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

by Frédéric Bastiat

I hesitate not to assert that it cannot be the result of the natural laws which have hitherto been the subject of our investigations, seeing that these laws all tend to equalization by amelioration; that is to say, to bring all men to one and the same level, which level is continually rising. This, then, is not the place to seek a solution of the problem of pauperism.

At present, if we would consider specially that class of labourers who execute the most material portion of the work of production, and who, in general, having no interest in the profits, live upon a fixed remuneration called wages, the question we have to investigate is this: Apart from the consideration of good or bad economic institutions—apart from the consideration of the evils which the men who live by wages [the prolétaires] bring upon themselves by their faults—what is, as regards them, the proper effect of Competition?

For this class, as for all, the operation of Competition is twofold. They feel it both as buyers and as sellers of services. The error of those who write upon these subjects is never to look but at one side of the question, like natural philosophers, who, if they took into account only centrifugal force, would never cease to believe and to prophesy that all was over with us. Grant their false datum, and you will see with what irrefragable logic they conduct you to this sinister conclusion. The same may be said of the [p306] lamentations which the Socialists found upon the exclusive consideration of centrifugal Competition, if I may be allowed the expression. They forget to take into account centripetal Competition; and that is sufficient to reduce their doctrines to puerile declamation. They forget that the workman, when he presents himself in the market with the wages he has earned, becomes a centre towards which innumerable branches of industry tend, and that he profits then by that universal Competition of which all trades complain in their turn.

It is true that the labourer, when he regards himself as a producer, as the person who supplies labour or services, complains also of Competition. Grant, then, that Competition benefits him on one side, while it pinches him on the other, the question comes to be, Is the balance favourable or unfavourable—or is there compensation?

I must have explained myself very obscurely if the reader does not see that in the play of this marvellous mechanism, the action of Competition, apparently antagonistic, tends to the singular and consoling result, that there is a balance which is favourable to all at the same time; caused by gratuitous Utility continually enlarging the circle of production, and falling continually into the domain of Community. Now, that which becomes common is profitable to all without hurting any one; we may even say—for this is mathematically certain—is profitable to each in proportion to his previous poverty. It is this portion of gratuitous utility, forced by Competition to become common, which causes the tendency of value to become proportioned to labour, to the evident benefit of the labourer. This, too, renders evident the social solution which I have pressed so much on the attention of the reader, and which is only concealed by the illusions of habit,—for a determinate amount of labour each receives an amount of satisfactions which tends to be increased and equalized.

Moreover, the condition of the labourer does not depend upon one economic law, but upon all. To become acquainted with that condition, to discover the prospects and the future of the labourer, this is Political Economy; for what other object could that science have in view? . . . But I am wrong—we have still spoliators. What causes the equivalence of services? Liberty. What impairs that equivalence? Oppression. Such is the circle we have still to traverse.

As regards the condition of that class of labourers who execute the more immediate work of production, it cannot be appreciated until we are in a situation to discover in what manner the law of [p307] Competition is combined with that of Wages and Population, and also with the disturbing effects of unequal taxes and monopolies.

I shall add but a few words on the subject of Competition. It is very clear that it has no natural tendency to diminish the amount of the enjoyments which are distributed over society. Does Competition tend to make this distribution unequal? If there be anything evident in the world, it is that after having, if I may so express myself, attached to each service, to each value, a larger proportion of utility, Competition labours incessantly to level the services themselves, to render them proportional to efforts. Is Competition not the spur which urges men into profitable branches of industry, and urges them out of those which are unprofitable? Its proper action, then, is to realize equality more and more, by elevating the social level.

Let us not misunderstand each other, however, on this word equality. It does not imply that all men are to have the same remuneration, but that they are to have a remuneration proportioned to the quantity, and even to the quality of their efforts.

A multitude of circumstances contribute to render the remuneration of labour unequal (I speak here only of free labour, subject to Competition); but if we look at it more narrowly, we shall find that this fancied inequality, almost always just and necessary, is in reality nothing else than substantial equality.