Economic Sophisms. Frederic Bastiat

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Economic Sophisms - Frederic  Bastiat

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of every one of us is anti-social. Are we vine-dressers? It would give us no great regret if hail should shower down on all the vines in the world except our own: this is the theory of scarcity. Are we iron-masters? Our wish is, that there should be no other iron in the market but our own, however much the public may be in want of it; and for no other reason than that this want, keenly felt and imperfectly satisfied, shall ensure us a higher price: this is still the theory of scarcity. Are we farmers? We say with M. Bugeaud, Let bread be dear, that is to say, scarce, and agriculturists will thrive: always the same theory, the theory of scarcity.

      Are we physicians? We cannot avoid seeing that certain physical ameliorations, improving the sanitary state of the country, the development of certain moral virtues, such as moderation and temperance, the progress of knowledge tending to enable each man to take better care of his own health, the discovery of certain simple remedies of easy application, would be so many blows to our professional success. In as far as we are physicians, then, our secret wishes would be anti-social. I do not say that physicians form these secret wishes. On the contrary, I believe they would hail with joy the discovery of a universal panacea; but they would not do this as physicians, but as men, and as Christians. By a noble abnegation of self', the physician places himself in the consumer's point of view. But as exercising a profession, from which he derives his own and his family's subsistence, his desires, or, if you will, his interests, are anti-social.

      Are we manufacturers of cotton stuffs? We desire to sell them at the price most profitable to ourselves. We should consent willingly to an interdict being laid on all rival manufactures; and if we could venture to give this wish public expression, or hope to realize it with some chance of success, we should attain our end, to some extent, by indirect means; for example, by excluding foreign fabrics, in order to diminish the supply, and thus produce, forcibly and to our profit, a scarcity of clothing.

      In the same way, we might pass in review all other branches of industry, and we should always find that the producers, as such, have anti-social views. "The shopkeeper," says Montaigne, "thrives only by the irregularities of youth; the farmer by the high price of corn, the architect by the destruction of houses, the officers of justice by lawsuits and quarrels. Ministers of religion derive their distinction and employment from our vices and our death. No physician rejoices in the health of his friends, nor soldiers in the peace of their country; and so of the rest."

      Hence it follows that if the secret wishes of each producer were realized, the world would retrograde rapidly towards barbarism. The sail would supersede steam, the oar would supersede the sail, and general traffic would be carried on by the carrier's waggon; the latter would be superseded by the mule, and the mule by the pedlar. Wool would exclude cotton, cotton in its turn would exclude wool, and so on until the dearth of all things had caused man himself to disappear from the face of the earth.

      Suppose for a moment that the legislative power and the public force were placed at the disposal of Mimeral's committee, and that each member of that association had the privilege of bringing in and sanctioning a favourite law, is it difficult to divine to what sort of industrial code the public would be subjected?

      If we now proceed to consider the immediate interest of the consumer, we shall find that it is in perfect harmony with the general interest, with all that the welfare of society calls for. When the purchaser goes to market, he desires to find it well stocked. Let the seasons be propitious for all harvests; let inventions more and more marvellous bring within reach a greater and greater number of products and enjoyments; let time and labour be saved; let distances be effaced by the perfection and rapidity of transit; let the spirit of justice and of peace allow of a diminished weight of taxation; let barriers of every kind be removed;—in all this the interest of the consumer runs parallel with the public interest. The consumer may push his secret wishes to a chimerical and absurd length, without these wishes becoming antagonistic to the public welfare. He may desire that food and shelter, the hearth and the roof, instruction and morality, security and peace, power and health, should be obtained without exertion, and without measure, like the dust of the highways, the water of the brook, the air which we breathe; and yet the realization of his desires would not be at variance with the good of society.

      It may be said that if these wishes were granted, the work of the producer would become more and more limited, and would end with being stopped for want of aliment. But why? Because, on this extreme supposition, all imaginable wants and desires would be fully satisfied. Man, like Omnipotence, would create all things by a simple act of volition. Well, on this hypotheses, what reason should we have to regret the stoppage of industrial production?

      I made the supposition, not long ago, of the existence of an assembly composed of workmen, each member of which, in his capacity of producer, should have the power of passing a law embodying his secret wish, and I said that the code which would emanate from that assembly would be monopoly systematized, the theory of scarcity reduced to practice.

      In the same way, a chamber in which each should consult exclusively his own immediate interest as a consumer, would tend to systematize liberty, to suppress all restrictive measures, to overthrow all artificial barriers—in a word, to realize the theory of plenty.

      Hence it follows:

      That to consult exclusively the immediate interest of the producer, is to consult an interest which is anti-social.

      That to take for basis exclusively the immediate interest of the consumer, would be to take for basis the general interest.

      Let me enlarge on this view of the subject a little, at the risk of being prolix.

      A radical antagonism exists between seller and buyer.*

      The former desires that the subject of the bargain should be scarce, its supply limited, and its price high.

      The latter desires that it should be abundant, its supply large, and its price low.

      The laws, which should be at least neutral, take the part of the seller against the buyer, of the producer against the consumer, of dearness against cheapness,** of scarcity against abundance.

      * The author has modified somewhat the terms of this

      proposition in a posterior work.—See HarmoniesÉconomiques, chapter xi.—Editor. ** We have not in French a substantive to express the idea opposed to that of dearness (cheapness). It is somewhat remarkable that the popular instinct expresses the idea by this periphrase, marche avantageux, bon marche'. The protectionists would do well to reform this locution, for it implies an economic system opposed to theirs.

      They proceed, if not intentionally, at least logically, on this datum: a nation is rich when it is in want of everything.

      For they say, it is the producer that we must favour by securing him a good market for his product. For this purpose it is necessary to raise the price, and in order to raise the price we must restrict the supply; and to restrict the supply is to create scarcity.

      Just let us suppose that at the present moment, when all these laws are in full force, we make a complete inventory, not in value, but in weight, measure, volume, quantity, of all the commodities existing in the country, which are fitted to satisfy the wants and tastes of its inhabitants—corn, meat, cloth, fuel, colonial products, etc.

      Suppose, again, that next day all the barriers which oppose the introduction of foreign products are removed.

      Lastly, suppose that in order to test the result of this reform, they proceed three months afterwards to make a new inventory.

      Is it not true that there will be found in France more corn, cattle, cloth, linen, iron,

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