Chapter I: C D (5)
A third consequence of human perfectibility we must notice here, because it tends to modify the doctrine of Malthus in its most afflicting phase. The formula which we have attributed to that economist is, that “Population tends to keep on a level with the means of subsistence.” We should say that he has gone much farther, and that his true formula, that from which he has drawn his most distressing conclusions, is this: “Population tends ‹to go beyond› the means of subsistence.” Had Malthus by this simply meant to say that in the human race the power of propagating life is superior to the power of sustaining life, there could have been no controversy. But this is not what he means. He affirms that, taking into account absolute fecundity on the one hand, and, on the other, limitation, as manifested in the two forms, repressive and preventive, the result is still the tendency of population to go beyond the means of subsistence.[91] This holds true of every species [p416] of living creatures, except the human race. Man is an intelligent being, and can make an unlimited use of the preventive check. He is perfectible, seeks after improvement, and shuns deterioration. Progress is his normal state, and progress presupposes a more and more enlightened exercise of the preventive check; and then ‹the means of existence increase more rapidly than population›. This effect not only flows from the principle of perfectibility, but is confirmed by ‹fact›, since on all sides the range of satisfactions is extended. Were it true, as Malthus asserts, that along with every addition to the means of subsistence there is a still greater addition to the population, the misery of our race would be fatally—inevitably—progressive; society would begin with civilisation and end with barbarism. The contrary is the fact; and we must conclude that the law of limitation has had sufficient force to restrain the multiplication of men, and keep it below the multiplication of products.
It may be seen from what has been said how vast and how difficult the question of population is. We may regret, no doubt, that a precise formula has not been given to it, and we regret still more that we find ourselves unable to propose one. But we may see how repugnant the narrow limits of a dogmatic axiom are to such a subject. It is a vain endeavour to try to express, in the form of an inflexible equation, the relations of data so essentially variable. Allow me to recapitulate these data.
(1.) ‹The law of increase or multiplication.›—The absolute, virtual, physiological power which resides in the human race to propagate life, apart from the consideration of the difficulty of sustaining life. This first datum, the only one susceptible of anything like precision, is the only one in which precision is superfluous; for what matters it where the superior limit of multiplication is placed in the hypothesis, if it can never be attained in the actual condition of man, which is to sustain life with the sweat of his brow.
(2.) There is a ‹limit›, then, to the law of multiplication. What is that limit? The means of existence, it is replied. But what are the means of existence? The aggregate of satisfactions or enjoyments, which cannot be exactly defined. They vary with times, places, races, ranks, manners, opinions, habits, and consequently the limit we are in search of is shifted or displaced.
(3.) Last of all, it may be asked, in what consists the force which [p417] restrains population within this limit, which is itself movable? As far as man is concerned, it is twofold: a force which ‹represses›, and a force which ‹prevents›. Now, the action of the first, incapable as it is in itself of being accurately measured, is, moreover, entirely subordinated to the action of the second, which depends on the degree of civilisation, on the power and prevalence of habits, on the tendency of political and religious institutions, on the organization of property, of labour, of family relations, etc. Between the law of multiplication and the law of limitation, then, it is impossible to establish an equation from which could be deduced the actual population. In algebra ‹a› and ‹b› represent determinate quantities which are numbered and measured, and of which we can fix the proportions; but ‹means of existence›, ‹moral government of the will›, ‹inevitable action of mortality›, these are the three data of the problem of population, data which are flexible in themselves, and which partake somewhat, moreover, of the astonishing flexibility of the subject to which they have reference—man—that being whom Montaigne describes as so fluctuating and so variable. It is not surprising, then, that in desiring to give to this equation a precision of which it is incapable, economists have rather divided men’s minds than brought them into unison, and this because there is not one of the terms of their formulas which is not open to a multitude of objections, both in reasoning and in fact.
We shall now proceed to say something on the practical application of the doctrine of population, for application not only elucidates doctrine, but is the true fruit of the tree of science.
Labour, as we have said, is the only subject of exchange. In order to obtain utility (unless the utility which nature gives us gratuitously), we must be at the pains to produce it, or remunerate another who takes the pains for us. Man creates, and can create, nothing; he arranges, disposes, or transports things for a useful purpose; he cannot do this without exertion, and the result of this exertion becomes his property. If he gives away his property, he has right to recompense, in the shape of a service which is judged equivalent after free discussion. Such is the principle of value, of remuneration, of exchange—a principle which is not the less true because it is simple. Into what we denominate ‹products›, there enter divers degrees of ‹natural utility›, and divers degrees of ‹artificial utility›; the latter, which alone implies labour, is alone the subject of human bargains and transactions; and without questioning in the least the celebrated and suggestive formula of J. B. Say, that “products are exchanged for products,” I esteem it more [p418] rigorously scientific to say that ‹labour is exchanged for labour›, or, better still, that ‹services are exchanged for services›.
It must not be inferred from this, however, that quantities of labour are exchanged for each other in the ratio of their duration or of their intensity; or that the man who transfers to another an hour’s labour, or even the man who labours with the greatest intensity, who, as it were, pushes the needle of the dynamometer up to 100 degrees, can always stipulate for an equal effort in return. ‹Duration› and ‹intensity› are, no doubt, two of the elements taken into account in the appreciation of labour; but they are not the only ones; for we must consider, besides, that labour may be more or less repugnant, dangerous, difficult, intelligent, that it may imply more or less foresight, and may even be more or less successful. When transactions are free, and property completely secured, each has entire control over his own labour, and, consequently, need only dispose of it at his own price. The limit to his compliance is the point at which it is more advantageous to reserve his labour than to exchange it; the limit to his exactions is the point at which the other party to the bargain finds it his interest not to make the exchange.
There are in Society as many ‹strata›, if I may use the expression, as there are degrees in the scale of remuneration. The worst remunerated of all labour is that which approximates most nearly to brute force. This is an arrangement of Providence which is just, useful, and inevitable. The mere manual labourer soon reaches that ‹limit to his exactions› of which I have just spoken, for everybody can perform this kind of muscular automatic labour; and the ‹limit to his compliance› is also soon reached, for he is incapable of the intelligent labour which his own wants require. ‹Duration› and ‹intensity›, which are attributes of matter, are the sole elements of the remuneration of this species of unskilled material labour; and that is the reason why it is usually paid ‹by the day›. All industrial progress consists in this, namely, in replacing in each product a certain amount of ‹artificial›, and, consequently, ‹onerous utility›, by the same amount of ‹natural›, and, therefore, ‹gratuitous utility›. Hence it follows that if there be one class of society more interested than another in free competition, it is the labouring class. What would be the fate of these men if natural agents, and new processes and instruments of production, were not brought continually, by means of competition, to confer ‹gratuitously›, on all, the results of their co-operation? The mere day-labourer knows not how to make available in the production of the commodities he has occasion for, heat, gravitation, or elasticity; [p419] nor can he discover the processes, nor does he possess the instruments, by which these forces are rendered useful. When such discoveries are new, the labour of inventors, who are men of the highest intelligence, is well remunerated; in other words, that labour is the equivalent of a large amount of rude unskilled labour; or, again, to change the expression, his product is ‹dear›. But competition interposes, the product falls in price, the co-operation of natural agents is no longer profitable to the producer, but to the consumer, and the labour which has made them available approximates, as regards remuneration, to that labour which is estimated by mere duration. Thus, the common fund of gratuitous wealth goes on constantly increasing. Products of every kind tend, day after day, to become again invested,—and they are in reality invested,—with that condition of ‹gratuitousness› which characterizes our supply of air, and light, and water. The general level of humanity thus continues to rise, and to equalize itself; and, apart from the operation of the law of population, the lowest class of society is that whose amelioration is virtually the most rapid. We have said, apart from the operation of the law of population; and this brings us back to the subject we are now examining.
Figure to yourself a basin into which an orifice which is constantly enlarging admits a constantly increasing supply of water. If we look only to this circumstance, we conclude that the level of the water in the basin is continually rising. But if the sides of the basin are flexible, and capable of contracting and expanding, it is evident that the height of the water will depend on the manner in which this new circumstance is combined with the other. The level of the water will sink, however great may be the supply running into the basin, if the capacity of the basin itself is enlarged still more rapidly. It will rise, if the circle of the reservoir is enlarged only proportionally and very slowly, higher still if it remain fixed, and highest of all if it is narrowed or contracted.
This is a picture of the social class whose destinies we are now considering, and which constitutes, it must be allowed, the great mass of mankind. The water which comes into the basin through the elastic orifice represents their remuneration, or the objects fitted to supply their wants and to sustain life. The flexibility of the sides of the basin represents the movement of population. It is certain[92] that the means of existence overtake our population in a constantly increasing progression, but then it is equally certain that their numbers may increase in a still superior progression. The life of this class, then, will be more or less happy, more or less [p420] comfortable, according as the law of limitation, in its moral, intelligent, and preventive form, shall circumscribe, to a greater or less extent, the absolute law of multiplication. There is a limit to the increase of the numbers of the working class. That limit is the point at which the progressive fund of remuneration becomes insufficient for their maintenance. But there is no limit to their possible amelioration, because of the two elements which constitute it, the one, wealth, is constantly increasing, and the other, population, is under their own control.
What we have just said with reference to the lowest social grade, the class of mere manual labourers, is applicable also to each of the superior grades, when classified in relation to one another, in an inverse proportion, so to speak, to the rudeness and materiality of their occupations. Taking each class simply by itself, all are subjected to the same general laws. In all there is a struggle between the physiological power of multiplication, and the moral power of limitation. The only respect in which one class differs from another is with reference to the point where these two forces meet, the height to which the limit between the two laws may be raised by remuneration or be fixed by the habits of the labourers—this limit we have denominated the ‹means of existence›.
But if we consider the various classes, no longer each by itself, but in their reciprocal relations, I think we can discern the influence of two principles acting in an inverse sense, and this without doubt is the explanation of the actual condition of mankind. We have shown how all the economic phenomena, and especially the law of competition, tend to an equality of conditions. Theoretically this appears to us incontestable. Seeing that no natural advantage, no ingenious process, none of the instruments by which such processes are made available, can remain permanently with producers, as such; and seeing that the results of such natural advantages or discoveries, by an irresistible law of Providence, tend to become the common, gratuitous, and, consequently, equal, patrimony of all men, it is evident that the poorest class is the one which derives the greatest ‹relative› profit from this admirable arrangement of the laws of the social economy. Just as the poor man is as liberally treated as the rich man with reference to the air he breathes, in the same way he becomes equal to the rich man, as regards all that portion of the value of commodities which progress is constantly annihilating. Essentially, then, the human race has a very marked tendency towards ‹equality›. I do not speak of a tendency of aspiration, but a tendency of realization. And yet equality is not realized, or is realized so slowly, that in comparing two distant [p421] epochs we are scarcely sensible of the progress. Indeed we are so little sensible of it, that many able men deny it altogether, although in this they are certainly mistaken. Now, what is the cause which retards this fusion of classes on a common and progressive level?
In searching for the cause we need not, I think, look farther than the various degrees of ‹foresight› which each class exercises as regards the increase of population. The law of limitation, as has been already said, in as far as it is ‹moral› and ‹preventive›, we have under our own control. Man, as we have also said, is perfectible, and in proportion to his progress in improvement, he pays a more intelligent regard to this law. The superior classes, then, in proportion as they are more enlightened, are led to make greater exertions, and submit to greater sacrifices, in order to maintain their respective numbers on a level with the means of existence which their position in society demands.
Were we sufficiently far advanced in statistics, we should probably have this theoretical deduction converted into certainty, and have it proved by fact that marriages are less hasty and precocious among the higher than among the lower classes of society. If it be so, it is easy to see that in the general market, to which all classes bring their respective services, and in which labour of every kind is the subject of exchange, unskilled labour will be supplied in greater abundance than skilled labour; and this explains the continuance of that inequality of conditions, which so many, and such powerful, causes of another kind tend constantly to efface.
The theory which we have now briefly explained leads us to the practical conclusion that the best forms of philanthropy, the best social institutions, are those which, while acting in accordance with the Providential plan, as revealed to us by the social harmonies—I mean the plan of progressive equality—shall cause to descend among all ranks of society, and especially the lowest ranks, knowledge, discretion, morality, and foresight.
I say institutions, because, in fact, foresight results as much from the necessities of position as from resolutions purely intellectual. There are certain organizations of property, or, I should rather say, of industry, which are more favourable than others to what economists call a knowledge of the market, and, consequently, to ‹foresight›. It seems certain, for example, that ‹métayage› is much more efficacious than ‹fermage›[93] (the latter necessitating [p422] the employment of day labourers) in interposing a preventive obstacle to the exuberance of population among the lower classes. A family of ‹métayers› is in a much more likely situation than a family of day-labourers to experience the inconveniences of hasty marriages and improvident multiplication.
I have also used the expression, “forms of philanthropy.” In fact, almsgiving may effect a local and present good, but its influence must be limited even where it is not prejudicial to the happiness of the labouring classes; for it does not develop, but, on the contrary, may paralyze, that virtue which is most fitted to elevate the condition of the labourer, namely, ‹foresight›. To disseminate sound ideas, and, above all, to induce those habits which mark a certain degree of self-respect, is the greatest and most permanent good which we can confer upon the lower orders.
The ‹means of existence›, we cannot too often repeat, do not constitute a fixed quantity; they depend upon the state of manners, of opinion, and of habits. Whatever rank a man holds in the social scale, he has as much repugnance to descend from the position to which he has been accustomed as can be felt by men of an inferior grade. Perhaps there is even greater suffering in the mind of the aristocrat, the noble scions of whose house are lost among the ‹bourgeoisie›, than in that of the citizen whose sons become manual labourers, or in that of manual labourers whose children are reduced to pauperism. The ‹habit›, then, of enjoying a certain amount of material prosperity and a certain rank in life, is the strongest stimulant to the exercise of foresight; and if the working classes shall once raise themselves to the possession of a higher amount of enjoyment, and be unwilling again to descend in the social scale, then, in order to maintain themselves in that position, and preserve wages in keeping with their new habits, they must employ the infallible means of preventive limitation.
It is for this reason that I regard as one of the finest manifestations of philanthropy the resolution which appears to have been taken in England by many of the proprietors and manufacturers, to pull down cottages of mud and thatch, and substitute for them brick houses, neat, spacious, well lighted, well aired, and conveniently furnished. Were such a measure to become general, it [p423] would elevate the tone of the working classes. It would convert into real wants what are nowadays regarded as comparative luxuries; it would raise that limit which we have denominated the ‹means of existence›, and, by consequence, the ‹standard of remuneration›, from its present low rate. And why not? The lower orders in civilized countries are much above the lower orders among savages. They have raised themselves so far; and why should they not raise themselves still more?
We must not, however, deceive ourselves on this subject; progress can be but very slow, since to some extent it must be ‹general›. In certain parts of the world it might perhaps be realized rapidly if the people exercised no influence over each other; but this is not so. There is a great law of solidarity for the human race, in progress as well as in deterioration. If in England, for example, the condition of the working classes were sensibly improved, in consequence of a general rise of wages, French industry would have more chances of surpassing its rival, and by its advance would moderate the progressive movement manifested on the other side of the Channel. It would seem that, beyond certain limits, Providence has not designed that one people should rise above another. And thus, in the great aggregate of human society, as in its most minute details, we always find that admirable and inflexible forces tend to confer, in the long-run, on the masses, individual or collective advantages, and to bring back all temporary manifestations of superiority to a common level, which, like that of the ocean when the tide flows, is always equalizing itself and always advancing.
To conclude, perfectibility, which is the distinctive characteristic of man, being given, and the action of competition and the law of limitation being known, the fate of the human race, as regards its worldly destinies, may be thus summed up:—‹1st›, Simultaneous elevation of all the social ranks, or of the general level of humanity; ‹2d›, Indefinite approximation of conditions, and successive annihilation of the distances which separate classes, as far as consistent with absolute justice; ‹3d›, Relative diminution of the numbers of the lowest and highest orders, and extension of intermediate classes. It may be said that these laws must lead to absolute equality. No more than the constant approximation of asymptotical lines can finally load to their junction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* * * * *
This chapter, the greater part of which was written in 1846, does not perhaps express with sufficient clearness the author’s opposition to the ideas of Malthus. [p424]
Bastiat explains here very clearly the unperceived and naturally preventive action of individual motive,—the progressive desire for happiness, the ambition of men to better their condition; and the habit which causes each to regard the competence he has gained as a necessity,—‹an inferior limit of the means of existence›, below which no one would willingly see his family reduced. But this is in some measure the negative view of the law. It only shows that in every society founded upon the institutions of property and family, population ceases to be a ‹danger›.
It remains to be shown that ‹population is in itself a force›, and to prove the necessary increase of productive power which results from the density of population. This, as the author has himself said (p. 113), is the important element neglected by Malthus, and which discloses harmony, where Malthus discovered discordance.
From the premises indicated in the chapter ‹on Exchange›, premises which he proposed to himself to develop in treating of population, the conclusion which Bastiat wished to draw was decidedly anti-Malthusian. We find it stated in one of the last notes which he wrote, and he recommends its being insisted on:—
“In the chapter on Exchange it has been demonstrated that, in a state of isolation, man’s wants surpass his faculties, and that, in the social state, his faculties surpass his wants.
“This excess of faculties over wants proceeds from exchange, which is—association of efforts—separation of occupations.
“Thence an action and a reaction of causes and effects, in a circle of progress which is infinite.
“The superiority of faculties over wants, creating for each generation an excess of wealth, permits it to rear a more numerous offspring. A generation more numerous implies a better and more marked separation of occupations, and a new degree of superiority given to faculties over wants.
“This exhibits an admirable harmony.
“Thus, at a given epoch, the general aggregate of wants being represented by 100, and that of faculties by 110, the excess of 10 is thus divided,—5, for example, goes to the amelioration of men’s condition, to the provoking of wants of a more elevated character, to the development of self-respect, etc.,—and 5 to the augmentation of their numbers.
“The wants of the second generation are 110,—namely, 5 more in quantity, and 5 more in quality.
“But for that very reason (for the double reason of the more complete physical, intellectual, and moral development, and of the greater density of population, which renders production more easy), the faculties have also increased in power. They will be represented, for example, by the figures 120 or 130.
“New excess, new division, etc.
“And let us not fear the ‹trop plein›. The elevation of wants, which is nothing else than the sentiment of dignity, is a natural limit. . . . .”
«Editor.» [p425]
XVII. PRIVATE AND PUBLIC SERVICES.
‹Services› are exchanged for ‹services›.
The ‹equivalence› of ‹services› results from voluntary exchange, and the free bargaining and discussion which precede it.
In other words, each ‹service› rendered to society is ‹worth› as much as any other service of which it constitutes the equivalent, provided ‹supply› and ‹demand› are in all respects perfectly ‹free›.
It is in vain to carp and refine upon it; it is impossible to conceive the idea of value without associating with it the idea of liberty.
When the equivalence of services is not impaired by violence, restriction, or fraud, we may pronounce that ‹justice› prevails.
I do not mean to say that the human race will then have reached the extreme limit of improvement, for liberty does not exclude the errors of individual appreciations—man is frequently the dupe of his judgments and passions, nor are his desires always arranged in the most rational order. We have seen that the value of a service may be appreciated without there being any reasonable proportion between its value and its utility; and this arises from our giving certain desires precedence over others It is the progress of intelligence, of good sense, and of manners, which establishes this fair and just proportion by putting each service, if I may so express myself, in its right moral place. A frivolous object, a puerile show, an immoral pleasure, may have much value in one country, and may be despised or repudiated in another. The equivalence of services, then, is a different thing from a just appreciation of their utility. But still, as regards this, it is liberty and the sense of responsibility which correct and improve our tastes, our desires, our satisfactions, and our appreciations.
In all countries of the world, there exists one class of services, which, as regards the manner in which they are distributed and [p426] remunerated, accomplishes an evolution quite different from that of private or free services. I allude to ‹public services›.
When a want assumes a character so universal and so uniform that one can describe it as a ‹public want›, it may be convenient for those people who form part of the same agglomeration (be it district, province, or country) to provide for the satisfaction of that want by collective action, or a collective delegation of power. In that case, they name functionaries whose duty it is to render to the community, and distribute among them, the service in question, and whose remuneration they provide for by a contribution which is, at least in principle, proportionate to the means of each member of the society.
In reality, the primordial elements of the social economy are not necessarily impaired or set aside by this peculiar form of exchange,—above all, when the consent of all parties is assumed. It still resolves itself into a transmission of efforts, a transmission of services. These functionaries labour to satisfy the wants of the taxpayers, and the taxpayers labour to satisfy the wants of the functionaries. The relative value of their reciprocal services is determined by a method which we shall have afterwards to examine; but the essential principles of the exchange, speaking in the abstract at least, remain intact.
Those authors, then, are wrong, who, influenced by their dislike of unjust and oppressive taxes, regard as ‹lost› all values devoted to the public service.[94] This unqualified condemnation will not bear examination. In so far as ‹loss› or ‹gain› is concerned, the public service, scientifically considered, differs in nothing from ‹private service›. Whether I protect my field myself, or pay a man for protecting it or pay the State for causing it to be protected, there is always a sacrifice with a corresponding benefit. In both ways, no doubt, I lose this amount of labour, but I gain security. It is not a loss, but an exchange.
Will it be said that I give a material object, and receive in return a thing without body or form? This is just to fall back upon the erroneous theory of value. As long as we attribute value to matter, not to services, we must regard every public service as being without value, or lost. Afterwards, when we begin to shift [p427] about between what is true and what is false, on the subject of value, we shift about between what is true and what is false on the subject of taxation.
If taxation is not necessarily a loss, still less is it necessarily spoliation.[95] No doubt, in modern societies, spoliation by means of taxation is perpetrated on a great scale. We shall afterwards see that it is one of the most active of those causes which disturb the equivalence of services and the harmony of interests. But the best way of combating and eradicating the abuses of taxation, is to steer clear of that exaggeration which would represent all taxation as being ‹essentially›, and ‹in itself›, spoliation.
Thus, considered in themselves, in their own nature, in their normal state, and apart from abuses, ‹public services›, like ‹private services›, resolve themselves into pure exchanges.
But the modes in which, in these two forms of exchange, services are compared, bargained for, and transmitted, the modes in which they are brought to an equilibrium or equivalence, and in which their relative value is manifested, are so different in themselves, and in their effects, that the reader will bear with me if I dwell at some length on this difficult subject, one of the most interesting which can be presented to the consideration of the economist and the statesman. It is here, in truth, that we have the connecting link between politics and social economy. It is here that we discover the origin and tendency of the most fatal error which has ever infected the science, the error of confounding society with Government; society being the grand ‹whole›, which includes both private and public services, and Government, the fraction which includes public services alone.
Unfortunately, when, by following the teaching of Rousseau, and his apt scholars the French republicans, we employ indifferently the words Government and Society, we pronounce, implicitly, beforehand, and without examination, that the State can and ought to absorb private exertion altogether, along with individual liberty and responsibility. We conclude that all private services ought to be converted into public services. We conclude that the social order is a conventional and contingent fact which owes its existence to the law. We pronounce the lawgiver [p428] omnipotent, and mankind powerless, as having forfeited their rights.
In fact, we see public services, or governmental action, extended or restrained according to circumstances of time and place, from the Communism of Sparta, or the Missions of Paraguay, to the individualism of the United States, and the centralization of France.
The question which presents itself on the threshold of Politics, as a science, then, is this:—
What are the services which should remain in the domain of private activity? And what are the services which should fall within that of public or collective activity?
The problem, then, is this:—
In the great circle called ‹society›, to trace accurately the inscribed circle called ‹government›.
It is evident that this problem belongs to Political Economy, since it implies the comparative examination of two very different forms of exchange.
This problem once solved, there remains another, namely, what is the best organization of public services? This last belongs to pure Politics, and we shall not enter upon it.
Let us examine, then, first of all, the essential differences by which public and private services are characterized, which is a preliminary inquiry necessary to enable us to fix accurately the line which should divide them.
The whole of the preceding portion of this work has been devoted to exhibit the evolution of ‹private services›. We have had a glimpse of it in this formal or tacit proposition: ‹Do this for me, and I shall do that for you›; which implies, whether as regards what we give away or what we receive, a double and reciprocal consent. We can form no correct notion, then, of barter, exchange, appreciation, value, apart from the consideration of ‹liberty›, nor of liberty apart from ‹responsibility›. In having recourse to exchange, each party consults, on his own responsibility, his wants, his tastes, his desires, his faculties, his affections, his convenience, his entire situation; and we have nowhere denied that to the exercise of free will is attached the possibility of error, the possibility of a foolish and irrational choice. The error belongs not to exchange, but to human imperfection; and the remedy can only reside in responsibility itself (that is to say, in liberty), seeing that liberty is the source of all experience. To establish restraint in the business of exchange, to destroy free will under the pretext that man may err, would be no improvement, unless it were [p429] first proved to us that the agent who organizes the restraint does not himself participate in the imperfection of our nature, and is subject neither to the passions nor to the errors of other men. On the contrary, is it not evident that this would be, not only to displace responsibility, but to annihilate it, at least as regards all that is valuable in its remunerative, retributive, experimental, corrective, and, consequently, progressive character? Again, we have seen that free exchanges, or services voluntarily rendered and received, are, under the action of competition, continually extending the co-operation of gratuitous forces, as compared with that of onerous forces, the domain of community as compared with the domain of property, and thus we have come to recognise in liberty that power which promotes progressive equality, or social harmony.
We have no need to describe the form which exchanges assume when thus left free. Restraint takes a thousand shapes; liberty has but one. I repeat once more, that the free and voluntary transmission of private services is defined by the simple words: “Give me this, and I will give you that; do this for me, and I shall do that for you”—‹Do ut des; facio ut facias›.[96]
The same thing does not hold with reference to the exchange of ‹public services›. Here ‹constraint› is to a certain extent inevitable, and we encounter an infinite number of different forms, from absolute despotism, down to the universal and direct intervention of all the citizens.
Although this ideal order of things has never been anywhere actually realized, and perhaps may never be so, except in a very elusory shape, we may nevertheless assume its existence. What is the object of our inquiry? We are seeking to discover the modifications which ‹services› undergo when they enter the public domain; and for the purposes of science we must discard the consideration of individual and local acts of violence, and regard the public service simply as such, and as existing under the most legitimate circumstances. In a word, we must investigate the transformation which it undergoes from the single circumstance of its having become public, apart from the causes which have made it so, and of the abuses which may mingle with the means of execution.
The process is this:—
The citizens name mandatories. These mandatories meet, and decide, by a majority, that a certain class of wants—the want of education, for example—can no longer be supplied by free exertions [p430] and free exchanges made by the citizens themselves, and they decree that education shall be provided by functionaries specially delegated and intrusted with the work of instruction. So much for the service ‹rendered›. As regards the services ‹received›, as the State has secured the time and abilities of these new functionaries for the benefit of the citizens, it must also take from the citizens a part of their means for the benefit of the functionaries. This is effected by an assessment or general contribution.
In all civilized communities such contributions are paid in money. It is scarcely necessary to say that behind this money there is labour. In reality, it is a payment in kind. In reality, the citizens work for the functionaries, and the functionaries work for the citizens, just as, in free and private transactions, the citizens work for one another.
We set down this observation here, in order to elude a very widely-spread sophism which springs from the consideration of money. We hear it frequently said that money received by public functionaries falls back like refreshing rain on the citizens. And we are led to infer that this rain is a second benefit added to that which results from the service. Reasoning in this way, people have come to justify the existence of functions the most parasitical. They do not consider that if this service had remained in the domain of private activity, the money (which, in place of going to the treasury, and from the treasury to the functionaries) would have gone directly to men who voluntarily undertook the duty, and in the same way would have fallen back like rain upon the masses. This sophism will not stand examination, when we extend our regards beyond the mere circulation of money, and see that at the bottom it is labour exchanged for labour, services for services. In public life, it may happen that functionaries receive services without rendering any in return; and then there is a loss entailed on the taxpayer, however we may delude ourselves with reference to this circulation of specie.
Be this as it may, let us resume our analysis:—
We have here, then, an exchange under a new form. Exchange includes two terms—‹to give›, and ‹to receive›. Let us inquire then how this transaction, which from being private has become public, is affected in the double point of view of services ‹rendered› and services ‹received›.
In the first place, it is proved beyond doubt that public services always, or nearly always, extinguish, in law or in fact, private services of the same nature. The State, when it undertakes a service, generally takes care to decree that no other body shall render it, [p431] more especially if one of its objects be to derive a revenue from it. Witness the cases of postage, tobacco, gunpowder, etc. Did the State not take this precaution, the result would be the same. What manufacturer would engage to render to the public a service which the State renders for nothing? We scarcely meet with any one who seeks a livelihood by teaching law or medicine privately, by the formation of high-roads, by rearing thoroughbred horses, by founding schools of arts and design, by clearing lands in Algeria, by establishing museums, etc. And the reason is this, that the public will not go to purchase what the State gives it for nothing. As M. de Cormenin has said, the trade of the shoemakers would soon be put an end to, even were it declared inviolable by the first article of the constitution, if Government took it into its head to furnish shoes to everybody gratuitously.
In truth, in the word ‹gratuitous›, as applied to public services, there lurks the grossest and most puerile of sophisms.
For my own part, I wonder at the extreme gullibility of the public in allowing itself to be taken in with this word. What! it is said, do you not wish gratuitous education? gratuitous studs?
Certainly I wish them, and I should also wish to have gratuitous food and gratuitous lodging—if it were possible.
But there is nothing really gratuitous but what costs nothing to any one. Now public services cost something to everybody; and it is just because everybody has paid for them beforehand that they no longer cost anything to the man who receives the benefit. The man who has paid his share of the general contribution will take good care not to pay for the service a second time by calling in the aid of private industry.
Public service is thus substituted for private service. It adds nothing either to the general labour of the nation or to its wealth. It accomplishes by means of functionaries, what would have been effected by private industry. The question, then, is, Which of these arrangements entails the greatest amount of inconvenience? and the solution of that question is the object of the present chapter.
The moment the satisfaction of a want becomes the subject of a public service, it is withdrawn, to a great extent, from the domain of individual liberty and responsibility. The individual is no longer free to procure that satisfaction in his own way, to purchase what he chooses and when he chooses, consulting only his own situation and resources, his means, and his moral appreciations; nor can he any longer exercise his discretion in regard to the order in which he may judge it reasonable to provide for [p432] his various wants. Whether he will or not, his wants are now supplied by the public, and he obtains from society, not that measure of service which he judges useful, as he did in the case of private services, but the amount of service which the Government thinks it proper to furnish, whatever be its quantity and quality. Perhaps he is in want of bread to satisfy his hunger, and part of the bread of which he has such urgent need is withheld from him, in order to furnish him with education, or with theatrical entertainments, which he does not want. He ceases to exercise free control over the satisfaction of his own wants, and having no longer any feeling of responsibility, he no longer exerts his intelligence. Foresight has become as useless to him as experience. He is less his own master; he is deprived, to some extent, of free will, he is less progressive, he is less a man. Not only does he no longer judge for himself in a particular case; he has got out of the habit of judging for himself in any case. The moral torpor which thus gains upon him, gains, for the same reason, on all his fellow-citizens, and in this way we have seen whole nations abandon themselves to a fatal inaction.[97]
As long as a certain class of wants and of corresponding satisfactions remains in the domain of liberty, each, in so far as this class is concerned, lays down a rule for himself, which he can modify at pleasure. This would seem to be both natural and fair, seeing that no two men find themselves in exactly the same situation; nor is there any one man whose circumstances do not vary from day to day. In this way, all the human faculties remain in exercise, comparison, judgment, foresight. In this way, too, every good and judicious resolution brings its recompense and every error its chastisement; and experience, that rude [p433] substitute for foresight, so far at least fulfils its mission that society goes on improving.
But when the service becomes public, all individual rules of conduct and action disappear, and are mixed up and generalized in a written, coercive, and inflexible law, which is the same for all, which makes no allowance for particular situations, and strikes the noblest faculties of human nature with numbness and torpor.
If State intervention deprive us of all self-government with reference to the services we receive from the public, it deprives us in a still more marked degree of all control with reference to the services which we render in return. This counterpart, this supplementary element in the exchange, is likewise a deduction from our liberty, and is regulated by uniform inflexible rules, by a law passed beforehand, made operative by force, and of which we cannot get rid. In a word, as the services which the State renders us are imposed upon us, those which it demands in return are also imposed upon us, and in all languages take the name of ‹imposts›.
And here a multitude of theoretical difficulties and inconveniences present themselves; for practically the State surmounts all obstacles by means of an armed force, which is the necessary sequence of every law. But, to confine ourselves to the theory, the transformation of a private into a public service gives rise to these grave questions:—
Will the State under all circumstances demand from each citizen an amount of taxation ‹equivalent› to the services rendered? This were but fair; and this ‹equivalence› is exactly the result which we almost infallibly obtain from free and voluntary transactions, and the bargaining which precedes them. If the design of the State, then, is to realize this ‹equivalence› (which is only justice), it is not worth while taking this class of services out of the domain of private activity. But equivalence is never thought of, nor can it be. We do not stand higgling and chaffering with public functionaries. The law proceeds on general rules, and cannot make conditions applicable to each individual case. At the utmost, and when it is conceived in a spirit of justice, it aims at a sort of average equivalence, an approximate equivalence, between the two services exchanged. Two principles—namely, the proportionality and the progression of taxation—have appeared in many respects to carry this approximation to its utmost limit. But the slightest reflection will convince us that proportional taxation cannot, any more than progressive taxation, realize the exact equivalence of services exchanged. Public services, after having forcibly deprived the citizens of their liberty, as regards services [p434] both rendered and received, have, then, this farther fault of unsettling the value of these services.
Another, and not less grave, inconvenience is, that they destroy, or at least displace, responsibility. To man responsibility is all-important. It is his mover and teacher, his rewarder and avenger. Without it man is no longer a free agent, he is no longer perfectible, no longer a moral being, he learns nothing, he is nothing. He abandons himself to inaction, and becomes a mere unit of the herd.
If it be a misfortune that the sense of responsibility should be extinguished in the individual, it is no less a misfortune that it should be developed in the State in an exaggerated form. Man, however degraded, has always as much light left him as to see the quarter from whence good or evil comes to him; and when the State assumes the charge of all, it becomes responsible for all. Under the dominion of such artificial arrangements, a people which suffers can only lay the blame on its Government, and its only remedy, its only policy, is to overturn it. Hence an inevitable succession of revolutions. I say inevitable, for under such a ‹régime› the people must necessarily suffer; and the reason of it is that public services, besides disturbing and unsettling values, which is injustice, lead also to the destruction of wealth, which is ruin; ruin and injustice, suffering and discontent—four fatal causes of effervescence in society, which, combined with the displacement of responsibility, cannot fail to bring about political convulsions like those from which we have been suffering for more than half a century.
Without desiring to indulge in digressions, I cannot help remarking, that when things are organized in this fashion, when Government has assumed gigantic proportions by the successive transformation of free and voluntary transactions into public services, it is to be feared that revolutions, which constitute in themselves so great an evil, have not even the advantage of being a remedy, unless the remedy is forced upon us by experience. The displacement of responsibility has perverted public opinion. The people, accustomed to expect everything from the State, never accuse Government of doing too much, but of not doing enough. They overturn it, and replace it by another, to which they do not say, “Do less,” but “Do more;” so that, having fallen into one ditch, they set to work to dig another.
At length the moment comes when their eyes are opened, and it is felt to be necessary to curtail the prerogatives and responsibilities of Government. Here we are stopped by difficulties of another kind. Functionaries alleging ‹vested rights› rise up and [p435] coalesce, and we are averse to bear hard on numerous interests to which we have given an artificial existence. On the other hand, the people have forgotten how to act for themselves. At the moment they have succeeded in reconquering the liberty of which they were in quest, they are afraid of it, and repudiate it. Offer them a free and voluntary system of education:[98] they believe that all science is about to be extinguished. Offer them religious liberty: they believe that atheism is about to invade us,—so often has it been dinned into their ears that all religion, all wisdom, all science, all learning, all morality, resides in the State or flows from it.
But we shall find a place for such reflections elsewhere, and must now return to the argument.
We set ourselves to discover the true part which competition plays in the development of wealth, and we found that it consisted in giving an advantage in the first instance to the producer; then turning this advantage to the profit of the community; and constantly enlarging the domain of the gratuitous, and consequently the domain of equality.
But when private services become public services, they escape competition, and this fine harmony is suspended. In fact, the functionary is divested of that stimulant which urges on to progress, and how can progress turn to the public advantage when it no longer exists? A public functionary does not act under the spur of self-interest, but under the influence of the law. The law says to him, “You will render to the public such or such a determinate service, and you will receive from it in return a determinate recompense.” A little more or a little less zeal has no effect in changing these two fixed terms. On the contrary, private interest whispers in the ear of the free labourer, “The more you do for others, the more others will do for you.” In this case, the recompense depends entirely on the efforts of the workman being more or less intense, and more or less skilful. No doubt ‹esprit de corps›, the desire for advancement, devotion to duty, may prove active stimulants with the functionary; but they never can supply the place of the irresistible incitement of personal interest. All experience confirms this reasoning. Everything which has fallen within the domain of Government routine has remained almost stationary. It is doubtful whether our system of education now is better than it was in the reign of Francis the First; and no one would think of comparing the activity of a government office with the activity of a manufactory. [p436]
In proportion, then, as private services enter into the class of public services, they become, at least to a certain extent, sterile and motionless, not to the injury of those who render these services (their salaries are fixed), but to the detriment of the public at large.
Along with these inconveniences, which are immense, not only in a moral and political, but in an economical point of view—inconveniences which, trusting to the sagacity of the reader, I have only sketched—there is sometimes an advantage in substituting collective for individual action. In some kinds of services, the chief merit is regularity and uniformity. It may happen that, under certain circumstances, such a substitution gives rise to economy, and saves, in relation to a given satisfaction, a certain amount of exertion to the community. The question to be resolved, then, is this: What services should remain in the domain of private exertion? What services should pertain to collective or public exertion? The inquiry, which we have just finished, into the essential differences which characterize these two kinds of services, will facilitate the solution of this important problem.
And, first of all, it may be asked, is there any principle to enable us to distinguish what may legitimately enter the circle of collective action, and what should remain in the circle of private action?
I begin by intimating that what I denominate here ‹public action› is that great organization which has for rule the ‹law›, and for means of execution, ‹force›; in other words, ‹the Government›. Let it not be said that free and voluntary associations display likewise ‹collective exertion›. Let it not be supposed that I use the term private action as synonymous with ‹isolated action›. What I say is, that free and voluntary association belongs still to the domain of private action, for it is one of the forms of exchange, and the most powerful form of all. It does not impair the equivalence of services, it does not affect the appreciation of values, it does not displace responsibilities, it does not exclude free will, it does not destroy competition nor its effects; in a word, it has not ‹constraint› for its principle.
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Harmonies of Political EconomyChapter I: C D (5)
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