In other words, a general glut is impossible.
A partial glut is an evil which induces its own remedy; and the more quickly, the greater the evil; since, the aggregate demand and supply being always equal, a superabundance of one commodity testifies to the deficiency of another; and, all exchangers being anxious to exchange the deficient article for that which is superabundant, the production of the former will be quickened, and that of the latter slackened.
A new creation of capital, employed in the production of the deficient commodity, may thus remedy a glut.
A new creation of capital is always a benefit to society, by constituting a new demand.
It follows that an unproductive consumption of capital is an injury to society, by contracting the demand. In other words, an expenditure which avoidably exceeds the revenue is a social crime.
All interference which perplexes the calculations of producers, and thus causes the danger of a glut, is also a social crime.
LONDON:
PRINTED BY WILLIAM CLOWES,
Stamford Street.