7. From this it follows that the proper subject of political economy is MAN. The laws pertaining to the underlying science are found in the nature and character of man—in his tastes, his desires, in the motives influencing him and in the limitations to which he is subject. The results to be achieved are his prosperity and freedom, his mastery over nature, and his happiness. Here, then, is the prime reason why every person who aspires to any intelligence at all should have some acquaintance with this subject. It has to do more than any other study with his temporal welfare, and with the welfare of society, without the prosperity of which his individual prosperity will suffer.
8. A second reason is implied in the meaning of the terms used. Economy is from a Greek compound signifying husbandry. It has reference to the prudent management by a householder of his means so as to secure the largest measure of prosperity for his family. It does not mean parsimony, nor even mere frugality; that is, it does not consist in mere abstinence for the sake of saving. It is rather a wise use of means and forces, so as to make them as effective as possible. There is an old proverb which says, “There is more in calculation than in hard work,” and though sometimes perverted in the interest of human laziness, it is nevertheless full of philosophy. It is this “calculation” which such a study greatly aids.
9. Political economy, as the term implies, has reference to man in society,—to “the body politic.” The social element in man is as imperative as any part of his constitution. Man’s greatest need is association. The solitary individual is only a minute constituent of man in man’s relation to the main purposes of life. No man is complete in himself. He must be supplemented by others, generally by many others, and he must find a large part of his own completeness in this association. Each has something that others lack, and we are designed to be sources of mutual supply to our several wants.
Here emerges another vital fact. Individuality is as indispensable as association. A superficial thinker might regard these characteristics as antagonistic. The fact is so far otherwise that each is really dependent on the other. Men must differ in order to be of any use to one another. It is the difference that makes the individuality. Mutual aid is the object of association. Hence the greater the difference, the greater the individuality; and the greater the individuality, the greater the association. No man would associate with another unless the one had something which the other lacked. But for this there would be no commerce. Two farmers producing nothing but wheat would have nothing to exchange with each other. Two men of precisely the same mental possessions, habits and aptitudes, would never be companions for each other.
On the other hand it is only by association that individuality becomes the most highly developed. Only by such development do the differences among men become great and numerous. In the lower grades of humanity there is comparatively little difference between individuals, and there is little association. It is only in advanced civilization that a strongly marked individuality exists, and that we find those numerous differences which make the mutual dependence the greatest. Here is a potent reason for the study of this subject. It is impossible to estimate the power of association in production alone. It is known in a general way that the combination of men gives greatly increased results as compared with those of men working separately. Yet it is not nearly realized that a hundred men properly associated in an industrial enterprise will often effect two or three hundred times as much as all the very same men working separately.
10. Again, this subject intimately concerns man in his governmental relations. For governments must furnish many of the conditions for the best economical results. Then, too, the great moral enterprises of the age, and of all ages, have to do with the principles here involved; education, pauperism, vicious social usages, the dangerous classes, have to be considered, and can only rightly be considered in the light of these truths. It is wonderful how closely this study is connected with all the great interests of humanity. Whole communities which have been impoverished and demoralized by neglecting some of the obvious principles of political economy, have revived and prospered under their application. Portions of our own country are examples of both these kinds of effects, and that, too, within the memory of men now living.
We shall follow the usual plan of the division of the subject under the heads of production, consumption, exchange and distribution.
II. PRODUCTION—LABOR.
1. Production is the creation of value by rendering the utilities of nature available to man. The creation, it will be noticed, is not of matter but of value. There are two great agencies which must co-operate in production—nature and man. Man furnishes labor; nature furnishes materials and forces. The former would be useless without the latter. There must be soils, and mines, and trees, and animals, or no matter how much labor there may be, there can be no grain, nor fruit, nor metals, nor lumber; no houses and no meat, nor hides nor leather. So also there may be all kinds of material, but without labor they are of no available service to man.
2. But nature furnishes not only materials but also forces to aid man in his productive efforts. The more obvious and palpable of these are gravitation, especially in falling water, wind, the explosive property of gunpowder and dynamite, the expansive power of steam, magnetism, electricity, and the forces of vegetation. There are also numerous passive powers, or properties of matter which, when adapted by man, give him much advantage; such are the mechanical powers of the lever, inclined plane, wheel and axle, pulley and wedge, and those qualities of the metals which render them capable of taking an edge for cutting purposes, as also malleability, ductility, elasticity, etc. It is a beneficent fact of nature that she furnishes these materials and forces gratuitously. She is not churlish nor parsimonious in this respect. The more we avail ourselves of her help, the more ready she is to help us; and the greater the advantage we obtain, the more lavishly she bestows her gifts upon us.