JOHN STUART MILL
Principles of Political Economy
John Stuart Mill, the eldest son of the philosopher, James Mill, was born in London on May 20, 1806. His early education was remarkable. At the age of fourteen he had an extensive knowledge of Greek, Latin, and mathematics, and had begun to study logic and political economy. In 1823 he received an appointment at the India Office, and in the same year he became a member of a small Utilitarian society which met at Jeremy Bentham's house, and soon became the leader of the Utilitarian school. Mill's great work on the "Principles of Political Economy," with some of their "Applications to Social Philosophy," embodies the results of many years of study, disputation and thought. It is built upon foundations laid by Ricardo and Malthus, and has itself formed the basis of all subsequent work in England. Throughout, it manifests a belief in the possibility of great social improvement to be achieved upon individualistic lines. It was begun late in 1845, and superseded a contemplated work to be called "Ethnology." Mill's extensive familiarity with the problems of political economy enabled him to compose the work with rapidity unusual in his production. Thus, before the end of 1847, the last sheet of the manuscript was in the hands of the printer, and early in the following year the treatise was published. Mill died at Avignon on May 8, 1873.
I.—The Production of Wealth
In every department of human affairs, practice long precedes science. The conception, accordingly, of political economy as a branch of science is extremely modern; but the subject with which its inquiries are conversant—wealth—has, in all ages, constituted one of the chief practical interests of mankind. Everyone has a notion, sufficiently correct for common purposes, of what is meant by "wealth." Money, being the instrument of an important public and private purpose, is rightly regarded as wealth; but everything else which serves any human purpose, and which nature does not supply gratuitously, is wealth also. Wealth may be defined as all useful or agreeable things which possess exchangeable value.
The production of wealth—the extraction of the instruments of human subsistence and enjoyment from the materials of the globe—is evidently not an arbitrary thing. It has its necessary conditions.
The requisites of production are two—labour and appropriate natural objects. Labour is either bodily or mental. Of the other requisite it is to be remarked that the objects supplied by nature are, except in a few unimportant cases, only instrumental to human wants after having undergone some transformations by human exertion.
Nature does more, however, than supply materials; she also supplies powers. Of natural powers, some are practically unlimited, others limited in quantity, and much of the economy of society depends on the limited quantity in which some of the most important natural agents exist, and more particularly land. As soon as there is not so much of a natural agent to be had as would be used if it could be obtained for the asking, the ownership or use of it acquires an exchangeable value. Where there is more land wanted for cultivation than a place possesses of a certain quality and advantages of situation, land of that quality and situation may be sold for a price, or let for an annual rent.
Labour employed on external nature in modes subservient to production is employed either directly, or indirectly, in previous or concomitant operations designed to facilitate, perhaps essential to the possibilities of, the actual production. One of the modes in which labour is employed indirectly requires particular notice, namely, when it is employed in producing subsistence to maintain the labourers while they are engaged in the production. This previous employment of labour is an indispensable condition to every productive operation. In order to raise any product there are needed labour, tools, and materials, and food to feed the labourers. But the tools and materials can be remunerated only from the product when obtained. The food, on the contrary, is intrinsically useful, and the labour expended in producing it, and recompensed by it, needs not to be remunerated over again from the produce of the subsequent labour which it has fed.