Harmonies of Political Economy / Translated from the Third French Edition, with a Notice of the Life and Writings of the Author

by Frédéric Bastiat

Man is originally ignorant. Knowledge is acquired. At the beginning, then, he is forced to carry water, to accomplish the supplementary labour which nature has left him to execute with the maximum of trouble. It is at this stage that water has the greatest value in exchange. By degrees the water-carrier invents a barrow and wheels, trains horses, constructs pipes, discovers the law of the siphon, etc.; in short, he transfers part of his labour to the gratuitous forces of nature; and, in proportion as he does so, the value of water, but not its utility, is diminished.

There is here, however, a circumstance which it is necessary thoroughly to comprehend, if we would not see discordance where there is in reality only harmony. It is this, that the purchaser of water obtains it on easier terms, that is to say, gives a less amount of labour in exchange for a given quantity of it, each time that a step of progress of this kind is gained, although in such circumstances he has to give a remuneration for the instrument by means of which nature is constrained to act. Formerly he paid for the labour of carrying the water; now he pays not only for that, but for the labour expended in constructing the barrow, the wheel, and the pipe—and yet, everything included, he pays less; and this shows us how false and futile the reasoning is which would persuade us that that part of the remuneration which is applicable to capital is a burden on the consumer. Will these reasoners never understand that, for each result obtained, capital supersedes more labour than it exacts?

All that I have said is equally applicable to the production of corn. In that case also, anterior to all human labour, there has [p274] been an immense, a measureless, amount of natural industry at work, the secrets of which the most advanced science can yet give no account of. Gases, salts, are diffused through the soil and the atmosphere. Electricity, affinity, the wind, the rain, light, heat, vegetable life, play successively their parts, often unknown to us, in transporting, transforming, uniting, dividing, combining these elements; and this marvellous industry, the activity and utility of which elude our appreciation and even our imagination, has yet no value. Value makes its appearance at the first intervention of the labour of man, who has, in this, more perhaps than in the other instance we have given, a supplementary labour to perform, in order to complete what nature has begun.

To direct these natural forces, and remove the obstacles which impede their action, man takes possession of an instrument, which is the soil, and he does so without injury to anyone; for this instrument had previously no value. This is not a matter of argument, but a matter of fact. Show me, in any part of the world you choose, land which has not been subjected directly or indirectly to human action, and I will show you land destitute of value.[61] [p275]

In the meantime, the agriculturist, in order to effect, in conjunction with nature, the production of corn, executes two kinds of labour which are quite distinct. The one kind is applicable directly and immediately to the crop of the year—is applicable only to that, and must be paid for by that—such as sowing, weeding, reaping, etc. The other, as building, clearing, draining, enclosing, is applicable to an indefinite series of crops, and must be charged to and spread over a course of years, and calculated according to the tables of interest and annuities. The crops constitute the remuneration of the agriculturist if he consumes them himself. If he exchanges them, it is for services of another kind, and the appreciation of the services so exchanged constitutes their value.

Now it is easy to see that this class of permanent works executed by the agriculturist upon the land is a value which has not yet received its entire recompense, but which cannot fail to receive it. It cannot be supposed that he is to throw up his land and allow another to step into his shoes without compensation. The value has been incorporated and mixed up with the soil, and this is the reason why we can with propriety employ a metonymy and say the land has value. It has value, in fact, because it can be no longer acquired without giving in exchange the equivalent for this labour. But what I contend for is, that this land, on which its natural productive power had not originally conferred any value, [p276] has no value yet in this respect. This natural power, which was gratuitous then, is gratuitous now, and will be always gratuitous. We may say, indeed, that the land has value, but when we go to the root of the matter we find, that what possesses value is the human labour which has improved the land, and the capital which has been expended on it. Hence it is rigorously exact to say that the proprietor of the land is, after all, the proprietor only of a value which he has created, of services which he has rendered; and what property can be more legitimate? It is property created at no one’s expense, and neither intercepts nor taxes the gifts of God.

Nor is this all. The capital which has been advanced, and the interest of which is spread over the crop of successive years, is so far from increasing the price of the produce, and forming a burden on the consumers, that the latter acquire agricultural products cheaper in proportion as this capital is augmented, that is to say, in proportion as the value of the soil is increased. I have no doubt that this assertion will be thought paradoxical and tainted with exaggerated optimism, so much have people been accustomed to regard the value of land as a calamity, if not a piece of injustice. For my own part, I affirm, that it is not enough to say that the value of the soil has been created at no one’s expense; it is not enough to say that it injures no one; we should rather say that it benefits everybody. It is not only legitimate, but advantageous, even to those who possess no property.

We have here, in fact, the phenomenon of our previous illustration reproduced. We remarked that from the moment the water-carrier invented the barrow and the wheel, the purchaser of the water had to pay for two kinds of labour: 1st, The labour employed in making the barrow and the wheel, or rather the interest of the capital, and an annual contribution to a sinking fund to replace that capital when worn out; 2d, The direct labour which the water-carrier must still perform. But it is equally true that these two kinds of labour united do not equal in amount the labour which had to be undergone before the invention. Why? because a portion of the work has now been handed over to the gratuitous forces of nature. It is, indeed, in consequence of this diminution of human labour that the invention has been called forth and adopted.

All this takes place in exactly the same way in the case of land and the production of corn. As often as an agriculturist expends capital in permanent ameliorations, it is certain that the successive crops are burdened with the interest of that capital. But it is [p277] equally certain that the other species of labour—rude, unskilled, present, direct labour—is rendered unnecessary in a still greater proportion; so that each crop is obtained by the proprietor, and consequently by the consumer, on easier terms, on less onerous conditions—the proper action of capital consisting precisely in substituting natural and gratuitous co-operation for human labour which must be paid for.

Here is an example of it. In order to obtain a good crop, it is necessary that the field should be freed from superfluous moisture. Suppose this species of labour to be still included in the first category. Suppose that the cultivator goes every morning with a jar to carry off the stagnant water where it is productive of injury. It is clear that at the year’s end the land would have acquired no additional value, but the price of the grain would be enormously enhanced. It would be the same in the case of all those who followed the same process while the art of draining was in this primitive state. If the proprietor were to make a drain, that moment the land would acquire value, for this labour pertains to the second category—that which is incorporated with the land—and must be reimbursed by the products of consecutive years; and no one could expect to acquire the land without recompensing this work. Is it not true, however, that it would tend to lower the value of the crop? Is it not true that although during the first year it exacted an extraordinary exertion, it saves in the long-run more labour than it has occasioned? Is it not true that the draining thenceforth will be executed by the gratuitous law of hydrostatics more economically than it could be by muscular force? Is it not true that the purchasers of corn will benefit by this operation? Is it not true that they should esteem themselves fortunate in this new value acquired by the soil? And, having reference to more general considerations, is it not true, in fine, that the value of the soil attests a progress realized, not for the advantage of the proprietor only, but for that of society at large? How absurd, then, and suicidal in society to exclaim: The additional price charged for corn, to meet the interest of the capital expended on this drain, and ultimately to replace that capital, or its equivalent, as represented in the value of the land, is a privilege, a monopoly, a theft! At this rate, to cease to be a monopolist and a thief, the proprietor should have only to fill up his drain and betake himself to his jar. Would the man who has no property, and lives by wages, be any gainer by that?