, with which it is in com# ete harmon%. &he andowner a wa%s ho#es to char'e !or the use o! the natura resources he has at his command, but he is a wa%s disa##ointed in his !oo ish and un.ust demands b% the 'reat su## % o! simi ar natura resources that do not #ass throu'h his hands. Bature;s re ati"e % in!inite #rodi'a it% with her !orces (ee#s him !rom bein' an%thin' more than a mere custodian o"er some o! them. Bow, what wi ha##en when men wi ha"e reached the imits o! this bount%K 7t wi no on'er be #ossib e !or an%thin' more to be ho#ed !or in that direction. 7ne"itab % the trend toward increased #o#u ation wi then come to a ha t. Bo economic s%stem can #re"ent this !rom necessari % ha##enin'. 7n the h%#othetica case we are considerin', an% increase in #o#u ation wou d be chec(ed b% a corres#ondin' rise in the death rate. Bo #ro#onent o! human betterment, howe"er o#timistic, can 'o so !ar as to assert that the number o! human bein's can continue to rise when there is no #ossib e chance !or a !urther increase in the su## % o! !ood. F.181 Here, then, is a new order< and the aws o! the socia wor d wou d not be harmonious i! the% had not #ro"ided !or this contin'enc%, so di!!erent !rom the conditions under which we i"e toda%. F.188 &he di!!icu t% we !oresee can be i ustrated in this manner: 7ma'ine a shi# in the midd e o! the ocean with a month to 'o be!ore reachin' and and with on % enou'h !ood !or two wee(s. >hat must be doneK =b"ious % each sai or;s ration must be reduced. &his is not bein' hardhearted< it is mere % bein' #rudent and .ust. F.189 2imi ar %, when the #o#u ation is e?tended to the e?treme imit o! what the earth, with a #ossib e and under cu ti"ation, can su##ort, there wi be nothin' harsh or un.ust about the aw that ta(es the 'ent est and most e!!ecti"e means o! #re"entin' !urther mu ti# ication o! the s#ecies. And once a'ain the so ution can be !ound in the #rinci# e o! the #ri"ate ownershi# o! the and. &he owner o! anded #ro#ert%, under the s#ur o! #ersona interest, wi ma(e the soi #roduce the most !ood o! which it is ca#ab e. B% the di"ision o! inheritances #ri"ate ownershi# o! and wi ma(e e"er% !ami % aware o! the dan'ers o! a risin' birth rate. 7t is "er% c ear that under an% other s%stem-communism,

895 !or e?am# e-there wou d be no eCua % stron' incenti"e !or 'reater #roduction nor so !irm a bra(e on increasin' #o#u ation. F.18$ 7n the !ina ana %sis, it seems to me that the #o itica economists wi ha"e #er!ormed their tas( when the% #ro"e that the 'reat and .ust aw o! the reci#rocit% o! ser"ices wor(s harmonious % as on' as !urther #ro'ress is not ru ed out !or man(ind. 7s it not reassurin' to re! ect that, unti that time and so on' as ibert% #re"ai s, it is im#ossib e !or one c ass to o##ress anotherK Are the economists ob i'ed to answer this other Cuestion: 0ranted the tendenc% o! the race to mu ti# %, what wi ha##en when there is no more room on the earth !or new inhabitantsK 7s 0od ho din' bac(, !or that e#och, some catac %sm o! creation, some mar"e ous mani!estation o! His in!inite #owerK =r, in (ee#in' with 3hristian do'ma, must we be ie"e in the destruction o! this wor dK =b"ious % these are no on'er economic #rob ems, but are ana o'ous to the di!!icu ties e"entua % reached b% a sciences. &he #h%sicists are we aware that e"er% mo"in' bod% on earth 'oes downward and ne"er rises a'ain. Accordin' %, the da% must come when the mountains wi ha"e !i ed the "a e%s, when ri"ers wi be as hi'h at their mouth as at their source, when their waters wi no on'er ! ow, etc., etc. >hat wi ha##en thenK 2hou d the #h%sica sciences cease to obser"e and admire the harmon% o! the wor d as it now is, because the% cannot !oresee b% what other harmon% 0od wi ma(e #ro"ision !or a state o! thin's that is !ar in the !uture but nonethe ess ine"itab eK 7t seems to me that this is indeed a case in which the economist, i(e the #h%sicist, shou d res#ond b% an act o! !aith, not b% an act o! id e curiosit%. He who has so mar"e ous % arran'ed the abode where we now dwe wi sure % be ab e to #re#are a di!!erent one !or di!!erent circumstances. F.185 >e .ud'e the soi ;s !erti it% and man;s s(i b% the !acts that we obser"e. 7s this a reasonab e ru e to !o owK &hen, ado#tin' it, we cou d sa%: 2ince it has reCuired si? thousand %ears !or a tenth o! the sur!ace o! the ' obe to attain a sorr% (ind o! a'ricu ture, how man% hundreds o! centuries wi e a#se be!ore its entire sur!ace is turned into a 'reat 'ardenK F.18A E"en in this e"a uation, a read% Cuite reassurin', we are mere % ma(in' a su##osition based on a scienti!ic 'enera i1ation, or rather, on our #resent state o! a'ricu tura i'norance. But, 7 re#eat, is this an acce#tab e ru e to !o ow< and does not ana o'% su''est that the true #otentia ities o! this art, which are #erha#s in!inite, are be%ond our #resent (now ed'eK &he sa"a'e i"es b% huntin', and he reCuires !i"e sCuare mi es o! and. How 'reat wou d be his sur#rise to earn that a #astora #eo# e can su##ort more than ten times that number in the same s#aceJ &he nomadic she#herd, in turn, wou d be ama1ed to earn that ordinar% a'ricu ture wou d #ermit o! a #o#u ation ten times 'reater. &e a #easant accustomed to this method that another ten!o d increase wou d be #ossib e b% cro# rotation, and he wou d not be ie"e %ou. And is the rotation o! cro#s, which is the ast word !or us, a so the ast word !or the human raceK )et us, there!ore, sto# worr%in' about the !ate o! man(ind. &housands o! centuries ie ahead o! it< and in an% case, without

89A as(in' #o itica economists to sett e #rob ems that are out o! their !ie d, et us con!ident % ea"e the !ate o! !uture 'enerations in the hands o! Him who wi ca them into e?istence.

-------------------------------------------------------------------------------F.18E )et us summari1e the centra ideas o! this cha#ter. F.188 &he two #henomena, uti it% and "a ue, the contribution o! Bature and the contribution o! man, conseCuent % communa wea th and #ri"ate #ro#ert%, are to be !ound in a'ricu tura enter#rises as in a others. F.18F 7n the #roduction o! the wheat that satis!ies our hun'er, somethin' ta(es # ace that is Cuite ana o'ous to the #roduction o! the water that Cuenches our thirst. 4oes not the sea, which ins#ires the #oet, a so stir us, the economists, to !ruit!u meditationK 7t is a "ast reser"oir intended to 'i"e drin( to a human creatures. Let the% are so !ar remo"ed !rom its coo in' waters, which, worse sti , are !i ed with brineJ But the mar"e ous resource!u ness o! Bature comes to the rescue. &he sun warms and stirs this mass and sub.ects it to s ow e"a#oration. 7t turns to "a#or, and, !reed !rom its sa t, which rendered it unsuitab e !or use, rises to the u##er re'ions o! the air. >inds, mo"in' in !rom a directions, wa!t it toward the inhabited continents, where the co d con'ea s it and attaches it in so id !orm to the mountainside. 2oon the warmth o! s#rin'time me ts it. 7ts wei'ht carries it down the s o#es, and, as it ! ows throu'h beds o! schist and 'ra"e , it is !i tered and #uri!ied< it s#reads out in a directions, !eedin' the re!reshin' s#rin's in a #arts o! the wor d. &his is certain % an immense and in'enious industria #ro.ect that Bature carries out !or the bene!it o! man(ind. 3on"ersion o! materia s !rom one !orm to another, trans#ortation !rom one # ace to another, creation o! uti it%-a the e ements o! industr% are there. Let where is "a ueK 7t has not %et been created, and i! the so-ca ed abor o! 0od cou d be char'ed !or (and it wou d be char'ed !or i! it had "a ue), who cou d sa% what a sin' e dro# o! water wou d be worthK F.1F0 Let a men do not ha"e a s#rin' o! i"in' water ! owin' at their !eet. &o Cuench their thirst the% must sti 'o to some #ains, ma(e some e!!ort, #ractice !oresi'ht, em# o% their s(i . 7t is this su## ementar% human abor that 'i"es rise to arran'ements, transactions, e"a uations. 7n it, then, we !ind the ori'in and the basis o! "a ue. F.1F1 >ith man, i'norance comes be!ore (now ed'e. =ri'ina %, there!ore, he was reduced to 'oin' a!ter the water he dran( and to doin', with a ma?imum o! #ains, such additiona

89E wor( as Bature had e!t him to do. &his was the #eriod in the de"e o#ment o! e?chan'e when water had its 'reatest "a ue. )itt e b% itt e he in"ented the cart and the whee , he trained horses, he de"ised #i#es, he disco"ered the aws o! the si#hon< in a word, he #ut #art o! the burden o! his abor on the 'ratuitous !orces o! Bature, and #ro#ortiona % the "a ue o! the water, but not its uti it%, decreased. F.1F8 And, in this #rocess, somethin' ta(es # ace that must be care!u % noted and understood i! we are to a"oid seein' discord where there is actua % harmon%. &he #urchaser o! the water obtains it on better terms< that is, he e?chan'es a sma er amount o! his abor !or an% 'i"en amount o! water at each ste# a on' the #ath o! #ro'ress, e"en thou'h, in this case, he is ob i'ed to #a% !or the instrument b% means o! which Bature is #ut to wor(. Former % he #aid !or the abor o! 'oin' a!ter the water< now he #a%s !or this abor and a so !or the abor it too( to construct the cart, the whee , and the #i#e. And %et, e"er%thin' inc uded, he #a%s ess. &his i ustration shows how un!ortunate and erroneous is the bias o! those who be ie"e that the com#ensation #aid to ca#ita re#resents an added burden to the consumer. >i these #eo# e ne"er rea i1e that ca#ita , in an% 'i"en case, e iminates more abor than it demands as #a%mentK F.1F9 &he #rocess that has .ust been described a## ies eCua % we to the #roduction o! wheat. 7n it too there e?ists, antedatin' human industr%, a tremendous, immeasurab e industr% o! Bature, much o! which e"en %et is not understood b% the most ad"anced scienti!ic thin(in'. 0ases and minera s are #resent in the soi and in the atmos#here. E ectricit%, chemica !orces, wind, rain, i'ht, heat, i!e are a successi"e % bus%, o!ten without our (now ed'e, trans#ortin', trans!ormin', co ectin', di"idin', combinin' these e ements< and this wonder!u industr%, whose acti"it% and uti it% sur#ass our understandin' and e"en our ima'ination, #ossesses no "a ue. &he atter ma(es its a##earance at the !irst inter"ention o! man, who, in this case, has more su## ementar% abor to #er!orm than in the other. F.1F$ 7n order to direct these !orces o! Bature, to remo"e the obstac es that hinder their action, man ta(es #ossession o! an instrument, which is the soi , and he does so without harmin' an%one, !or this instrument has no "a ue. &his is not a debatab e matter, but a sim# e !act. 2how me, in an% #art o! the wor d whatsoe"er, a #iece o! and that has not direct % or indirect % been the ob.ect o! man;s acti"it%, and 7 wi show %ou a #iece o! and tota % ac(in' in "a ue. F.1F5 Let the !armer, in order to #roduce wheat, with the he # o! Bature, #er!orms two "er% distinct t%#es o! abor. =ne t%#e is direct % re ated to the %ear % har"est, is re ated to it a one, and must be #aid !or b% it a one: thin's i(e # antin', weedin', har"estin', trans# antin'. &he other, i(e constructin' !arm bui din's, #ro"idin' draina'e, c earin', !encin', etc., s#ans an inde!inite number o! successi"e har"ests< this cost must be distributed o"er a series o! %ears, a #rocess that is carried out accurate % b% the admirab e

898 de"ice that we ca the aws o! interest and amorti1ation. &he cro#s !urnish the !armer;s #a%ment i! he consumes them himse !. 7! he e?chan'es them, he recei"es in return ser"ices o! a di!!erent t%#e, and the a##raisa o! the ser"ices so e?chan'ed constitutes their "a ue. F.1FA Bow, it is eas% to understand that a this on'-ran'e abor that the !armer #er!orms on the soi re#resents a "a ue that has not %et been #aid !or, but that sure % wi be. He cannot be !orced to re inCuish it and to a ow another #erson to ta(e o"er his ri'ht to it without com#ensation. @a ue has been incor#orated, im# anted in the soi < !or that reason we ma% we sa%, b% meton%m%: &he soi has "a ue. 7t has "a ue, in !act, because no one ma% now acCuire it without o!!erin' in e?chan'e the eCui"a ent o! this abor. But 7 maintain that this and, to which Bature;s #roducti"e #ower had not ori'ina % communicated an% "a ue, sti does not #ossess an% "a ue the more on that account. &his #ower o! Bature, which was 'ratis, is sti 'ratis, and a wa%s wi be. >e ma% indeed sa%: &his and has "a ue< but what rea % has "a ue is the human abor that has im#ro"ed it, the ca#ita that has been e?#ended on it. 3onseCuent %, it is com# ete % accurate to sa% that its owner is, strict % s#ea(in', owner on % o! the "a ue that he has created, o! the ser"ices that he has rendered. And what ownershi# cou d be more e'itimateK 7t has not been created at an%one;s e?#ense< it neither interce#ts nor a%s a ta? on an% 'i!t o! hea"en. F.1FE Bor is this a . &he ca#ita out a% and the interest on it, which must be s#read o"er successi"e har"ests, !ar !rom increasin' costs and becomin' an e?tra burden !or the consumers, enab es them to obtain a'ricu tura #roducts on better and better terms in #ro#ortion as the amount o! ca#ita increases, that is, as the "a ue o! the soi is enhanced. 7 ha"e no doubt that this assertion wi be ta(en !or an o"er % o#timistic #arado?, so accustomed are #eo# e to oo(in' on the "a ue o! the soi as a ca amit%, i! not an in.ustice. Let 7 dec are that it is not enou'h to sa% that the "a ue o! the soi has been created at no one;s e?#ense, or to sa% that it is harm!u to no one< it must be stated that, on the contrar%, it is to the #ro!it o! a . 7t is not mere % e'itimate< it is ad"anta'eous, e"en to those who are not andowners. F.1F8 2o here a'ain we ha"e the same #henomenon we .ust witnessed in re'ard to drin(in' water. As we said, as soon as the water carrier in"ented the cart and the whee , it is Cuite true that the consumer was !orced to #a% !or two t%#es o! abor instead o! one: (1) the abor o! ma(in' the cart or the whee , or rather the interest and amorti1ation on this ca#ita out a%< (8) the actua abor that the water carrier was sti reCuired to #er!orm. But it is eCua % true that these two t%#es o! abor to'ether do not eCua the tota amount o! abor o! one t%#e on % that man(ind was #re"ious % reCuired to #er!orm. >h% is this trueK Because, than(s to the in"ention o! these mechanica aids, a #art o! the wor( has been turned o"er to the 'ratuitous !orces o! Bature. 7ndeed, it was the #ros#ect o! decreased toi that #rom#ted the in"ention and brou'ht about its ado#tion. F.1FF

89F E?act % the same #henomena are to be obser"ed in the case o! and and wheat. 6nCuestionab %, e"er% time the andowner in"ests ca#ita in #ermanent im#ro"ements, the succeedin' cro#s must be char'ed with the interest on this ca#ita . But it is eCua % certain that the amount o! abor be on'in' to the other cate'or%, that o! uns(i ed abor that must be #er!ormed annua %, is a so reduced in !ar 'reater #ro#ortions< so that the andowner, and hence the consumer, obtains each succeedin' cro# !or ess and ess e!!ort, it bein' the s#ecia characteristic o! ca#ita to substitute the 'ratuitous action o! Bature !or man;s abor, which must be #aid !or. F.800 3onsider the !o owin' e?am# e: &o #roduce the best cro#s, a !ie d must be c eared o! e?cessi"e moisture. )et us su##ose that abor !or this has not #ro'ressed be%ond the !irst, or uns(i ed, cate'or%. )et us assume that the !armer must 'o out e"er% mornin' with a #ai to drain o!! water standin' in s#ots where it wou d do harm. 7t is e"ident that at the end o! the %ear this act wi not ha"e added an% "a ue to the soi , but the #rice o! the cro# wi ha"e been tremendous % increased. 2o wi a the #rices o! a succeedin' cro#s, as on' as the science o! a'ricu ture does not ad"ance be%ond this #rimiti"e #rocedure. But i! the !armer di's a ditch, the soi immediate % acCuires "a ue, !or this wor( be on's to the second cate'or%. 2uch wor( becomes a #art o! the soi < it must be #aid !or b% the cro#s o! succeedin' %ears, and no one can e?#ect to acCuire the and without #a%in' a so !or this o#eration. But is it not true that it ne"erthe ess tends to reduce the "a ue o! the cro#sK 7s it not true that, a thou'h it reCuired, durin' the !irst %ear, an unusua e?#enditure o! e!!ort, it sa"es in the on' run more than it occasionsK 7s it not true that hence!orth the draina'e wi be carried out more economica % throu'h the a## ication o! the aws o! h%drau ics than it was #re"ious % b% dint o! #h%sica aborK 7s it not true that the #urchasers o! the wheat wi #ro!it !rom the o#erationK >i the% not ha"e reason to deem themse "es !ortunate that the soi has acCuired this new "a ueK And, to 'enera i1e, is it not true, then, that the "a ue 'i"en the soi is a si'n o! #ro'ress, which is to the bene!it not o! the owner a one, but o! a man(indK How absurd, then, it wou d be o! man(ind, and how hosti e to its own best interests, to sa%: &he amount added to the #rice o! the wheat !or interest and amorti1ation on this ditch, or !or what it re#resents in the tota "a ue o! the soi , is a #ri"i e'e, a mono#o %, a the!tJ ,easonin' in this wise, the owner, in order to be no on'er a thie! or a mono#o ist, wou d on % ha"e to !i in his ditch and 'o bac( to the #ai . >ou d %ou who do not own and be an% better o!! !or thatK F.801 Enumerate a the #ermanent im#ro"ements that to'ether ma(e u# the "a ue o! the soi , and %ou can ma(e the same obser"ation !or each one o! them. A!ter %ou destro% the ditch, destro% the !ences too, !orcin' the owner to 'o bac( to standin' 'uard on his !ie d< destro% the we , the barn, the road, the # ow, the 'radin', the arti!icia mou d< #ut bac( into it the stories, the weeds, the tree roots, and then %ou wi ha"e achie"ed uto#ian eCua it%. &he soi , and the human race a on' with it, wi ha"e returned to its ori'ina state: it wi no on'er ha"e "a ue. &he cro#s wi no on'er be burdened with ca#ita . &heir #rice wi be !ree o! that cursed e ement ca ed interest. E"er%thin', abso ute % e"er%thin', wi be done b% current abor, "isib e to the na(ed e%e. /o itica econom% wi be 'reat % sim# i!ied. France wi su##ort one man !or e"er% !i"e sCuare mi es o! and.

8$0 A the others wi ha"e star"ed to death< but it can no on'er be said: /ro#ert% is a mono#o %< it is an in.ustice< it is the!t. F.808 )et us not, there!ore, be insensib e to those economic harmonies that #ass be!ore our e%es as we ana %1e the conce#ts o! e?chan'e, "a ue, ca#ita , interest, #ri"ate #ro#ert%, #ub ic ownershi#. Beed 7 #resent the entire c%c eK But #erha#s we ha"e 'one !ar enou'h to rea i1e that the socia wor d, no ess than the materia wor d, bears the im#ress o! the di"ine hand, !rom which come wisdom and o"in'-(indness, and toward which we shou d raise our e%es in awe and 'ratitude. F.809 7 cannot re!rain !rom returnin' to a remar( o! +. 3onsidrant. F.80$ &a(in' as his #remise the idea that the soi has "a ue in itse !, inde#endent o! man;s acti"it%, that it is ori'ina and noncreated ca#ita , he conc udes, o'ica % !rom his #remise, that to con"ert it into #ri"ate #ro#ert% is to usur# it. &his su##osed iniCuit% mo"es him to dec aim "ehement % a'ainst modern societ%. =n the other hand, he a'rees that #ermanent im#ro"ements add an e?tra "a ue to this ori'ina ca#ita , as an additiona e ement so com# ete % !used with the rest as to be inse#arab e. >hat, then, is to be doneK For we are con!ronted with a tota "a ue com#osed o! two #arts, one o! which, ha"in' been #roduced b% abor, is e'itimate #ro#ert%, and the other, bein' the creation o! 0od, is an iniCuitous usur#ation. F.805 &his is no sma di emma. +. 3onsidrant so "es it b% the ri'ht to em# o%ment. F.80A Humanit%;s #ro'ress on Earth ob"ious % demands that the and not be e!t in a wi d and uncu ti"ated state. =ur "er% 4estin%, as Human Bein's, there!ore, is o##osed to the idea that man;s ,i'ht to the Earth shou d retain its rude and ori'ina F=,+. F.80E 7n his !orests and sa"annas the sa"a'e en.o%s his !our natura ,i'hts o! Huntin', Fishin', 0atherin' wi d !ruits, and 0ra1in'. 2uch is the ori'ina !orm o! his ,i'hts. F.808 7n a ci"i i1ed societies, the man o! the common #eo# e, the /ro etarian, is #ure % and sim# % des#oi ed o! these ri'hts. >e cannot, there!ore, sa% that his ori'ina ,i'hts ha"e chan'ed !orm, since the% no on'er e?ist. &he !orm has disa##eared a on' with the 2ubstance.

8$1 F.80F Bow, what wou d be the !orm under which his ,i'hts cou d be reconci ed with the conditions o! an industria 2ociet%K &he answer is sim# e. F.810 7n the sa"a'e state man, to en.o% his ,i'hts, is ob i'ed to act. &he )abor o! Fishin', Huntin', 0atherin', and 0ra1in' is the condition # aced u#on the e?ercise o! his ,i'hts. His ori'ina ,i'hts, there!ore, are sim# % his ,i'ht to #er!orm these abors. F.811 @er% we , then, since an industria 2ociet% has ta(en #ossession o! the Earth, and #re"ents men !rom e?ercisin' on the soi !ree % and at wi their !our natura ,i'hts, et this 2ociet% 'rant to them, in com#ensation !or the ,i'hts it ta(es awa%, the ,70H& &= E+/)=L+EB&: then, i! #rinci# e and #ractice are #ro#er % understood and carried out, the indi"idua wi ha"e no 'rounds !or com# aint. F.818 &he indis#ensab e #rereCuisite !or the )e'a it% o! /ro#ert% is, there!ore, that 2ociet% reco'ni1e the 3ommon +an;s ,70H& &= E+/)=L+EB&, and that it 'uarantee him !or a 'i"en amount o! his acti"it% at east as much in the wa% o! subsistence as a simi ar amount o! acti"it% wou d ha"e brou'ht him in his ori'ina state o! sa"a'er%. F.819 7 do not #ro#ose to ar'ue the #oint in a its rami!ications with +. 3onsidrant, !or 7 shou d become insu!!erab % re#etitious in the #rocess. 7! 7 #ro"ed to him that what he ca s noncreated ca#ita is not ca#ita at a < that what he terms the additiona "a ue o! the soi is not additiona "a ue, but tota "a ue< he wou d ha"e to admit that his who e ar'ument brea(s down, and with it a his com# aints a'ainst the manner in which humanit% has seen !it to or'ani1e itse ! and to i"e since the time o! Adam. But this contro"ers% wou d ob i'e me to restate what 7 ha"e a read% said concernin' the !act that the !orces o! Bature remain inherent % and una terab % 'ratuitous. 7 sha con!ine m%se ! to obser"in' that i! +. 3onsidrant is the s#o(esman !or the wor(in' c asses, he does them such a disser"ice that the% ma% we consider that the% ha"e been betra%ed. He sa%s that the andowners ha"e usur#ed both the and and a the mirac es o! "e'etation that ta(e # ace on it. &he% ha"e usur#ed the sun, the rain, the dew, o?%'en, h%dro'en, and nitro'en-at east to the e?tent that these contribute to the raisin' o! a'ricu tura #roducts -and he as(s them to assure the wor(er, as com#ensation, at east as much in the wa% o! subsistence !or a 'i"en amount o! acti"it% as a simi ar amount o! acti"it% wou d ha"e brou'ht him in the ori'ina or sa"a'e state. F.81$

8$8 But do %ou not #ercei"e, +. 3onsidrant, that anded #ro#ert% has not waited !or %ou to issue %our in.unctions, that it has a read% been a mi ion times more 'enerousK For, a!ter a , what does %our #ro#osa actua % come toK F.815 7n the ori'ina state o! sa"a'er%, %our !our ri'hts o! !ishin', huntin', 'atherin' wi d !ruits, and 'ra1in' su##orted-or rather, a owed to e(e out an e?istence in a the horrors o! #ri"ation-a##ro?imate % one man #er !i"e sCuare mi es. &he usur#ation o! the and wi there!ore be deemed e'itimate, accordin' to %our theories, i! the 'ui t% #arties su##ort one man #er !i"e sCuare mi es, with the !urther reCuirement that he e?ert himse ! as 'reat % as a Huron or an 7roCuois must. / ease note that the area o! France is on % thirt% thousand sCuare ea'ues< that, conseCuent %, #ro"ided it su##ort thirt% thousand inhabitants in that state o! materia we -bein' a!!orded b% a i!e o! sa"a'er%, %ou are content to as( nothin' more, on beha ! o! the wor(ers, !rom the owners o! #ro#ert%. Bow, this ea"es thirt% mi ion Frenchmen who do not ha"e a sCuare inch o! and< and amon' that number there are Cuite a !ew-the /resident o! the ,e#ub ic, cabinet ministers, ma'istrates, ban(ers, businessmen, notaries, aw%ers, doctors, bro(ers, so diers, sai ors, teachers, .ourna ists, etc.-who wou d sure % not be dis#osed to chan'e their wa% o! i!e !or that o! an 7owa 7ndian. )anded #ro#ert% must, there!ore, a read% do a 'reat dea more than %ou reCuire. Lou demand !rom it a ri'ht to em# o%ment that, within certain !i?ed imits, and on % in return !or a certain amount o! e!!ort, wi #ro"ide the masses with a e"e o! subsistence eCua to that which a state o! sa"a'er% cou d o!!er them. &he s%stem o! anded #ro#ert% does much better than that. 7t o!!ers more than the ri'ht to em# o%ment< it o!!ers actua em# o%ment, and i! it did no more than meet the ta?es it now #a%s, that !i'ure is sti a hundred times more than %ou wou d demand. F.81A A asJ 7 am sorr% to sa% that 7 ha"e not %et !inished with anded #ro#ert% and its "a ue. 7 sti ha"e to state, and re!ute in as !ew words as #ossib e, a # ausib e and e"en si'ni!icant ob.ection. F.81E /eo# e wi sa%: F.818 5&he !acts be ie %our theor%. 6ndoubted %, as on' as there e?ists in a countr% a ar'e amount o! uncu ti"ated and, its mere #resence wi #re"ent cu ti"ated and !rom acCuirin' e?orbitant "a ue. 6ndoubted %, a so, e"en when a the and has been con"erted into #ri"ate #ro#ert%, i! ad.oinin' nations ha"e 'reat tracts %et to be ti ed, the ri'ht o! !ree bar'ainin' wi ho d the "a ue o! anded #ro#ert% within .ust imits. 7n these two cases and #rices wou d not seem to re#resent more than the ca#ita out a%, and rent more than the interest on it. From these !acts one must conc ude, as %ou do, that what is done b% the soi itse ! and b% the !orces o! Bature, since it does not !i'ure in the costs and cannot be added to the #rice o! cro#s, does remain 'ratis and there!ore common to a . A this is # ausib e. >e ma% we be at a oss to disco"er the ! aw in this ine o! reasonin', and %et it is !a acious. &o be con"inced that this is so, we ha"e on % to note the !act that

8$9 in France there is cu ti"ated and ran'in' in #rice !rom a hundred to si? thousand !rancs an acre, an enormous di!!erence, which is to be e?# ained more b% reason o! the "ariations in !erti it% than in #re"ious im#ro"ements. 4o not den%, there!ore, that !erti it% has its own inherent "a ue< e"er% bi o! sa e attests to this !act. An%one bu%in' a #iece o! and determines its Cua it% and #a%s accordin' %. 7! two !ie ds are # aced side b% side and ha"e the same ad"anta'es o! ocation, but di!!er in their soi , the one consistin' o! rich oam and the other o! barren sand, sure % the !irst wi be worth more than the second, e"en thou'h the same ca#ita im#ro"ements ha"e been made on both. And, in !act, this is a #oint about which the bu%er is not at a concerned. His e%es are turned toward the !uture, not the #ast. He is interested, not in what the and has cost, but in what it wi %ie d, and he (nows that its %ie d wi be in #ro#ortion to its !erti it%. &here!ore, this !erti it% has its own s#eci!ic, intrinsic "a ue, which is inde#endent o! an% human abor #er!ormed on it. &o maintain the contrar% is to attem#t to !ind the .usti!ication !or #ri"ate #ro#ert% in in'enious Cuibb in's, or rather in a #arado?.5 F.81F )et us, there!ore, in"esti'ate what rea % 'i"es "a ue to the soi . F.880 7 as( the reader to remember that at the #resent time this Cuestion is a most "ita one. /re"ious % it cou d be either dismissed or treated su#er!icia % b% economists, as a Cuestion o! itt e more than #assin' interest. &he e'itimac% o! #ri"ate #ro#ert% was not then contested. 2uch is no on'er the case. Bew theories, which ha"e been on % too success!u , ha"e cast doubt amon' e"en the best minds re'ardin' the ri'ht to #ro#ert%. And on what do the authors o! these theories base their com# aintK =n .ust the a e'ation contained in the ob.ection 7 ha"e #resented abo"e. =n .ust this !act, which un!ortunate % has 'ained acce#tance b% a schoo s o! thou'ht, that the soi deri"es !rom its !erti it%, !rom Bature, an inherent "a ue that has not been transmitted to it b% an% human a'enc%. Bow, "a ue is not trans!erred 'ratis. 7ts "er% name e?c udes the idea that it is 'ratuitous. &here!ore, we sa% to the andowner: Lou demand !rom me a "a ue that is the !ruit o! m% abor, and %ou o!!er me in e?chan'e another "a ue that is the !ruit neither o! %our abor nor o! an%one;s abor, but o! Bature;s bount%. F.881 And, ma(e no mista(e about it, this indictment wou d be a terrib e one i! it were based on !act. 7t did not ori'inate with +essrs. 3onsidrant and /roudhon. 7t is to be !ound in 2mith, in ,icardo, in 2enior, in a the economists without e?ce#tion, not mere % as a theor%, but as an indictment. &hese authors ha"e not sto##ed at attributin' an e?trahuman "a ue to the soi < the% ha"e 'one so !ar as to deduce c ear % the conseCuences o! this theor% and to brand anded #ro#ert% as a #ri"i e'e, a mono#o %, a usur#ation. &o be sure, a!ter thus b astin' it, the% ha"e de!ended it in the name o! necessit%. But is such a de!ense an%thin' more than a ! aw in reasonin', which the o'icians o! communism ha"e been Cuic( to set ri'htK F.888

8$$ 7t is, there!ore, not !or the sa(e o! %ie din' to an un!ortunate #roc i"it% !or Cuibb in' that 7 ta(e u# this de icate sub.ect. 7 shou d ha"e #re!erred to s#are the reader and m%se ! the tediousness that e"en now 7 !ee is 'atherin' o"er the !ina #a'es o! this cha#ter. F.889 &he answer to the ob.ection that 7 ha"e .ust #resented is to be !ound in m% theor% o! "a ue, which is set !orth in cha#ter 5. &here 7 stated: @a ue does not necessari % im# % abor< e"en ess is it necessari % #ro#ortiona to abor. 7 showed that "a ue is based ess on the #ains ta(en b% the one who surrenders what is e?chan'ed than on the #ains s#ared the reci#ient, and !or that reason 7 attributed it to somethin' that inc udes both e ements: ser"ice. A 'reat ser"ice can be rendered, 7 said, at the cost o! "er% itt e e!!ort, and a "er% minor ser"ice can be rendered with 'reat e!!ort. &he on % resu t, then, is that abor does not necessari % recei"e a remuneration that is a wa%s #ro#ortiona to its intensit%, either in the case o! the man i"in' in iso ation or in that o! the man i"in' in societ%. F.88$ @a ue is determined a!ter bar'ainin' between two contractin' #arties. Each one brin's to the bar'ainin' his own #oint o! "iew. Lou o!!er me wheat. =! what im#ortance to me are the time and troub e it ma% ha"e cost %ouK >hat 7 am concerned about is the time and troub e it wou d cost me to obtain it e sewhere. &he (now ed'e %ou ha"e o! m% situation ma% ma(e %ou more or ess demandin'< the (now ed'e 7 ha"e o! %ours ma% ma(e me more or ess read% to come to terms. Hence, there can be no necessar% measure o! the #a%ment %ou are to recei"e !or %our abor. &hat de#ends on circumstances and the "a ue the% 'i"e to the two ser"ices bein' e?chan'ed. 2oon we sha ta(e u# an e?terna !actor, ca ed com#etition, whose !unction it is to re'u ari1e "a ues and to ma(e them corres#ond more and more c ose % to e!!ort. Let this corres#ondence is not o! the essence o! "a ue, since it is estab ished on % under the #ressure o! a contin'ent !act. F.885 Oee#in' this in mind, 7 can sa% that the "a ue o! the soi is created, ! uctuates, is set, i(e that o! 'o d, iron, water, an attorne%;s ad"ice, a doctor;s consu tation, the #er!ormance o! a sin'er or o! a dancer, or an artist;s #aintin'- i(e a "a ues< that it obe%s no s#ecia aws< that it constitutes #ro#ert% that is o! the same ori'in, the same nature, and is as e'itimate as an% other #ro#ert%. But it does not at a !o ow-this must be c ear b% now -that, o! two e!!orts a## ied to the soi , one ma% not be better remunerated than the other. F.88A )et us re"ert to that most sim# e o! a industries, the one best !itted to i ustrate the tenuous di"idin' ine between man;s onerous abor and Bature;s 'ratuitous co aboration. 7 re!er to the humb e abor o! the water carrier. F.88E A man !i s a barre with water and brin's it home. 4oes he own a "a ue that necessari % is #ro#ortiona to his aborK 7n that case the "a ue wou d be distinct !rom the ser"ice that

8$5 the water can render. Furthermore, it cou d not ! uctuate, !or abor that has once been #er!ormed is not susce#tib e o! increase or diminution. F.888 @er% we , then, the "er% da% a!ter the water barre has been !i ed and de i"ered, it can ose a its "a ue, i!, !or e?am# e, it rains durin' the ni'ht. 7n that case, e"er%bod% has his su## % o! water< the barre o! water can render no ser"ice< it is no on'er wanted. 7n the an'ua'e o! economics, there is no demand !or it. F.88F =n the other hand, it can acCuire considerab e "a ue i! e?ce#tiona , un!oreseen, and ur'ent demand arises. F.890 &he resu t is that man, wor(in' with the !uture in mind, can ne"er (now in ad"ance e?act % what that !uture ho ds in store !or his abor. &he "a ue incor#orated in a materia ob.ect wi be 'reater or ess accordin' to the ser"ices it wi render< or, rather, human abor, the source o! this "a ue, wi recei"e, accordin' to circumstances, a 'reater or a sma er remuneration. 2uch e"entua ities !a within the domain o! !oresi'ht, and !oresi'ht, too, is entit ed to its reward. F.891 But, 7 as(, what do these ! uctuations o! "a ue, the "ariations in the #rice #aid abor, ha"e to do with Bature;s mar"e ous industria achie"ement, with the wonder!u aws o! #h%sics that, without he # !rom us, trans#ort the waters we drin( !rom the ocean to the s#rin'K Because the "a ue o! this barre o! water "aries accordin' to circumstances, must we conc ude that Bature sometimes char'es a 'reat dea , sometimes "er% itt e, and sometimes not at a , !or e"a#oration, !or the trans#ortation o! c ouds !rom the sea to the mountains, !or !ree1in', !or me tin', and a the wonder!u industria acti"it% that !eeds the s#rin'K F.898 &he same is true o! a'ricu tura #roducts. F.899 &he "a ue o! the soi , or rather o! the ca#ita in"ested in the soi , is com#osed not o! one e ement, but o! two e ements. 7t de#ends not on % on the abor that has 'one into the soi but a so on societ%;s ca#acit% to reward that abor, on demand as we as on su## %. F.89$ &a(e the case o! a !ie d. Bot a %ear 'oes b% in which some wor( o! a #ermanent nature is not done on it, and, b% the same to(en, its "a ue is enhanced. F.895 Furthermore, new roads are bui t, and others are im#ro"ed< aw en!orcement becomes more e!!icient< new mar(ets are o#ened u#< there are increases in #o#u ation and in

8$A wea th< new careers are o#ened to inte i'ence and s(i < and these chan'es in the #h%sica en"ironment and the 'enera #ros#erit% resu t in additiona remuneration !or abor #ast and #resent, and, concomitant %, 'reater "a ue !or the !ie d. F.89A 7n a this there is neither in.ustice nor s#ecia #ri"i e'e !or the andowner. E"er% ine o! wor( !rom ban(in' to manua abor #resents the same #henomenon. Each one !inds its own remuneration enhanced throu'h the mere !act o! im#ro"ement in the surroundin's in which it is carried on. &his action and reaction o! the #ros#erit% o! each one on the #ros#erit% o! a , and "ice "ersa, is the "er% aw o! "a ue. How com# ete % erroneous it is to conc ude !rom this e"idence that the soi or its #roducti"e !orces ha"e a so-ca ed "a ue o! their own can be seen !rom the !act that in inte ectua wor(, in the #ro!essions and occu#ations in which materia thin's and #h%sica aws # a% no #art, the same bene!its are en.o%ed. &his is not e?ce#tiona , but the uni"ersa e?#erience. &he aw%er, the doctor, the teacher, the artist, the #oet, are better #aid, !or the wor( the% do, in #ro#ortion as their cit% or nation increases in #ros#erit%, as the taste or the demand !or their ser"ices 'rows, as the 'enera #ub ic is both wi in' and ab e to remunerate them better. &he sim# e sa e o! a doctor;s or a aw%er;s #ractice or o! the 'ood wi o! a business concern is carried out on this #rinci# e. E"en the BasCue 0iant and &om &humb, who ma(e their i"in' b% the mere dis# a% o! their abnorma stature, e?hibit themse "es to their 'reater #ro!it be!ore the curious thron's o! we -to-do cit% dwe ers than be!ore a !ew #oor "i a'ers. 7n this case demand does not mere % contribute to "a ue< it creates it entire %. >h% shou d we !ee that it is e?ce#tiona or un.ust !or demand a so to ha"e an in! uence on the "a ue o! and and o! a'ricu tura #roductsK F.89E >i it be a e'ed that the "a ue o! and can thereb% rise e?orbitant %K &hose who sa% so ha"e certain % ne"er considered the enormous amount o! abor that has 'one into arab e and. 7 "enture to state that there is not a !ie d in France that is worth as much as it cost, that can be e?chan'ed !or as 'reat an amount o! abor as has actua % been e?#ended on it to brin' it to its #resent state o! #roducti"it%. 7! this statement is we !ounded, it is conc usi"e. 7t does not #ermit o! the east hint o! in.ustice bein' char'ed a'ainst the #rinci# e o! anded #ro#ert%. &here!ore, 7 sha come bac( to this sub.ect when 7 ha"e occasion to consider ,icardo;s theor% o! rent. 7 sha show that we must a## % a so to ca#ita in"ested in and the 'enera aw that 7 ha"e !ormu ated in these terms: 7n #ro#ortion as ca#ita increases, what it #roduces is distributed amon' the ca#ita ists or andowners and the wor(ers in such a wa% that the !ormer;s re ati"e share constant % decreases, a thou'h their abso ute share increases, whi e the atter;s share increases in both res#ects. F.898 &he i usion that eads men to be ie"e that #roducti"e !orces ha"e a "a ue o! their own because the% ha"e uti it%, has been res#onsib e !or man% misca cu ations and catastro#hes. 7t has o!ten in"o "ed them in #remature e!!orts at co oni1ation whose histor% reads i(e a amentab e chronic e o! mart%rs. &he% reasoned thus: 7n our countr%, we can acCuire "a ue on % throu'h abor< and when we wor(, we recei"e "a ue on % in

8$E #ro#ortion to our abor. 7! we went to 0uiana, to the ban(s o! the +ississi##i, to Austra ia, or A!rica, we cou d ta(e #ossession o! "ast stretches o! and, uncu ti"ated, to be sure, but !erti e. =ur reward wou d be that we shou d become the owners both o! the "a ue that we shou d create and o! the intrinsic "a ue that is to be !ound in this and. F.89F &he% set out, and harsh rea it% is not s ow in con!irmin' the truth o! m% theor%. &he% wor(< the% c ear the and< the% dri"e themse "es to the #oint o! e?haustion< the% under'o hardshi#, su!!erin', sic(ness< and then, a!ter the% ha"e made their and !it !or #roduction, the% !ind, i! the% tr% to se it, that the% cannot 'et bac( what it cost them, and the% are !orced to ac(now ed'e that "a ue is o! human creation. 7 de!% an%one to cite an e?am# e o! co oni1ation that at the be'innin' was not a disaster. F.8$0 6#wards o! a thousand abourers were sent out to the 2wan ,i"er 3o on%< but the e?treme chea#ness o! the and Hei'hteen #ence, or ess than two !rancs, an acreI and the e?tra"a'ant rate o! abour, a!!orded them such !aci ities and inducements to become andowners, that ca#ita ists cou d no on'er 'et an%one to cu ti"ate their ands. A ca#ita o! V800,000 H!i"e mi ion !rancsI was ost in conseCuence, and the co on% became a scene o! deso ation. &he abourers ha"in' e!t their em# o%ers !rom the de usi"e desire to become andowners, a'ricu tura im# ements were a owed to rust, seeds rotted, and shee#, catt e, and horses #erished !rom want o! attention. A !ri'ht!u !amine cured the abourers o! their in!atuation, and the% returned to as( em# o%ment !rom the ca#ita ists< but it was too ate.GG9E F.8$1 &he Austra ian Association, attributin' the disaster to the chea#ness o! the and, raised the #rice to twe "e shi in's. But, adds 3are%,GF1 !rom whom 7 ta(e this Cuotation, the rea cause was that the !arm wor(ers were con"inced that the and had intrinsic "a ue, a#art !rom an% wor( done on it, and were ea'er to a##ro#riate this so-ca ed "a ue, which the% assumed wou d "irtua % assure them a %ear % rent. F.8$8 &he seCue #ro"ides me with an e"en more conc usi"e ar'ument. F.8$9 7n 189A, the anded estates o! the co on% o! 2wan ,i"er were to be #urchased !rom the ori'ina sett ers at a shi in' an acre.GG98 F.8$$ &hus, this soi , !or which the com#an% had char'ed twe "e shi in's-and on which the sett ers had s#ent much time and mone%-was now reso d !or one shi in'J >hat had ha##ened to the "a ue o! the #roducti"e and indestructib e #owers o! BatureKGG9F

8$8 F.8$5 &he "ast and im#ortant sub.ect o! the "a ue o! and has not been e?hausti"e % treated, 7 rea i1e, in this cha#ter, which was written at inter"a s in the midst o! constant interru#tions: 7 sha return to it, but 7 cannot c ose without submittin' one obser"ation to m% readers and #articu ar % to economists. F.8$A &hose i ustrious scho ars who ha"e contributed so much to the #ro'ress o! #o itica econom%, whose i"es and wor(s breathe the s#irit o! bene"o ence and #hi anthro#%, who, at east in certain res#ects and within the areas o! their in"esti'ation, ha"e disco"ered !or us the true so ution to the #rob ems o! societ%, men i(e Quesna%, &ur'ot, 2mith, +a thus, 2a%, ha"e not esca#ed, 7 do not sa% re!utation, which is a wa%s in order, but s ander, de!amation, and the coarsest o! insu ts. &o attac( their writin's, and e"en their moti"es, has a most become the !ashion. 7t wi be said, #erha#s, that in this cha#ter 7 m%se ! !urnish arms to their detractors, and, indeed, this is hard % the moment !or me to turn a'ainst those whom, 7 most so emn % dec are, 7 oo( u#on as m% !irst instructors, m% 'uides, and m% masters. But, in the ast ana %sis, must not m% hi'hest a e'iance be to truth, or to what 7 consider to be truthK >here in the wor d is there a boo( into which no error has cre#tK Bow, in #o itica econom%, .ust one error, i! we #ress it, i! we torture it, i! we insist u#on drawin' a its o'ica im# ications !rom it, wi e"entua % be !ound to inc ude a other errors< it wi ead us to chaos. Bo boo( e?ists, there!ore, !rom which an iso ated #ro#osition cannot be ta(en out o! conte?t and be dec ared incom# ete, !a se, and conseCuent % as in"o "in' a wor d o! errors and con!usions. F.8$E 7n a 'ood conscience 7 be ie"e that the de!inition that the economists ha"e 'i"en o! the word "a ue is an error o! this (ind. >e ha"e .ust seen that this de!inition # aced them in a #osition where the% themse "es cast 'ra"e doubt u#on the e'itimac% o! anded #ro#ert%, and, b% o'ica deduction, u#on the who e s%stem o! ca#ita < and on % b% an i o'ica chain o! reasonin' did the% sto# short o! disaster a on' this road. &heir inconsistenc% sa"ed them. &he% redirected their ste#s toward the wa% o! truth, and their error, i! such it be, stands as the on % b emish on their wor(s. &he socia ists came a on' and aid ho d o! this de!inition, not to re!ute it, but to ado#t it, to stren'then it, to ma(e it the startin' #oint !or their #ro#a'anda, and to e?#atiate on a its im# ications. &here has been in our time imminent dan'er to societ% in a this, and !or that reason 7 !e t it m% dut% to s#ea( m% mind com# ete %, to trace this erroneous theor% bac( to its "er% be'innin's. Bow, i! one wished to conc ude !rom m% remar(s that 7 ha"e #arted com#an% with m% masters, 2mith and 2a%, with m% !riends B anCui and 0arnier, so e % because the% !ai ed to 'ras# the !u si'ni!icance o! one ine out o! a the man% #a'es in their e?ce ent and earned writin's, and #erha#s misused, as 7 be ie"e, the word 5"a ue5< i! one shou d conc ude on that account that 7 no on'er ha"e !aith in #o itica econom% and the economists< 7 can on % #rotest-and that 7 do, most em#hatica %, as is e"idenced b% the "er% tit e o! this boo(. F.8$8


3ha#ter 10 3om#etition &here is no word in a the "ocabu ar% o! #o itica econom% that has so aroused the an'r% denunciations o! the modern re!ormers as the word 5com#etition,5 to which, to add to the insu t, the% un!ai in' % a## % the e#ithet 5anarchistic.5 10.1 >hat does 5anarchistic com#etition5 meanK 7 do not (now. >hat can re# ace itK 7 do not (now that either. 10.8 =! course, 7 hear the cries o! 5=r'ani1ationJ AssociationJ5 But what does that meanK =nce and !or a we must come to an understandin'. 7 rea % must (now what (ind o! authorit% these authors #ro#ose to e?ert o"er me and o"er a men i"in' on this earth o! ours< !or, in truth, the on % authorit% 7 can 'rant them is the authorit% o! reason, #ro"ided the% can en ist reason on their side. 4o the% rea % #ro#ose to de#ri"e me o! the ri'ht to use m% own .ud'ment in a matter where m% "er% e?istence is at sta(eK 4o the% ho#e to ta(e !rom me m% #ower to com#are the ser"ices that 7 render with those that 7 recei"eK 4o the% mean that 7 shou d act under restraints that the% wi im#ose rather than accordin' to the dictates o! m% own inte i'enceK 7! the% ea"e me m% ibert%, com#etition a so remains. 7! the% wrest it !rom me, 7 become on % their s a"e. &he association wi be !ree and "o untar%, the% sa%. @er% we J But in that case e"er% 'rou# with its associated members wi be #itted a'ainst e"er% other 'rou#, .ust as indi"idua s are #itted a'ainst one another toda%, and we sha ha"e com#etition. &he association wi be a -embracin', it is re# ied. &his ceases to be a .o(in' matter. 4o %ou mean to sa% that anarchistic com#etition is wrec(in' our societ% ri'ht now, and to cure this ma ad% we sha ha"e to wait unti a man(ind, the French, the En' ish, the 3hinese, the Ma#anese, the Oa!irs, the Hottentots, the )a##s, the 3ossac(s, the /ata'onians, #ersuaded b% %our ar'uments, a'ree to unite !or a time to come in one o! the !orms o! association that %ou ha"e contri"edK But bewareJ &his is sim# % to ac(now ed'e that com#etition is indestructib e< and do %ou ha"e the #resum#tion to c aim that an indestructib e, and there!ore #ro"identia , #henomenon o! societ% can be mischie"ousK 10.9 A!ter a , what is com#etitionK 7s it somethin' that e?ists and has a i!e o! its own, i(e cho eraK Bo. 3om#etition is mere % the absence o! o##ression. 7n thin's that concern me, 7 want to ma(e m% own choice, and 7 do not want another to ma(e it !or me without re'ard !or m% wishes< that is a . And i! someone #ro#oses to substitute his .ud'ment !or mine in matters that concern me, 7 sha demand to substitute m% .ud'ment !or his in matters that concern him. >hat 'uarantee is there that this wi ma(e thin's 'o an% betterK 7t is e"ident that com#etition is !reedom. &o destro% !reedom o! action is to destro% the #ossibi it%, and conseCuent % the #ower, o! choosin', o! .ud'in', o!

850 com#arin'< it amounts to destro%in' reason, to destro%in' thou'ht, to destro%in' man himse !. >hate"er their startin' #oint, this is the u timate conc usion our modern re!ormers a wa%s reach< !or the sa(e o! im#ro"in' societ% the% be'in b% destro%in' the indi"idua , on the #rete?t that a e"i s come !rom him, as i! a 'ood thin's did not i(ewise come !rom him. 10.$ >e ha"e seen that ser"ices are e?chan'ed !or ser"ices. 7n the ast ana %sis, each one o! us comes into the wor d with the res#onsibi it% o! #ro"idin' his own satis!actions throu'h his own e!!orts. Hence, i! a man s#ares us #ains, we are ob i'ated to sa"e him #ains in return. His e!!ort brin's us a satis!action< we must do as much !or him. 10.5 But who is to ma(e the com#arisonK For it is abso ute % necessar% that these e!!orts, these #ains, these ser"ices that are to be e?chan'ed, be com#ared so that an eCui"a ence, a .ust rate, ma% be arri"ed at, un ess in.ustice, ineCua it%, chance, is to be our norm-which is another wa% o! throwin' the testimon% o! human reason out o! court. &here must be, there!ore, one or more .ud'es. >ho wi it beK 7s it not natura that, in e"er% #articu ar case, wants shou d be .ud'ed b% those who e?#erience them, satis!actions b% those who see( them, e!!orts b% those who e?chan'e themK 7s it #ro#osed in a seriousness to substitute !or this eterna "i'i ance b% the interested #arties a socia authorit% (e"en i! it shou d be the re!ormer himse !) char'ed with determinin' the intricate conditions a!!ectin' count ess acts o! e?chan'e in a #arts o! the wor dK 7s it not ob"ious that this wou d mean the estab ishment o! the most !a ib e, the most !ar-reachin', the most arbitrar%, the most inCuisitoria , the most unbearab e, the most short-si'hted, and, !ortunate %, et us add, the most im#ossib e o! a des#otisms e"er concei"ed in the brain o! an =rienta #otentateK 10.A >e need on % (now that com#etition is mere % the absence o! an% arbitrar% authorit% set u# as a .ud'e o"er e?chan'e, to rea i1e that it cannot be e iminated. 7 e'itimate coercion can indeed restrain, counteract, im#ede the !reedom o! e?chan'e, as it can the !reedom o! wa (in'< but it cannot e iminate either o! them without e iminatin' man himse !. &his bein' so, the on % Cuestion that remains is whether com#etition tends toward the ha##iness or the miser% o! man(ind-a Cuestion that amounts to this: 7s man(ind natura % inc ined toward #ro'ress or !ata % mar(ed !or decadenceK 10.E 7 do not hesitate to sa% that com#etition, which, indeed, we cou d ca !reedom-des#ite the a"ersion it ins#ires and the tirades directed a'ainst it-is essentia % the aw o! democrac%. 7t is the most #ro'ressi"e, the most e'a itarian, the most uni"ersa % e"e in' o! a the aws to which /ro"idence has entrusted the #ro'ress o! human societ%. 7t is this aw o! com#etition that brin's one b% one within common reach the en.o%ment o! a those ad"anta'es that Bature seemed to ha"e bestowed 'ratis on certain countries on %. 7t is this aw, a so, that brin's within common reach a the conCuests o! Bature that men o! 'enius in e"er% centur% #ass on as a herita'e to succeedin' 'enerations, ea"in' sti to be

851 #er!ormed on % su## ementar% abors, which the% e?chan'e without succeedin' in bein' remunerated, as the% wou d i(e to be, !or the co-o#eration o! natura resources. And i!, as a wa%s ha##ens at the be'innin', the "a ue o! this abor is not #ro#ortiona to its intensit%, it is once a'ain com#etition that, b% its im#erce#tib e but constant action, restores a !airer and more accurate ba ance than cou d be arri"ed at b% the !a ib e wisdom o! an% human o!!icia dom. &he accusation that com#etition tends toward ineCua it% is !ar !rom true. =n the contrar%, a arti!icia ineCua it% is due to the absence o! com#etition< and i! the distance se#aratin' a 0rand )ama !rom a #ariah is 'reater than that between the /resident and an artisan in the 6nited 2tates, the reason is that com#etition (or ibert%) is su##ressed in Asia, and not in America. &here!ore, whi e the socia ists !ind in com#etition the source o! a e"i , it is actua % the attac(s u#on com#etition that are the disru#ti"e e ements wor(in' a'ainst a that is 'ood. A thou'h this 'reat aw has been misunderstood b% the socia ists and their #artisans, a thou'h it is o!ten harsh in its o#eration, there is no aw that is richer in socia harmonies, more bene!icia in its 'enera resu ts< no aw attests more stri(in' % to the immeasurab e su#eriorit% o! 0od;s # ans o"er man;s !uti e contri"ances. 10.8 7 must at this #oint remind the reader o! that curious but indis#utab e e!!ect o! the socia order to which 7 ha"e a read% ca ed his attention,GG$0 !or too !reCuent % the !orce o! habit causes us to o"er oo( it. 7t ma% be characteri1ed thus: &he tota number o! satis!actions that each member o! societ% en.o%s is !ar 'reater than the number that he cou d secure b% his own e!!orts. 7n other words, there is an ob"ious dis#ro#ortion between our consum#tion and our abor. &his #henomenon, which we can a easi % obser"e, i! we mere % oo( at our own situation !or an instant, shou d, it seems to me, ins#ire in us some sense o! 'ratitude toward the societ% to which we owe it. 10.F >e come into the wor d destitute in e"er% wa%, tormented b% count ess wants, and #ro"ided with on % our !acu ties to satis!% them. 7t wou d a##ear, a #riori, that the most we cou d ho#e !or wou d be to obtain satis!actions eCua to our abors. 7! we #ossess more, in!inite % more, to what do we owe the e?cessK /recise % to that natura order o! societ% a'ainst which we are constant % rai in', when we are not actua % tr%in' to destro% it. 10.10 &he #henomenon, in itse !, is tru % e?traordinar%. 7t is Cuite understandab e that certain men shou d consume more than the% #roduce, i!, in one wa% or another, the% usur# the ri'hts o! others and recei"e ser"ices without renderin' an% in return. But how can this be true o! a men simu taneous %K How can it be that, a!ter e?chan'in' their ser"ices without coercion or # under, on a !ootin' o! "a ue !or "a ue, e"er% man can tru % sa% to himse !: 7 use u# in one da% more than 7 cou d #roduce in a hundred %earsK 10.11 &he reader rea i1es that the additiona e ement that so "es the #rob em is the increasin' % e!!ecti"e #artici#ation o! the !orces o! Bature in the wor( o! #roduction< it is the !act o!

858 more and more 'ratuitous uti it% comin' within the common reach o! a < it is the wor( o! heat, o! co d, o! i'ht, o! 'ra"itation, o! natura a!!init%, o! e asticit%, #ro'ressi"e % su## ementin' the abor o! man and reducin' the "a ue o! his ser"ices b% ma(in' them easier to #er!orm. 10.18 3ertain % 7 must ha"e e?# ained the theor% o! "a ue "er% bad % indeed i! the reader thin(s that "a ue dec ines immediate % and automatica % throu'h the mere act o! harnessin' the !orces o! Bature and re easin' the abor o! man. Bo, such is not the case< !or then we cou d sa%, as the En' ish economists do: @a ue is in direct #ro#ortion to abor. &he man who uses the he # o! a 'ratuitous !orce o! Bature #er!orms his ser"ices more easi %< but he does not on that account "o untari % surrender an% #art whatsoe"er o! what he has been accustomed to recei"e. &o induce him to do so, some #ressure !rom withouthea"%, but not un.ust-is necessar%. &his #ressure is com#etition. As on' as it does not inter"ene, as on' as the man usin' a !orce o! Bature remains master o! his secret, that !orce o! Bature is 'ratuitous, undoubted %, but it is not %et common to a < the conCuest o! Bature has been achie"ed, but to the #ro!it o! on % one man or one c ass. 7t is not %et o! bene!it to a man(ind. Bothin' has been chan'ed in the wor d, e?ce#t that one t%#e o! ser"ices, a thou'h #artia % re ie"ed o! its burden o! #ains, sti brin's the !u #rice. >e ha"e, on the one hand, a man who as(s the same amount o! abor as be!ore !rom his !e ow men, whi e he o!!ers them a reduced amount o! his own abor< and, on the other, a man(ind, sti ob i'ed to ma(e the same sacri!ices in time and toi to obtain a commodit% that is now #roduced in #art b% Bature. 10.19 7! thin's were to remain in this state, e"er% new in"ention wou d brin' into the wor d a !urther source o! e"er s#readin' ineCua it%. Bot on % cou d we not sa% that "a ue is #ro#ortiona to abor, but we cou d not e"en sa% that "a ue tends to become #ro#ortiona to abor. A that we ha"e said in ear ier cha#ters concernin' 'ratuitous uti it% and the trend toward the en ar'ement o! the communa domain wou d be i usor%. 7t wou d not be true that ser"ices are e?chan'ed !or ser"ices in such a wa% that 0od;s 'i!ts are transmitted, !ree o! char'e, !rom #erson to #erson unti the% reach the u timate consumer. E"er%one who had once mana'ed to e?# oit an% #art o! the !orces o! Bature wou d !or a time to come char'e !or it a on' with the cost o! his abor< in a word, man(ind wou d be or'ani1ed on the #rinci# e o! uni"ersa mono#o %, instead o! the #rinci# e o! an e?#andin' domain o! 'ratuitous and common uti ities. 10.1$ But such is not the case. 0od has a"ished on His creatures the 'i!ts o! heat, i'ht, 'ra"itation, air, water, the soi , the mar"e s o! # ant i!e, e ectricit%, and man% other b essin's too numerous to mention. And e"en as He has im# anted in each man;s heart a !ee in' o! se !-interest, which, i(e a ma'net draws a thin's to it< so has He, in the socia order, #ro"ided another mains#rin' whose !unction it is to #reser"e His 'i!ts as the% were ori'ina % intended to be: 'ratis and common to a . &his mains#rin' is com#etition. 10.15

859 &hus, se !-interest is that indomitab e indi"idua istic !orce within us that ur'es us on to #ro'ress and disco"er%, but at the same time dis#oses us to mono#o i1e our disco"eries. 3om#etition is that no ess indomitab e humanitarian !orce that wrests #ro'ress, as !ast as it is made, !rom the hands o! the indi"idua and # aces it at the dis#osa o! a man(ind. &hese two !orces, which ma% we be de# ored when considered indi"idua %, wor( to'ether to create our socia harmon%. 10.1A And, we ma% remar( in #assin', it is not sur#risin' that indi"idua ism, as it !inds e?#ression in a man;s se !-interest when he is a #roducer, has a wa%s re"o ted a'ainst the idea o! com#etition, has decried it, and sou'ht to destro% it, ca in' to its aid !orce, 'ui e, #ri"i e'e, so#histr%, mono#o %, restriction, 'o"ernment contro s, etc. &he immora it% o! its means disc oses c ear % enou'h the immora it% o! its end. But the ama1in', and un!ortunate, thin' is that #o itica econom%-that is, !a se #o itica econom%-#ro#a'ated with such ardor b% the socia ist schoo s, has, in the name o! o"e o! humanit%, eCua it%, and !raternit%, es#oused the cause o! indi"idua ism in its narrowest !orm and has abandoned the cause o! humanit%. 10.1E )et us now see how com#etition wor(s. 10.18 +an, under the in! uence o! se !-interest, a wa%s and ine"itab % see(s out the conditions that wi 'i"e his ser"ices their 'reatest "a ue. He is Cuic( to rea i1e that there are three wa%s in which he ma% use the 'i!ts o! 0od to his own s#ecia ad"anta'e:GG$1 1. He ma% a##ro#riate to his own e?c usi"e use these 'i!ts themse "es. 8. =r he a one ma% (now the techniCues b% which the% ma% be #ut to use. 9. =r he ma% #ossess the on % im# ement b% which their coo#eration can be secured. 10.1F 7n e"er% one o! these cases he 'i"es itt e o! his own abor in e?chan'e !or a 'reat dea o! others; abor. His ser"ices ha"e 'reat re ati"e "a ue, and we tend to assume that the e?cess "a ue resides inherent % in the natura resource. 7! this were so, this "a ue cou d not be diminished. >hat #ro"es that "a ue is, instead, created b% ser"ices is, as we sha see, the !act that com#etition simu taneous % diminishes both "a ue and ser"ices. 10.80 1. Batura resources, the 'i!ts o! 0od, are not uni!orm % distributed o"er the earth;s sur!ace. >hat an in!inite ran'e o! # ant i!e e?tends !rom the and o! the #ine to the and o! the #a m treeJ Here the soi is more !erti e, there the warmth o! the sun more "i"i!%in'< stone is !ound in one # ace, ime in another< iron, co##er, oi in %et others. >ater #ower is not to be !ound e"er%where< the action o! the winds cannot e"er%where be turned to our #ro!it. &he mere !act o! the distance that se#arates us !rom thin's necessar% to us can

85$ ma(e an inca cu ab e di!!erence in the obstac es our e!!orts encounter< e"en man;s !acu ties "ar%, to a certain e?tent, accordin' to c imate and race. 10.81 7t is eas% to see that, were it not !or the aw o! com#etition, this ineCua it% in the distribution o! 0od;s 'i!ts wou d resu t in a corres#ondin' di!!erence in men;s materia #ros#erit%. 10.88 An% #erson !indin' a natura ad"anta'e within reach wou d turn it to his own #ro!it, but not to that o! his !e ow men. &he% wou d be a owed to share in what he #ossessed on % as he distributed it and at an e?orbitant #rice that he wou d set arbitrari %. He cou d # ace an% "a ue he # eased on his ser"ices. >e ha"e a read% seen that the two e?tremes between which "a ue is set are the #ains ta(en b% the one #er!ormin' the ser"ice and the #ains s#ared the one recei"in' it. 7! it were not !or com#etition, nothin' wou d #re"ent the settin' o! the "a ue at the u##er imit. For e?am# e, the inhabitant o! the tro#ics wou d sa% to the Euro#ean: 5&han(s to m% sun, 7 can obtain a 'i"en amount o! su'ar, co!!ee, cocoa, or cotton !or abor eCua to ten, whereas %ou, who in %our co d #art o! the wor d are ob i'ed to resort to 'reenhouses, heaters, and stora'e barns, can #roduce them on % !or abor eCua to a hundred. Lou as( me !or m% su'ar, m% co!!ee, m% cotton, and %ou wou d not be at a disturbed i!, in arri"in' at m% #rice, 7 considered on % the #ains 7 too(. But 7, on the other hand, am #articu ar % aware o! the #ains 7 sa"e %ou, !or 7 (now the% are what determine how much %ou wi be wi in' to #a%, and 7 set m% demands accordin' %. 2ince 7 can do !or #ains eCua to ten what %ou in %our countr% do !or #ains eCua to a hundred, it is certain that %ou wou d re!use i! 7 were to demand o! %ou, in return !or m% su'ar, a #roduct that wou d cost %ou #ains eCua to a hundred and one< but 7 as( on % !or #ains eCua to ninet%-nine. Lou ma% "er% we be u#set about it !or a whi e, but %ou wi come around, !or at that rate the e?chan'e is sti to %our ad"anta'e. Lou !ind these terms un!air< but a!ter a , it is to me, not %ou, that 0od has 'i"en a warm c imate. 7 (now that 7 am in a #osition where 7 can e?# oit this boon o! /ro"idence b% re!usin' it to %ou un ess %ou are wi in' to #a% me a surchar'e, !or 7 ha"e no com#etition. 2o, here are m% su'ar, m% cocoa, m% co!!ee, m% cotton. &a(e them on m% terms, #roduce them %ourse !, or 'o without them.5 10.89 7t is true that the Euro#ean cou d in his turn s#ea( in i(e !ashion to the inhabitant o! the tro#ics: 5E?ca"ate %our and, di' mines, oo( !or iron and coa , and count %ourse ! !ortunate i! %ou !ind them< !or, i! %ou don;t, 7 am determined to raise m% demands to the imit. 0od has 'i"en us both o! these #recious 'i!ts. First, we ta(e as much o! them as we need< then, we !orbid others to ta(e an% un ess the% #a% us a s#ecia e"% on our wind!a .5 10.8$ E"en i! transactions were carried on in this manner, it sti wou d not be #ossib e, !rom the strict % scienti!ic #oint o! "iew, to attribute to natura resources the "a ue that resides essentia % in ser"ices. But it wou d be understandab e i! this mista(e were made, !or the

855 resu t wou d be the same. 2er"ices wou d sti be e?chan'ed !or ser"ices, but wou d e"idence no tendenc% to be measured b% e!!ort, b% abor. &he 'i!ts o! 0od wou d be #ersona #ri"i e'es and not common b essin's, and we cou d #erha#s com# ain with some reason o! ha"in' been treated b% the Author o! a thin's in so ho#e ess % un!air a manner. >ou d we, then, be brothers here be owK 3ou d we consider ourse "es the chi dren o! a common FatherK &he absence o! com#etition, that is, o! ibert%, wou d e?c ude an% idea o! !raternit%. Bothin' wou d be e!t o! the re#ub ican motto o! 5)ibert%, ECua it%, Fraternit%.5 10.85 But et com#etition a##ear on the scene, and there wi be no more o! these one-sided transactions, o! these sei1ures o! the 'i!ts o! 0od, o! this re"o tin' e?orbitance in the e"a uation o! ser"ices, o! these ineCua ities in the e?chan'e o! e!!orts. 10.8A And et us note, !irst o! a , that com#etition must necessari % inter"ene, ca ed into bein', as it is, b% the "er% !act o! these ineCua ities. )abor instincti"e % mo"es in the direction that #romises it the best returns, and thus un!ai in' % brin's to an end the abnorma ad"anta'e it en.o%ed< so that ineCua it% is mere % a s#ur that, in s#ite o! ourse "es, dri"es us on toward eCua it%. &his is one o! the !inest e?am# es o! te eo o'% in the socia machine. 7n!inite 'oodness, which has distributed its b essin's o"er the earth, has, it wou d seem, se ected the 'reed% #roducer as its a'ent !or e!!ectin' their eCuitab e distribution amon' a man(ind, and it certain % is a wonder!u si'ht to see se !-interest continua % brin'in' about the "er% thin' it a wa%s tries to #re"ent. +an, as a #roducer, is necessari %, irresistib %, attracted toward the ar'est #ossib e rewards !or his ser"ices, and b% that "er% !act a wa%s brin's them bac( into ine. He #ursues his own interest, and what does he #romote, unwittin' %, unwi in' %, unintentiona %K &he 'enera 'ood. 10.8E &hus, to return to our e?am# e, the inhabitant o! the tro#ics, b% the "er% !act that he rea i1es e?orbitant #ro!its !rom e?# oitin' the 'i!ts o! 0od, attracts com#etition. Human abor ! oc(s there with an ea'erness that, i! 7 ma% so e?#ress m%se !, is #ro#ortiona to the ma'nitude o! the ineCua it%, and is not content unti the ineCua it% has been e iminated. &hrou'h the e!!ect o! com#etition we see tro#ica abor eCua to ten successi"e % e?chan'ed !or Euro#ean abor eCua to ei'ht%, then si?t%, then !i!t%, then !ort%, then twent%, and !ina % ten. &here is no reason, under the natura aws o! societ%, wh% thin's shou d not reach this #oint, that is, wh% ser"ices e?chan'ed shou d not be measured in terms o! abor #er!ormed and #ains ta(en, with the 'i!ts o! 0od bein' thrown in 'ratis b% both #arties. 2o, when thin's do reach this #oint, we must rea i1e, with 'ratitude, how 'reat a re"o ution has ta(en # ace. First, the #ains ta(en b% both #arties are now eCua , which shou d satis!% our desire !or .ustice. &hen, what has become o! the 'i!t o! 0odK &his deser"es the reader;s !u attention. Bo one has been de#ri"ed o! it. )et us not, in this matter, be ta(en in b% the c amor raised b% the tro#ica #roducer. 7n so !ar as he is himse ! a consumer o! su'ar, cotton, or co!!ee, the Bra1i ian sti #ro!its !rom the heat o! the sun< !or this bene!icent bod% has not ceased to he # him in the wor( o! #roduction. A that he has ost is his un!air #ower to e"% a surchar'e on the consum#tion o! the inhabitants o!

85A Euro#e. &he 'i!t o! /ro"idence, because it was !ree o! char'e, had to, and did, become common to a < !or what is !ree o! char'e and what is common to a are essentia % one and the same. 10.88 0od;s 'i!t has become-and 7 be' the reader not to !or'et that 7 am usin' a #articu ar case to i ustrate a uni"ersa #henomenon-common to a . &his is not a ! i'ht o! rhetoric, but the statement o! a mathematica truth. >h% has this wonder!u !act not been understoodK Because communa wea th is a wa%s achie"ed in the !orm o! "a ue that has been e iminated, and our minds ha"e 'reat di!!icu t% in 'ras#in' what is e?#ressed ne'ati"e %. But, 7 as(, when, in order to 'et a certain amount o! su'ar, co!!ee, or cotton, 7 o!!er on % a tenth o! the #ains 7 shou d ha"e had to ta(e in order to #roduce them m%se !, and !or the reason that in Bra1i the sun #er!orms nine-tenths o! the wor(, is it not true that 7 am e?chan'in' abor !or aborK And do 7 not, in a #ositi"e sense, recei"e, in addition to the Bra1i ian;s abor, and into the bar'ain, the he # that the tro#ica c imate has contributedK 3an 7 not state with com# ete accurac% that 7, i(e a men, share in Bature;s bount% in #roducin' these thin's on the same terms as an 7ndian or a 2outh American, that is, 'ratisK 10.8F En' and has an abundance o! coa mines. &his is, be%ond doubt, o! 'reat oca ad"anta'e, #articu ar % i! we assume, as 7 sha in order to sim# i!% the i ustration, that there is no coa on the 3ontinent. As on' as no e?chan'e ta(es # ace, the ad"anta'e this 'i"es to the En' ish consists in the !act that the% ha"e more !ue than other nations and ha"e it !or ess #ains, !or ess e?#enditure o! "a uab e time. As soon as e?chan'e is introduced, ta(in' no account o! com#etition, their e?c usi"e #ossession o! the mines enab es them to demand ar'e sums in #a%ment and thus to set a hi'h #rice on their #ains. Bot bein' ab e to 'o to these #ains ourse "es, or to a##ea e sewhere, we sha be ob i'ed to submit. En' ish abor en'a'ed in this t%#e o! wor( wi be "er% hi'h % #aid< in other words, coa wi be e?#ensi"e, and Bature;s bount% can be considered to be a"ished on one nation, and not on a man(ind. 10.90 But this state o! thin's cannot ast< a 'reat natura and socia aw is o##osed to it, "i1., com#etition. /recise % because this t%#e o! abor is hi'h % #aid in En' and, it wi be in 'reat demand there, !or men are a wa%s in Cuest o! hi'h wa'es. &he number o! miners wi increase, both throu'h new recruits trans!errin' !rom other industries and throu'h the new 'eneration o! oca miners; sons enterin' their !athers; trade. &he% wi o!!er their ser"ices !or ess< the% wi be satis!ied with a constant % decreasin' rate, unti it reaches the norma amount 'enera % #aid !or simi ar wor( in the entire countr%. &his means that the #rice o! En' ish coa wi 'o down in France< that a 'i"en amount o! French abor wi obtain a 'reater and 'reater amount o! En' ish coa , or rather o! En' ish abor as it is re#resented in the coa < it means, in a word, and this is what 7 wish to #oint out, that the 'i!t that Bature a##eared to ha"e con!erred on En' and was in rea it% con!erred on a man(ind. 3oa !rom Bewcast e is bestowed 'ratis on a men. &his is neither #arado? nor e?a''eration< the coa is bestowed without cost, i(e water !rom a rushin' stream,

85E #ro"ided on % that men ta(e the #ains to 'et it or to com#ensate the #ains o! those who 'et it !or them. >hen we bu% coa , it is not the coa that we #a% !or, but the abor reCuired to e?tract it and to trans#ort it. A that we do is to o!!er what we consider as an eCua amount o! abor in wines or si (s. 2o 'reat has been Bature;s bount% toward France that the amount o! abor we o!!er in return is not more than we shou d ha"e had to #er!orm i! the coa de#osits had been ocated in France. 3om#etition has #ut both nations on an eCua !ootin' as !ar as coa is concerned, e?ce#t !or the s i'ht and una"oidab e di!!erences due to distance and trans#ortation costs. 10.91 7 ha"e o!!ered two i ustrations, and, in order to ma(e the #henomenon the more im#ressi"e b% reason o! its si1e, 7 ha"e chosen internationa o#erations on a "er% ar'e sca e. For that reason 7 am a!raid that 7 ma% ha"e !ai ed to ma(e the reader rea i1e that the same #henomenon constant % ta(es # ace a about us and in our most ordinar% transactions. )et him, then, be 'ood enou'h to #ic( out the most humb e ob.ects, a ' ass, a nai , a s ice o! bread, a #iece o! c oth, a boo(. 7 as( him to re! ect a itt e on these un#retentious artic es. )et him as( himse ! what an inca cu ab e amount o! 'ratuitous uti it% wou d, were it not !or com#etition, ha"e indeed remained !ree o! char'e !or their #roducers, but wou d ne"er ha"e become !ree o! char'e !or humanit%< that is, wou d ne"er ha"e become common to a . He ma% we sa% to himse !, as he bu%s his bread, that, than(s to com#etition, he #a%s nothin' !or what is done b% the sun, the rain, the !rost, the aws o! "e'etation, or e"en, des#ite a that is said, !or what is done e?c usi"e % b% the soi . He #a%s nothin' !or the aw o! 'ra"itation set to wor( b% the mi er, nothin' !or the aw o! combustion set to wor( b% the ba(er, nothin' !or the stren'th o! the horses set to wor( b% the de i"er%man. )et him re! ect that he #a%s on % !or ser"ices rendered, #ains ta(en b% human a'ents< that, were it not !or com#etition, he wou d ha"e had to #a% an additiona char'e !or a that is done b% these natura resources< that this char'e wou d ha"e been imited on % b% the di!!icu t% he wou d ha"e e?#erienced in #roducin' the bread with his own hands< that, conseCuent %, a who e i!etime o! abor wou d not ha"e been enou'h to meet the #rice he wou d ha"e been as(ed to #a%. )et him rea i1e that there is not a sin' e artic e he uses that mi'ht not 'i"e rise to the same re! ection, and that this ho ds true !or e"er% #erson on the !ace o! the earth< and then he wi understand the ! aw in the socia ist theories, which, "iewin' on % the sur!ace o! thin's, on % societ%;s outer she , ha"e so irres#onsib % rai ed a'ainst com#etition, that is to sa%, a'ainst human !reedom. &hen he wi understand that com#etition, which insures that the 'i!ts o! Bature so ineCuitab % distributed o"er the ' obe wi retain their doub e character o! bein' !ree o! char'e and common to a , must be considered as the #rinci# e o! a !air and natura eCua i1ation< that it must be admired as the !orce that ho ds in chec( se !ish im#u ses, with which it combines so s(i !u % that com#etition ser"es as both a restraint on 'reed and a s#ur to the acti"it% o! se !-interest. 7t deser"es to be b essed as the most stri(in' mani!estation o! 0od;s im#artia concern !or a His creatures. 10.98 From the #recedin' discussion it is #ossib e to arri"e at the so ution o! one o! the most contro"ersia o! Cuestions: that o! !ree trade amon' nations. 7! it is true, as seems to me incontestab e, that the "arious nations o! the wor d are ed b% com#etition to e?chan'e

858 with one another nothin' but their abor, their e!!orts, which are 'radua % brou'ht to a common e"e , and to inc ude, into the bar'ain, the natura ad"anta'es each one en.o%s< how b ind and i o'ica , then, are those nations that b% e'is ati"e action re.ect !orei'n 'oods on the 'rounds that the% are chea#, that the% ha"e itt e "a ue in #ro#ortion to their tota uti it%, that is, !or the "er% reason that the% contain a hi'h de'ree o! 'ratuitous uti it%J 10.99 7 ha"e a read% said, and 7 re#eat now, that a theor% ins#ires me with con!idence when 7 see that it a'rees with uni"ersa #ractice. Bow, it is certain that nations wou d carr% on certain (inds o! e?chan'e with one another i! the% were not !orcib % !orbidden to do so. 7t ta(es the ba%onet to #re"ent them< hence, it is wron' to #re"ent them. 10.9$ 8. Another !actor that #uts certain men in an e?ce#tiona % !a"orab e #osition as re'ards remuneration is their e?c usi"e (now ed'e o! the techniCues !or uti i1in' the !orces o! Bature. >hat we ca an in"ention is a conCuest o"er Bature won b% human 'enius. >e must obser"e how these admirab e and #eace!u conCuests, which ori'ina % are a source o! wea th !or those who ma(e them, soon become, under the in! uence o! com#etition, the 'ratuitous and common herita'e o! a man(ind. 10.95 &he !orces o! Bature do indeed be on' to e"er%one. 0ra"itation, !or e?am# e, is common #ro#ert%< it surrounds us, #ermeates us, ru es o"er us. Be"erthe ess, i! there were on % one wa% to harness it !or a 'i"en #ractica resu t, and i! some man (new this wa%, he cou d set a "er% hi'h #rice on his #ains or re!use to ta(e them at a un ess a considerab e amount were 'i"en in return. His demands in this res#ect wou d 'o as hi'h as the #oint at which the% wou d im#ose on the consumers a 'reater sacri!ice than the o d method wou d entai . He ma% ha"e succeeded, !or e?am# e, in e iminatin' nine-tenths o! the abor reCuired !or #roducin' artic e ?. But at the #resent time ? has a current mar(et #rice that has been estab ished b% the #ains it ta(es to #roduce it in the ordinar% wa%. &he in"entor se s ? at the mar(et #rice< in other words, he is #aid ten times more !or his #ains than are his com#etitors. &his is the !irst #hase o! the in"ention. 10.9A )et us note, !irst o! a , that this in no wise outra'es .ustice. 7t is .ust that the man who re"ea s a new and use!u #rocess to the wor d shou d recei"e his reward: to each accordin' to his abi it%. 10.9E )et us note !urther that u# to this #oint man(ind, the in"entor e?ce#ted, has bene!ited on % #otentia %, b% antici#ation so to s#ea(, since, in order to obtain artic e ?, e"er%one but him is sti ob i'ed to ma(e the same sacri!ices as be!ore. 10.98

85F At this .uncture, howe"er, the in"ention enters its second #hase, the #hase o! imitation. E?cessi"e com#ensations b% their "er% nature arouse co"etousness. &he new #rocess s#reads, the #rice o! ? steadi % dro#s, and the remuneration a so dec ines, more and more ra#id % as the time inter"a between the in"ention and its imitations en'thens, that is, as it becomes easier and easier, and ess and ess ris(%, to co#% the in"ention, and conseCuent % ess and ess worth whi e. 3ertain % there is nothin' in a this that cou d not be sanctioned b% the most en i'htened and im#artia e'is ation. 10.9F At ast the in"ention reaches its third and !ina #hase, the #hase o! uni"ersa distribution, where it is common #ro#ert%, and !ree o! char'e to a . 7ts !u c%c e has been run once com#etition has brou'ht the returns !or the #roducers o! artic e ? into ine with the #re"ai in' and norma rate !or simi ar t%#es o! abor. &hen the nine-tenths o! the #ains that are e iminated b% the h%#othetica in"ention re#resent a conCuest o! Bature !or the bene!it o! a man(ind. &he uti it% o! artic e ? remains the same< but nine-tenths o! it ha"e been su## ied b% 'ra"itation, which was ori'ina % common to a in theor%, and has now become common to a in !act in this s#ecia a## ication. &his is #ro"ed b% the !act that a consumers on the !ace o! the earth ma% now bu% artic e ? !or one-tenth o! what it once cost them. &he rest o! the cost has been e iminated b% the new techniCue. 10.$0 7! the reader wi sto# to consider that e"er% human in"ention has run this c%c e, that ? is here the a 'ebraic si'n !or wheat, c othin', boo(s, shi#s, !or whose #roduction an inca cu ab e Cuantit% o! #ains, or "a ue, has been e iminated b% the # ow, the oom, the #rintin' #ress, and the sai < that this obser"ation a## ies to the humb est too as we as to the most com# e? machiner%, to the nai , the wed'e, the e"er, e"en as to the steam en'ine and the te e'ra#h< he wi understand, 7 ho#e, how this #rob em is so "ed within the human !ami %, how a steadi % 'reater and more eCuitab % distributed amount o! uti it% or en.o%ment becomes the return !or a 'i"en amount o! human abor. 10.$1 9. 7 ha"e a read% shown how com#etition brin's into the 'ratuitous and common domain both the !orces o! Bature and the #rocesses b% which the% are harnessed. 7t remains !or me to show that it #er!orms the same !unction !or the im# ements b% means o! which these !orces are #ut to wor(. 10.$8 7t is not enou'h that there shou d e?ist in Bature !orces i(e heat, i'ht, 'ra"itation, e ectricit%< it is not enou'h that human inte i'ence shou d be ab e to concei"e o! a wa% o! uti i1in' them. &here is sti need !or im# ements to ma(e these conce#ts o! the mind a rea it% and !or #ro"isions to su##ort men whi e the% are occu#ied with this tas(. 10.$9 /ossession o! ca#ita is a third !actor that, as res#ects remuneration, is !a"orab e to a man or a c ass o! men. He who has at his dis#osa the too the wor(er needs, the raw materia s on which the abor is to be #er!ormed, and the means o! subsistence durin' the o#eration,

8A0 is in a #osition to demand a remuneration< the #rinci# e in"o "ed is certain % .ust, !or ca#ita mere % re#resents #ains #re"ious % ta(en and not %et rewarded. &he ca#ita ist is in a 'ood #osition to a% down the aw, true enou'h< %et et us note that, e"en when he !aces no com#etition, there is a imit be%ond which he ma% not #ress his c aims. &his imit is the #oint at which his #a%ment wou d eat u# a the ad"anta'es that his ser"ice wou d #ro"ide. Hence, there is no e?cuse !or ta (in', as #eo# e o!ten do, about the t%rann% o! ca#ita , since ne"er, e"en in the most e?treme cases, can its #resence be more harm!u to the wor(er;s ot than its absence. &he ca#ita ist, i(e the man !rom the tro#ics who has at his dis#osa a certain de'ree o! heat that Bature has denied other men, i(e the in"entor who #ossesses the secret o! a #rocess un(nown to his !e ow men, can do no more than sa%: 54o %ou desire the use o! m% aborK 7 set a 'i"en #rice on it. 7! %ou !ind it too hi'h, do as %ou ha"e done hereto!ore: 'o without it.5 10.$$ But com#etition inter"enes amon' the ca#ita ists. 7m# ements, raw materia s, and #ro"isions can he # to create uti it% on % i! the% are #ut to wor(< hence, there is ri"a r% amon' ca#ita ists to !ind a use !or their ca#ita . 2ince the amount b% which this ri"a r% !orces them to reduce their c aims be ow the ma?imum imits that 7 ha"e .ust determined brin's about a reduction in the #rice o! the #roduct, this amount re#resents, there!ore, a net #ro!it, a 'ratuitous 'ain !or the consumer, that is, !or man(indJ 10.$5 7t is e"ident here that cost can ne"er be com# ete % e iminated< since a ca#ita re#resents some #ains that ha"e been ta(en, the #rinci# e o! remuneration is a wa%s im# ied. 10.$A &ransactions in"o "in' ca#ita are sub.ect to the uni"ersa aw o! a e?chan'e, which is ne"er carried out un ess it is to the mutua ad"anta'e o! the two contractin' #arties. &his ad"anta'e, a thou'h it tends to be eCua on both sides, ma% accidenta % be 'reater !or one than !or the other. &he return on ca#ita is sub.ect to a imit be%ond which no one wi consent to borrow< this imit is 1ero ser"ice !or the borrower. )i(ewise, there is a imit be ow which no one wi consent to ma(e a oan< this imit is 1ero return !or the ender. &his is se !-e"ident. 7! the demands o! either #art% are raised to the #oint o! 1ero ad"anta'e !or the other, the oan becomes im#ossib e. &he return on ca#ita ! uctuates between these two e?tremes, raised toward the u##er imit b% com#etition amon' borrowers, brou'ht bac( toward the ower imit b% com#etition amon' enders< so that, throu'h a necessit% that is in harmon% with .ustice, it rises when ca#ita is scarce and !a s when ca#ita is abundant. 10.$E +an% economists be ie"e that the number o! borrowers increases more ra#id % than ca#ita can be !ormed, and hence that the natura trend o! interest is u#wards. &he !acts are conc usi"e in !a"or o! the contrar% o#inion, and we obser"e that the e!!ect o! ci"i i1ation e"er%where is to ower the rate on the hire o! ca#ita . &his rate, it is said, was 90 or $0 #er cent in ,ome< it is sti 80 #er cent in Bra1i , 10 #er cent in A 'iers, 8 #er cent in 2#ain, A #er cent in 7ta %, 5 #er cent in 0erman%, $ #er cent in France, 9 #er cent

8A1 in En' and, and e"en ess in Ho and. Bow, a this amount b% which, throu'h #ro'ress, the interest on ca#ita has been reduced, thou'h ost to the ca#ita ist, is not ost to man(ind. 7! the rate o! interest, startin' at $0, !a s to 8 #er cent, it means a dro# o! 98 out o! $0 #arts !or this item in the cost o! #roduction o! a commodities. &he% wi reach the consumer !reed !rom this char'e in the #ro#ortion o! nineteen-twentieths< this !orce, then, i(e the !orces o! Bature, i(e more e!!icient techniCues, resu ts in abundance, eCua i1ation, and, u timate %, a 'enera rise in the standard o! i"in' !or the human race.

-------------------------------------------------------------------------------10.$8 7 sti ha"e to sa% a !ew words about the com#etition that abor creates !or itse !, a sub.ect that has recent % ins#ired so much sentimenta rhetoric. But is it rea % necessar%K Has the sub.ect not been e?hausti"e % treated, !or the care!u reader, b% a that has a read% been saidK 7 ha"e #ro"ed that, than(s to com#etition, men cannot !or on' recei"e an abnorma return !or the co-o#eration o! the !orces o! Bature, !or (nowin' s#ecia techniCues, or !or #ossessin' the instruments whereb% these !orces are #ut to wor(. &o do this is to #ro"e that e!!orts tend to be e?chan'ed on an eCua !ootin', or, in other words, that "a ue tends to be #ro#ortiona to abor. &his bein' so, 7 do not rea % understand what is meant b% com#etition amon' wor(ers. 7 understand e"en ess how it cou d be harm!u to their situation, since, in this res#ect wor(ers are a so consumers< the aborin' c ass inc udes e"er%bod%, and in !act itse ! com#rises the 'reat communit% that in the ast ana %sis rea#s the rewards o! com#etition and the bene!its accruin' !rom the stead% e imination o! "a ue resu tin' !rom #ro'ress. 10.$F &he course o! de"e o#ment is as !o ows: 2er"ices are e?chan'ed !or ser"ices, or "a ue !or "a ue. >hen a man (or a 'rou# o! men) a##ro#riates a natura resource or acCuires a new techniCue, he bases his char'es, not on the #ains he ta(es, but on those he s#ares others. He raises his demands to the hi'hest #ossib e imit, without e"er bein' ab e thereb% to in.ure the we !are o! others. He assi'ns the 'reatest #ossib e "a ue to his ser"ices. But 'radua %, throu'h the e!!ect o! com#etition, this "a ue tends to corres#ond to the #ains he has ta(en< so that the !u course has been run when his #ains are e?chan'ed !or eCua #ains, e"er% one o! which re#resents the means o! transmittin' a 'rowin' amount o! 'ratuitous uti it%, bene!icia to the entire communit%. 2uch bein' the case, it wou d be a ' arin' inconsistenc% to sa% that com#etition hurts the wor(ers. 10.50 And %et this is constant % bein' said, and it is e"en wide % acce#ted. >h%K Because this word 5wor(er5 is used to mean one #articu ar c ass, not the 'reat communit% o! a those who wor(. &his communit% is di"ided into two 'rou#s. =n one side are # aced a those who ha"e ca#ita , who i"e entire % or in #art on #re"ious abor or on inte ectua abor or

8A8 on the #roceeds o! ta?ation< on the other are # aced those who ha"e on % their hands and their wa'es, those who, to use the time-honored e?#ression, !orm the #ro etariat. &he re ations o! these two c asses with each other are obser"ed, and the Cuestion is as(ed whether, in "iew o! the nature o! these re ations, the com#etition carried on b% the wa'e earners amon' themse "es is not harm!u to their interests. 10.51 &he situation o! these men, it is said, is essentia % #recarious. 2ince the% recei"e their wa'es dai %, the% i"e !rom da% to da%. 4urin' the bar'ainin' that, in e"er% !ree s%stem, 'oes on be!ore terms are reached, the% are unab e to wait< the% must, no matter what, !ind wor( !or the morrow or die. 7! this is not entire % true o! a o! them, it is at east true o! man% o! them, o! enou'h o! them to de#ress the entire c ass< !or the most hard-#ressed, the most wretched % #oor, are the ones who ca#itu ate !irst, and the% set the 'enera wa'e sca e. 7n conseCuence, wa'es tend to be set at the owest rate com#atib e with bare subsistence< and in this state o! thin's the east bit o! added com#etition amon' the wor(ers is a "eritab e ca amit%, since !or them it is not a Cuestion o! a ower standard o! i"in', but o! not bein' ab e to i"e at a . 10.58 3ertain % there is much truth, too much truth, in actua !act, in this a e'ation. &o den% the su!!erin's and the miserab e conditions #re"ai in' amon' this c ass o! men who #er!orm the #h%sica abor o! the wor( o! #roduction wou d be shuttin' our e%es to the truth. &he !act is that what we ri'ht % term the socia #rob em is re ated to the de# orab e state o! a 'reat number o! our !e ow men, !or, a thou'h other c asses o! societ% are not immune to man% an?ieties, man% su!!erin's, economic re"erses, crises, and u#hea"a s, it is, ne"erthe ess, true that !reedom wou d be considered as the so ution to the #rob em, i! !reedom did not a##ear he # ess in curin' this runnin' sore that we ca #au#erism. 10.59 And since it is with this Cuestion that the socia #rob em is most concerned, the reader wi understand that 7 cannot ana %1e it here. >ou d to 0od that its so ution mi'ht be the outcome o! this who e boo( o! mine, but ob"ious % it cannot come !rom a sin' e cha#terJ 10.5$ 7 am now concerned with settin' !orth certain 'enera aws that 7 be ie"e to be harmonious, and 7 am con!ident that the reader a so has become aware that these aws e?ist, that the% tend toward the common sharin' o! a thin's and conseCuent % toward eCua it%. But 7 ha"e not tried to den% that their action has been 'reat % hindered b% disturbin' !actors. 7!, then, at the #resent moment we encounter an% shoc(in' !act o! ineCua it%, how can we inter#ret it unti we (now both the norma aws o! the socia order and the disturbin' !actorsK 10.55 =n the other hand, 7 ha"e not sou'ht to den% the e?istence o! e"i or its mission. 7 ha"e !e t entit ed to state that, since man has been 'i"en !ree wi , the term 5harmon%5 need not be con!ined to a tota s%stem !rom which e"i wou d be e?c uded< !or !ree wi im# ies

8A9 error, at east as a #ossibi it%, and error is e"i . 2ocia harmon%, i(e e"er%thin' e se that in"o "es man, is re ati"e< e"i constitutes a necessar% #art o! the machiner% desi'ned to conCuer error, i'norance, and in.ustice, b% brin'in' into # a% two 'reat aws o! our nature< res#onsibi it% and so idarit%. 10.5A 2ince #au#erism is an e?istin' !act, must its e?istence be im#uted to the natura aws that 'o"ern the socia order or rather to human institutions that #erha#s wor( contrar% to these aws or, !ina %, to the "ictims themse "es, who b% their own errors and mista(es must ha"e ca ed down u#on their heads so se"ere a #unishmentK 10.5E 7n other words: 4oes #au#erism e?ist b% di"ine # an or, on the contrar%, because o! some arti!icia e ement sti remainin' in our #o itica order or as indi"idua retributionK Fate, in.ustice, indi"idua res#onsibi it%K &o which o! these three causes must this !ri'ht!u sore be attributedK 10.58 7 do not hesitate to sa% that it cannot be the resu t o! the natura aws that ha"e been the ob.ect o! our stud% throu'hout this boo(, since these aws a tend toward eCua it% under im#ro"ed conditions, that is, toward brin'in' a men c oser to'ether in their en.o%ment o! a constant % risin' standard o! i"in'. Hence, this is not the # ace to de "e into the #rob em o! #o"ert%. 10.5F For the moment, i! we wish to consider se#arate % that c ass o! wor(ers who carr% out the more #h%sica #art o! the wor( o! #roduction, and who, without sharin', 'enera % s#ea(in', in its #ro!its, i"e on !i?ed earnin's that we ca 5wa'es,5 the Cuestion that we must as( is this: >ithout ta(in' into account either the 'oodness or the badness o! our economic institutions or the woes that the members o! the #ro etariat ma% ha"e brou'ht u#on themse "es, what is, as !ar as the% are concerned, the e!!ect o! com#etitionK 10.A0 For this c ass o! #eo# e, as !or a others, the e!!ect o! com#etition is two!o d. &he% are aware o! it both as bu%ers and as se ers o! ser"ices. &he error o! a those who write on this sub.ect is that the% ne"er see more than one side o! the Cuestion, i(e #h%sicists who, i! the% understood on % the aw o! centri!u'a !orce, wou d be ie"e and constant % #redict that a is ost. /ro"ide them with incorrect data, and %ou wi see with what ! aw ess o'ic the% wi ead %ou to their conc usions o! doom. &he same ma% be said o! the amentations that the socia ists base on their e?c usi"e #reoccu#ation with the #henomenon o! centri!u'a com#etition, i! 7 ma% use such an e?#ression. &he% !or'et that there is a so centri#eta com#etition, and that is enou'h to reduce their theories to chi dish rantin's. &he% !or'et that the wor(er, when he 'oes to mar(et with the wa'es he has earned, is the center toward which count ess industries are directed, and that he then #ro!its !rom the uni"ersa com#etition o! which the industries a com# ain in their turn.

8A$ 10.A1 7t is true that the members o! the #ro etariat, when the% consider themse "es as #roducers, as su## iers o! abor or ser"ices, a so com# ain o! com#etition. )et us admit, then, that com#etition is to their ad"anta'e on the one hand, and to their disad"anta'e on the other< the Cuestion is to determine whether the ba ance is !a"orab e or un!a"orab e, or whether there are com#ensatin' !actors. 10.A8 6n ess 7 ha"e e?#ressed m%se ! "er% bad %, the reader now rea i1es that in this wonder!u mechanism the inter# a% o! "arious as#ects o! com#etition, a##arent % so anta'onistic, brin's about, as its sin'u ar and reassurin' resu t, a ba ance that is !a"orab e to a simu taneous %, because o! the 'ratuitous uti it% that steadi % en ar'es the circ e o! #roduction and constant % !a s within the communa domain. Bow, what becomes !ree o! char'e and common to a is ad"anta'eous to a and harm!u to none< we can e"en add, and with mathematica certaint%, that it is ad"anta'eous to e"er%one in direct #ro#ortion to his #re"ious state o! #o"ert%. &his #art o! 'ratuitous uti it%, which com#etition has !orced to become common to a , ma(es "a ue tend to corres#ond to abor, to the ob"ious bene!it o! the wor(er. &his, too, #ro"ides the basis !or the so ution o! the socia #rob em that 7 ha"e tried to (ee# constant % be!ore the reader, and which on % the "ei o! misconce#tions born o! habit can #re"ent him !rom seein', name %, that !or a 'i"en amount o! abor each one recei"es a sum o! satis!actions whose tendenc% is to increase and to be distributed eCua %. 10.A9 Furthermore, the condition o! the wor(er is the resu t, not o! one economic aw, but o! a o! them. &o understand his condition, to disco"er what is in store !or him, what his !uture ho ds, is the one and on % !unction o! #o itica econom%< !or, !rom its #oint o! "iew, what e se can there be in the wor d e?ce#t wor(ersK 7 am wron', !or there are a so # underers. >hat 'i"es ser"ices their .ust "a ueK Freedom. >hat de#ri"es them o! their .ust "a ueK =##ression. 2uch is the c%c e that we ha"e sti to tra"erse. 10.A$ As !or the !ate o! the wor(in' c ass, which carries out the more immediate wor( o! #roduction, we can e"a uate it on % when we are in a #osition to (now how the aw o! com#etition combines with those o! wa'es and o! #o#u ation and a so the disru#tin' e!!ects o! un.ust ta?ation and mono#o %. 10.A5 7 sha add on % a !ew more words on com#etition. 7t is Cuite c ear that a decrease in the sum tota o! satis!actions distributed amon' men is a resu t that wou d be !orei'n to the nature o! com#etition. 4oes it tend to ma(e this distribution uneCua K Bothin' on earth is c earer than that com#etition, a!ter attachin', so to s#ea(, a 'reater #ro#ortion o! uti it% to e"er% ser"ice, to e"er% "a ue, wor(s unceasin' % to e"e the ser"ices themse "es, to ma(e them #ro#ortiona to e!!orts. 7s com#etition not the s#ur that turns men toward #roducti"e and awa% !rom un#roducti"e careersK 7ts natura action is, there!ore, to assure 'reater eCua it% and at the same time a hi'her and hi'her socia e"e .


10.AA )et us, howe"er, understand what we mean b% eCua it%. 7t does not im# % identica rewards !or a men, but rewards in (ee#in' with the Cuantit% and Cua it% o! their e!!orts. 10.AE A host o! circumstances contributes to ma(in' the remuneration o! abor uneCua (7 am s#ea(in' now o! !ree abor sub.ect to the aws o! com#etition). =n c ose e?amination we disco"er that this a e'ed ineCua it%, near % a wa%s .ust and necessar%, is in rea it% nothin' e se than actua eCua it%. 10.A8 A other thin's bein' eCua , more #ro!it can be had !rom dan'erous abor than !rom abor that is not< !rom trades that reCuire a on' a##renticeshi# and out a%s that remain un#roducti"e !or a on' time, im# %in' on the #art o! the !ami % the on'-sustained e?ercise o! certain "irtues, than !rom those in which #h%sica stren'th a one is necessar%< !rom the #ro!essions that demand trained minds and re!ined tastes, than !rom trades where nothin' is needed be%ond one;s two hands. 7s a this not .ustK Bow, com#etition necessari % estab ishes these distinctions< societ% does not need Fourier or +. )ouis B anc to decide the matter. 10.AF Amon' these "arious !actors the one most 'enera % decisi"e is ineCua it% o! trainin'< and here, as e"er%where e se, we see com#etition e?ertin' its two!o d in! uence, e"e in' c asses and raisin' the 'enera standard o! societ%. 10.E0 7! we thin( o! societ% as bein' com#osed o! two strata # aced one abo"e the other, with inte i'ence #redominant in the one, and brute !orce #redominant in the other, and i! we stud% the natura re ations o! these two strata with each other, we sha readi % notice that the !irst one #ossesses a #ower o! attraction, whi e in the second there is a !orce o! as#iration, and these two wor( to'ether to !orm the two strata into one. &he "er% ineCua it% o! rewards ins#ires the ower stratum with a burnin' desire to reach the hi'her re'ions o! we -bein' and eisure, and this desire is encoura'ed b% ' eams !rom the i'ht that i uminates the u##er c asses. &eachin' methods are im#ro"ed< boo(s cost ess< instruction is acCuired more ra#id % and chea# %< earnin', which had been mono#o i1ed b% a sin' e c ass or e"en caste, "ei ed in a dead an'ua'e or in hiero' %#hics, is written and #rinted in the "ernacu ar, #ermeates the atmos#here, so to s#ea(, and is breathed in i(e the air. 10.E1 Bor is this a . E"en whi e more uni"ersa and more eCua education is wor(in' to brin' the two socia strata to'ether, "er% im#ortant economic !actors that are connected with the 'reat aw o! com#etition acce erate their !usion. /ro'ress in the (now ed'e o! the aws o! mechanics constant % decreases the #ro#ortion o! brute abor in an% o#eration. &he di"ision o! abor, b% sim# i!%in' and iso atin' each one o! the o#erations that

8AA contribute to turnin' out the !inished #roduct, # aces within the reach o! a new industries that #re"ious % were o#en on % to a !ew. +oreo"er, a com# e? o! "arious t%#es o! abor that ori'ina % reCuired hi'h % di"ersi!ied s(i s becomes, with the mere #assin' o! time, sim# e routine and is #er!ormed b% the east s(i !u , as has ha##ened in a'ricu ture. A'ricu tura techniCues, which, in antiCuit%, earned !or their disco"erers honors a##roachin' dei!ication, are toda% so com# ete % the herita'e and a most the mono#o % o! the most brutish sort o! men, that this most im#ortant branch o! human industr% has become a most taboo, so to s#ea(, !or the we -bred. 7t is #ossib e to draw !a se conc usions !rom a this and to sa%: 5>e do indeed obser"e that com#etition owers remunerations in a countries, in a trades and #ro!essions, in a ran(s o! societ%, that it e"e s them downwards< but this means that the wa'es !or uns(i ed abor, !or mere #h%sica e?ertion, wi become the norm, the standard !or a remuneration.5 10.E8 &he reader has misunderstood me i! he does not #ercei"e that com#etition, which tends to brin' a e?cessi"e remunerations into ine with a more or ess uni!orm a"era'e, necessari % raises this a"era'e. &his is 'a in', 7 admit, to men in their ca#acit% as #roducers< but it resu ts in im#ro"in' the 'enera ot o! the human race in the on % res#ects in which im#ro"ement ma% reasonab % be e?#ected: in we -bein', in !inancia securit%, in increased eisure, in mora and inte ectua de"e o#ment, and, in a word, in res#ect to a that re ates to consum#tion. 10.E9 >i the ob.ection be made that man(ind has not made the #ro'ress that this theor% wou d seem to im# %K 10.E$ 7 sha re# %, in the !irst # ace, that com#etition in modern societ% is !ar !rom # a%in' its natura ro e. =ur aws inhibit it at east as much as the% encoura'e it< and to answer the Cuestion whether ineCua it% is due to the #resence or the absence o! com#etition, we need on % obser"e who the men are who occu#% the ime i'ht and da11 e us with their scanda ous !ortunes, to assure ourse "es that ineCua it%, in so !ar as it is arti!icia and un.ust, is based on conCuest, mono#o ies, restrictions, #ri"i e'ed #ositions, hi'h 'o"ernment #osts and in! uence, administrati"e dea s, oans !rom the #ub ic !unds-with a o! which com#etition has no connection. 10.E5 2econd %, 7 be ie"e that we !ai to a##reciate the "er% rea #ro'ress that has been made since the "er% recent times !rom which we must date the #artia emanci#ation o! abor. 7t has been said with much truth that it ta(es a 'reat dea o! scienti!ic insi'ht to obser"e the !acts that are constant % be!ore our e%es. &he #resent e"e o! consum#tion en.o%ed b% an honest and industrious wor(in'-c ass !ami % does not sur#rise us because habit has !ami iari1ed us with this stran'e situation. 7!, howe"er, we were to com#are the standard o! i"in' that this !ami % has attained with the one that wou d be its ot in a h%#othetica socia order !rom which com#etition had been e?c uded< i! statisticians cou d measure with #recision instruments, as with a d%namometer, its abor in re ation to its satis!actions

8AE at two di!!erent #eriods< we shou d rea i1e that !reedom, des#ite a sti -e?istin' restrictions on it, has wrou'ht a mirac e so endurin' that !or that "er% reason we !ai to be aware o! it. &he tota #ro#ortion o! human e!!ort that has been e iminated in achie"in' an% 'i"en resu t is tru % inca cu ab e. &here was a time when the da%;s wor( o! an artisan wou d not ha"e bou'ht him the crudest sort o! a manac. &oda% !or !i"e centimes, or the !i!tieth #art o! his dai % wa'e, he can bu% a #a#er containin' enou'h #rinted matter !or a "o ume. 7 cou d sa% the same thin' !or c othin', trans#ortation, shi##in', i umination, and a host o! satis!actions. &o what are these resu ts dueK &o the !act that a tremendous #ro#ortion o! human abor, which must be #aid !or, has been re# aced b% the 'ratuitous !orces o! Bature. &his re#resents "a ue that has been e iminated, that no on'er reCuires #a%ment. 7t has been re# aced, throu'h the action o! com#etition, b% 'ratuitous and common uti it%< and, et us note, when, throu'h #ro'ress, the cost o! a 'i"en commodit% ha##ens to dro#, the abor reCuired to #a% !or it that is sa"ed the #oor man is a wa%s #ro#ortionate % 'reater than that sa"ed the wea th% man, as can be demonstrated mathematica %. 10.EA Fina %, this constant % 'rowin' ! ood o! uti it%, #oured !orth b% abor and #um#ed throu'h a the "eins o! the socia bod% b% com#etition, is not to be measured entire % in terms o! #resent materia com!orts. +uch o! it is absorbed into the risin' tide o! e"er increasin' new 'enerations< it is di!!used o"er an increased #o#u ation, in accordance with the aws, c ose % re ated to our #resent sub.ect, which wi be set !orth in another cha#ter. 10.EE )et us #ause a moment to oo( bac( o"er the road we ha"e .ust tra"e ed. 10.E8 +an has wants that (now no imits< he e?#eriences desires that are insatiab e. &o satis!% them he has raw materia s and !orces that are su## ied him b% Bature, !acu ties, im# ements-a the thin's that his abor can #ut into o#eration. )abor is the resource most wide % distributed amon' a men. E"er% man see(s instincti"e %, ine"itab %, to brin' to his aid a the !orces o! Bature, a the natura or acCuired ta ent, a the ca#ita that he can, in order that a this co-o#eration ma% brin' him more uti it% or, what amounts to the same thin', more satis!actions. &hus, the more and more acti"e #artici#ation o! natura resources, the constant de"e o#ment o! his inte ectua !acu ties, the #ro'ressi"e increase o! ca#ita , a 'i"e rise to this #henomenon, sur#risin', at !irst si'ht: that a 'i"en amount o! abor !urnishes a constant % 'rowin' sum o! uti it%, and that e"er%one ma%, without ta(in' awa% !rom an%one e se, en.o% a number o! consumers; satis!actions !ar out o! #ro#ortion to the abi it% o! his own e!!orts to #roduce them. 10.EF But this #henomenon, the resu t o! the di"ine harmon% that /ro"idence has im# anted in the socia structure, wou d ha"e turned a'ainst societ% itse !, b% introducin' the seeds o! constant % increasin' ineCua it%, i! it were not combined with another and no ess

8A8 admirab e harmon%, com#etition, which is one o! the branches o! the 'reat aw o! human so idarit%. 10.80 7n !act, i! it were #ossib e !or the indi"idua , !ami %, c ass, or nation that !inds certain natura ad"anta'es within reach or ma(es an im#ortant disco"er% in industr% or acCuires throu'h thri!t instruments o! #roduction, to be #ermanent % e?em#t !rom the aw o! com#etition, it is ob"ious that this indi"idua , !ami %, or nation wou d retain the mono#o % o! its e?ce#tiona remuneration !or a time to come, at the e?#ense o! man(ind. >here wou d we be i! the inhabitants o! the tro#ics, !ree !rom a com#etition amon' themse "es, were ab e, in e?chan'e !or their su'ar, co!!ee, cotton, and s#ices, to demand !rom us, not amounts o! abor eCua to theirs, but #ains eCua to those we ourse "es wou d ha"e to ta(e in order to raise these commodities in our ru''ed c imateK B% what an immeasurab e distance wou d the "arious socia strata o! man(ind be se#arated i! on % the race o! 3admusGF8 cou d read< i! no one cou d hand e a # ow un ess he cou d #ro"e that he was a direct descendant o! &ri#to emus<GF9 i! on % 0utenber';s descendants cou d #rint, Ar(wri'ht;s sons cou d o#erate a oom, >att;s #ro'en% cou d set the !unne o! a ocomoti"e to smo(in'K But /ro"idence has not wi ed that these thin's shou d be, !or it has # aced within the socia machiner% a s#rin' as ama1in' % #ower!u as it is sim# e. &han(s to its action e"er% #roducti"e !orce, e"er% im#ro"ed techniCue, e"er% ad"anta'e, in a word, other than one;s own abor, s i#s throu'h the hands o! its #roducer, remainin' there on % on' enou'h to e?cite his 1ea with a brie! taste o! e?ce#tiona returns, and then mo"es on u timate % to swe the 'ratuitous and common herita'e o! a man(ind. A these disco"eries and ad"anta'es are di!!used into ar'er and ar'er #ortions o! indi"idua satis!actions, which are more and more eCua % distributed. 2uch is the action o! com#etition. >e ha"e a read% noted its economic e!!ects< it remains !or us to ' ance at a !ew o! its #o itica and mora conseCuences. 7 sha con!ine m%se ! to #ointin' out the most im#ortant. 10.81 2ome su#er!icia commentators ha"e accused com#etition o! creatin' anta'onisms amon' men. &his is true and ine"itab e as on' as men are considered so e % as #roducers< but consider them as consumers, and %ou wi see that com#etition binds indi"idua s, !ami ies, c asses, nations, and races to'ether in the bonds o! uni"ersa brotherhood. 10.88 2ince the riches that ori'ina % a##ear to be the e?c usi"e #ossession o! a !ew become, throu'h the admirab e decree o! di"ine bount%, the common #atrimon% o! a < since the natura ad"anta'es resu tin' !rom ocation, !erti it%, tem#erature, minera de#osits, and e"en industria a#titude, mere % s i# throu'h the hands o! their #roducers because o! the com#etition the% en'a'e in with one another, and turn e?c usi"e % to the #ro!it o! the consumer< it !o ows that there is no countr% that does not ha"e a se !ish interest in the ad"ancement o! e"er% other countr%. E"er% ste# o! #ro'ress that is made in the =rient re#resents #otentia wea th !or the =ccident. Fue disco"ered in the south o! France means warmer homes !or the men o! the north. )et 0reat Britain ma(e a the #ro'ress she can with her s#innin' mi s. Her ca#ita ists wi not be the ones to rea# the bene!it, !or

8AF the interest on mone% wi not rise< nor wi it be her wor(ers, !or their wa'es wi remain the same< but, in the on' run, the ,ussian, the Frenchman, the 2#aniard, a man(ind, in a word, wi obtain eCua satis!actions !or ess #ains, or, what amounts to the same thin', 'reater satis!actions !or eCua #ains. 10.89 7 ha"e s#o(en on % o! the bene!its< 7 cou d ha"e said as much !or the i s that a!! ict certain #eo# es or certain re'ions. &he #ecu iar action o! com#etition is to ma(e 'enera what was once #articu ar. 7t acts on e?act % the same #rinci# e as insurance. 7! a scour'e o! Bature ra"a'es the !armers; ands, the consumers o! bread are the ones who su!!er. 7! an un.ust ta? is e"ied on the "ine%ards o! France, it is trans ated into hi'h wine #rices !or a the wine-drin(ers on earth. &hus, both ad"anta'es and disad"anta'es o! an% de'ree o! #ermanence mere % s i# throu'h the hands o! indi"idua s, c asses, and #eo# es< their u timate destin%, as ordained b% /ro"idence, is to a!!ect a humanit% and to raise or ower its standard o! i"in'. Hence, to en"% an% #eo# e whatsoe"er the !erti it% o! its soi or the beaut% o! its #orts and its ri"ers or the warmth o! its sun is to !ai to understand the bene!its that we are in"ited to share. 7t is to disdain the abundance that is o!!ered us< it is to de# ore the toi that we are s#ared. Hence, nationa .ea ousies are not on % #er"erse sentiments< the% are absurd. &o harm others is to harm ourse "es< to s#read obstac es, tari!!s, coa itions, or wars a on' the #ath o! others is to obstruct our own #ro'ress. 3onseCuent %, e"i #assions ha"e their #unishment e"en as nob e sentiments ha"e their reward. >ith a the mora authorit% that it commands, the #rinci# e o! com# ete .ustice !or a s#ea(s to our se !-interest, en i'htens #ub ic o#inion, #roc aims and must e"entua % ma(e #re"ai amon' men this eterna % true #ro#osition: &he use!u is one o! the as#ects o! .ustice< ibert% is the most beauti!u o! socia harmonies< eCuit% is the best #o ic%. 10.8$ 3hristianit% 'a"e to the wor d the 'reat #rinci# e o! the brotherhood o! man. 7t s#ea(s to our hearts, to our sentiments, to our nob est instincts. /o itica econom% #roc aims the same #rinci# e in the name o! co d reason, and, b% showin' the interre ation o! cause and e!!ect, reconci es, in reassurin' accord, the ca cu ations o! the most war% se !-interest with the ins#iration o! the most sub ime mora it%. 10.85 A second conc usion to be deri"ed !rom this doctrine is that societ% is a true common association. +essrs. =wen and 3abet ma% sa"e themse "es the troub e o! see(in' the so ution to the 'reat communist #rob em< it has a read% been !ound. 7t is deri"ed, not !rom their des#otic contri"ances, but !rom the or'ani1ation that 0od has 'i"en to man and to societ%. &he !orces o! Bature, e!!icient techniCues, too s o! #roductione"er%thin' is a"ai ab e in common to a men or tends to become so, e"er%thin', 7 sa%, e?ce#t the indi"idua ;s #ains, abor, and e!!ort. &here is, there can be, amon' men, on % one ineCua it%, which e"en the most uncom#romisin' communists admit: the ineCua it% that comes !rom that o! men;s e!!orts. 10.8A

8E0 E!!orts a one are e?chan'ed !or other e!!orts accordin' to terms discussed and a'reed u#on. A the uti it% im#arted to commodities b% Bature, b% the 'enius o! #ast centuries, and b% human !oresi'ht are obtained 'ratis, into the bar'ain. &he reci#roca remunerations estab ished are re ated on % to res#ecti"e e!!orts, whether #er!ormed in the #resent under the name o! abor or #re#ared in the #ast under the name o! ca#ita . &he s%stem is there!ore a commonwea th in the most itera and ri'orous % accurate sense o! the word, un ess one wishes to assert that each #erson;s share in the satis!actions shou d be eCua , a thou'h his #artici#ation in the abor is not, a situation that certain % wou d #roduce the most un.ust and monstrous o! ineCua ities-and the most disastrous, !or it wou d not destro% com#etition, but wou d mere % re"erse its direction: men wou d sti com#ete, but the% wou d com#ete to e?ce in id eness, stu#idit%, and im#ro"idence. 10.8E Fina %, this doctrine that we ha"e .ust e aborated, so sim# e, and %et, as we be ie"e, so true, i!ts the 'reat #rinci# e o! human #er!ectibi it% out o! the rea m o! mere orator% and estab ishes it as a demonstrab e !act. From this inner dri"e, which ne"er rests within man;s heart and a wa%s #rom#ts him to im#ro"e his ot, is born #ro'ress in the arts, which is nothin' more nor ess than the co-o#eration o! !orces that are b% their "er% nature incom#atib e with an% remuneration. From com#etition comes the #rocess that trans!ers into the communa rea m ad"anta'es ori'ina % he d b% certain indi"idua s on %. &he amount o! e!!ort once reCuired !or a 'i"en resu t 'rows constant % ess, to the bene!it o! the entire human race, which thus !inds that its circ e o! satis!actions and eisure 'rows ar'er !rom 'eneration to 'eneration, and that its #h%sica , inte ectua , and mora e"e rises. B% "irtue o! this arran'ement, so deser"in' o! our stud% and e"er astin' admiration, we c ear % discern man(ind mo"in' u#ward !rom the state to which it had !a en. 10.88 )et no one misconstrue m% words. 7 do not sa% that brotherhood, communit%, and #er!ectibi it% are contained in their entiret% in the idea o! com#etition. 7 do sa% that it is a ied and combined with these three 'reat socia do'mas, that it is #art o! them, that it re"ea s them, and that it is one o! the most #ower!u a'ents !or e!!ectin' their rea i1ation. 10.8F 7 ha"e set m%se ! the tas( o! describin' the 'enera and, conseCuent %, bene!icia e!!ects o! com#etition, !or it wou d be sacri e'e to assume that an% 'reat aw o! Bature cou d be #ermanent % harm!u in its e!!ect, but 7 am !ar !rom den%in' that its action ma% be accom#anied b% much hardshi# and su!!erin'. 7t e"en seems to me that the theor% that 7 ha"e .ust ad"anced e?# ains both this su!!erin' and the ine"itab e com# aints to which it 'i"es rise. 2ince the !unction o! com#etition is to e"e , it must necessari % wor( a'ainst an%one who raises his #roud head abo"e the e"e . >e understand how e"er% #roducer, in order to set the hi'hest #rice on his abor, tries to ho d on !or as on' as #ossib e to the e?c usi"e use o! a resource, a techniCue, or a too o! #roduction. Bow, since com#etition Cuite #ro#er % has as its mission and resu t the ta(in' awa% !rom the indi"idua o! this e?c usi"e en.o%ment and ma(in' it common #ro#ert%, it is ine"itab e that a men, in so !ar as the% are #roducers, shou d .oin in a chorus o! im#recations a'ainst com#etition. &he% can become reconci ed to it on % when the% ta(e into account their interests as

8E1 consumers< when the% oo( u#on themse "es, not as members o! a s#ecia 'rou# or cor#oration, but as men. 10.F0 /o itica econom%, it must be admitted, has not %et done enou'h to dis#e this disastrous !a ac%, which has been the source o! so man% hatreds, ca amities, resentments, and wars. 7nstead, it has e?#ended its e!!orts, with itt e scienti!ic .usti!ication, in ana %1in' the #henomena o! #roduction. E"en its termino o'%, con"enient as it is, is not in (ee#in' with its ob.ect o! stud%. 5A'ricu ture,5 5manu!acture,5 5commerce,5 ma(e e?ce ent c assi!ications, #erha#s, when the intention is to describe the techniCues !o owed in these arts< but this descri#tion, thou'h idea % suited !or techno o'%, hard % contributes to an understandin' o! socia econom%. 7 ma% add that it is #ositi"e % dan'erous. >hen we ha"e c assi!ied men as !armers, manu!acturers, and businessmen, what can we ta ( to them about e?ce#t their s#ecia c ass interests, which are made anta'onistic b% com#etition and are in con! ict with the 'enera we !areK A'ricu ture does not e?ist !or the sa(e o! the !armers, manu!acturin' !or the manu!acturers, or trade !or the businessmen, but in order that a men ma% ha"e at their dis#osa the 'reatest #ossib e number o! commodities o! a descri#tions. &he aws o! consum#tion, what is 'ood !or it and ma(es it eCuitab e and mora -these are the rea % im#ortant matters !rom the socia and humanitarian #oint o! "iew< these are the rea ob.ects o! the science o! #o itica econom%< these are the Cuestions on which the c ear i'ht o! its understandin' needs to be !ocused, !or therein ies the bond between c asses, nations, and races, the #rinci# e and the e?# anation o! the brotherhood o! man. 7t is, there!ore, with re'ret that we see economists e?#endin' their 'reat ta ents and a"ishin' their wisdom on the #rob em o! #roduction, whi e the% reser"e a itt e s#ace at the end o! their boo(s, in the su## ementar% cha#ters, !or a !ew brie! common# aces on the #henomena o! consum#tion. ,ecent % a .ust % ce ebrated #ro!essor was (nown to ha"e entire % su##ressed this as#ect o! our science, to ha"e concerned himse ! with the means to the e?c usion o! the ends, and to ha"e banished !rom his course a re!erence to the consum#tion o! wea th, on the 'round, he said, that this was a sub.ect that be on'ed to ethics and not to #o itica econom%J 3an we be sur#rised that the 'enera #ub ic is more concerned with the disad"anta'es o! com#etition than with its ad"anta'es, since the !ormer a!!ect the #ub ic !rom the #articu ar #oint o! "iew o! #roduction, which is a wa%s bein' ta (ed about, and the atter on % !rom the 'enera #oint o! "iew o! consum#tion, which is ne"er mentionedK 10.F1 As !or the rest-7 re#eat-7 do not den%, 7 reco'ni1e and de# ore as much as others, the su!!erin' that com#etition has in! icted on men< but is this a reason !or shuttin' our e%es to the 'ood that it accom# ishesK 7t is a the more reassurin' to #ercei"e this 'ood because 7 be ie"e that com#etition, i(e the other 'reat aws o! Bature, can ne"er be e iminated. 7! it cou d be destro%ed, it undoubted % wou d ha"e succumbed in the !ace o! the uni"ersa o##osition o! a men who e"er com#eted in the #roduction o! an% commodit% since the be'innin' o! the wor d, and #articu ar % under the im#act o! the mass u#risin' o! a the modern re!ormers. But i! the% ha"e been mad enou'h to tr% to destro% it, the% ha"e not been stron' enou'h to do so.


10.F8 And what e ement o! #ro'ress is there in the wor d whose bene!icia action has not been marred, #articu ar % at the be'innin', b% much su!!erin' and hardshi#K =ur 'reat urban masses o! human bein's stimu ate bo d ! i'hts o! thou'ht, but the% o!ten de#ri"e indi"idua s in their #ri"ate i!e o! the correcti"e o! #ub ic o#inion and ser"e to she ter debaucher% and crime. >ea th combined with eisure !a"ors the cu ti"ation o! the mind, but it a so nurtures ostentation and snobbishness amon' the 'reat and resentment and en"% amon' the ow %. /rintin' brin's en i'htenment and truth to a strata o! societ%, but it a so brin's na''in' doubt and sub"ersi"e error. /o itica ibert% has et oose enou'h tem#ests and re"o utions u#on the earth and has su!!icient % modi!ied the sim# e and nai"e customs o! #rimiti"e #eo# es to ma(e serious thin(ers wonder whether the% wou d not #re!er tranCui it% under the shadow o! des#otism. 3hristianit% itse ! has sown the 'reat seed o! o"e and charit% u#on 'round soa(ed in the b ood o! the mart%rs. 10.F9 >h% has it entered into the # ans o! in!inite 0oodness and Mustice that the ha##iness o! one re'ion or one a'e shou d be #urchased b% the su!!erin's o! another a'e or another re'ionK >hat is the di"ine #ur#ose hidden under this 'reat and irre!utab e aw o! so idarit%, o! which com#etition is mere % one o! the m%sterious as#ectsK Human wisdom does not (now the answer, but human wisdom does (now that 'ood is constant % s#readin' and e"i diminishin'. Be'innin' with the socia order as it had been made b% conCuest, where there were on % masters and s a"es, and where the ineCua it% within societ% was e?treme, the wor( o! com#etition in brin'in' e"er c oser to'ether men o! di!!erent ran(, !ortune, and inte i'ence cou d not be accom# ished without in! ictin' indi"idua hardshi#s that, as the wor( has #ro'ressed, ha"e continua % become ess, i(e the "ibrations o! a sound or the osci ations o! a #endu um. A'ainst the su!!erin's sti in store !or it, humanit% is dai % earnin' how to o##ose two #ower!u remedies, !oresi'ht, born o! e?#erience and en i'htenment, and socia co-o#eration, which is or'ani1ed !oresi'ht. 10.F$

3onc usion to the =ri'ina Edition 7n the !irst #art o! this wor(-a as, a too hasti % writtenJ-7 ha"e tried to !i? the reader;s attention on the ine o! demarcation, a wa%s shi!tin', but a wa%s distinct, that se#arates the two re'ions o! the economic wor d: Bature;s co aboration and man;s abor, the ibera it% o! 0od and the handiwor( o! man, what is 'ratuitous and what is onerous, what is #aid !or in e?chan'e and what is donated without char'e, tota uti it% and the #artia and su## ementar% uti it% that constitutes "a ue, abso ute wea th and re ati"e wea th, the contribution o! chemica or mechanica !orces brou'ht to the aid o! #roduction b% the

8E9 instruments that render them ser"iceab e and the .ust returns due the abor that has created these instruments, common wea th and #ri"ate #ro#ert%. 3.1 7t was not enou'h to #oint out these two orders o! #henomena, so !undamenta % di!!erent in nature< it was a so necessar% to describe their re ations, and, i! 7 ma% so e?#ress it, their harmonious e"o ution. 7 ha"e tried to e?# ain how it was the !unction o! #ri"ate #ro#ert% to sei1e ho d o! uti it% !or the human race, to trans!er it to the communa domain, and then to ! % awa% to new conCuests, so that each 'i"en e!!ort (and, conseCuent %, the sum tota o! a e!!orts) constant % renders a"ai ab e to man(ind an increasin' number o! satis!actions. /ro'ress consists in the !act that human ser"ices, when e?chan'ed, whi e (ee#in' their re ati"e "a ue, act as a "ehic e to con"e% a ar'er and ar'er #ro#ortion o! uti it% which is !ree o! char'e, and there!ore common to a . &hus, the #ossessors o! "a ue, o! an% (ind whatsoe"er, !ar !rom usur#in' and mono#o i1in' 0od;s 'i!ts, actua % mu ti# % them, but do not on that account ma(e them an% the ess 'ratuitous to a which was the intent o! /ro"idence. 3.8 7n #ro#ortion as satis!actions (!or which #ro'ress ma(es Bature !oot the bi ) !a , b% reason o! that "er% !act, within the communa domain, the% become eCua , since ineCua it% can be concei"ed on % in the rea m o! men;s ser"ices, which are com#ared, a##raised, and e"a uated !or e?chan'e. Hence, it !o ows that eCua it% is necessari % #ro'ressi"e. 7t is a so #ro'ressi"e in another res#ect, !or the ine"itab e resu t o! com#etition is to eCua i1e ser"ices themse "es and to ma(e their rewards corres#ond more and more c ose % with their true worth. 3.9 )et us now ' ance o"er the 'round remainin' !or us to co"er. 3.$ 7n the i'ht o! the theor% that we ha"e set !orth in this "o ume, we sti ha"e to e?amine more c ose % the !o owin' sub.ects: 3.5 +an;s re ations, both as #roducer and as consumer, with economic #henomena. 3.A &he aw o! rent on anded #ro#ert%. 3.E &he aw o! wa'es. 3.8 &he aw o! credit. 3.F

8E$ &he aw o! ta?ation, which, introducin' us to what is, strict % s#ea(in', the sub.ect o! 'o"ernment, wi ead us to the com#arison o! #ri"ate and "o untar% ser"ices with #ub ic and com#u sor% ser"ices. 3.10 &he aw o! #o#u ation. 3.11 >e sha then be in a #osition to so "e a number o! #ractica #rob ems that are sti sub.ects o! contro"ers%: !ree trade, automation, u?ur%, eisure, association, or'ani1ation o! abor, etc. 3.18 Antici#atin' our !indin's in this stud%, 7 do not hesitate to sa% that the% ma% be e?#ressed in the !o owin' terms: A stead% a##roach b% a men toward a continua % risin' standard o! i"in'-in other words: im#ro"ement and eCua i1ation-in a sin' e word: HA,+=BL. 3.19 2uch is the !ina resu t o! the #ro"identia # an, o! the 'reat aws o! Bature, when the% act without im#ediment, when we consider them in themse "es, a#art !rom the disturbance to which their action has been sub.ected b% error and "io ence. At the si'ht o! this harmon% the economist ma% we cr% out, as does the astronomer on beho din' the mo"ement o! the # anets, or the #h%sio o'ist when he contem# ates the structure o! our human or'ans: 4i'itus 4ei est hicJGF$ 3.1$ But man is a !ree a'ent, and conseCuent % !a ib e. He is sub.ect to i'norance and #assion. His wi , which can err, enters as an e ement into the wor(in's o! economic aws< he can misunderstand them, he can nu i!% them, he can di"ert them !rom their #ur#ose. Must as the #h%sio o'ist, a!ter admirin' the in!inite wisdom that has 'one into the creation and arran'ement o! each one o! our or'ans and "ita #arts, a so studies them in their abnorma state, when the% are sic( % and diseased< so we too sha ha"e to enter a new wor d, the wor d o! socia disturbances. 3.15 >e sha introduce this new stud% with a !ew obser"ations on man himse !. 7t wou d be im#ossib e !or us to e"a uate the i s o! societ%, their ori'in, their e!!ects, their !unction, the e"er narrowin' imits within which their own action com#resses them (a #henomenon that constitutes what 7 wou d a most dare to ca a harmonious discord), i! we did not e?amine the necessar% conseCuences o! !ree wi , the aberrations due to se !-interest, which a wa%s entai retribution, and the 'reat aws o! human res#onsibi it% and so idarit%. 3.1A

8E5 >e ha"e seen that a the socia harmonies are contained in 'erm in these two #rinci# es: /,=/E,&L and )7BE,&L. >e sha see that a the socia discords are mere % the e?tension o! these two contrar% #rinci# es: /)6B4E, and =//,E227=B. 3.1E And, indeed, the words 5#ro#ert%5 and 5 ibert%5 mere % e?#ress two as#ects o! the same !undamenta notion. From the economic #oint o! "iew, ibert% is connected with the act o! #roduction, #ro#ert% with the thin' #roduced. And, since "a ue has its ori'in in human acti"it%, we can sa% that ibert% im# ies and inc udes #ro#ert%. &he same ho ds true o! o##resson as re ated to # under. 3.18 )ibert%J &herein, in the ast ana %sis, ies the source o! harmon%. =##ressionJ &herein ies the source o! discord. &he stru'' e between these two !orces !i s the anna s o! histor%. 3.1F And since o##ression has as its aim the un.ust sei1ure o! #ro#ert%, since it is trans!ormed into and mer'es its identit% with # under, it is # under that 7 sha show in action. 3.80 +an comes into this wor d bound to the %o(e o! want, which is #ain. 3.81 He can esca#e on % b% sub.ectin' himse ! to the %o(e o! toi , which is a so #ain. 3.88 He has, then, on % a choice between two (inds o! #ain, and he hates #ain. 3.89 For this reason he oo(s about him, and i! he sees that his !e ow man has accumu ated wea th, he concei"es the idea o! ma(in' it his own. Hence, #ro#ert% un.ust % acCuired, or # underJ 3.8$ / underJ Here is a new e ement in the econom% o! societ%. 3.85 From the da% when # under !irst a##eared on earth, unti that da%, i! it e"er comes, when # under wi ha"e com# ete % disa##eared, this e ement has had and wi ha"e a #ro!ound e!!ect on the entire socia mechanism< it wi disturb, to the #oint o! ma(in' them unreco'ni1ab e, the o#eration o! the harmonious aws that we ha"e wor(ed to disco"er and describe. 3.8A =ur tas(, then, wi not be done unti we ha"e 'i"en a com# ete account o! # under.

8EA 3.8E /erha#s it wi be thou'ht that it is on % an accidenta , abnorma #henomenon, a sore that wi soon hea , unworth% o! scienti!ic in"esti'ation. 3.88 But et us beware. / under occu#ies, in the traditions o! !ami ies, in the histor% o! nations, in the occu#ations o! indi"idua s, in the #h%sica and inte ectua ener'ies o! a c asses, in the arran'ements o! societ%, in the #recautions o! 'o"ernments, a most as im#ortant a # ace as #ro#ert% itse !. 3.8F Bo, # under is not a #assin' scour'e, accidenta % a!!ectin' the socia mechanism, and the science o! economics ma% not e?c ude it !rom consideration. 3.90 7n the be'innin' this sentence was #ronounced on man: 7n the sweat o! th% !ace sha t thou eat bread. Hence, it a##ears that e!!ort and satis!action are indisso ub % .oined, and that the one can ne"er e?ist un ess #aid !or b% the other. Let e"er%where we see man re"o tin' a'ainst this aw, and sa%in' to his brother: Lours be the toi < mine, the !ruit o! that toi . 3.91 Enter the hut o! the sa"a'e hunter or the tent o! the nomadic she#herd. >hat si'ht meets %our e%esK &he wi!e, thin, dis!i'ured, terri!ied, !aded be!ore her time, bears a the burden o! the househo d chores, whi e the husband o s in id eness. >hat idea can we !orm here o! !ami % harmon%K 7t has disa##eared, because !orce has aid u#on the de!ence ess the burden o! toi . And how man% centuries o! ci"i i1ation wi it ta(e be!ore woman wi be raised !rom this !ri'ht!u de'radationK 3.98 / under, in its most bruta !orm, brandishin' torch and sword, !i s the anna s o! histor%. >hat are the names that ma(e u# histor%K 3%rus, 2esostris,GF5 A e?ander, 2ci#io, 3aesar, Atti a, &amer ane, +ohammed, /i1arro, >i iam the 3onCueror-outri'ht # under b% means o! conCuest. &o it 'o the aure wreaths, the monuments, the statues, the trium#ha arches, the son's o! the #oets, the head% admiration o! womenJ 3.99 2oon the conCueror thin(s o! a better wa% o! dea in' with the conCuered than to (i them, and s a"er% co"ers the earth. A most down to our own da%, a o"er the wor d, it was the acce#ted wa% o! i!e, ea"in' in its wa(e hatred, resistance, ci"i stri!e, and re"o ution. And what is s a"er% e?ce#t or'ani1ed o##ression with # under as its ob.ectK 3.9$ 7! # under arms the stron' a'ainst the wea(, it no ess ets oose the inte i'ent u#on the credu ous. >hat industrious #eo# es are there on earth who ha"e esca#ed e?# oitation at the hand o! sacerdota theocracies, E'%#tian #riests, 0ree( orac es, ,oman au'urs, 0a ic druids, brahmins, mu!tis, u emas,GFA bon1es, mon(s, ministers, mounteban(s, sorcerers,

8EE soothsa%ers, # underers o! a 'arbs and denominationsK 7t is the 'enius o! # underers o! this i ( to # ace their !u crum in hea"en and to ' or% in a sacri e'ious com# icit% with 0odJ &he% #ut in chains, not men;s bodies a one, but their minds as we . &he% #ut the brand o! ser"itude as much u#on the conscience o! a 2eidGFE as u#on the brow o! a 2#artacus, thus achie"in' what wou d seem to be im#ossib e: the ens a"ement o! the mind. 3.95 Ens a"ement o! the mindJ >hat a !ri'ht!u association o! wordsJ = ibert%J >e ha"e seen thee hunted !rom countr% to countr%, crushed b% conCuest, ni'h unto death in ser"itude, .eered at in the courts o! the mi'ht%, dri"en !rom the schoo s, moc(ed in the drawin' room, misinter#reted in the studio, anathemati1ed in the tem# e. 7t wou d seem that in thou'ht thou shou dst !ind an in"io ab e re!u'e. But i! thou shou dst surrender in this ast ha"en, what becomes o! the ho#e o! the a'es and o! the di'nit% o! manK 3.9A Let in the on' run (so man;s !orward- oo(in' nature wi s it) # under 'enerates, in the "er% # aces where it ho ds swa%, o##osition that #ara %1es its #ower, and (now ed'e that unmas(s its im#ostures. 7t does not %ie d on that account, howe"er< it mere % becomes more cunnin', and wra##in' itse ! in !orms o! 'o"ernment and a i'nments, # a%in' one !action a'ainst another, turns to #o itica schemin', so on' a !erti e source o! i icit #ower. &hen we see # under usur#in' the citi1ens; ibert% in order the more readi % to e?# oit their wea th, and drainin' o!! their substance the better to conCuer their ibert%. /ri"ate enter#rise becomes #ub ic enter#rise. E"er%thin' is done b% 'o"ernment !unctionaries< a stu#id and "e?atious bureaucrac% swarms o"er the and. &he #ub ic treasur% becomes a "ast reser"oir into which those who wor( #our their earnin's, so that the henchmen o! the 'o"ernment ma% ta# them as the% wi . &ransactions are no on'er re'u ated b% !ree bar'ainin', and nothin' can estab ish or #reser"e the #rinci# e o! ser"ice !or ser"ice. 3.9E 7n this state o! thin's the true notion o! #ro#ert% is e!!aced, and e"er% man a##ea s to the aw to 'i"e his ser"ices an arti!icia and arbitrar% "a ue. 3.98 &hus, we enter the era o! #ri"i e'e. / under, becomin' more and more subt e, estab ishes itse ! in mono#o ies and hides behind restrictions< it di"erts the natura course o! e?chan'e and !orces ca#ita , and a!ter it, abor and the who e #o#u ation, into arti!icia channe s. 7t #roduces aborious % in the north what cou d be #roduced easi % in the south< it creates #recarious industries and i"e ihoods< it substitutes !or the 'ratuitous !orces o! Bature the onerous drud'er% o! human abor< it su##orts business concerns that cannot sur"i"e a'ainst com#etition, and then in"o(es the use o! !orce a'ainst their com#etitors< it arouses internationa .ea ousies, encoura'es nationa istic sentiments, and in"ents in'enious theories that ma(e a ies o! its own du#es< it a wa%s has im#endin' industria #anics and ban(ru#tcies< it undermines in the minds o! the citi1ens a con!idence in the !uture, a !aith in ibert%, and e"en their sense o! .ustice. And then, when science e?#oses

8E8 these misdeeds, / under stirs u# e"en its "ictims a'ainst science, with the batt e cr%: =nward to uto#iaJ 7ndeed, it re#udiates not on % the science that stands in its wa%, but e"en the idea that science can be a## ied to these areas, dec arin' with crownin' c%nicism: &here are no abso ute #rinci# esJ 3.9F Be"erthe ess, s#urred on b% their su!!erin', the wor(in'-c ass masses re"o t and to## e o"er e"er%thin' abo"e them. 0o"ernment, ta?ation, e'is ation, e"er%thin' is at their merc%, and %ou be ie"e #erha#s that / under;s rei'n is at an end< %ou be ie"e that the #rinci# e o! ser"ice !or ser"ice wi be estab ished on the on % !oundation #ossib e or ima'inab e, that o! ibert%. 6ndecei"e %ourse !. A asJ &his #ernicious idea has in!i trated the masses: #ro#ert% has no ori'in, sanction, e'itimac%, or .usti!ication other than the aw, and thereu#on the masses institute e'is ation to # under one another. 2u!!erin' !rom the wounds in! icted u#on them, the% underta(e to hea e"er%one o! their number b% 'i"in' to each the ri'ht to o##ress his nei'hbor. &his is ca ed so idarit%, brotherhood: 5Lou ha"e #roduced< 7 ha"e not< we are comrades< et us share.5 5Lou own somethin'< 7 own nothin'< we are brothers< et us share.5 3.$0 >e must there!ore e?amine the abuses #er#etrated in recent %ears in the name o! 5association,5 5or'ani1ation o! abor,5 5interest-!ree credit,5 etc. >e sha ha"e to sub.ect them to this acid test: Are the% in harmon% with the #rinci# e o! ibert% or o! o##ressionK 7n other words: Are the% in con!ormit% with the 'reat economic aws, or do the% constitute a disturbance o! their o#erationKGF8 3.$1 / under is too uni"ersa , too #ersistent, to be considered a #ure % accidenta #henomenon. 7n this case, as in so man% others, it is im#ossib e to se#arate the stud% o! natura aws !rom the stud% o! the thin's that disturb their o#eration. 3.$8 But, it wi be said, i! # under necessari % enters into the wor(in's o! the socia mechanism as a discord, how do %ou dare a!!irm the harmon% o! economic awsK 3.$9 7 sha re#eat here what 7 ha"e said e sewhere: 7n e"er%thin' that concerns man, a bein' who is #er!ectib e on % because he is im#er!ect, harmon% does not consist in the com# ete absence o! e"i , but in its 'radua reduction. &he socia bod%, i(e the #h%sica bod%, is #ossessed o! a curati"e !orce, "is medicatri?, whose aws and un!ai in' #ower cannot be studied without a'ain e icitin' the words: 4i'itus 4ei est hic.GG$8 3.$$

8EF 3ha#ter 11 /roducer and 3onsumer 7! the standard o! i"in' o! the human race is not constant % on the rise, man is not #er!ectib e. 11.1 7! the tendenc% o! societ% is not continua % to raise a men to this e"er u#ward-mo"in' standard o! i"in', economic aws are not harmonious. 11.8 Bow, how can the standard o! i"in' rise un ess a 'i"en amount o! abor %ie ds increasin' satis!actions, a #henomenon that can be e?# ained on % b% the trans!ormin' o! onerous uti it% into 'ratuitous uti it%K 11.9 And, on the other hand, how can this uti it%, when it has become 'ratuitous, raise a men to a common standard un ess it at the same time becomes common wea thK 11.$ &his, then is the essentia aw o! socia harmon%. 11.5 7 "er% much wish that the an'ua'e o! economics cou d su## % me with two words to indicate ser"ices rendered and recei"ed other than the words 5#roduction5 and 5consum#tion,5 which connote too much an e?chan'e o! materia s. =b"ious %, there are ser"ices, i(e those o! the #riest, the teacher, the so dier, the artist, which #romote mora it%, education, securit%, the en.o%ment o! the beauti!u , and %et ha"e nothin' in common with industr%, in the strict sense o! the word, e?ce#t in so !ar as their u timate aim is satis!action. 11.A &he words are in acce#ted usa'e, and 7 ha"e no desire to indu 'e in neo o'isms. But at east et it be understood that b% 5#roduction5 7 mean that which im#arts uti it%, and b% 5consum#tion,5 7 mean the en.o%ments that uti it% im#arts. 11.E )et the #rotectionist schoo -which is rea % a "ariet% o! communism-be ie"e me when 7 sa% that in usin' the words 5#roducer5 and 5consumer,5 7 am not so i o'ica as to ima'ine, as 7 ha"e been accused o! doin', that the human race is di"ided into two distinct c asses, the one concerned on % with #roducin' and the other on % with consumin'. Must as the bio o'ist ma% di"ide the human race into whites and b ac(s, men and women, so the economist ma% di"ide it into #roducers and consumers, because, as our esteemed !riends the #rotectionists obser"e with 'reat #enetration, #roducer and consumer are one and the same #erson.


11.8 But #recise % because the% are one and same #erson, e"er% man must be considered b% the science o! #o itica econom% in this doub e ca#acit%. 7t is not a matter o! di"idin' the human race into two #arts, but o! stud%in' two "er% di!!erent as#ects o! man. 7! the #rotectionists were to !orbid 'rammar to use thee and me on the 'round that each one o! us is in turn the one s#ea(in' and the one s#o(en to, we cou d remind them that, whi e it is #er!ect % true that we cannot #ut a the ton'ues on one side and a the ears on the other sim# % because we a ha"e ears and a ton'ue, %et it does not !o ow that, as each #hrase o! a con"ersation is uttered, the ton'ue does not be on' to one man and the ears to the other. 2imi ar %, as each ser"ice is #er!ormed, the one renderin' it is #er!ect % distinct !rom the one recei"in' it. /roducer and consumer con!ront each other !rom o##osite sides, so o##osed, indeed, that the% are constant % in dis#ute. 11.F &he same #eo# e who are unwi in' !or us to stud% man;s se !-interest !rom the doub e #oint o! "iew o! consumer and #roducer ha"e no Cua ms about ma(in' this distinction when the% s#ea( to the e'is ati"e assemb %. &hen we see them demandin' mono#o % or !ree trade, de#endin' on whether the% are se in' or bu%in' the commodit% in Cuestion. 11.10 >ithout, there!ore, #a%in' heed to the # eas o! the #rotectionists that the case be thrown out o! court, et us reco'ni1e that in the socia order the di"ision o! abor has created !or e"er% #erson two ro es so distinct !rom each other that their inter# a% merits our care!u stud%. 11.11 7n 'enera , we de"ote ourse "es to a trade, a #ro!ession, or career !rom which we do not e?#ect to recei"e our satis!actions direct %. >e render and we recei"e ser"ices< we o!!er and we demand "a ue< we ma(e #urchases and sa es< we wor( !or others, and others wor( !or us< in a word, we are #roducers and consumers. 11.18 >hen we 'o to the mar(et # ace, we ha"e di!!erent, e"en o##osite, #oints o! "iew, de#endin' on whether we 'o as consumers or #roducers. 7n the case o! wheat, !or e?am# e, the same man does not desire the same thin' when he 'oes as a bu%er as when he 'oes as a se er. As a bu%er he ho#es !or abundance< as a se er, !or scarcit%. &hese ho#es stem !rom the same source, se !-interest< but as bu%in' or se in', 'i"in' or recei"in', su## %in' or demandin', are com# ete % o##osite actions, the% cannot !ai , thou'h the% ha"e the same moti"ation, to 'i"e rise to con! ictin' desires. 11.19 4esires that c ash cannot both simu taneous % coincide with the 'enera we !are. 7n another wor(GG$9 7 ha"e tried to show that men;s desires as consumers are the ones that are in harmon% with the #ub ic interest, and it cannot be otherwise. 2ince satis!action is the end and #ur#ose o! abor, since the amount o! abor de#ends so e % u#on the obstac es

881 it encounters, it is c ear that abor is the e"i , and that e"er%thin' shou d be done to essen it, whi e satis!action is the boon, and that e"er%thin' shou d be done to increase it. 11.1$ Here we encounter the 'reat, eterna , and de# orab e !a ac% that arises !rom the !a se de!inition o! "a ue and its con!usion with uti it%. 11.15 2ince "a ue is mere % the e?#ression o! a re ation, the 'reater its im#ortance !or the indi"idua , the ess is its im#ortance !or a men co ecti"e %. 11.1A For a men co ecti"e % on % uti it% matters< and "a ue in no wise ser"es as its measure. 11.1E For the indi"idua a so, on % uti it% matters. But "a ue is its measure< since !or each determinate "a ue he contributes, he can obtain !rom societ% an eCui"a ent measure o! the uti it% o! his choice. 11.18 7! we consider man in iso ation, it becomes as c ear as da% that consum#tion is the essentia thin', and not #roduction< consum#tion Cuite c ear % im# ies abor, but abor does not im# % consum#tion. 11.1F &he di"ision o! abor ed certain economists to measure the 'enera we !are, not in terms o! consum#tion, but in terms o! abor. And b% !o owin' their e?am# e, we ha"e come to this stran'e re"ersa o! #rinci# es, that we !a"or abor at the e?#ense o! its resu ts. 11.80 &his is the reasonin' that has been !o owed: 11.81 &he more obstac es that are o"ercome, the more "a ue !or us. Hence, et us mu ti# % the obstac es that are in our wa%. 11.88 &he ! aw in this reasonin' is "er% ob"ious. 11.89 Les, undoubted %, 'ranted a 'i"en number o! obstac es, it is a 'ood thin' !or a 'i"en Cuantit% o! abor to be ab e to surmount as man% o! them as #ossib e. But it is sim# % monstrous to decrease the e!!ecti"eness o! abor or to increase the di!!icu ties in its wa% in order to obtain more "a ue. 11.8$

888 &he indi"idua member o! societ% wants to see his ser"ices, e"en thou'h retainin' the same de'ree o! uti it%, increase in "a ue. 7! his wishes are 'ranted, it is eas% to see what wi ha##en. He wi en.o% a better i"in', but his !e ows wi ha"e ess, since the tota uti it% has not been increased. 11.85 >e cannot, there!ore, #ass !rom the #articu ar case to the 'enera ru e and sa%: )et us ta(e such measures as wi satis!% the desire o! e"er% indi"idua !or an increase in the "a ue o! his ser"ices. 11.8A 2ince "a ue is #ure % re ati"e, we shou d ha"e accom# ished nothin' i! the increase remained in e"er% instance in #ro#ortion to #re"ious "a ue< i! it were set arbitrari % and uneCua % !or di!!erent ser"ices, we shou d do nothin' but introduce in.ustice into our distribution o! uti ities. 11.8E 7t is characteristic o! e"er% commercia transaction to 'i"e rise to ar'ument and discussion. 0ood hea"ensJ >hat ha"e 7 .ust saidK Ha"e 7 not ca ed down on m% head the wrath o! a the sentimenta ist schoo s, which are so numerous these da%sK Ar'ument im# ies anta'onism, the% wi sa% to me. Lou there!ore admit that anta'onism is the natura state o! societ%. 11.88 =nce a'ain 7 must sto# to enter the ists a'ainst them. 7n our countr% the science o! economics is so #oor % understood that it is im#ossib e to sa% a word without raisin' u# an o##onent. 11.8F 7 ha"e been re#roached, with reason, !or ha"in' written this sentence: 5Between bu%er and se er there e?ists a !undamenta anta'onism.5 &he word 5anta'onism,5 es#ecia % rein!orced b% the word 5!undamenta ,5 'oes !ar be%ond m% intention. 7t a##ears to indicate a #ermanent hosti it% o! interests, and conseCuent % an ineradicab e socia discord, whereas 7 was mere % re!errin' to that short- i"ed ar'ument, or discussion, which ta(es # ace be!ore an% bar'ain is made, and which is inherent in the "er% idea o! a transaction. 11.90 As on' as there remains, to the 'reat cha'rin o! the sentimenta uto#ian, the east "esti'e o! ibert% in this wor d, the se er and the bu%er wi ar'ue !or their interests, wi ha'' e o"er their #rices, wi bar'ain, as the sa%in' 'oes, and the aws 'o"ernin' the socia order wi not become the ess harmonious on that account. 3an we ima'ine that the one su## %in' a ser"ice and the one demandin' it can come to'ether without ha"in' momentari % di"er'ent "iews on its "a ueK And do we thin( that this is an% wor dsha(in' ca amit%K Either we must banish e"er% transaction, e"er% e?chan'e, e"er% act o! barter, e"er% "esti'e o! ibert%, !rom this earth, or we must reco'ni1e the ri'ht o! each

889 one o! the contractin' #arties to de!end his #osition, to ma(e the most o! his side o! the ar'ument. 7ndeed, this !ree debate, so o!ten de# ored, is in !act the means o! estab ishin' an eCui"a ence o! ser"ices and eCuit% in transactions. How e se wi the socia # anners arri"e at that eCuit% that the% desire so muchK >i the% shac( e with their aws the !reedom o! one o! the contractin' #artiesK 7n that case he wi be at the merc% o! the other. >i the% stri# both #arties o! the #ower to determine their own interests on the #rete?t that hence!orth the% must se and bu% on the #rinci# e o! brother % o"eK But in that case 7 must sa% that what the socia ists are #ro#osin' is nonsense, !or in some wa% or other the res#ecti"e interests o! the #arties to the transaction ha"e to be determined. >i the bar'ainin' ta(e # ace in re"erse, with the bu%er #resentin' the se er;s case, and "ice "ersaK 2uch transactions wou d be hi'h % entertainin', we must admit. 11.91 52ir, #a% me on % ten !rancs !or this #iece o! c oth.5 11.98 5>hat do %ou meanK 7 want to 'i"e %ou twent% !rancs.5 11.99 5But, sir, it;s worth ess< it;s out o! st% e< in two wee(s it wi be worn out,5 sa%s the merchant. 11.9$ 57t;s o! the best Cua it% and wi ast two winters,5 re# ies the customer.

11.95 5@er% we , sir, .ust to ma(e %ou ha##%, 7; add !i"e !rancs to the #rice< that;s the most brother % o"e wi et me do !or %ou.5 11.9A 57t 'oes a'ainst m% socia ist #rinci# es to #a% ess than twent% !rancs< but we a ha"e to ma(e sacri!ices, and 7 acce#t.5 11.9E &hus, the weird transaction wi come out in e?act % the ordinar% wa%, and the socia # anners wi obser"e with re'ret that accursed ibert% sti sur"i"in', a thou'h mo"in' in the wron' direction and creatin' anta'onisms in re"erse. 11.98 5&his is not what we want,5 sa% the socia # anners< 5this wou d be indi"idua istic !reedom.5 11.9F 5>hat do %ou want, thenK For ser"ices sti ha"e to be e?chan'ed and their conditions determined.5

88$ 11.$0 5>e #ro#ose that their contro be entrusted to us.5 11.$1 57 thou'ht so.5 11.$8 BrotherhoodJ 2acred tie that .oins sou to sou , di"ine s#ar( come down !rom hea"en into the hearts o! men, how can th% name be thus ta(en in "ainK 7n th% name it is #ro#osed to sti! e a !reedom. 7n th% name it is #ro#osed to erect a new des#otism such as the wor d has ne"er seen< and we ma% we !ear that a!ter ser"in' as a #rotection !or so man% incom#etents, as a c oa( !or so man% ambitious schemers, as a baub e !or so man% who hau'hti % scorn human di'nit%, it wi at ast, discredited and with su ied name, ose its 'reat and nob e meanin'. 11.$9 )et us, there!ore, not ha"e the #resum#tion to o"erthrow e"er%thin', to re'u ate e"er%thin', to see( to e?em#t a , men and thin's a i(e, !rom the o#eration o! the aws to which the% are natura % sub.ect. )et us be content to ea"e the wor d as 0od made it. )et us not ima'ine that we, #oor scribb ers, are an%thin' but more or ess accurate obser"ers. )et us not ma(e ourse "es ridicu ous b% #ro#osin' to chan'e humanit%, as i! we stood a#art !rom it and !rom its errors and shortcomin's. )et us #ermit #roducer and consumer to ha"e their res#ecti"e interests, to discuss, debate, and sett e their di!!erences throu'h !air and #eace!u arran'ements. )et us imit ourse "es to obser"in' their re ations and the ensuin' resu ts. &his is what 7 #ro#ose to do, and a wa%s in (ee#in' with what 7 #roc aim is the 'reat aw o! human societ%: the 'radua eCua i1ation o! indi"idua s and c asses concomitant with 'enera #ro'ress. 11.$$ A ine no more resemb es a !orce or a "e ocit% than it does a "a ue or a uti it%. Be"erthe ess, the mathematician !inds ines and dia'rams he #!u . >h% shou d not the economist a soK 11.$5 &here are "a ues that are eCua to each other< there are "a ues that ha"e (nown ratios to each other o! a ha !, a !ourth, doub e, tri# e. &here is no reason !or not re#resentin' these di!!erences b% ines o! "ar%in' en'ths. 11.$A 2uch is not the case with uti it%. 6ti it%, in 'enera , as we ha"e seen, can be bro(en down into 'ratuitous uti it% and onerous uti it%-into uti it% due to the action o! Bature, and uti it% created b% human abor. &he atter, since it can be assi'ned "a ue and be measured, ma% be re#resented b% a ine o! !i?ed en'th< the !ormer cannot be measured or assi'ned an% "a ue. 7t is certain that Bature contributes much toward the #roduction o! a hundredwei'ht o! wheat, a cas( o! wine, a side o! bee!, a #ound o! woo , a ton o! coa , a cord o! wood. But we ha"e no wa% o! measurin' Bature;s aid contributed b% a 'reat mu titude o!

885 !orces, most o! which are un(nown and ha"e been in o#eration since 3reation. Bor is there an%thin' to be 'ained !rom so doin'. 0ratuitous uti it%, then, must be re#resented b% a dotted ine o! indeterminate en'th. 11.$E &wo #roducts, then, the one worth twice the other, ma% be re#resented b% these ines:

7B, 74, re#resent the tota #roduct, 'enera uti it%, the thin' that satis!ies the want, abso ute wea th. 7A, 73, re#resent the co-o#eration o! Bature, 'ratuitous uti it%, the #art that is common wea th. AB, 34, re#resent the human ser"ice, onerous uti it%, "a ue, re ati"e wea th, the #art that is #ri"ate #ro#ert%. 11.$8 7 do not need to sa% that AB, in whose # ace %ou ma% #ut, in %our ima'ination, whate"er %ou wish-a house, a #iece o! !urniture, a boo(, an aria sun' b% Menn% )ind, a horse, a #iece o! c oth, a doctor;s a##ointment, etc.-can be e?chan'ed !or twice 34, and that the two #arties to the transaction wi 'i"e each other, into the bar'ain, and without e"en rea i1in' that the% are doin' so, the one, 7A, the other, twice 73. 11.$F +an is so constituted that his constant concern is to essen the ratio o! e!!ort to resu t, to substitute the action o! Bature !or his own action-in a word, to do more with ess. His s(i , his inte i'ence, his industr% are a wa%s directed toward this end. 11.50 )et us su##ose, then, that Mohn, the #roducer o! 7B, disco"ers a #rocess whereb% he can com# ete his tas( with ha ! the abor it #re"ious % too(, e"er%thin' inc uded, e"en the cost o! ma(in' the im# ement used to harness the !orces o! Bature. 11.51 As on' as he (ee#s his secret, there wi be no chan'e in the !i'ures 'i"en abo"e. AB and 34 wi re#resent the same "a ues, the same ratios< !or since Mohn is the on % one in the wor d who (nows the !ormu a, he wi turn it to his own e?c usi"e ad"anta'e. Either he wi rest ha ! the da%, or e se he wi ma(e two 7B;s rather than one #er da%< his abor wi be better #aid. &he conCuest o"er Bature wi be to the bene!it o! man(ind, but man(ind as re#resented, in this case, b% one man. 11.58 &he reader shou d note, in #assin', how treacherous is the a?iom o! the En' ish economists: @a ue comes !rom abor, i! its intent is to assume that "a ue and abor are

88A #ro#ortiona . 7n our i ustration we ha"e a case in which abor has been reduced b% ha !, and %et there is no chan'e in "a ue, and this ha##ens e"er% minute o! the da%. >h%K Because the ser"ice is the same. &he #erson !urnishin' 7B #er!orms the same ser"ice be!ore as a!ter the in"ention. &his wi no on'er be the case when /eter, the #roducer o! 74, can sa% to Mohn: 5Lou as( me !or two hours o! m% abor in e?chan'e !or one o! %ours< but 7 am !ami iar with %our #rocess, and i! %ou # ace such a hi'h #rice on %our ser"ice, 7 sha do it !or m%se !.5 11.59 Bow this da% comes ine"itab %. >hen a new #rocess is in"ented, it does not remain a secret !or on'. &hen the "a ue o! #roduct 7B wi !a b% one-ha !, and we sha ha"e these two !i'ures:

11.5$ AA; re#resents "a ue e iminated, re ati"e wea th that has disa##eared, #ri"ate #ro#ert% made #ub ic, uti it% #re"ious % onerous, now 'ratuitous. 11.55 &his has ta(en # ace because Mohn, used here as the s%mbo o! the #roducer, is #ut bac( in his ori'ina #osition. He now can ma(e 7B twice !or the amount o! e!!ort that it used to ta(e him to ma(e it once. 7n order to ha"e two 74;s, he must 'i"e two 7B;s, whether 7B re#resents !urniture, boo(s, houses, or an%thin' e se. 11.5A >ho 'ains b% a thisK 7t is ob"ious % /eter, the #roducer o! 74, used here as the s%mbo o! a consumers, inc udin' Mohn himse !. 7!, in !act, Mohn wishes to use his own #roduct, he wi sa"e himse ! the time re#resented b% the e imination o! AA;. As !or /eter, that is, a the consumers on earth, the% can now #urchase 7B !or ha ! the time, e!!ort, abor, "a ue, reCuired be!ore the natura resource was introduced. Hence, this resource is !ree o! char'e and, besides, common to a . 11.5E 2ince 7 ha"e "entured to use 'eometric !i'ures, et me em# o% them once a'ain in the ho#e that this method, admitted % a itt e irre'u ar in economics, wi aid the reader in understandin' the #henomenon to be described. 11.58 E"er% man, as #roducer or as consumer, is a center !rom which radiate the ser"ices he renders and to which are directed the ser"ices he recei"es in e?chan'e. 11.5F )et us then # ace at A (Fi'. 1) a #roducer, !or e?am# e, a co#%ist, as the s%mbo o! a #roducers or o! #roduction in 'enera . He #resents societ% with !our manuscri#ts. 7!, at

88E the moment at which we are ma(in' our obser"ation, the "a ue o! each o! the manuscri#ts is !i!teen, he is #er!ormin' ser"ices eCua to si?t%, and he recei"es an eCua sum o! "a ue, "arious % distributed o"er man% ser"ices. For the sa(e o! sim# i!ication 7 show on % the !our #oints B34E a on' the circum!erence.

11.A0 Bow su##ose this co#%ist disco"ers the art o! #rintin'. He therea!ter does in !ort% hours what used to ta(e him si?t%. )et us assume that com#etition has !orced him to reduce the #rice o! his boo(s in the same ratio< the% are now worth on % ten, instead o! !i!teen. But it a so ha##ens that our wor(er can #roduce, not !our, but si? boo(s. =n the other hand, the amount recei"ed as #a%ment, startin' !rom the circum!erence, which was si?t%, has not chan'ed. &here is, there!ore, as much remuneration !or si? boo(s, worth ten each, as there was #re"ious % !or !our when each manuscri#t was worth !i!teen. 11.A1 &his, 7 ma% brie! % remar(, is what is a wa%s ost si'ht o! in discussions concernin' the Cuestion o! machiner%, !ree trade, and #ro'ress in 'enera . >e obser"e that abor is aid o!! b% more e!!icient techniCues, and we become a armed. >e !ai to note that a corres#ondin' #ro#ortion o! the cost is i(ewise # aced at our dis#osa at the same time. 11.A8 &he new transactions, then, are re#resented b% Fi'. 8, where we see radiatin' !rom center A a tota "a ue o! si?t%, s#read o"er si? boo(s instead o! !our manuscri#ts. &he ines e?tendin' inward !rom the circum!erence continue to re#resent a tota "a ue o! si?t%, which is necessar% now, as !ormer %, to ba ance the ser"ices rendered. 11.A9 >ho, then, has 'ained b% the chan'eK From the #oint o! "iew o! "a ue, nobod%. From the #oint o! "iew o! rea wea th, actua satis!actions, the count ess number o! consumers ocated on the circum!erence. Each one o! them can now #urchase a boo( !or a third ess abor. But the consumers are a man(ind. For notice that A himse !, i! he 'ains nothin' as #roducer, i! he is sti ob i'ed, as !ormer %, to #ut in si?t% hours o! wor( to recei"e the o d #a%, ne"erthe ess 'ains, as a user o! boo(s, that is, on the same basis as other men. )i(e a o! them, i! he desires to read, he obtains this satis!action at a sa"in' o! one-third o! his abor. 11.A$ >hat i!, in his ca#acit% as #roducer, he sees the #ro!it !rom his own disco"er% e"entua % s i# throu'h his hands because o! com#etitionK >here in that case, is there com#ensation !or himK 11.A5

888 First, it consists in the !act that, as on' as he was ab e to (ee# his secret, he continued to se !or !i!teen what cost him on % ten. 11.AA 2econd, his com#ensation consists in the !act that he obtains boo(s !or his own use at ess cost and thus shares in the ad"anta'es he has contributed to societ%. 11.AE But third, his 'reatest com#ensation consists in this !act: e"en as he was !orced to bene!it man(ind b% his #ro'ress, so he bene!its !rom the #ro'ress o! man(ind. 11.A8 Must as the #ro'ress made b% A was o! #ro!it to B, 3, 4, E, so the #ro'ress rea i1ed b% B, 3, 4, E, wi be to the #ro!it o! A. A !inds himse ! a ternate % at the center and at the circum!erence o! wor d-wide industr%, !or he is a ternate % #roducer and consumer. 7! B, !or e?am# e, is a cotton s#inner who substitutes the bobbin !or the s#ind e, the #ro!it wi 'o to A as we as to 3 and 4. 7! 3 is a sai or who re# aces the oar with the sai , the sa"in' wi #ro!it B, A, E. 11.AF 7n the !ina ana %sis, the who e s%stem rests on this aw:

11.E0 /ro'ress is o! bene!it to the #roducer, as such, on % on' enou'h to reward him !or his s(i . 7t soon brin's about a !a in "a ue, which 'i"es the ear % imitators a !air, thou'h sma er, recom#ense. Fina %, the "a ue e"e s o!! in #ro#ortion to the reduction in abor, and the entire sa"in' accrues to man(ind. 11.E1 &hus, a #ro!it !rom the #ro'ress o! each, and each #ro!its !rom the #ro'ress o! a . &he one !or a , and a !or one motto ad"anced b% the socia ists and #roc aimed to the wor d as somethin' new to be !ound in buddin' !orm in their socia orders based on o##ression and coercion has actua % been #ro"ided b% 0od Himse !< and He deri"ed it !rom ibert%. 11.E8 0od, 7 sa%, #ro"ided it< and He did not estab ish His aw in a mode communit% under the direction o! +. 3onsidrant, or in a #ha anster% o! si? hundred harmoniens,GFF or in an e?#erimenta 7caria, on condition that a !ew !anatics submit to the arbitrar% #ower o! a monomaniac, and that the unbe ie"ers #a% !or the be ie"ers. Bo, 0od has #ro"ided it on a 'enera , wor d-wide basis, throu'h a mar"e ous mechanism in which .ustice, ibert%, uti it%, and socia consciousness are combined and reconci ed to a de'ree that shou d dam#en the ardor o! the # anners and bui ders o! arti!icia socia orders.

88F 11.E9 Bote that this 'reat aw-one !or a , and a !or one-is much more uni"ersa than m% descri#tion o! it wou d su''est. >ords are cumbersome, and the #en is e"en more so. &he writer is reduced to showin' successi"e %, one a!ter another, with discoura'in' s owness, #henomena that stir our admiration on % when we "iew them co ecti"e %. 11.E$ &hus, 7 ha"e .ust s#o(en o! in"entions. =ne mi'ht conc ude !rom what 7 ha"e said that the% re#resent the on % case in which #ro'ress, when once achie"ed, s i#s out o! the #roducer;s hands and !inds its wa% into the common treasur% o! a man(ind. &his is not so. 7t is a 'enera aw that an% ad"anta'e whatsoe"er created b% s#ecia circumstances o! ocation, c imate, or an% other ibera it% o! Bature, Cuic( % s i#s throu'h the hands o! the one who !irst disco"ers it and a%s ho d o! it, %et is not on that account ost, !or it mo"es on to !eed the immense reser"oir !rom which ! ow the satis!actions that men en.o% in common. =n % one #ro"iso is attached to this resu t: abor and e?chan'e must be !ree. &o 'o a'ainst ibert% is to 'o a'ainst the wi o! /ro"idence< it amounts to sus#endin' the action o! 0od;s aw, to restrictin' #ro'ress in the two directions it ta(es. 11.E5 >hat 7 ha"e .ust said concernin' the b essin's o! i!e is true a so o! its e"i s. Bothin' sto#s with the #roducer, whether ad"anta'e or disad"anta'e. Both tend to be distributed o"er the who e o! societ%. 11.EA >e ha"e .ust seen with what ea'erness the #roducer see(s out whate"er wi ma(e his tas( easier, and we ha"e assured ourse "es that "er% short % his #ro!it wi e ude him. He a##ears to be, in the hands o! a su#erior inte i'ence, on % the b ind and doci e instrument o! 'enera #ro'ress. 11.EE >ith the same ea'erness he a"oids e"er%thin' that wou d im#ede his acti"it%< and this is a !ortunate thin' !or man(ind, since in the on' run it is man(ind that is harmed b% these im#ediments. )et us assume, !or e?am# e, that A, a boo( #roducer, has had a hea"% ta? e"ied u#on him. He must add it to the #rice o! his boo(s. 7t wi become an inte'ra #art o! the boo(s; "a ue, which means that B, 3, 4, E, wi ha"e to o!!er more o! their abor !or the same satis!action. >hat com#ensation the% recei"e !or this oss wi de#end u#on the use the 'o"ernment ma(es o! the ta?. 7! it #uts it to 'ood use, the% #erha#s wi not ose< the% ma% e"en 'ain b% the arran'ement. 7! it is used to o##ress them, their "e?ation wi be doub % 'a in'. But as !ar as A is concerned, he is re ie"ed o! the burden o! the ta?, e"en thou'h he ad"ances the mone% !or it. 11.E8 &his does not mean that the #roducer does not o!ten su!!er 'reat % !rom obstac es o! a sorts, ta?es inc uded. 2ometimes ta?es burden him to the brea(in' #oint, and it is #recise % !or this reason that their incidence tends to be shi!ted so that the% !a u timate % on the masses.


11.EF &hus, wine in France was once the ob.ect o! a mu titude o! ta?es and contro s. &hen a s%stem was contri"ed !or restrictin' its sa e outside the countr%. &his case i ustrates how the e"i s that arise tend to ricochet !rom #roducer to consumer. As soon as the ta? and the restrictions are #ut into e!!ect, the #roducer stri"es to ma(e u# !or his osses. But since both the consumer demand and the su## % o! wine remain unchan'ed, he cannot increase his #rice. At !irst his income is no more a!ter the im#osition o! the ta? than it was be!ore. And since, #rior to the ta?, he recei"ed on % a norma return, determined b% the "a ue o! the ser"ices !ree % e?chan'ed, he disco"ers that he is out the amount o! the ta?. 7n order !or #rices to be raised, there must be a decrease in the amount o! wine #roduced.GG$$ 11.80 &he consumer, or the #ub ic, is, there!ore, in re ation to the oss or 'ain that is !irst e?#erienced b% a 'i"en c ass o! #roducers, what the earth is to e ectricit%: the 'reat common reser"oir. E"er%thin' comes !rom it< and e"er%thin', a!ter ma(in' more or ess en'th% detours, a!ter #roducin' more or ess "aried #henomena, returns to it.

-------------------------------------------------------------------------------11.81 >e ha"e .ust noted that economic e!!ects mere % s i# awa% !rom the #roducer, so to s#ea(, and u timate % come to rest at the consumer;s door, and, there!ore, that a the 'reat economic Cuestions must be studied !rom the consumer;s #oint o! "iew i! we wish to 'ras# their 'enera and astin' conseCuences. 11.88 &his subordination o! the #roducer;s ro e to that o! the consumer, which we ha"e deduced !rom our consideration o! uti it%, is !u % con!irmed b% considerations o! mora it%. 11.89 Bow, the !act is that res#onsibi it% a wa%s rests where the initiati"e is. And where is the initiati"eK 7n demand. 11.8$ 4emand (which im# ies the abi it% to #a%) determines e"er%thin': the a ocation o! ca#ita and abor, the distribution o! #o#u ation, the mora it% o! the "arious occu#ations, etc. 7t is demand that corres#onds to wants, whereas su## % corres#onds to e!!ort. >ants are reasonab e or unreasonab e, mora or immora . E!!ort, which is mere % an e!!ect, is amora or e se has on % a re! ected mora it%. 11.85

8F1 4emand, or consum#tion, sa%s to the #roducer: 54o this !or me,5 and the #roducer obe%s. &his wou d be ob"ious in e"er% case i! the #roducer a wa%s and e"er%where !o owed the ead o! the consumer and waited !or the demand. 11.8A But in rea it% thin's do not ha##en this wa% at a . 11.8E >hether e?chan'e brou'ht about the di"ision o! abor, or the di"ision o! abor introduced e?chan'e, is a subt e and id e Cuestion. )et us sa% that men e?chan'e because, bein' inte i'ent and sociab e creatures, the% understand that e?chan'e is a means o! im#ro"in' the ratio o! e!!ort to resu t. >hat is brou'ht about so e % b% the di"ision o! abor and b% !oresi'ht is that a man does not wait !or a !orma order !rom others be!ore he sets to wor(. E?#erience teaches him that such an order is tacit in human re ations and that the demand e?ists. 11.88 He e?erts the e!!ort to satis!% it in ad"ance, and this 'i"es rise to the trades and #ro!essions. Hats and shoes are made in ad"ance< men #re#are themse "es to sin', to teach, to # ead cases, to cure diseases, etc. But in these cases does su## % rea % #recede demand and create itK 11.8F Bo. +en #re#are themse "es because the% are reasonab % certain that these di!!erent ser"ices wi be in demand, a thou'h the% ma% not a wa%s (now b% whom. And the #roo! that this is the case consists in the !act that the re ations amon' these ser"ices are we enou'h (nown, that their "a ue has been we enou'h estab ished, so that one ma% with some con!idence de"ote himse ! to ma(in' a 'i"en artic e or embar( on a 'i"en career. 11.F0 &he im#etus o! demand, then, comes !irst, since it has been #ossib e to estimate its ran'e so accurate %. 11.F1 &here!ore, when a man enters a trade or a #ro!ession, when he becomes a #roducer, what is his !irst concernK 7s it the uti it% o! the thin' he #roduces, its 'ood or bad, mora or immora resu tsK Bot at a < he thin(s on % o! its "a ue. 7t is the demander who considers its uti it%. 7ts uti it% corres#onds to his want, his desire, his whim. @a ue, on the contrar%, corres#onds on % to e!!ort e?#ended, to ser"ice transmitted. =n % when, throu'h e?chan'e, the su## ier becomes in his turn a demander, does he care about uti it%. >hen 7 decide to ma(e shoes rather than hats, it is not because 7 ha"e as(ed m%se ! whether it is more to men;s ad"anta'e that their !eet be warm than their heads. Bo, this Cuestion concerns the demander and determines the demand. 4emand, in turn, determines "a ue, or the re'ard in which the #ub ic ho ds the ser"ice. @a ue, in a word, determines e!!ort, or su## %.

8F8 11.F8 &he mora resu ts o! this !act are Cuite noteworth%. &wo nations ma% be eCua % #ro"ided with "a ues, that is, with re ati"e wea th,GG$5 and %et be "er% uneCua in their rea uti ities, that is, their abso ute wea th. &his ha##ens when one o! the nations has more unreasonab e desires than the other, is concerned with arti!icia or immora wants, whi e the other is mind!u o! its rea wants. 11.F9 7n the one countr% a taste !or earnin' ma% #redominate, in the other a desire !or 'ood eatin'. 7n this case one renders a ser"ice to the !irst countr% b% teachin' it somethin'< in the second, b% tic( in' its #a ate. 11.F$ Bow, men reward ser"ices accordin' to the im#ortance the% attach to them. 7! the% did not e?chan'e, the% wou d #er!orm the ser"ice !or themse "es< and what wou d be the determinin' !actor i! not the nature and intensit% o! their desiresK 7n one o! these nations, there!ore, there wi be man% teachers< in the other, man% coo(s. 11.F5 7n both countries the ser"ices e?chan'ed ma% be eCua in amount and ma% there!ore re#resent eCua "a ue, the same re ati"e wea th, but not the same abso ute wea th. &his means nothin' more nor ess than that the one countr% #uts its abor to 'ood use, the other to bad. 11.FA And the resu t, as re'ards satis!actions, wi be this: =ne o! the countries wi ha"e much earnin'< the other wi eat we . &he u timate conseCuences o! this di"ersit% o! tastes wi ha"e a 'reat in! uence not on % on rea wea th but a so on re ati"e wea th< !or earnin', !or e?am# e, can de"e o# new wa%s o! #er!ormin' ser"ices, a thin' that 'ood mea s cannot do. 11.FE >e obser"e amon' the nations a #rodi'ious di"ersit% o! tastes, the resu t o! their #ast traditions, their character, their be ie!s, their "anit%, etc. 11.F8 6ndoubted %, there are wants so immediate and so #ressin', !or e?am# e drin(in' and eatin', that the% ma% a most be considered !i?ed Cuantities. Let it is not unusua to see one man 'o without eatin' as we as he wou d i(e in order to ha"e c ean c othin', whi e another man considers the c ean iness o! his c othin' on % a!ter he has satis!ied his a##etites. &he same is true o! nations. 11.FF But once these #ressin' wants are met, e"er%thin' e se de#ends much more on the wi < it is a matter o! taste, and in this area the ro e o! mora it% and 'ood sense is enormous.

8F9 11.100 &he intensit% o! a nation;s "arious desires a wa%s determines the Cuantit% o! abor, out o! the sum tota o! a its e!!orts, that it sees !it to de"ote to the satis!action o! each #articu ar desire. &he En' ishman wants abo"e a e se to be we !ed. &here!ore, he de"otes an enormous Cuantit% o! his abor to #roducin' !oodstu!!s< and i! he #roduces other thin's, it is !or the #ur#ose o! e?chan'in' them abroad !or !ood. &he tota amount o! wheat, meat, butter, mi (, su'ar, etc., consumed in En' and reaches terri!%in' #ro#ortions. &he Frenchman wants to be amused. He i(es what catches the e%e, and he en.o%s chan'e. &he direction ta(en b% his abor is !u % in accord with his desires. 7n France there are man% sin'ers, comedians, mi iners, co!!eehouses, smart sho#s, etc. 7n 3hina, the desire is to #ro"ide onese ! with # easurab e dreams throu'h the use o! o#ium. For this reason a 'reat amount o! the nationa e!!ort 'oes into obtainin' this #recious narcotic, either direct % throu'h #roduction or indirect % throu'h e?chan'e. 7n 2#ain, where #eo# e are inc ined toward the #om# and ceremon% o! re i'ious ritua , their e!!orts are directed toward the decoration o! churches, etc. 11.101 7 wi not 'o so !ar as to sa% that there is ne"er an% immora it% in e!!ort that has as its 'oa the renderin' o! ser"ices re ated to immora or de#ra"ed desires. But it is e"ident that what is essentia % immora in such cases is the desire itse !. 11.108 &here cou d be no #ossib e doubt on this Cuestion i! man i"ed in a state o! iso ation, nor can there be an% in re'ard to man in societ%, !or societ% is sim# % the indi"idua en ar'ed. 11.109 >ho wou d dream o! b amin' our wor(ers in the south o! France !or #roducin' brand%K &he% res#ond to a demand. &he% di' their "ine%ards, the% dress their "ines, the% har"est and disti the 'ra#es, without concernin' themse "es about what wi be done with the #roduct. 7t behoo"es the one who see(s the satis!action to determine whether it is res#ectab e, mora , reasonab e, bene!icia . &he res#onsibi it% rests with him. =therwise the business o! the wor d cou d not be carried on. >here wou d we be i! the tai or were to sa% to himse !: 57 wi not ma(e a suit in the st% e that has been ordered, because it is much too e e'ant and ostentatious, or because it ham#ers breathin', etc., etc.K5 11.10$ And what concern o! our #oor wine'rowers is it whether the rich bons "i"ants o! )ondon 'et drun( on the wines o! FranceK And can the En' ish serious % be accused o! raisin' o#ium in 7ndia with the de iberate intention o! #oisonin' the 3hineseK 11.105 Bo, a !ri"o ous #eo# e a wa%s encoura'es !ri"o ous industries, .ust as a serious #eo# e creates serious industries. 7! man(ind is im#ro"in', this mora 'rowth is due, not to the #roducer, but to the consumer. 11.10A

8F$ ,e i'ion understood this #er!ect % when it se"ere % admonished the rich man-the 'reat consumer-in re'ard to his tremendous res#onsibi it%. From a di!!erent #oint o! "iew and in di!!erent an'ua'e #o itica econom% arri"es at the same conc usion. 7t a!!irms that we cannot #re"ent su## %in' what is demanded< that the #roduct !or the #roducer is mere % a "a ue, a (ind o! currenc%, which no more re#resents e"i than 'ood, whereas in the mind o! the consumer it is uti it%, an en.o%ment that is either mora or immora < that, there!ore, it behoo"es the one who "oices the desire and ma(es the demand to acce#t the conseCuences, whether bene!icia or disastrous, and to answer be!ore the .ustice o! 0od, as be!ore the o#inion o! man(ind, !or the 'ood or e"i end to which he has directed the abor o! his !e ow men. 11.10E &hus, !rom whate"er #oint o! "iew we consider it, we #ercei"e that consum#tion is the 'reat end and #ur#ose o! #o itica econom%< that 'ood and e"i , mora it% and immora it%, harmon% and discord, e"er%thin' !inds its meanin' in the consumer, !or he re#resents man(ind.GG$A 11.108 3ha#ter 18 &he &wo +ottoes +odern mora ists who ho d u# the a?iom: =ne !or a , a !or one, a'ainst the ancient #ro"erb: E"er% man !or himse !, e"er% man b% himse !, ha"e a "er% incom# ete notion o! societ%, and, !or that reason, a Cuite !a se one. 7 sha e"en add, to their sur#rise, a "er% ' oom% one. 18.1 )et us !irst e iminate the su#er! uous e ements !rom these two !amous mottoes. A !or one is a redundanc%, added !or the sa(e o! antithesis, since its meanin' is necessari % inc uded in one !or a . E"er% man b% himse ! is an idea that has no direct bearin' on the other three, but as it is "er% im#ortant !or #o itica econom%, we sha e?amine its im# ications ater. 18.8 &here remains, then, the con! ictin' sense o! these two !ra'ments o! #ro"erbs: =ne !or a -e"er% man !or himse !. &he !irst one, it is said, e?#resses the #rinci# e o! a truism< the second, the #rinci# e o! indi"idua ism. &he one unites< the other di"ides. 18.9 7! we re!er so e % to the moti"e that #rom#ts an% e!!ort, the con! ict is undeniab e. But 7 maintain that this is not the case i! we consider the !ina outcome achie"ed b% a human e!!orts ta(en co ecti"e %. E?amine societ% as it actua % is, obe%in' the indi"idua istic im#u se where remunerab e ser"ices are concerned, and %ou wi be con"inced that e"er% man, whi e wor(in' !or himse !, is in !act wor(in' !or a . &his cannot, indeed, be

8F5 contested. 7! the reader o! these ines !o ows a #ro!ession or a trade, 7 ha"e on % to as( him to consider his own case. 7 as( him whether a his abors do not ha"e satis!actions !or other #ersons as their ob.ect, and whether, on the other hand, he does not owe a his own satis!actions to the abor o! others. 18.$ =b"ious % those who sa% that e"er% man !or himse ! and one !or a are mutua % e?c usi"e be ie"e that indi"idua ism and association are incom#atib e. &he% thin( that e"er% man !or himse ! im# ies iso ation or a tendenc% in that direction< that #ersona interest di"ides men instead o! unitin' them, and resu ts in a situation in which e"er% man is b% himse !, that is, the absence o! a socia re ations. 18.5 7n this res#ect, 7 re#eat, the% ha"e a Cuite !a se notion o! societ%, because it is an incom# ete one. +en, e"en when mo"ed on % b% their own se !-interest, see( to unite with others, to combine their e!!orts, to .oin !orces, to wor( and to #er!orm !or one another, to be sociab e, or to associate. 7t wou d not be correct to sa% that the% act in this wa% in s#ite o! se !-interest< on the contrar%, the% act in this wa% because o! se !-interest. &he% are sociab e because the% bene!it !rom association. 7! the% were to ose b% it, the% wou d not associate. 7ndi"idua ism, then, accom# ishes the tas( that the sentimenta ists o! our da% wou d entrust to brotherhood, to se !-sacri!ice, or to some other moti"e o##osed to se !- o"e. And this !act #ro"es (this is the conc usion we are a wa%s reachin') that /ro"idence has (nown much better how to ta(e care o! the or'ani1ation o! societ% than do its se !-st% ed #ro#hets. For either societ% is harm!u to indi"idua it%, or e se it is ad"anta'eous. 7! harm!u , how and wh% in a 'ood reason are our socia ist !riends to introduce somethin' that hurts e"er%oneK 7!, on the contrar%, association is an ad"anta'e, it wi be achie"ed b% "irtue o! se !-interest, the stron'est, the most astin', the most uni!orm, the most uni"ersa o! a moti"es, whate"er ma% be said. 18.A )et us ta(e a concrete e?am# e. A sCuatter 'oes and c ears some and in the Far >est. Bot a da% 'oes b% that he does not rea i1e how man% incon"eniences iso ation causes him. 2oon a second sCuatter a so mo"es out to the wi derness. >here wi he #itch his tentK 4oes he s#ontaneous % mo"e awa% !rom the !irst sCuatterK Bo. He s#ontaneous % mo"es near him. >h%K Because he is aware o! the ad"anta'es men en.o%, !or eCua e!!orts, !rom the mere !act o! bein' near each other. He (nows that in count ess instances the% can end and borrow too s, unite their action, o"ercome obstac es that wou d be too much !or them indi"idua %, ma(e e?chan'es, communicate their ideas and o#inions, #ro"ide !or their common de!ense. A third, a !ourth, a !i!th sCuatter come into the wi derness, and in"ariab % the% are attracted b% the #resence o! the !irstcomers. &hen others with more ca#ita ma% arri"e on the scene, certain that the% wi !ind hands waitin' to be #ut to wor(. A co on% is !ormed. &he% ma% "ar% the cro#s somewhat< cut a road throu'h to the main hi'hwa% where the sta'ecoach #asses< be'in to trade with the outside wor d< # an construction o! a church, a schoo house, etc. 7n a word, the sett ers become stron'er, b% the "er% !act o! bein' to'ether, in!inite % stron'er than wou d be their tota stren'th i! each were i"in' a one. &his is the reason that the% were drawn to'ether.


18.E But, it wi be said, e"er% man !or himse ! is a "er% ' oom% and co d-b ooded ma?im. A the ar'uments, a the #arado?es in the wor d wi not (ee# it !rom arousin' our resentment, !rom ree(in' with se !ishness< and is not se !ishness worse than an e"i , is it not the source o! a the i s o! societ%K 18.8 )et us understand one another, # ease. 18.F 7! the motto e"er% man !or himse ! is understood in the sense that it must direct a our thou'hts, a our actions, a our re ations, that it must under ie a our a!!ections, as !athers, sons, brothers, husbands, wi"es, !riends, and citi1ens, or rather, that it must sti! e these a!!ections, it is !ri'ht!u , horrib e, and 7 do not be ie"e that there is a sin' e man on earth who, e"en i! he did ma(e it the 'uidin' ru e o! his i!e, wou d dare to #roc aim it as such. 18.10 But wi the socia ists a wa%s re!use to admit, des#ite the e"idence o! the !acts e"er%where, that there are two (inds o! human re ations: those s#rin'in' !rom a truism, which we ea"e to the rea m o! mora it%< and those that are actuated b% se !-interest, which e?ist amon' #eo# e who do not (now one another, who owe one another nothin' but .ustice, and which are re'u ated b% a'reements "o untari % arri"ed at a!ter !ree debateK &his is #recise % the t%#e o! a'reements that constitute the domain o! #o itica econom%. Bow, it is no more #ossib e to !ound transactions o! this nature on the #rinci# e o! a truism than it wou d be reasonab e to base the ties o! !ami % and !riendshi# u#on se !interest. 7 sha ne"er cease te in' the socia ists: Lou wish to combine two thin's that cannot be combined. 7! %ou are mad enou'h to tr%, %ou wi ne"er be stron' enou'h to succeed. &he b ac(smith, the car#enter, the !armer, who e?haust their stren'th in rou'h toi , ma% be e?ce ent !athers, admirab e sons< the% ma% ha"e a hi'h mora sense and a!!ectionate hearts. Be"erthe ess, %ou wi ne"er #ersuade them to abor !rom dawn to dus(, to strain and sweat, to im#ose u#on themse "es hard #ri"ations, in the name o! disinterested de"otion to their !e ow men. Lour sentimenta sermoni1in' is and a wa%s wi be una"ai in'. 7!, un!ortunate %, a sma number o! wor(ers shou d be ed astra% b% %our words, the% wou d be .ust so man% du#es. )et a merchant be'in to se his 'oods on the #rinci# e o! brother % o"e, and 7 do not 'i"e him e"en a month be!ore his chi dren wi be reduced to be''ar%. 18.11 /ro"idence has there!ore wise % 'i"en our #redi ection !or socia re ations Cuite other 'uarantees than these. 0ranted man;s nature as a bein' whose !ee in's are inse#arab e !rom his #ersona it%, it is im#ossib e to ho#e, to desire, to ima'ine that se !-interest cou d be uni"ersa % eradicated. And %et nothin' ess than this wou d be necessar% to estab ish a .ust ba ance in human re ations< !or i! %ou e iminate this moti"e !orce on % in the case o!

8FE some su#erior indi"idua s, %ou wi be creatin' two c asses: the e"i ones on the a ert !or "ictims, and the "irtuous, !or whom the ro e o! "ictim is read%-made. 18.18 2ince, in matters o! abor and e?chan'e, the #rinci# e o! e"er% man !or himse ! was the moti"e bound to #re"ai , what is admirab e, what is mar"e ous is that the Author o! a thin's has made it wor( within the socia order to achie"e the idea o! brotherhood e?#ressed in the motto, one !or a < that His de!t hand has made the obstac e the instrument o! His wi < that the 'enera interest has been entrusted to se !-interest and is eterna % sa!e'uarded b% the "er% !act that se !-interest is indestructib e. 7t seems to me that, con!ronted with these !acts, the communists and other in"entors o! arti!icia socia orders mi'ht we admit-and without too much sense o! humi iation, a!ter a -that when it comes to or'ani1ation, their di"ine ri"a is de!inite % their su#erior. 18.19 And note we that in the natura order o! societ%, the #rinci# e o! one !or a , which de"e o#ed !rom that o! e"er% man !or himse !, is much more com# ete, much more abso ute, much more #ersona , than wou d be the case under communism or socia ism. Bot on % do we wor( !or a , but we cannot ma(e an% (ind o! #ro'ress whatsoe"er without sharin' its bene!its with the entire human communit%.GG$E &hin's are arran'ed in such a mar"e ous wa% that when we ha"e de"e o#ed a techniCue or disco"ered a 'i!t o! Bature, some new !erti it% in the soi , or some new a## ication o! the aws o! the #h%sica uni"erse, the #ro!it 'oes to us momentari %, ! eetin' %, as is our .ust recom#ense, use!u to s#ur us on to !urther e!!orts. &hen our ad"anta'e s i#s throu'h our hands, des#ite our attem#ts to retain it< it ceases to be #ersona , becomes socia , and e"entua % comes to rest !or a time within the rea m o! what is !ree o! char'e and common to a . And, e"en whi e we contribute to the en.o%ment o! man(ind the #ro'ress we ha"e made, we ourse "es en.o% the #ro'ress that other men ha"e made. 18.1$ 7n the ast ana %sis, b% the a## ication o! the #rinci# e o! e"er% man !or himse !, a the e!!orts o! the most intense indi"idua ism act in the direction o! a situation that cou d be characteri1ed b% the e?#ression, one !or a , and e"er%thin' that re#resents a ste# on the road to #ro'ress is worth to societ% in 'ratuitous uti it% mi ions o! times more than the #ro!its it brin's its in"entor. 18.15 =n the #rinci# e o! one !or a , no one wou d act e"en !or himse !. >hat #roducer wou d consider doub in' his abor in order to recei"e one thirt%-mi ionth more in wa'esK 18.1A 2omeone ma%, #erha#s, as( me wh% 7 'o to the troub e to re!ute this socia ist a?iom. >hat harm can it doK 6ndoubted %, it wi not #enetrate into the wor(sho#s, the countin'houses, the stores< it wi not estab ish the #rinci# e o! se !-sacri!ice in the !airs and the mar(ets. Either it wi come to nothin', and %ou can et it rest in #eace< or e se it

8F8 wi so!ten somewhat the un%ie din' #rinci# e o! se !-interest, which, since it broo(s no !ee in' o! s%m#ath% !or others, has no c aim on ours. 18.1E >hat is !a se is a wa%s dan'erous. 7t is a wa%s dan'erous to re#resent as re#rehensib e and damnab e a uni"ersa , eterna #rinci# e that 0od has c ear % ordained !or the #reser"ation and im#ro"ement o! man(ind, a #rinci# e, 7 admit, that as a moti"e does not a##ea to our hearts, but does, b% its resu ts, astonish and satis!% our minds. 7t is a #rinci# e, !urthermore, that ea"es the wa% com# ete % o#en !or the action o! moti"es o! a hi'her order that 0od has a so im# anted in men;s hearts. 18.18 But what ha##ens is that the socia ist #ub ic acce#ts on % ha ! o! their motto, the second ha !: A !or one. /eo# e continue to wor(, as be!ore, e"er% man !or himse !, but to demand in addition that a a so wor( !or e"er% man. 18.1F And this was ine"itab e. >hen the dreamers decided to chan'e the 'reat mains#rin' o! human acti"it% in order to re# ace indi"idua ism with brotherhood, what did the% thin( u#K A contradiction that is at the same time a so #ure h%#ocris%. &he% be'an to cr% out to the masses: 52ti! e se !-interest in %our hearts, and !o ow us< and %our reward sha be a the 'ood thin's and a the # easures o! this wor d.5 >hen #eo# e tr% thus to #arod% the tone o! the 0os#e , the% must conc ude as the 0os#e does. &he se !-denia o! brotherhood im# ies sacri!ice and su!!erin'. 54edicate %ourse "es,5 means: 5&a(e the humb est # ace< be %e #oor, and ' ad % endure hardshi#.5 But, under the #rete?t o! se !sacri!ice, to #romise en.o%ment< to e?hibit, behind the so-ca ed renunciation, materia com!orts and wea th< to combat the #assion that is scathin' % ca ed se !ishness b% a##ea in' to the crassest materia ism-a this was not mere % to testi!% to the indestructib e "ita it% o! the "er% #rinci# e that the% #ro#osed to o"erthrow< it meant e?a tin' it to the hi'hest #ossib e #oint, e"en whi e dec aimin' a'ainst it< rein!orcin' the enem%, instead o! "anCuishin' him< substitutin' un.ust co"etousness !or e'itimate indi"idua ism< and, des#ite the sham o! a "a'ue m%stic .ar'on, actua % stirrin' u# the 'rossest (ind o! sensua it%. 0reed was bound to res#ond to this a##ea .GG$8 18.80 And is not this the #oint that we ha"e now reachedK >hat is the cr% 'oin' u# e"er%where, !rom a ran(s and c assesK A !or oneJ >hen we sa% the word one, we thin( o! ourse "es, and what we demand is to recei"e an unearned share in the !ruits o! the abor o! a . 7n other words, we are creatin' an or'ani1ed s%stem o! # under. 6nCuestionab %, sim# e out-and-out # under is so c ear % un.ust as to be re#u'nant to us< but, than(s to the motto, a !or one, we can a a% our Cua ms o! conscience. >e im#ose on others the dut% o! wor(in' !or us. &hen, we arro'ate to ourse "es the ri'ht to en.o% the !ruits o! other men;s abor. >e ca u#on the state, the aw, to en!orce our so-ca ed dut%, to #rotect our so-ca ed ri'ht, and we end in the !antastic situation o! robbin' one another in the name o! brotherhood. >e i"e at other men;s e?#ense, and then ca ourse "es heroica % se !sacri!icin' !or so doin'. =h, the unaccountab e !o % o! the human mindJ =h, the

8FF de"iousness o! 'reedJ 7t is not enou'h that each o! us tries to increase our share at the e?#ense o! others< it is not enou'h that we want to #ro!it !rom abor that we ha"e not #er!ormed. >e e"en con"ince ourse "es that in the #rocess we are sub ime e?am# es o! se !-sacri!ice< we a most 'o so !ar as to ca our unse !ishness 3hrist i(e. >e ha"e become so b ind that we do not see that the sacri!ices that cause us to wee# with admiration as we contem# ate ourse "es are not made b% us at a , but are e?acted b% us o! others.GG$F 18.81 &he manner in which this 'reat hocus-#ocus is carried out is worth obser"in'. 18.88 52tea in'J For shameJ How baseJ Besides, it can #ut %ou in #rison< it;s a'ainst the aw.5 18.89 5But su##ose the aw #rescribed it and sanctioned it< wou dn;t that be niceK5 18.8$ 5>hat a bri iant ideaJ5 18.85 Forthwith the% as( the aw !or some tri! in' #ri"i e'e, .ust a sma mono#o %, and since, to 'i"e it #ro#er authorit% wi cost somebod% a !ew !rancs, the% as( the state to ta(e o"er the res#onsibi it%. &hen the state and the aw conni"e to brin' about the "er% thin' that it was their mandate to #re"ent or to #unish. )itt e b% itt e the taste !or mono#o % s#reads. &here is no c ass that does not demand its own s#ecia #ri"i e'e. A !or one, the% cr%. >e too want to show that we are #hi anthro#ic and understand what so idarit% is. 18.8A &he resu t is that the c asses 'ranted the #ri"i e'es stea !rom one another and ose at east as much b% the demands made on them as the% 'ain b% the demands the% ma(e on others. Furthermore, the 'reat masses o! wor(ers, to whom it has been im#ossib e to 'rant an% #ri"i e'es, su!!er unti the% can endure it no on'er. &he% re"o t, the% co"er the streets with barricades and b oodshed, and now it is the% who must be rec(oned with. 18.8E >hat wi the% demandK An end to the abuses, #ri"i e'es, mono#o ies, and restrictions b% which the% ha"e been en'u !edK Bot at a . &he masses, too, ha"e been imbued with the s#irit o! #hi anthro#%. &he% ha"e been to d that the !amous #rinci# e o! a !or one was the so ution to the socia #rob em< the% ha"e been shown b% count ess e?am# es that #ri"i e'e (which is on % the!t) is ne"erthe ess hi'h % mora i! it has the sanction o! the aw. &here!ore, we see the #eo# e demand.... >hatK .... /ri"i e'esJ &he%, too, ca u#on the state to #ro"ide them with education, em# o%ment, credit, assistance, at the #eo# e;s e?#ense. =h, what a stran'e i usionJ How on' can it astK >e can we understand how a the u##er c asses, be'innin' with the hi'hest, can come, one a!ter the other, to demand !a"ors and #ri"i e'es. Beneath them are the 'reat masses o! the #eo# e !or the burden to

900 !a u#on. But how the #eo# e, once the% ha"e won their batt e, can ima'ine that the% too can enter as a bod% into the ran(s o! the #ri"i e'ed, create mono#o ies !or themse "es and o"er themse "es, e?tend abuses wide % enou'h to #ro"ide !or their i"e ihood< how the% can !ai to see that there is nobod% be ow them to su##ort these in.ustices, is one o! the most ama1in' #henomena o! this or an% a'e. 18.88 >hat has ha##enedK 2ociet% had !o owed this course to 'enera shi#wrec( and Cuite #ro#er % 'rew a armed. &he #eo# e soon ost their #ower, and now the o d order o! abuses has tem#orari % re'ained its !ootin'.G100 18.8F Let the esson has not been entire % ost on the u##er c asses. &he% rea i1e that the wor(ers must be 'i"en .ustice. &he% are ea'er to do so, not on % because their own securit% de#ends u#on it, but a so, it must be admitted, out o! a sense o! eCuit%. Les, 7 state with 'reat con"iction that the wea th% c asses as( nothin' better than to !ind the so ution to this 'reat #rob em. 7 am sure that i! the% were as(ed to 'i"e u# a considerab e #ortion o! their wea th in order to assure the !uture ha##iness and contentment o! the common #eo# e, the% wou d ' ad % ma(e the sacri!ice. &he% there!ore earnest % see( to come, to use the time-honored #hrase, to the aid o! the aborin' c asses. But to that end what do the% #ro#oseK 2ti a communistic s%stem, the communism o! #ri"i e'e, thou'h miti'ated and he d, the% trust, within the bounds o! #rudence. &hat is a < the% 'o no !urther..... 18.90 3ha#ter 19 ,entGG50 7!, when there is an increase in the "a ue o! and, there were a corres#ondin' increase in the #rices o! a'ricu tura #roducts, 7 cou d understand the ob.ections raised a'ainst the theor% #resented in cha#ter F o! this boo(. 7t cou d then be said: As ci"i i1ation ad"ances, the wor(er;s situation becomes ess !a"orab e in re ation to the andowner;s< this is #erha#s a necessar% de"e o#ment, but it is certain % not a aw o! harmon%. 19.1 Fortunate %, this is not the case. 7n 'enera , the circumstances that increase the "a ue o! and decrease at the same time the #rices o! what is raised on it. )et me e?# ain this b% an i ustration. 19.8 )et us su##ose that there is a !arm ocated twent% mi es !rom the cit% and worth one hundred !rancs. A hi'hwa% is constructed that runs c ose to this !arm. 7t o#ens u# a mar(et !or the cro#s, and at once the "a ue o! the !arm rises to one hundred and !i!t%

901 !rancs. &he andowner, now ha"in' the means to ma(e im#ro"ements or to raise a 'reater "ariet% o! cro#s, im#ro"es his #ro#ert%, and its "a ue increases to two hundred !rancs. 19.9 &hus, the !arm;s "a ue has been doub ed. )et us e?amine this additiona "a ue, !irst !rom the stand#oint o! .ustice, then !rom the stand#oint o! the uti it% en.o%ed, not b% the #ro#rietor, but b% the consumers in the cit%. 19.$ As !or the increase in "a ue comin' !rom the im#ro"ements made b% the andowner at his own e?#ense, there is no Cuestion. &his is a ca#ita in"estment and !o ows the aw o! a ca#ita in"estments. 19.5 &he same is true, 7 "enture to sa%, !or the hi'hwa%. &he o#eration !o ows a more circuitous course, but the resu t is the same. 19.A 7n !act, the owner, b% reason o! his !arm, #a%s his share o! the #ub ic e?#ense. For man% %ears he contributed to the 'enera uti it% b% doin' wor( on out %in' areas. Fina %, a road has been constructed that runs in a direction that is he #!u to him. A the ta?es he has #aid can be com#ared to stoc(s he mi'ht ha"e bou'ht in 'o"ernment enter#rises< and the %ear % rent, which now comes to him because o! the new hi'hwa%, ma% be re'arded as their di"idend. 19.E >i it be said that a andowner ma% #a% ta?es !ore"er and ne"er recei"e an%thin' in return !or themK &his case, then, is ana o'ous to the other< and the im#ro"ements, a thou'h e!!ected throu'h the com# icated and more or ess Cuestionab e medium o! the ta?, ma% be considered as ha"in' been carried out b% the andowner and at his e?#ense in #ro#ortion to the #artia ad"anta'e that he rea i1es. 19.8 7 s#o(e o! a hi'hwa%, but 7 cou d ha"e cited an% other e?am# e o! 'o"ernment inter"ention. /o ice #rotection, !or e?am# e, 'i"es "a ue to and as we as to ca#ita and abor. But who #a%s !or #o ice #rotectionK &he andowner, the ca#ita ist, the wor(er. 19.F 7! the state s#ends its re"enue wise %, eCui"a ent "a ue must in some !orm or other !ind its wa% bac( to the andowner, the ca#ita ist, and the wor(er. For the andowner it can on % be in the !orm o! an increased #rice !or his and. 7! the state s#ends its re"enue unwise %, it is un!ortunate. &he ta? mone% is ost< the ta?#a%ers shou d ha"e been more a ert. 7n that case the and does not rise in "a ue, but certain % that is not the !au t o! the andowner. 19.10

908 But, now that the and has thus increased in "a ue throu'h 'o"ernment action and #ri"ate initiati"e, do the cro#s raised on it brin' a hi'her #rice !rom the cit% dwe ersK 7n other words, is the interest on these hundred !rancs added as a surchar'e on e"er% hundredwei'ht o! 'rain that comes !rom this andK 7! the 'rain #re"ious % cost !i!teen !rancs, does it now cost !i!teen and a !ractionK &his is a most interestin' Cuestion, since .ustice and the uni"ersa harmon% o! men;s interests de#end on its answer. 19.11 7 re# % con!ident %: Bo. 19.18 Bo doubt the andowner wi now 'et a return o! !i"e !rancs more (7 am assumin' a #ro!it rate o! !i"e #er cent), but he wi not 'et them at a cost to an%one. Quite the contrar%< the bu%er, in his turn, wi #ro!it e"en more. 19.19 &he !act is that the !arm we ha"e chosen as an i ustration was ori'ina % remote !rom an% mar(ets, and itt e was #roduced on it. Because o! trans#ortation di!!icu ties the #roducts that reached the mar(et were e?#ensi"e. &oda% #roduction has been ste##ed u#< trans#ortation is economica < a 'reater amount o! 'rain reaches the mar(et, costs ess to 'et there, and is so d at a better #rice. 2o e"en thou'h he %ie ds the andowner a tota #ro!it o! !i"e !rancs, the bu%er #ro!its e"en more. 19.1$ 7n a word, an econom% o! e!!ort has been e!!ected. &o whose #ro!itK &o the #ro!it o! the two contractin' #arties. Accordin' to what aw is a 'ain o! this (ind sharedK &he aw that we ha"e o!ten cited in re!erence to ca#ita , since this increase in "a ue re#resents a ca#ita 'ain. 19.15 >hen there is a ca#ita 'ain, the andowner;s (or ca#ita ist;s) share increases in abso ute "a ue and diminishes in re ati"e "a ue< the wor(er;s (or consumer;s) share rises in both abso ute and re ati"e "a ue. 19.1A =bser"e how this occurs. As ci"i i1ation de"e o#s, the ands nearest the centers o! #o#u ation increase in "a ue. 7n!erior cro#s 'i"e wa% to su#erior ones. First, #asture ands 'i"e wa% to cerea cro#s< then, cerea s are re# aced b% truc( 'ardens. Foodstu!!s come !rom 'reater distances at ess cost, so that-and this is an unCuestionab e !act-meat, bread, "e'etab es, e"en ! owers, cost ess than in more bac(ward countries, a thou'h abor is better #aid than e sewhere. 19.1E &he 3 os-@ou'eotG101


2er"ices are e?chan'ed !or ser"ices. =!ten ser"ices #re#ared in ad"ance are e?chan'ed !or #resent or !uture ser"ices. 19.18 2er"ices ha"e "a ue, not accordin' to the abor the% demand or ha"e demanded, but accordin' to the abor the% sa"e. 19.1F Bow, it is a !act that human abor is becomin' more e!!icient. 19.80 From these two #remises is deduced a "er% im#ortant #henomenon !or socia econom%: 7n 'enera , abor #re"ious % #er!ormed oses "a ue when e?chan'ed !or current abor.GG51 19.81 &went% %ears a'o, et us sa%, 7 made somethin' that cost me a hundred da%s; wor(. 7 #ro#ose an e?chan'e and sa% to m% #ros#ecti"e bu%er: 0i"e me somethin' that costs %ou i(ewise a hundred da%s. /robab % he wi be ab e to re# %: 7n the ast twent% %ears 'reat #ro'ress has been made. >hat cost %ou a hundred da%s can now be made with se"ent% da%s; abor. Bow, 7 measure %our ser"ice, not b% the time it cost %ou, but b% the ser"ice it renders me. &his ser"ice o! %ours is worth se"ent% da%s, since with that amount o! time 7 can #er!orm it !or m%se ! or !ind someone to #er!orm it !or me. 19.88 3onseCuent %, the "a ue o! ca#ita !a s constant %, and ca#ita , or #re"ious abor, is not in as !a"orab e a #osition as su#er!icia economists be ie"e. 19.89 &here is no machine not com# ete % new that has not ost some o! its "a ue, e?c usi"e o! deterioration resu tin' !rom use, !rom the "er% !act that better ones are made now. 19.8$ &his is true a so o! and. &here are "er% !ew !arms that ha"e not cost more abor to brin' them to their #resent state o! !erti it% than it wou d cost toda% with the more e!!icient means we ha"e at our dis#osa . 19.85 2uch is the 'enera , but not ine"itab e, trend. 19.8A )abor #er!ormed in the #ast ma% render 'reater ser"ice toda% than it did #re"ious %. &his is rare, but it does ha##en. For e?am# e, 7 ha"e (e#t some wine that re#resents twent% da%s; abor. 7! 7 had so d it immediate %, m% abor wou d ha"e recei"ed a certain remuneration. 7 ha"e (e#t m% wine< it has im#ro"ed< the ne?t cro# was a !ai ure< in short,

90$ the #rice has 'one u#, and m% return is 'reater. >h%K Because 7 render more ser"ice, because the bu%er wou d ha"e to ta(e more #ains to 'et this wine than 7 too(, because 7 satis!% a want that has become 'reater, o! hi'her "a ue, etc. 19.8E &his is the Cuestion that must a wa%s be considered. 19.88 &here are a thousand o! us. >e each ha"e our acre o! and, which we c ear. &ime 'oes b%, and we se it. Bow, it ha##ens that out o! the thousand o! us nine hundred and ninet%ei'ht do not recei"e, or ne"er wi recei"e, as man% da%s o! current abor !or our and as it has cost us< and that is because our #ast abor, which was ess s(i !u , #er!orms re ati"e % ess ser"ice than current abor. But there are two andowners whose abor has been more inte i'ent or, i! %ou wi , more success!u . >hen the% o!!er it !or sa e, it is !ound to re#resent inimitab e ser"ices. E"er%one sa%s: 7t wou d cost me much more to #er!orm this ser"ice !or m%se !< hence, 7 sha #a% a hi'h #rice< and, #ro"ided 7 am not coerced, 7 am sti "er% sure that it wi not cost me as much as i! 7 #er!ormed this ser"ice b% an% other means. 19.8F &his is the stor% o! the 3 os-@ou'eot. 7t is the same as the case o! the man who !inds a diamond or who has a beauti!u "oice or a !i'ure to e?hibit !or !i"e sous, etc. 19.90 7n m% nati"e #ro"ince there is much uncu ti"ated and. &he stran'er ne"er !ai s to as(: >h% do %ou not cu ti"ate this andK &he answer is: Because the soi is #oor. But, it ma% be ob.ected, ri'ht beside it is abso ute % simi ar and, and it is cu ti"ated. &o this ob.ection the nati"e !inds no re# %. 19.91 7s it because he was wron' to answer in the !irst # ace: &he soi is #oorK 19.98 Bo, the reason wh% new and is not c eared is not that the soi is #oor< !or some o! it is e?ce ent, and sti it is not c eared. &his is the reason: to brin' this uncu ti"ated and to a state o! !erti it% eCua to that o! the ad.acent cu ti"ated and wou d cost more than to bu% the ad.acent and itse !. 19.99 Bow, to an% man ca#ab e o! re! ection this #ro"es incontestab % that the and has no "a ue in itse !. 19.9$ (4e"e o# a the im# ications o! this idea.)GG58

905 -------------------------------------------------------------------------------19.95 +one%GG59 --------------------------------------------------------------------------------

3reditGG5$ 3ha#ter 1$ >a'es A men ea'er % on' !or securit%. >e do indeed !ind a !ew rest ess, ad"enturous indi"idua s in the wor d !or whom the thri o! the un(nown is a (ind o! emotiona necessit%. Be"erthe ess, we can a!!irm that men, ta(en as a who e, want to be !ree o! !ear !or their !uture, to (now what to count on, to arran'e their i"es in ad"ance. &o understand what store the% set b% securit%, we need on % to obser"e how ea'er % the% rush into 'o"ernment em# o%ment. )et no one sa% that the% do so because o! the #resti'e o! #ub ic ser"ice. &here are certain % ci"i ser"ice #ositions in which the wor( in"o "ed is !ar !rom bein' o! a hi'h order. 7t consists, !or e?am# e, in s#%in' on one;s !e ow citi1ens, #r%in' into their a!!airs, anno%in' them. Let such #ositions are nonethe ess sou'ht a!ter. >h%K Because the% re#resent securit%. >ho has not heard a !ather sa% o! his son: 57;m tr%in' to 'et him on the ist !or a tem#orar% a##ointment in such and such a 'o"ernment bureau. Batura %, it;s irritatin' that the% reCuire such a cost % education. 7t;s a so true that with that (ind o! education, he mi'ht ha"e 'one into some more bri iant career. As a 'o"ernment !unctionar% he wi ne"er 'et rich, but he wi be sure o! his i"in'. He wi a wa%s ha"e enou'h to eat. 7n !our or !i"e %ears he wi be 'ettin' a sa ar% o! ei'ht hundred !rancs< then he wi 'o u#, ste# b% ste#, to three or !our thousand. A!ter thirt% %ears o! ser"ice, he can retire on his #ension. His i"e ihood is there!ore assured. 7t;s u# to him to earn to i"e moderate % and humb %, etc.5 1$.1 2ecurit%, then, has an a -#ower!u a##ea . 1$.8 And %et, when we consider the nature o! man and o! his abors, securit% seems incom#atib e with it. 1$.9

90A An%one oo(in' bac( in his mind;s e%e to the ha1ards !aced b% human societ% at its ince#tion wi ha"e di!!icu t% in understandin' how a 'reat mu titude o! men can #ossib % obtain !rom the socia order an% !i?ed, assured, and constant means o! e?istence. &hat the% do so is another o! those #henomena that !ai to im#ress us as stri(in' % as the% shou d !or the "er% reason that our e%es are accustomed to them. Here are !unctionaries who recei"e !i?ed sa aries, #ro#ert% owners who (now in ad"ance what income the% wi ha"e, in"estors who can e?act % ca cu ate their returns, wor(men who earn the same wa'es e"er% da%. 7! we e?c ude mone%, which is introduced sim# % to !aci itate e"a uation and e?chan'e, we sha #ercei"e that what remains stab e is the Cuantit% o! the means o! e?istence, the "a ue o! the satis!actions recei"ed b% these "arious cate'ories o! wor(ers. Bow, 7 maintain that this stabi it%, which itt e b% itt e is s#readin' to a man(ind, to a (inds o! abor, is a mirac e o! ci"i i1ation, a #rodi'ious accom# ishment o! the socia order that is so !oo ish % denounced in our da%. 1$.$ )et us 'o bac(, then, to a #rimiti"e socia order. )et us ima'ine that we sa% to a huntin', !ishin', #astora , warrior, or a'ricu tura #eo# e: 5As %our societ% #ro'resses, %ou wi be ab e to te !urther and !urther in ad"ance e?act % what wi be %our tota en.o%ments !or e"er% %ear.5 1$.5 &hese 'ood #eo# e wou d not be ie"e us. &he% wou d re# %: 5&hat wi a wa%s de#end on somethin' that e udes a ca cu ation-the uncertaint% o! the seasons, !or e?am# e, etc.5 &he% wou d ne"er be ab e to understand the in'enious e!!orts b% which men ha"e succeeded in estab ishin' a (ind o! insurance brid'in' a times and a # aces. 1$.A Bow, this mutua insurance a'ainst the "icissitudes o! the !uture is entire % de#endent on a !ie d o! human (now ed'e that 7 sha ca e?#erimenta statistics. And since there is continua #ro'ress in this !ie d, based as it is on e?#erience, it !o ows that securit% a so can be #ro'ressi"e % e?tended. 7t is !a"ored b% two #ermanent !actors: !irst, men on' !or securit%< second, e"er% da% the% acCuire more means o! attainin' it. 1$.E Be!ore 7 demonstrate how securit% is estab ished in those human transactions in which at !irst si'ht it wou d not seem to be an im#ortant concern, et us see how it is obtained in a transaction in which it is o! s#ecia concern. &he reader wi thus understand what 7 mean b% e?#erimenta statistics. 1$.8 3onsider a 'rou# o! men who are a homeowners. =ne house ha##ens to burn, and its owner is ruined. At once a arm s#reads amon' a the others. Each one sa%s to himse !: 5&he same thin' cou d ha##en to me.5 7t is not sur#risin', there!ore, that the owners meet and ma(e #ro"ision to share #ossib e oss b% !ormin' a mutua !ire-insurance association. &heir a'reement is "er% sim# e. 7t is e?#ressed in these terms: 7! the house o! one o! us burns, the rest o! us wi ta(e u# a co ection to he # him.


1$.F B% this de"ice each owner can be sure o! two thin's< !irst, that he wi ha"e a sma share in a mis!ortunes o! this t%#e< second, that he wi ne"er ha"e to bear the !u brunt o! an% one mis!ortune. 1$.10 7n rea it%, i! we e?tend the ca cu ation o"er a 'reat number o! %ears, we see that the homeowner ma(es, so to s#ea(, an arran'ement with himse !. He a%s u# sa"in's with which to #a% !or the disasters that ma% stri(e. 1$.11 &his is association. 7ndeed, the socia ists 'i"e the name association e?c usi"e % to arran'ements o! this (ind. As soon as s#ecu ation is introduced, the% sa%, association disa##ears. 7 sa% that it is im#ro"ed, as we sha see. 1$.18 &he moti"e that #rom#ted our homeowners to !orm an association, to #ro"ide !or mutua insurance, was a o"e o! stabi it%, o! securit%. &he% #re!er (nown ris(s to un(nown ris(s, a 'reat number o! #ossib e sma osses to one ar'e one. 1$.19 Be"erthe ess, their ob.ecti"e has not been com# ete % accom# ished, and there is sti much uncertaint% in their situation. Each one o! them ma% sa%: 52u##ose disasters mu ti# %. >i m% assessment not become e?orbitantK 7n an% case, 7 shou d i(e to (now in ad"ance what it wi be, and a so to insure m% househo d 'oods, m% merchandise, etc., in the same manner.5 1$.1$ &hese di!!icu ties a##ear to be in the nature o! thin's and be%ond man;s #ower to a"oid. >e are a wa%s tem#ted to be ie"e, a!ter e"er% ad"ance, that e"er%thin' #ossib e has been done. How, indeed, can we e iminate this ha1ard contin'ent on mis!ortunes sti in a rea m be%ond our (enK 1$.15 But mutua insurance has, throu'h e?#erience, 'radua % acCuired in societ% an im#ortant #iece o! statistica in!ormation, name %, the ratio, in terms o! %ear % a"era'es, between "a ues destro%ed b% disasters and "a ues co"ered b% insurance. 1$.1A Armed with this in!ormation, an indi"idua or a com#an%, ha"in' made a the necessar% ca cu ations, 'oes to the homeowners and sa%s: 5B% #ro"idin' !or mutua insurance, %ou ha"e tried to #urchase %our #eace o! mind. &he #rice this #recious asset costs %ou is the indeterminate assessment %ou set aside annua % to co"er %our osses. But %ou ne"er (now in ad"ance what this #rice wi be< and, on the other hand, %our #eace o! mind is ne"er com# ete. >e , 7 am here to #ro#ose a di!!erent #rocedure. 7n consideration o! a

908 !i?ed annua #remium that %ou wi #a% me, 7 wi assume the ris( !or a insure a o! %ou, and here is the ca#ita to 'uarantee m% #romises.5 osses. 7 wi

1$.1E &he homeowners are Cuic( to acce#t, e"en thou'h this #remium wou d cost a itt e more than the a"era'e assessment under the mutua insurance a'reement< !or the most im#ortant thin' in their e%es is not the sa"in' o! a !ew !rancs, but the assurance o! com# ete #eace o! mind. 1$.18 At this #oint the socia ists contend that the association is destro%ed. 7 maintain that it is im#ro"ed and on the wa% to sti !urther im#ro"ement. 1$.1F But, sa% the socia ists, now the insured no on'er ha"e an% common tieJ &he% no on'er see one another< the% no on'er ha"e to reach a common understandin'. /arasitica midd emen ha"e intruded themse "es amon' them, and the !act that the homeowners now #a% more than is necessar% to co"er their osses is #roo! that the insurers are rea#in' outra'eous #ro!its. 1$.80 7t is eas% to answer this criticism. 1$.81 First o! a , the association now e?ists under another !orm. &he #remium contributed b% the insured sti #ro"ides the !und to #a% !or the osses. &he insured ha"e !ound the means o! remainin' in the association without the bother o! runnin' it. =b"ious %, this is an ad"anta'e to e"er% one o! them, inasmuch as the end in "iew is nonethe ess attained< and the o##ortunit% o! remainin' in the association and sti retainin' inde#endence o! mo"ement and the !ree use o! one;s !acu ties is #recise % what characteri1es socia #ro'ress. 1$.88 As !or the midd eman;s #ro!it, it is e?# ainab e and com# ete % .usti!ied. &he insured remain members o! the association !or the reco"er% o! their osses. But a com#an% has ste##ed in that o!!ers them the !o owin' ad"anta'es: !irst, it remo"es the e ement o! ris( to which the% were sti e?#osed< second, it !rees them !rom a troub e or abor that their osses mi'ht entai . &hese are ser"ices. Bow, ser"ice !or ser"ice. &he !act that the #ro#osa is wi in' % acce#ted and #aid !or is #roo! that the com#an% is #er!ormin' a ser"ice o! de!inite "a ue. &he socia ists are mere % bein' ridicu ous when the% rant a'ainst the midd eman. 4oes he im#ose his ser"ices b% !orceK Has he other means at his dis#osa than to sa%: 57 sha cost %ou somethin' in the wa% o! #ains, but 7 sha sa"e %ou more5K How, then, can he be ca ed a #arasite, or e"en a midd emanK 1$.89

90F &here!ore, 7 dec are that the association thus trans!ormed is in a #osition to im#ro"e in e"er% wa%. 1$.8$ 7n !act, the com#anies, in the ho#e o! rea i1in' #ro!its #ro#ortiona to the e?tent o! their business, tr% constant % !or new accounts. &he% ha"e a'ents e"er%where, the% e?tend credit, the% in"ent count ess new co"era'es in order to increase the number o! #o ic%ho ders, that is, o! associated #arties. &he% insure man%, man% ris(s that were not co"ered b% the ori'ina mutua association. 7n short, the association steadi % increases so as to inc ude more #eo# e and more thin's. As this e?#ansion continues, it a ows the com#anies to ower their rates< the% are, in !act, !orced to do so b% com#etition. And here a'ain we encounter the 'reat aw: the bene!it soon s i#s throu'h the hands o! the #roducer and u timate % comes to rest with the consumer. 1$.85 Bor is this a . &he com#anies ta(e out insurance on one another in the !orm o! reinsurance< so that, as !ar as reco"er% o! osses is concerned, which is the heart o! the matter, a thousand di!!erent com#anies, o#eratin' in En' and, France, 0erman%, and America, !orm a sin' e 'reat cor#oration. And what is the resu tK 7! a house ha##ens to burn in Bordeau?, /aris, or an%where e se, homeowners !rom a o"er the wor dEn' ishmen, Be 'ians, 0ermans, 2#aniards-ha"e their assessment read% and are #re#ared to ma(e 'ood the oss. 1$.8A &his is an e?am# e o! the #ower, the sco#e, the #er!ection, that a !ree and "o untar% association can attain. But in order to do so, it must be !ree to choose its own methods. Bow, what ha##ened when the socia ists, those 'reat de"otees o! association, were in #owerK &he% !ound nothin' more ur'ent to do than to browbeat associations o! e"er% descri#tion, and insurance associations in #articu ar. And wh%K For the "er% reason that in order to o#erate on a wor d-wide basis, insurance com#anies !o ow the #rocedure o! a owin' e"er% one o! their members to remain inde#endent. How itt e these #oor socia ists understand the socia mechanismJ &he% want to ta(e us bac( to the !irst uncertain ste#s ta(en b% societ% in its in!anc%, to the #rimiti"e and a most sa"a'e !orms o! association. &he% wou d su##ress a #ro'ress on the 'round that it has de#arted !rom these !orms. 1$.8E >e sha see that, because o! these same #re.udices, this same i'norance, the% rai constant % a'ainst interest, or e se a'ainst wa'es, which are !i?ed !orms, and there!ore hi'h % de"e o#ed, !or the #a%ment o! what is due ca#ita and abor. 1$.88 &he wa'e s%stem #articu ar % has been the ob.ect o! the socia ists; attac(. &he% ha"e a most 'one so !ar as to #resent it as somethin' hard % ess crue than s a"er% or ser!dom. 7n an% case, the% ha"e "iewed it as an o##ressi"e and one-sided arran'ement ha"in' on %

910 the semb ance o! ibert%, as e?# oitation o! the wea( b% the stron', as t%rann% e?ercised b% ca#ita o"er abor. 1$.8F &hou'h e"er astin' % wran' in' with one another o"er the new institutions the% wou d i(e to estab ish, the% e"ince a stri(in' unanimit% in their common hatred o! e?istin' institutions, and the wa'e s%stem most o! a < !or, i! the% cannot reach a'reement on the socia order o! their choice, we must at east 'i"e them their due in that the% a wa%s see e%e to e%e in abusin', de# orin', s anderin', hatin', and 'eneratin' hatred !or an%thin' that actua % e?ists. 7 ha"e stated e sewhere the reasons !or this attitude.GG55 1$.90 6n!ortunate %, a this did not remain a #ure % academic Cuestion< !or socia ist #ro#a'anda, aided and abetted b% a wea( and i'norant #ress, which, without admittin' its socia ist s%m#athies, ne"erthe ess sou'ht to curr% #o#u ar !a"or b% its sensationa tirades, has succeeded in ins#irin' hatred !or the wa'e s%stem e"en amon' the wa'e earners. &he wor(ers ha"e become dissatis!ied with this !orm o! remuneration. 7t a##ears to them un.ust, humi iatin', odious. &he% !ee that it brands them with the mar( o! ser"itude. &he% desire to share b% other means in the distribution o! wea th. From this #oint to becomin' in!atuated with the most e?tra"a'ant uto#ias is on % a ste#, and this ste# has been ta(en. 7n the Februar% ,e"o ution the 'reat #reoccu#ation o! the wor(ers was to 'et rid o! the wa'e s%stem. For the means o! doin' so the% consu ted their 'ods< but on the occasions when the 'ods did not remain si ent, their oracu ar utterances were, as is customar%, an%thin' but c ear, thou'h the 'reat word 5association5 did #redominate, as i! association and wa'es were mutua % e?c usi"e. &hen the wor(ers #ro#osed to tr% a the !orms o! this association that was su##osed to brin' them ibert%, and, to ma(e it the more attracti"e, the% in"ested it with a the charms o! 5so idarit%5 and attributed to it a the merits o! 5brotherhood.5 For the moment, one wou d ha"e thou'ht that the human heart itse ! was about to under'o a 'reat trans!ormation and, sha(in' o!! the %o(e o! se !interest, wou d hence!orth be 'uided b% nothin' ess than the #urest !orms o! se !sacri!ice. 2tran'e contradictionJ /eo# e ho#ed to recei"e, b% wa% o! association, at once the ' or% o! se !-sacri!ice and the en.o%ment o! #ro!its hitherto un(nown. >hi e the% raced mad % a!ter !ortune, the% demanded that the% be awarded, or rather the% awarded themse "es, the #a m o! mart%rdom. A##arent % these mis'uided wor(ers, on the "er'e o! bein' swe#t a on' on the #ath o! in.ustice, !e t the need o! de udin' themse "es, o! ' ossin' o"er with idea ism the essons in # under that their a#ost es had tau'ht them, and o! co"erin' them with a "ei be!ore o!!erin' them u# in the sanctuar% o! a new re"e ation. /erha#s ne"er be!ore had so man% dan'erous errors, such 'ross contradictions, ta(en such a ho d u#on the human mind. 1$.91 )et us see, then, what wa'es are. )et us oo( at their ori'in, their !orm, and their e!!ects. )et us reco'ni1e wh% the% were created< et us determine whether in the de"e o#ment o! humanit% the% re#resent a ste# bac(ward or !orward. )et us ascertain whether or not the% are essentia % humi iatin', de'radin', bruta i1in'< and whether it is #ossib e to discern their a e'ed connection with s a"er%.


1$.98 2er"ices are e?chan'ed !or ser"ices. >hat is o!!ered and acce#ted in e?chan'e is abor, e!!ort, #ains, troub e, natura or acCuired s(i s< what is transmitted are satis!actions< what determines the e?chan'e is mutua ad"anta'e< and what measures it is the !ree e"a uation o! reci#roca ser"ices. &he "arious arran'ements to which human transactions ha"e 'i"en rise ha"e necessitated a "er% ar'e economic "ocabu ar%, but the words 5#ro!it,5 5interest,5 5wa'es,5 a thou'h the% e?#ress di!!erent shades o! meanin', do not chan'e the rea nature o! thin's. 7t is a wa%s the do ut des, or rather the !acio ut !aciasG108 which, as !ar as the science o! economics is concerned, !orms the basis o! a human e"o ution. 1$.99 >a'e earners are no e?ce#tion to this aw. 3onsider care!u %. 4o the% #er!orm ser"icesK 6ndoubted %. 4o the% recei"e ser"icesK &he% do indeed. Are these ser"ices e?chan'ed !ree %, "o untari %K 4o we #ercei"e !raud or "io ence in this t%#e o! transactionK 7t is at this #oint, #erha#s, that the com# aints o! the wor(ers be'in. &he% do not 'o so !ar as to contend that the% ha"e been de#ri"ed o! their !reedom, but the% dec are that this !reedom is #ure % nomina and e"en a moc(er%, !or the #erson whose decisions are determined b% necessit% is not !ree in !act. 7t remains to be seen whether the ac( o! !reedom thus understood is not the resu t o! the wor(er;s situation rather than o! the manner in which he is #aid. 1$.9$ >hen a man contributes the stren'th and s(i o! his hands to another;s ser"ice, his #a%ment ma% consist o! a share in the thin' #roduced or e se in a !i?ed wa'e. 7n the one case as in the other, he must bar'ain o"er this share-!or it ma% be ar'er or sma er-or !or this wa'e-!or it ma% be hi'her or ower. And i! the man is in abso ute want, i! he cannot wait, i! he is under the s#ur o! ur'ent necessit%, he wi submit to its aw< he wi not be ab e to resist the conditions aid down b% the man !or whom he is to wor(. But it must be noted that it is not the !orm o! his #a%ment that #uts him in this state o! de#endenc%. >hether he runs the ris( o! bein' #aid accordin' to the outcome o! the enter#rise, or whether he contracts !or a !i?ed wa'e, it is his #recarious situation that has #ut him at a disad"anta'e in the bar'ainin'. &he inno"ators who ha"e #resented the wor(ers with the idea o! association as an in!a ib e cure ha"e there!ore decei"ed them and themse "es as we . &he% can con"ince themse "es o! this !act b% obser"in' care!u % situations in which the im#o"erished wor(er recei"es a share o! the #roduce rather than a wa'e. 3ertain % there are no men in France more wretched % #oor than the !ishermen and the "ine%ard wor(ers in m% nati"e #ro"ince o! Bearn, a thou'h the% ha"e the honor o! en.o%in' a the bene!its o! what the socia ists e?c usi"e % term association. 1$.95 But be!ore inCuirin' into the in! uences that determine the rate at which wa'es are set, 7 must de!ine, or rather describe, the nature o! this transaction. 1$.9A

918 +en ha"e a natura tendenc%-and conseCuent % one that is bene!icia , mora , uni"ersa , and indestructib e-to desire securit% in re'ard to their means o! e?istence, to see( stabi it%, and to a"oid ris( and uncertaint%. 1$.9E Be"erthe ess, in the ear iest sta'es o! societ% ris( and uncertaint% he d, so to s#ea(, abso ute swa%< and 7 ha"e o!ten been ama1ed that #o itica econom% has !ai ed to #oint out the 'reat #ro'ress that has been achie"ed in constant % essenin' their in! uence on human a!!airs. 1$.98 For e?am# e, in a sma communit% o! hunters, in a nomadic tribe, or a new % estab ished co on%, who can #redict with certaint% what one;s abor wi be worth tomorrowK 4oes there not e"en seem to be a !undamenta con! ict between these two ideas, !or cou d there be an%thin' more uncertain than the resu ts o! abor de"oted to huntin', !ishin', and a'ricu tureK 1$.9F &here!ore, it wou d be di!!icu t to !ind, in the ear % #eriod o! an% societ%, an%thin' resemb in' sa aries, retainers, sti#ends, wa'es, incomes, rents, interest #a%ments, insurance #remiums, etc., a o! which are thin's in"ented to 'i"e more stabi it% to the status o! the indi"idua , to remo"e !rom man(ind as much as #ossib e that #ain!u sense o! uncertaint% and an?iet% in re'ard to the means o! e?istence. 1$.$0 &he #ro'ress that has been made in this direction is tru % remar(ab e, e"en thou'h custom has so !ami iari1ed us with the !act that we !ai to notice it. And %et, since the resu ts obtained b% abor, and conseCuent % the consum#tion o! #roducts b% man(ind, can be so #ro!ound % modi!ied b% the course o! e"ents, b% une?#ected circumstances, i(e Bature;s whims, inc ement weather, and disasters o! a (inds, how does it ha##en that so man% men !ind that, than(s to !i?ed wa'es, rents, sa aries, #ensions, the% are e?em#t, !or a time, and some !or i!e, !rom that uncertaint% which seems to !orm a #art o! our "er% natureK 1$.$1 &he cause, the moti"e #ower, o! this wonder!u e"o ution b% man(ind is to be !ound in the tendenc% o! a men to stri"e toward the attainment o! their we -bein', to which stabi it% is so essentia . &he means consists in the substitution o! the !i?ed contractua #a%ment co"erin' ca cu ab e ris(s !or the ear ier !orm o! association wherein a members are iab e !or a ris(s o! the enter#rise-in other words, the creation o! a more e!!icient association. 7t is curious, to sa% the east, that our 'reat modern re!ormers wou d ha"e us be ie"e that association is disso "ed b% the #resence o! the "er% e ement that actua % im#ro"es it. 1$.$8 For certain men to be wi in' to bind themse "es b% contract to assume certain ris(s that natura % !a on others, some de'ree o! #ro'ress must ha"e been made in a s#ecia !ie d

919 o! (now ed'e that 7 ha"e ca ed e?#erimenta statistics< !or the% must be ab e throu'h e?#erience to a##raise, at east a##ro?imate %, these ris(s, and conseCuent % the "a ue o! the ser"ices the% render those !or whom the% ta(e this res#onsibi it%. &hat is wh% the transactions and associations o! #rimiti"e and i'norant #eo# es do not #ermit o! #ro"isions o! this nature, and wh%, there!ore, ris( and uncertaint%, as 7 ha"e said, ho d !u swa% o"er them. 7! a sa"a'e who is 'ettin' a on' in %ears and has a certain su## % o! 'ame aid u# en'a'es a %oun' h