It arises from this, that the aggregate wealth of a people increases with rent and taxes; for, where there are neither, the desire of accumulation is the only thing that increases wealth. {189}
It is for this reason, that, by obliging a man to create more than he himself consumes, taxation increases the wealth of a nation; so that the flourishing state of England is a very natural effect of heavy taxation. The misery and poverty of those people who have little or nothing to pay, is equally natural, though it does not astonish one quite so much.
As there is nothing in the world without a bound, and a limit, it is clear, that, in laying it down as a principle, that rent and taxes occasion wealth instead of poverty, it is only to be understood, to a certain extent; that is to say, to the length to which the nature of things will admit of the exertion of man augmenting his industry, but not a step farther.
To ascertain this point would be to solve a most curious problem; observing, that the solution would, in every case, depend on a great variety of particular circumstances.
Something like a general investigation, however, is possible. It will not be accurate, nor is that wanted, but it may lay the foundation for understanding the matter better at a future period.
In London, rent and taxes are heavier than in any other part of the kingdom, and in Scotland they are less than in any other; yet, the working people, from all parts of the kingdom, come to London, and from the poorest places, in the greatest numbers. Ireland, Scotland, and Wales, are the poor countries, lightly taxed, and from them
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{189} Accumulation is sometimes not a passion, but arises from necessity; by accumulation, is meant the increasing the value of the stock you possess, whether it consists of land, cattle, money, or merchandize.
Thus, for example, the Americans are increasing in wealth, from necessity, because their country is becoming better, by being cultivated, in order to produce what is necessary. They cannot have what they want, in the way they wish, without increasing or bettering the property of which they have taken possession.
If they had no more rent and taxes than they have, and if this were not the case, they would remain a poor people. Thus, the inhabitants of Syria, of Egypt, of Arabia Felix, formerly the finest countries in the world, having a property that does not better in their possession, and having scarcely either rent or taxes to pay, remain, from generation to generation, creating little, and consuming what they create.