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History of Economic Analysis part 20

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In the seventeenth and eighteenth centuries we find, on the one hand, a rich crop of monographs, especially on banks, some of which will have to be noticed later on, and, on the other hand, comprehensive compilations. The same author, in the same work, Appendix C, also reduced to its proper proportions the charge of plagiarism that has been frequently...

History of Economic Analysis part 21

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There are a number of publications that may be considered as general surveys of the economics of the time. We shall confine ourselves to the most widely known of these treatises. The Discourse of the Common Weal contains three dialogues that deal with a wide variety of topics. recommends better training all round, going so far as to consider superiority...

History of Economic Analysis part 22

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In the second place, when one surveys (as the reader should) the five books into which the work is divided—Population, Trade and Industry, Money and Coins, Credit and Debts, and Taxes—one cannot fail to be struck by the number of points that indicate more originality and deeper thought than does the Wealth of Nations. In the theories of population, prices,...

History of Economic Analysis part 23

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18 We are in the oldest part of the building, the part already completed in the Draft. Also, presumably because in his teaching Smith had so often gone over this subject, it is by far the most polished part of the whole. Division of labor itself is attributed to an inborn propensity to truck and its development to the gradual...

History of Economic Analysis part 24

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German seventeenth-century writings of this genus, besides taking, of course, a different view as to policy, were not on this level but there were many of the Cary type or better. If, however, we take due account of this fact, the family likeness of the recommendations with those of Hornigk’s English contemporaries—or even with those of the doctor in the...

History of Economic Analysis part 25

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THE INDIVIDUALS and groups to be discussed in this chapter were also Consultant Administrators, though not of the academic type, and some of them qualify in addition as philosophers of natural law. Except for the great figure of Turgot, which is to come in at the end of the chapter, they have something in common that makes it desirable to...

History of Economic Analysis part 26

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The figures on workmen’s budgets that Cantillon held to justify this estimate were in the lost supplement, but we must in any case credit Cantillon with having made the first important step in this particular field of research that was to develop considerably before the century was over. For the rest, it is not necessary to enter here into criticism...

History of Economic Analysis part 27

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The dogmatizing doctor’s apartment in the entresol of the palace of Versailles was not far from the well of all preferment, Mme de Pompadour’s suite. The ambitious on the lower rungs of the ladder could hardly fail to perceive this fact, and some of them may have thought that an hour’s boredom in the former was a cheap price to...

History of Economic Analysis part 28

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But in capitalist society they are but different aspects of one and the same process: the bulk of capitalist incomes is formed in the course of the transactions that constitute production in the economic, as distinguished from the technological, sense. Nevertheless, the realistic idea of income formation—the realistic virtue of which moreover does not carry any disadvantage that might justify...

History of Economic Analysis part 29

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The second step toward a solution is therefore to find out whether there was not something in the economic and political situation of France that might, ‘objective’ opportunities notwithstanding, suggest pessimism as regards the economic future of the country and thus explain that change in attitude. During practically the whole of the eighteenth century France was fighting a losing battle...

History of Economic Analysis part 30

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One of the most interesting English economists of the late eighteenth century, Anderson, 9 boldly asserted that man’s power to increase the productiveness of his fields was such ‘as to make it keep pace with his population whatever that might be.’ 10. This has been interpreted to spell denial of the law of decreasing returns, Malthus being the first of...

History of Economic Analysis part 31

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Children had always worked with their parents on the farm and, under the system of domestic industry, in the home. The spread of factories merely created new opportunities for the employment of children at a very early age in the tending of simple machines and induced a new practice of binding out the children of paupers to cotton manufacturers in...

History of Economic Analysis part 32

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He did not use the phrase Fallacy of Cheapness of which modern ‘spenders’ are so fond, but it is evident that he meant exactly the same thing. First of all, it is quite clear that both of the opinions envisaged are strongly rooted in the public mind and that the politicians, legislators, and administrators who took action in order to...

History of Economic Analysis part 33

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One of his plans was concerned with a land bank that was to issue legal tender paper money up to a certain proportion of the value of land and to receive as deposits for placement money that would otherwise lie idle, so that money would never be either too cheap or too dear. The landed gentlemen in the House of...

History of Economic Analysis part 34

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But better things were to follow in the eighteenth century. We shall confine ourselves to the peak achievements of Beccaria, Turgot, and Isnard, and then consider the manner in which the Wealth of Nations codified the whole of the value and price theory of the epoch.. 13 He recognized clearly that the exchange ratio is indeterminate in the case of...

History of Economic Analysis part 35

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1 So far as the phenomena to be interpreted are concerned, the bank note is the only one that was added in the course of the sixteenth century—thrusting into the background for about two centuries the oldest form of what came to be called ‘bank money,’ the transferable deposit: even Hume, as late as 1752, spoke of ‘this new invention...

History of Economic Analysis part 36

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The opposite view is well stated in a pamphlet entitled, Interest of Money Mistaken, Or, a Treatise, proving that the Abatement of Interest is the Effect and not the Cause of the Riches of a Nation that appeared in the same year and in Thomas Manley’s Usury at Six per Cent Examined…(1669). But in the end this view prevailed. On...

History of Economic Analysis part 37

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‘nabobs.’ Attacks elicited replies, of which it may be worth while to notice the best example that has come to my notice: John Wheeler’s defense of the Merchants Adventurers—among other things against the bureaucratic spokesmen for regulation who know nothing about business (tout comme chez nous). This work mentioned before in Chapters 3 and 6, entitled A Treatise of Commerce,...

History of Economic Analysis part 38

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with the total labor costs of the corresponding imports. Here we are not concerned with all those writers who considered the possibility of imparting this stimulus by the creation of paper money, but only with those who thought of lubricating the wheels of business by means of the importation of coin and bullion. If the reader observes how very popular...

History of Economic Analysis part 39

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not molested with cyvile warres, the people being wealthie [author’s italics] and not oppressid with famyn nor penury of victualles,’ the last words being clearly intended to illustrate the ‘wealthie.’ Yet he wants an export surplus in order to get an import of bullion. Of seventeenth-century authors, Serra, Misselden, Mun (‘riches consisteth in the possession of those things which are...