[7] "The principle which governs the life of nations is not pure science: it is the total of the complex data which depend on the state of enlightenment, on needs and interests." Thus expressed itself, in December, 1844, one of the clearest minds that France contained, M. Leon Faucher. Explain, if you can, how a man of this stamp was led by his economic convictions to declare that the COMPLEX DATA of society are opposed to PURE SCIENCE.
Thus the division of labor, without which production would be almost nothing, is subject to a thousand inconveniences, the worst of which is the demoralization of the laborer; machinery causes, not only cheapness, but obstruction of the market and stoppage of business; competition ends in oppression; taxation, the material bond of society, is generally a scourge dreaded equally with fire and hail; credit is necessarily accompanied by bankruptcy; property is a swarm of abuses; commerce degenerates into a game of chance, in which it is sometimes allowable even to cheat: in short, disorder existing everywhere to an equal extent with order, and no one knowing how the latter is to banish the former, taxis ataxien diokein, the economists have decided that all is for the best, and regard every reformatory proposition as hostile to political economy.
The social edifice, then, has been abandoned; the crowd has burst into the wood-yard; columns, capitals, and plinths, wood, stone, and metal, have been distributed in portions and drawn by lot: and, of all these materials collected for a magnificent temple, property, ignorant and barbarous, has built huts. The work before us, then, is not only to recover the plan of the edifice, but to dislodge the occupants, who maintain that their city is superb, and, at the very mention of restoration, appear in battle-array at their gates. Such confusion was not seen of old at Babel: happily we speak French, and are more courageous than the companions of Nimrod.
But enough of allegory: the historical and descriptive method, successfully employed so long as the work was one of examination only, is henceforth useless: after thousands of monographs and tables, we are no further advanced than in the age of Xenophon and Hesiod. The Phenicians, the Greeks, the Italians, labored in their day as we do in ours: they invested their money, paid their laborers, extended their domains, made their expeditions and recoveries, kept their books, speculated, dabbled in stocks, and ruined themselves according to all the rules of economic art; knowing as well as ourselves how to gain monopolies and fleece the consumer and laborer. Of all this accounts are only too numerous; and, though we should rehearse forever our statistics and our figures, we should always have before our eyes only chaos,--chaos constant and uniform.
It is thought, indeed, that from the era of mythology to the present year 57 of our great revolution, the general welfare has improved: Christianity has long been regarded as the chief cause of this amelioration, but now the economists claim all the honor for their own principles. For after all, they say, what has been the influence of Christianity upon society? Thoroughly utopian at its birth, it has been able to maintain and extend itself only by gradually adopting all the economic categories,--labor, capital, farm-rent, usury, traffic, property; in short, by consecrating the Roman law, the highest expression of political economy.
Christianity, a stranger in its theological aspect to the theories of production and consumption, has been to European civilization what the trades-unions and free-masons were not long since to itinerant workmen,--a sort of insurance company and mutual aid society; in this respect, it owes nothing to political economy, and the good which it has done cannot be invoked by the latter in its own support. The effects of charity and self-sacrifice are outside of the domain of economy, which must bring about social happiness through justice and the organization of labor. For the rest, I am ready to admit the beneficial effects of the system of property; but I observe that these effects are entirely balanced by the misery which it is the nature of this system to produce; so that, as an illustrious minister recently confessed before the English Parliament, and as we shall soon show, the increase of misery in the present state of society is parallel and equal to the increase of wealth,--which completely annuls the merits of political economy.
Thus political economy is justified neither by its maxims nor by its works; and, as for socialism, its whole value consists in having established this fact. We are forced, then, to resume the examination of political economy, since it alone contains, at least in part, the materials of social science; and to ascertain whether its theories do not conceal some error, the correction of which would reconcile fact and right, reveal the organic law of humanity, and give the positive conception of order.
CHAPTER II.
OF VALUE.
% 1.--Opposition of value in USE and value in EXCHANGE.
Value is the corner-stone of the economic edifice. The divine artist who has intrusted us with the continuation of his work has explained himself on this point to no one; but the few indications given may serve as a basis of conjecture. Value, in fact, presents two faces: one, which the economists call value in USE, or intrinsic value; another, value in EXCHANGE, or of opinion. The effects which are produced by value under this double aspect, and which are very irregular so long as it is not established,--or, to use a more philosophical expression, so long as it is not constituted,--are changed totally by this constitution.
Now, in what consists the correlation between USEFUL value and value in EXCHANGE? What is meant by CONSTITUTED value, and by what sudden change is this constitution effected? To answer these questions is the object and end of political economy. I beg the reader to give his whole attention to what is to follow, this chapter being the only one in the work which will tax his patience. For my part, I will endeavor to be more and more simple and clear.
Everything which can be of any service to me is of value to me, and the more abundant the useful thing is the richer I am: so far there is no difficulty. Milk and flesh, fruits and grains, wool, sugar, cotton, wine, metals, marble; in fact, land, water, air, fire, and sunlight,-- are, relatively to me, values of use, values by nature and function. If all the things which serve to sustain my life were as abundant as certain of them are, light for instance,--in other words, if the quantity of every valuable thing was inexhaustible,--my welfare would be forever assured: I should not have to labor; I should not even think. In such a state, things would always be USEFUL, but it would be no longer true to say that they ARE VALUABLE; for value, as we shall soon see, indicates an essentially social relation; and it is solely through exchange, reverting as it were from society to Nature, that we have acquired the idea of utility. The whole development of civilization originates, then, in the necessity which the human race is under of continually causing the creation of new values; just as the evils of society are primarily caused by the perpetual struggle which we maintain against our own inertia. Take away from man that desire which leads him to think and fits him for a life of contemplation, and the lord of creation stands on a level with the highest of the beasts.
But how does value in use become value in exchange? For it should be noticed that the two kinds of value, although coexisting in thought (since the former becomes apparent only in the presence of the latter), nevertheless maintain a relation of succession: exchangeable value is a sort of reflex of useful value; just as the theologians teach that in the Trinity the Father, contemplating himself through all eternity, begets the Son. This generation of the idea of value has not been noted by the economists with sufficient care: it is important that we should tarry over it.
Since, then, of the objects which I need, a very large number exist in Nature only in moderate quantities, or even not at all, I am forced to assist in the production of that which I lack; and, as I cannot turn my hand to so many things, I propose to other men, my collaborators in various functions, to yield me a portion of their products in exchange for mine. I shall then always have in my possession more of my own special product than I consume; just as my fellows will always have in their possession more of their respective products than they use. This tacit agreement is fulfilled by COMMERCE. Here we may observe that the logical succession of the two kinds of value is even more apparent in history than in theory, men having spent thousands of years in disputing over natural wealth (this being what is called PRIMITIVE COMMUNISM) before their industry afforded opportunity for exchange.
Now, the capacity possessed by all products, whether natural or the result of labor, of serving to maintain man, is called distinctively value in use; their capacity of purchasing each other, value in exchange. At bottom this is the same thing, since the second case only adds to the first the idea of substitution, which may seem an idle subtlety; practically, the consequences are surprising, and beneficial or fatal by turns.
Consequently, the distinction established in value is based on facts, and is not at all arbitrary: it is for man, in submitting to this law, to use it to increase his welfare and liberty. Labor, as an author (M. Walras) has beautifully expressed it, is a war declared against the parsimony of Nature; by it wealth and society are simultaneously created. Not only does labor produce incomparably more wealth than Nature gives us,--for instance, it has been remarked that the shoemakers alone in France produce ten times more than the mines of Peru, Brazil, and Mexico combined,--but, labor infinitely extending and multiplying its rights by the changes which it makes in natural values, it gradually comes about that all wealth, in running the gauntlet of labor, falls wholly into the hands of him who creates it, and that nothing, or almost nothing, is left for the possessor of the original material.
Such, then, is the path of economic progress: at first, appropriation of the land and natural values; then, association and distribution through labor until complete equality is attained. Chasms are scattered along our road, the sword is suspended over our heads; but, to avert all dangers, we have reason, and reason is omnipotence.
It results from the relation of useful value to exchangeable value that if, by accident or from malice, exchange should be forbidden to a single producer, or if the utility of his product should suddenly cease, though his storehouses were full, he would possess nothing. The more sacrifices he had made and the more courage he had displayed in producing, the greater would be his misery. If the utility of the product, instead of wholly disappearing, should only diminish,--a thing which may happen in a hundred ways,--the laborer, instead of being struck down and ruined by a sudden catastrophe, would be impoverished only; obliged to give a large quantity of his own value for a small quantity of the values of others, his means of subsistence would be reduced by an amount equal to the deficit in his sale: which would lead by degrees from competency to want. If, finally, the utility of the product should increase, or else if its production should become less costly, the balance of exchange would turn to the advantage of the producer, whose condition would thus be raised from fatiguing mediocrity to idle opulence. This phenomenon of depreciation and enrichment is manifested under a thousand forms and by a thousand combinations; it is the essence of the passional and intriguing game of commerce and industry. And this is the lottery, full of traps, which the economists think ought to last forever, and whose suppression the Academy of Moral and Political Sciences unwittingly demands, when, under the names of profit and wages, it asks us to reconcile value in use and value in exchange; that is, to find the method of rendering all useful values equally exchangeable, and, vice versa, all exchangeable values equally useful.
The economists have very clearly shown the double character of value, but what they have not made equally plain is its contradictory nature. Here begins our criticism.
Utility is the necessary condition of exchange; but take away exchange, and utility vanishes: these two things are indissolubly connected. Where, then, is the contradiction?
Since all of us live only by labor and exchange, and grow richer as production and exchange increase, each of us produces as much useful value as possible, in order to increase by that amount his exchanges, and consequently his enjoyments. Well, the first effect, the inevitable effect, of the multiplication of values is to LOWER them: the more abundant is an article of merchandise, the more it loses in exchange and depreciates commercially. Is it not true that there is a contradiction between the necessity of labor and its results?
I adjure the reader, before rushing ahead for the explanation, to arrest his attention upon the fact.
A peasant who has harvested twenty sacks of wheat, which he with his family proposes to consume, deems himself twice as rich as if he had harvested only ten; likewise a housewife who has spun fifty yards of linen believes that she is twice as rich as if she had spun but twenty- five. Relatively to the household, both are right; looked at in their external relations, they may be utterly mistaken. If the crop of wheat is double throughout the whole country, twenty sacks will sell for less than ten would have sold for if it had been but half as great; so, under similar circumstances, fifty yards of linen will be worth less than twenty-five: so that value decreases as the production of utility increases, and a producer may arrive at poverty by continually enriching himself. And this seems unalterable, inasmuch as there is no way of escape except all the products of industry become infinite in quantity, like air and light, which is absurd. God of my reason! Jean Jacques would have said: it is not the economists who are irrational; it is political economy itself which is false to its definitions. Mentita est iniquitas sibi.
In the preceding examples the useful value exceeds the exchangeable value: in other cases it is less. Then the same phenomenon is produced, but in the opposite direction: the balance is in favor of the producer, while the consumer suffers. This is notably the case in seasons of scarcity, when the high price of provisions is always more or less factitious. There are also professions whose whole art consists in giving to an article of minor usefulness, which could easily be dispensed with, an exaggerated value of opinion: such, in general, are the arts of luxury. Man, through his aesthetic passion, is eager for the trifles the possession of which would highly satisfy his vanity, his innate desire for luxury, and his more noble and more respectable love of the beautiful: upon this the dealers in this class of articles speculate. To tax fancy and elegance is no less odious or absurd than to tax circulation: but such a tax is collected by a few fashionable merchants, whom general infatuation protects, and whose whole merit generally consists in warping taste and generating fickleness. Hence no one complains; and all the maledictions of opinion are reserved for the monopolists who, through genius, succeed in raising by a few cents the price of linen and bread.
It is little to have pointed out this astonishing contrast between useful value and exchangeable value, which the economists have been in the habit of regarding as very simple: it must be shown that this pretended simplicity conceals a profound mystery, which it is our duty to fathom.
I summon, therefore, every serious economist to tell me, otherwise than by transforming or repeating the question, for what reason value decreases in proportion as production augments, and reciprocally what causes this same value to increase in proportion as production diminishes. In technical terms, useful value and exchangeable value, necessary to each other, are inversely proportional to each other; I ask, then, why scarcity, instead of utility, is synonymous with dearness. For--mark it well--the price of merchandise is independent of the amount of labor expended in production; and its greater or less cost does not serve at all to explain the variations in its price. Value is capricious, like liberty: it considers neither utility nor labor; on the contrary, it seems that, in the ordinary course of affairs, and exceptional derangements aside, the most useful objects are those which are sold at the lowest price; in other words, that it is just that the men who perform the most attractive labor should be the best rewarded, while those whose tasks demand the most exertion are paid the least. So that, in following the principle to its ultimate consequences, we reach the most logical of conclusions: that things whose use is necessary and quantity infinite must be gratuitous, while those which are without utility and extremely scarce must bear an inestimable price. But, to complete the embarrassment, these extremes do not occur in practice: on the one hand, no human product can ever become infinite in quantity; on the other, the rarest things must be in some degree useful, else they would not be susceptible of value. Useful value and exchangeable value remain, then, in inevitable attachment, although it is their nature continually to tend towards mutual exclusion.
I shall not fatigue the reader with a refutation of the logomachies which might be offered in explanation of this subject: of the contradiction inherent in the idea of value there is no assignable cause, no possible explanation. The fact of which I speak is one of those called primitive,--that is, one of those which may serve to explain others, but which in themselves, like the bodies called simple, are inexplicable. Such is the dualism of spirit and matter. Spirit and matter are two terms each of which, taken separately, indicates a special aspect of spirit, but corresponds to no reality. So, given man's needs of a great variety of products together with the obligation of procuring them by his labor, the opposition of useful value to exchangeable value necessarily results; and from this opposition a contradiction on the very threshold of political economy. No intelligence, no will, divine or human, can prevent it.
Therefore, instead of searching for a chimerical explanation, let us content ourselves with establishing the necessity of the contradiction. Whatever the abundance of created values and the proportion in which they exchange for each other, in order that we may exchange our products, mine must suit you when you are the BUYER, and I must be satisfied with yours when you are the SELLER. For no one has a right to impose his own merchandise upon another: the sole judge of utility, or in other words the want, is the buyer. Therefore, in the first case, you have the deciding power; in the second, I have it. Take away reciprocal liberty, and exchange is no longer the expression of industrial solidarity: it is robbery. Communism, by the way, will never surmount this difficulty.
But, where there is liberty, production is necessarily undetermined, either in quantity or in quality; so that from the point of view of economic progress, as from that of the relation of consumers, valuation always is an arbitrary matter, and the price of merchandise will ever fluctuate. Suppose for a moment that all producers should sell at a fixed price: there would be some who, producing at less cost and in better quality, would get much, while others would get nothing. In every way equilibrium would be destroyed. Do you wish, in order to prevent business stagnation, to limit production strictly to the necessary amount?
That would be a violation of liberty: for, in depriving me of the power of choice, you condemn me to pay the highest price; you destroy competition, the sole guarantee of cheapness, and encourage smuggling. In this way, to avoid commercial absolutism, you would rush into administrative absolutism; to create equality, you would destroy liberty, which is to deny equality itself. Would you group producers in a single workshop (supposing you to possess this secret)? That again does not suffice: it would be necessary also to group consumers in a common household, whereby you would abandon the point. We are not to abolish the idea of value, which is as impossible as to abolish labor, but to determine it; we are not to kill individual liberty, but to socialize it. Now, it is proved that it is the free will of man that gives rise to the opposition between value in use and value in exchange: how reconcile this opposition while free will exists? And how sacrifice the latter without sacrificing man?
Then, from the very fact that I, as a free purchaser, am judge of my own wants, judge of the fitness of the object, judge of the price I wish to pay, and that you on the other hand, as a free producer, control the means of production, and consequently have the power to reduce your expenses, absolutism forces itself forward as an element of value, and causes it to oscillate between utility and opinion.
But this oscillation, clearly pointed out by the economists, is but the effect of a contradiction which, repeating itself on a vast scale, engenders the most unexpected phenomena. Three years of fertility, in certain provinces of Russia, are a public calamity, just as, in our vineyards, three years of abundance are a calamity to the wine-grower I know well that the economists attribute this distress to a lack of markets; wherefore this question of markets is an important one with them. Unfortunately the theory of markets, like that of emigration with which they attempted to meet Malthus, is a begging of the question. The States having the largest market are as subject to over-production as the most isolated countries: where are high and low prices better known than in the stock-exchanges of Paris and London?
From the oscillation of value and the irregular effects resulting therefrom the socialists and economists, each in their own way, have reasoned to opposite, but equally false, conclusions: the former have made it a text for the slander of political economy and its exclusion from social science; the latter, for the denial of all possibility of reconciliation, and the affirmation of the incommensurability of values, and consequently the inequality of fortunes, as an absolute law of commerce.
I say that both parties are equally in error.
1. The contradictory idea of value, so clearly exhibited by the inevitable distinction between useful value and value in exchange does not arise from a false mental perception, or from a vicious terminology, or from any practical error; it lies deep in the nature of things, and forces itself upon the mind as a general form of thought,--that is, as a category. Now, as the idea of value is the point of departure of political economy, it follows that all the elements of the science--I use the word science in anticipation--are contradictory in themselves and opposed to each other: so truly is this the case that on every question the economist finds himself continually placed between an affirmation and a negation alike irrefutable. ANTINOMY, in fine, to use a word sanctioned by modern philosophy, is the essential characteristic of political economy; that is to say, it is at once its death-sentence and its justification.
ANTINOMY, literally COUNTER-LAW, means opposition in principle or antagonism in relation, just as contradiction or ANTILOGY indicates opposition or discrepancy in speech. Antinomy,--I ask pardon for entering into these scholastic details, comparatively unfamiliar as yet to most economists,--antinomy is the conception of a law with two faces, the one positive, the other negative. Such, for instance, is the law called ATTRACTION, by which the planets revolve around the sun, and which mathematicians have analyzed into centripetal force and centrifugal force. Such also is the problem of the infinite divisibility of matter, which, as Kant has shown, can be denied and affirmed successively by arguments equally plausible and irrefutable.
Antinomy simply expresses a fact, and forces itself imperatively on the mind; contradiction, properly speaking, is an absurdity. This distinction between antinomy (contra-lex) and contradiction (contra-dictio) shows in what sense it can be said that, in a certain class of ideas and facts, the argument of contradiction has not the same value as in mathematics.
In mathematics it is a rule that, a proposition being proved false, its opposite is true, and vice versa. In fact, this is the principal method of mathematical demonstration. In social economy, it is not the same: thus we see, for example, that property being proved by its results to be false, the opposite formula, communism, is none the truer on this account, but is deniable at the same time and by the same title as property. Does it follow, as has been said with such ridiculous emphasis, that every truth, every idea, results from a contradiction,-- that is, from a something which is affirmed and denied at the same moment and from the same point of view,--and that it may be necessary to abandon wholly the old-fashioned logic, which regards contradiction as the infallible sign of error? This babble is worthy of sophists who, destitute of faith and honesty, endeavor to perpetuate scepticism in order to maintain their impertinent uselessness. Because antinomy, immediately it is misunderstood, leads inevitably to contradiction, these have been mistaken for each other, especially among the French, who like to judge everything by its effects. But neither contradiction nor antinomy, which analysis discovers at the bottom of every simple idea, is the principle of truth. Contradiction is always synonymous with nullity; as for antinomy, sometimes called by the same name, it is indeed the forerunner of truth, the material of which, so to speak, it supplies; but it is not truth, and, considered in itself, it is the efficient cause of disorder, the characteristic form of delusion and evil.
An antinomy is made up of two terms, necessary to each other, but always opposed, and tending to mutual destruction. I hardly dare to add, as I must, that the first of these terms has received the name thesis, position, and the second the name anti-thesis, counter-position. This method of thought is now so well-known that it will soon figure, I hope, in the text-books of the primary schools. We shall see directly how from the combination of these two zeros unity springs forth, or the idea which dispels the antinomy.
Thus, in value, there is nothing useful that cannot be exchanged, nothing exchangeable if it be not useful: value in use and value in exchange are inseparable. But while, by industrial progress, demand varies and multiplies to an infinite extent, and while manufactures tend in consequence to increase the natural utility of things, and finally to convert all useful value into exchangeable value, production, on the other hand, continually increasing the power of its instruments and always reducing its expenses, tends to restore the venal value of things to their primitive utility: so that value in use and value in exchange are in perpetual struggle.
The effects of this struggle are well-known: the wars of commerce and of the market; obstructions to business; stagnation; prohibition; the massacres of competition; monopoly; reductions of wages; laws fixing maximum prices; the crushing inequality of fortunes; misery,--all these result from the antinomy of value. The proof of this I may be excused from giving here, as it will appear naturally in the chapters to follow.
The socialists, while justly demanding that this antagonism be brought to an end, have erred in mistaking its source, and in seeing in it only a mental oversight, capable of rectification by a legal decree. Hence this lamentable outbreak of sentimentalism, which has rendered socialism so insipid to positive minds, and which, spreading the absurdest delusions, makes so many fresh dupes every day. My complaint of socialism is not that it has appeared among us without cause, but that it has clung so long and so obstinately to its silliness.
2. But the economists have erred no less gravely in rejecting a priori, and just because of the contradictory, or rather antinomical, nature of value, every idea and hope of reform, never desiring to understand that, for the very reason that society has arrived at its highest point of antagonism, reconciliation and harmony are at hand. This, nevertheless, is what a close study of political economy would have shown to its adepts, had they paid more attention to the lights of modern metaphysics. It is indeed demonstrated, by the most positive evidence known to the human mind, that wherever an antinomy appears there is a promise of a resolution of its terms, and consequently an announcement of a coming change. Now, the idea of value, as developed by J. B. Say among others, satisfies exactly these conditions. But the economists, who have remained for the most part by an inconceivable fatality ignorant of the movement of philosophy, have guarded against the supposition that the essentially contradictory, or, as they say, variable, character of value might be at the same time the authentic sign of its constitutionality,--that is, of its eminently harmonious and determinable nature. However dishonorable it may be to the economists of the various schools, it is certain that their opposition to socialism results solely from this false conception of their own principles; one proof, taken from a thousand, will suffice.