Essays on Political Economy

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• Publisher: The Floating Press
• Year: 2014
• eBook ISBN: 9781776535316
• Topic: Politics & International Relations
• Subtopic: Politics
• Index: Politics & International Relations

Today, as the gulf between the moneyed aristocracy and the working class grows ever larger, the debate over the morality of interest-earning investments is still a topic of heated debate. In this classic economic text, French scholar Frederic Bastiat sets forth a convincing argument as to why interest-earning investments represent a valid and ethically defensible method of wealth generation.

THE LAW

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The law perverted! The law—and, in its wake, all the collective forces of the nation—the law, I say, not only diverted from its proper direction, but made to pursue one entirely contrary! The law become the tool of every kind of avarice, instead of being its check! The law guilty of that very iniquity which it was its mission to punish! Truly, this is a serious fact, if it exists, and one to which I feel bound to call the attention of my fellow-citizens.

We hold from God the gift which, as far as we are concerned, contains all others, Life—physical, intellectual, and moral life.

But life cannot support itself. He who has bestowed it, has entrusted us with the care of supporting it, of developing it, and of perfecting it. To that end, He has provided us with a collection of wonderful faculties; He has plunged us into the midst of a variety of elements. It is by the application of our faculties to these elements, that the phenomena of assimilation and of appropriation, by which life pursues the circle which has been assigned to it, are realized.

Existence, faculties, assimilation—in other words, personality, liberty, property—this is man. It is of these three things that it may be said, apart from all demagogue subtlety, that they are anterior and superior to all human legislation.

It is not because men have made laws, that personality, liberty, and property exist. On the contrary, it is because personality, liberty, and property exist beforehand, that men make laws.

What, then, is law? As I have said elsewhere, it is the collective organization of the individual right to lawful defence.

Nature, or rather God, has bestowed upon every one of us the right to defend his person, his liberty, and his property, since these are the three constituent or preserving elements of life; elements, each of which is rendered complete by the others, and cannot be understood without them. For what are our faculties, but the extension of our personality? and what is property, but an extension of our faculties?

If every man has the right of defending, even by force, his person, his liberty, and his property, a number of men have the right to combine together, to extend, to organize a common force, to provide regularly for this defence.

Collective right, then, has its principle, its reason for existing, its lawfulness, in individual right; and the common force cannot rationally have any other end, or any other mission, than that of the isolated forces for which it is substituted. Thus, as the force of an individual cannot lawfully touch the person, the liberty, or the property of another individual—for the same reason, the common force cannot lawfully be used to destroy the person, the liberty, or the property of individuals or of classes.

For this perversion of force would be, in one case as in the other, in contradiction to our premises. For who will dare to say that force has been given to us, not to defend our rights, but to annihilate the equal rights of our brethren? And if this be not true of every individual force, acting independently, how can it be true of the collective force, which is only the organized union of isolated forces?

Nothing, therefore, can be more evident than this:—The law is the organization of the natural right of lawful defence; it is the substitution of collective for individual forces, for the purpose of acting in the sphere in which they have a right to act, of doing what they have a right to do, to secure persons, liberties, and properties, and to maintain each in its right, so as to cause justice to reign over all.

And if a people established upon this basis were to exist, it seems to me that order would prevail among them in their acts as well as in their ideas. It seems to me that such a people would have the most simple, the most economical, the least oppressive, the least to be felt, the least responsible, the most just, and, consequently, the most solid Government which could be imagined, whatever its political form might be.

For, under such an administration, every one would feel that he possessed all the fulness, as well as all the responsibility of his existence. So long as personal safety was ensured, so long as labour was free, and the fruits of labour secured against all unjust attacks, no one would have any difficulties to contend with in the State. When prosperous, we should not, it is true, have to thank the State for our success; but when unfortunate, we should no more think of taxing it with our disasters, than our peasants think of attributing to it the arrival of hail or of frost. We should know it only by the inestimable blessing of Safety.

It may further be affirmed, that, thanks to the non-intervention of the State in private affairs, our wants and their satisfactions would develop themselves in their natural order. We should not see poor families seeking for literary instruction before they were supplied with bread. We should not see towns peopled at the expense of rural districts, nor rural districts at the expense of towns. We should not see those great displacements of capital, of labour, and of population, which legislative measures occasion; displacements, which render so uncertain and precarious the very sources of existence, and thus aggravate to such an extent the responsibility of Governments.

Unhappily, law is by no means confined to its own department. Nor is it merely in some indifferent and debateable views that it has left its proper sphere. It has done more than this. It has acted in direct opposition to its proper end; it has destroyed its own object; it has been employed in annihilating that justice which it ought to have established, in effacing amongst Rights, that limit which was its true mission to respect; it has placed the collective force in the service of those who wish to traffic, without risk, and without scruple, in the persons, the liberty, and the property of others; it has converted plunder into a right, that it may protect it, and lawful defence into a crime, that it may punish it.

How has this perversion of law been accomplished? And what has resulted from it?

The law has been perverted through the influence of two very different causes—bare egotism and false philanthropy.

Let us speak of the former.

Self-preservation and development is the common aspiration of all men, in such a way that if every one enjoyed the free exercise of his faculties and the free disposition of their fruits, social progress would be incessant, uninterrupted, inevitable.

But there is also another disposition which is common to them. This is, to live and to develop, when they can, at the expense of one another. This is no rash imputation, emanating from a gloomy, uncharitable spirit. History bears witness to the truth of it, by the incessant wars, the migrations of races, sacerdotal oppressions, the universality of slavery, the frauds in trade, and the monopolies with which its annals abound. This fatal disposition has its origin in the very constitution of man—in that primitive, and universal, and invincible sentiment which urges it towards its well-being, and makes it seek to escape pain.

Man can only derive life and enjoyment from a perpetual search and appropriation; that is, from a perpetual application of his faculties to objects, or from labour. This is the origin of property.

But yet he may live and enjoy, by seizing and appropriating the productions of the faculties of his fellow-men. This is the origin of plunder.

Now, labour being in itself a pain, and man being naturally inclined to avoid pain, it follows, and history proves it, that wherever plunder is less burdensome than labour, it prevails; and neither religion nor morality can, in this case, prevent it from prevailing.

When does plunder cease, then? When it becomes less burdensome and more dangerous than labour. It is very evident that the proper aim of law is to oppose the powerful obstacle of collective force to this fatal tendency; that all its measures should be in favour of property, and against plunder.

But the law is made, generally, by one man, or by one class of men. And as law cannot exist without the sanction and the support of a preponderating force, it must finally place this force in the hands of those who legislate.

This inevitable phenomenon, combined with the fatal tendency which, we have said, exists in the heart of man, explains the almost universal perversion of law. It is easy to conceive that, instead of being a check upon injustice, it becomes its most invincible instrument. It is easy to conceive that, according to the power of the legislator, it destroys for its own profit, and in different degrees, amongst the rest of the community, personal independence by slavery, liberty by oppression, and property by plunder.

It is in the nature of men to rise against the injustice of which they are the victims. When, therefore, plunder is organised by law, for the profit of those who perpetrate it, all the plundered classes tend, either by peaceful or revolutionary means, to enter in some way into the manufacturing of laws. These classes, according to the degree of enlightenment at which they have arrived, may propose to themselves two very different ends, when they thus attempt the attainment of their political rights; either they may wish to put an end to lawful plunder, or they may desire to take part in it.

Woe to the nation where this latter thought prevails amongst the masses, at the moment when they, in their turn, seize upon the legislative power!

Up to that time, lawful plunder has been exercised by the few upon the many, as is the case in countries where the right of legislating is confined to a few hands. But now it has become universal, and the equilibrium is sought in universal plunder. The injustice which society contains, instead of being rooted out of it, is generalised. As soon as the injured classes have recovered their political rights, their first thought is, not to abolish plunder (this would suppose them to possess enlightenment, which they cannot have), but to organise against the other classes, and to their own detriment, a system of reprisals,—as if it was necessary, before the reign of justice arrives, that all should undergo a cruel retribution,—some for their iniquity and some for their ignorance.

It would be impossible, therefore, to introduce into society a greater change and a greater evil than this—the conversion of the law into an instrument of plunder.

What would be the consequences of such a perversion? It would require volumes to describe them all. We must content ourselves with pointing out the most striking.

In the first place, it would efface from everybody's conscience the distinction between justice and injustice.

No society can exist unless the laws are respected to a certain degree, but the safest way to make them respected is to make them respectable. When law and morality are in contradiction to each other, the citizen finds himself in the cruel alternative of either losing his moral sense, or of losing his respect for the law—two evils of equal magnitude, between which it would be difficult to choose.

It is so much in the nature of law to support justice, that in the minds of the masses they are one and the same. There is in all of us a strong disposition to regard what is lawful as legitimate, so much so, that many falsely derive all justice from law. It is sufficient, then, for the law to order and sanction plunder, that it may appear to many consciences just and sacred. Slavery, protection, and monopoly find defenders, not only in those who profit by them, but in those who suffer by them. If you suggest a doubt as to the morality of these institutions, it is said directly—"You are a dangerous innovator, a utopian, a theorist, a despiser of the laws; you would shake the basis upon which society rests."

If you lecture upon morality, or political economy, official bodies will be found to make this request to the Government:—

"That henceforth science be taught not only with sole reference to free exchange (to liberty, property, and justice), as has been the case up to the present time, but also, and especially, with reference to the facts and legislation (contrary to liberty, property, and justice) which regulate French industry.

"That, in public pulpits salaried by the treasury, the professor abstain rigorously from endangering in the slightest degree the respect due to the laws now in force."[7]

So that if a law exists which sanctions slavery or monopoly, oppression or plunder, in any form whatever, it must not even be mentioned—for how can it be mentioned without damaging the respect which it inspires? Still further, morality and political economy must be taught in connexion with this law—that is, under the supposition that it must be just, only because it is law.

Another effect of this deplorable perversion of the law is, that it gives to human passions and to political struggles, and, in general, to politics, properly so called, an exaggerated preponderance.

I could prove this assertion in a thousand ways. But I shall confine myself, by way of illustration, to bringing it to bear upon a subject which has of late occupied everybody's mind—universal suffrage.

Whatever may be thought of it by the adepts of the school of Rousseau, which professes to be very far advanced, but which I consider twenty centuries behind, universal suffrage (taking the word in its strictest sense) is not one of those sacred dogmas with respect to which examination and doubt are crimes.

Serious objections may be made to it.

In the first place, the word universal conceals a gross sophism. There are, in France, 36,000,000 of inhabitants. To make the right of suffrage universal, 36,000,000 of electors should be reckoned. The most extended system reckons only 9,000,000. Three persons out of four, then, are excluded; and more than this, they are excluded by the fourth. Upon what principle is this exclusion founded? Upon the principle of incapacity. Universal suffrage, then, means—universal suffrage of those who are capable. In point of fact, who are the capable? Are age, sex, and judicial condemnations the only conditions to which incapacity is to be attached?

On taking a nearer view of the subject, we may soon perceive the motive which causes the right of suffrage to depend upon the presumption of incapacity; the most extended system differing only in this respect from the most restricted, by the appreciation of those conditions on which this incapacity depends, and which constitutes, not a difference in principle, but in degree.

This motive is, that the elector does not stipulate for himself, but for everybody.

If, as the republicans of the Greek and Roman tone pretend, the right of suffrage had fallen to the lot of every one at his birth, it would be an injustice to adults to prevent women and children from voting. Why are they prevented? Because they are presumed to be incapable. And why is incapacity a motive for exclusion? Because the elector does not reap alone the responsibility of his vote; because every vote engages and affects the community at large; because the community has a right to demand some securities, as regards the acts upon which his well-being and his existence depend.

I know what might be said in answer to this. I know what might be objected. But this is not the place to exhaust a controversy of this kind. What I wish to observe is this, that this same controversy (in common with the greater part of political questions) which agitates, excites, and unsettles the nations, would lose almost all its importance if the law had always been what it ought to be.

In fact, if law were confined to causing all persons, all liberties, and all properties to be respect...

Table of contents

• ESSAYS ON POLITICAL ECONOMY
• Contents
• CAPITAL AND INTEREST
• Introduction
• Capital and Interest
• The Sack of Corn
• The House
• The Plane
• THAT WHICH IS SEEN, AND THAT WHICH IS NOT SEEN
• I - The Broken Window
• II - The Disbanding of Troops
• III - Taxes
• IV - Theatres, Fine Arts
• V - Public Works
• VI - The Intermediates
• VII - Restrictions
• VIII - Machinery
• IX - Credit
• X - Algeria
• XI - Frugality and Luxury
• XII - He Who Has a Right to Work Has a Right to Profit
• GOVERNMENT
• WHAT IS MONEY?
• THE LAW
• Endnotes