（3。xvii。9）Itseems，therefore，tobefullyestablished，thatthebusinessofproductionand
exchange，iflefttochooseitsownchannels，issuretochoosethose，whicharemost
advantageoustothecommunity。Itissuretochoosethosechannels，inwhichthecommodities，
whichthecommunitydesirestoobtain，areobtainedwiththesmallestcost。Toobtainthe
commodities，whichmandesires，andtoobtainthemwiththesmallestcost，isthewholeofthe
goodwhichthebusinessofproductionandexchange，consideredsimplyassuch，iscalculatedto
yield。Inwhateverdegree，therefore，thebusinessofproductionandexchangeisforcedoutofthe
channelsintowhichitwouldgoofitsownaccord，tothatdegreetheadvantagesarisingfrom
productionandexchangearesacrificed；or，atanyrate，postponedtosomethingelse。Ifthereis
anycase，inwhichtheyoughttobepostponedtosomethingelse，thatisaquestionofpolitics，
andnotofpoliticaleconomy。
（3。xvii。10）Thereisnosubject，uponwhichthepolicyoftherestrictiveandprohibitive
system
hasbeenmaintainedwithgreaterobstinacy，andwithagreaterquantityofsophistry，thanthatof
thetradeincorn。Therecan，however，benodoubt，thatcornneverwillbeimported，unless
whenitcanbeobtainedfromabroadwithasmallerquantityoflabourthanitcanbeproduced
withathome。Allthegood，therefore，whichisobtainedfromtheimportationofanycommodity，
capableofbeingproducedathome，isobtainedfromtheimportationofcorn。Whyshouldthat
advantagewhich，inthecaseofcorn，owingtothediversitiesofsoilandextentofpopulation，is
liabletobemuchgreaterthaninthecaseofanyothercommodity，bedeniedtothecommunity？
（3。xvii。11）Thereasons，uponwhichtheadvocatesforarestrictionofthecorntradechiefly
supportthemselves，aretwo；neitherisofanyvalue。
（3。xvii。12）Thefirstis，thatunlessthenationderiveitscornfromitsownsoil，itmay，bythe
enmityofitsneighbours，bedeprivedofitsforeignsupply，andreducedtothegreatestdistress。
Thisargumentimpliesanignorancebothofhistory，andofprinciple：Ofhistory，because，in
pointoffact，thosecountrieswhichhavedependedthemostuponforeigncountriesfortheir
supplyofcorn，haveenjoyedbeyondallothercountries，theadvantageofasteadyandinvariable
marketforgrain：Ofprinciple，becauseitfollowsunavoidably，ifwhat，inonecountryisa
favourable，isinothercountriesanunfavourableseason，thatobtainingagreatpartofitssupply
fromvariouscountriesisthebestsecurityanationcanhaveagainsttheextensiveanddistressing
fluctuationswhichthevarietyofseasonsiscalculatedtoproduce。Noristhepolicyinvolvedin
thisargumentbetterthanthepoliticaleconomy。Itsacrificesarealgood，toescapethechanceof
achimericalevil：anevilsomuchthelesstobeapprehended，thatthecountry，fromwhich
anotherderivesitssupplyofcorn，isscarcelylessdependantuponthatothercountryforaventto
itsproduce，thanthepurchasingcountryisforitssupply。Itwillnotbepretended，thataglutof
corn，inanycountry，fromthelossofagreatmarket，withthatdeclensionofprice，thatruinof
thefarmers，andthatdepressionofrents，whichareitsunavoidableconsequences，isan
immaterialevil。
（3。xvii。13）Thesecondreason，uponwhichtheadvocatesofthecornmonopolysupport
themselves，is，that，ifthemerchantsandmanufacturersenjoyincertaincasesthemonopolyof
thehomesupply，thefarmersandlandlordsaresubjecttoinjustice，whenasimilarmonopolyis
notbostoweduponthem。Inthefirstplace，itmaybeobserved，that，ifthisargumentisgoodfor
thegrowersofcorn，itisgoodforeveryotherspeciesofproducerswhatsoever；if，becauseatax
isimposedupontheimportationofwoollens，ataxoughttobeimposedupontheimportationof
corn，ataxoughtalsotobeimposedupontheimportationofeverything，whichthecountrycan
produce；thecountryought，inshort，tohavenoforeigncommerce，exceptinthosearticles
alone，whichithasnotthemeansofproducing。
（3。xvii。14）Theargumentmoreoversupposes，thatanextraordinarygainisobtainedbythe
manufacturer，inconsequenceofhissupposedprotection；andthatacorrespondentevilis
sustainedbythecorngrower，unlessheisfavouredbyasimilartax。Theignoranceofprinciple
ispeculiarlyvisibleinthosesuppositions，inneitherofwhichisthereashadowoftruth。
（3。xvii。15）Themanwhoembarkshiscapitalinthewoollen，oranyothermanufacture，with
the
produceofwhichthatoftheforeignmanufacturersisnotallowedtocomeintocompetition，
doesnot，onthataccount，deriveagreaterprofitfromhiscapital。Hisprofitisnogreaterthan
thatofthemanwhosecapitalisembarkedintradesopentothecompetitionofalltheworld。All
thathappensis，thatagreaternumberofcapitalistsfindemploymentinthatbranchof
manufacture；thataportion，inshort，ofthecapitalistsofthecountryemploythemselvesin
producingthatparticularspeciesofmanufacture，whowouldotherwisebeemployedin
producingsomeotherspecies，probablyinproducingsomethingfortheforeignmarket，with
whichthatcommodity，ifimportedfromtheforeignmanufacturer，mightbebought。
（3。xvii。16）Asthemanwhohasembarkedhiscapitalinthetrade，whichiscalledprotected，
derivesnoadditionalprofitfromtheprotection；sothegrowerofcornsustainsnotanypeculiar
lossorinconvenience。Nothing，therefore，canbeconceivedmoregroundlessthanhisdemandof
acompensationonthataccount。Themarketforcornisnotdiminishedbecauseataxislaid
upontheimportationofwoollens；norwouldthatmarketbeenlargedifthetaxweretakenoff。
Hisbusiness，therefore，isnotintheleastdegreeaffectedbyit。
（3。xvii。17）Itwouldbeinconsistentwiththeplanofawork，confinedtotheexpositionof
general
principles，tolayopenallthefallacies，whichlurkintheargumentsforrestrainingthetradein
corn。Oneortwo，however，ofthesourcesofdeception，cannotbeleftaltogetherunnoticed。
（3。xvii。18）Thelandlordendeavourstorepresenthisowncase，andthatofthemanufacturer，
as
perfectlysimilar；though，inthecircumstanceswhichconcernthisargument，theyarenotonly
different，butopposite。Thelandlordalsoendeavourstomixuphisowncasewiththatofthe
farmer；anduponthesuccessofthatendeavouralmostalltheplausibilityofhispretensions
depends。Thatnopretensionsaremoreunfounded，maybeseenbyaveryshortprocessof
reasoning。Thefarmer，asaproducer，requires，likeeveryotherproducer，thatallhisoutgoings
bereturnedtohim，withthedueprofituponthecapitalwhichheemploys。Thesurplus，which
thelandyields，overandabovethisreturnandprofit，iswhathepaystohislandlord；andhis
interestisnotaffectedbythequantityofthatsurplus，whetheritbegreatorsmall。Hisinterest，
however，isverymuchaffectedbywages；because，inproportionaswagesarelow，hisprofits，
likeallotherprofits，arehigh。Wagescannotbelow，ifcornisdear。Theinterest，therefore，the
permanentinterest，oftheclassoffarmers，consists，inhavingcorncheap。Thisorthatindividual
intheclassmay，thatis，duringthecurrencyofalease，haveaninterestinhighprices；andthe
reasonoftheexceptionshowsthetruthofthegeneralrule。Theindividual，who，duringthe
currencyofalease，hasaninterestinhighprices，is，byhislease，converted，toacertainextent，
intoareceiverofrent。Duringthecontinuanceofhislease，ifpricesrise，hegets，notonlyhis
duereturnofprofitsasafarmer，butsomethingmore，namely，aportionofwhatistrulyrent，and
which，butforhislease，wouldhavegonetothelandlord。
（3。xvii。19）This，then，isthegranddistinction。Thereceiversofrentarebenefitedbyahigh
price
ofcorn；theproducersofcorn，assucharenotbenefitedbyit，butthereverse。Thecaseofthe
farmercorrespondswiththatofthemanufacturer，notwiththatofthelandlord。Thefarmerisa
producerandcapitalist；themanufacturerisaproducerandcapitalist；andtheyhaveboth
receivedallthatbelongstothem，whentheircapitalisreplacedwithitsprofits。Thelandlordis
notaproducer，noracapitalist。Heistheownerofcertainproductivepowersinthesoil；andall
whichthesoilproducesbelongstohim，afterpayingthecapitalwhichisnecessarytoputthose
productivepowersinoperation。Itthusappearsthatthecaseofthelandlordispeculiar；thata
highpriceofcornisprofitabletohim，because，thehighertheprice，thesmalleraportionofthe
producewillsufficetoreplace，withitsprofits，thecapitalofthefarmer；andalltherestbelongs
tohimself。Tothefarmer，however，andtoalltherestofthecommunity，itisanevil，bothasit
tendstodiminishprofits，andasitenhancesthechargetoconsumers。
SectionXVIII。Colonies（3。xviii。1）Amongtheexpedientswhichhavebeenmadeuseof，toforceintoparticular
channels
agreaterquantityofthemeansofproduction，thanwouldhaveflowedintothemoftheirown
accord；coloniesareasubjectofsufficientimportancetorequireaparticularconsideration。
（3。xviii。2）Theonlypointofcolonialpolicy，whichitisherenecessarytoconsider，isthatof
tradewiththecolonies。Andthequestionis，whetheranypeculiaradvantagemaybederived
fromit。
（3。xviii。3）Withrespecttocolonies，aswithrespecttoforeigncountries，thepropositionwill，
doubtless，beadmitted，that，whateveradvantageisderivedfromtradingwiththem，consistsin
whatisreceivedfromthem，notinwhatissent；becausethat，ifnotfollowedbyareturn，would
bealtogetherloss。
（3。xviii。4）Thereturnfromthemiseithermoneyorcommodities。Thereaderisbythistime
fully
awarethatacountryderivesnoadvantagefromreceivingmoney，morethanfromreceivingany
otherspeciesofcommodity。Itisalsoplainthatwherethecolonyhasnotminesoftheprecious
metal，itcannot，underthemonopolyofthemothercountry，havemoney，oranythingelse，
besideitsownproductions，tosend。
（3。xviii。5）Itisneedlesstoconsiderthecaseorfreetradewithacolony，becausethatfalls
under
thecaseortradewithanyforeigncountry。
（3。xviii。6）Themonopoly，whichamothercountrymayreservetoherself，ofthetradewith
her
colonies，isoftwosorts。
（3。xviii。7）Firstofall，shemaytradewithhercolonies，bymeansofanexclusivecompany。
In
thiscase，thecolonyhasnopurchaser，towhomsheisallowedtosellanything，butthe
exclusivecompany；andnootherseller，fromwhomsheisallowedtobuyanything。The
company，therefore，canmakeherbuy，asdearasitpleases，thegoodswhichthemothercountry
sendstoher，andsell，ascheapasitpleases，thegoodswhichshesendstothemothercountry。In
otherwords，thecolonymay，inthesecircumstances，beobligedtogivefortheproduceofa
certainquantityofthelabourofthemothercountry，amuchgreaterquantityofgoodsthanthe
mothercountrycouldobtain，withthesamequantity，fromanyothercountry，orfromthecolony
inastateoffreedom。
（3。xviii。8）Thecasesofatradeinthesecircumstancesaretwo：thefirst，wherethecolony
receivesfromthemothercountry，luxuries，comforts：theother，whereshereceivesnecessaries；
eitherthenecessariesoflife，orthenecessariesofindustry，asiron，&；c。
（3。xviii。9）Inthatcase，inwhichthecolonyreceivesluxuriesandcomfortsonlyfromthe
mother
country，thereisalimittothedegreeinwhichthemothercountryisenabledtoprofitbythe
labourofthecolony。Thecolonymaydeclinereceivingsuchluxuriesorcomforts，ifobligedto
sacrificeforthemtoogreataquantityoftheproduceofherlabour，andmaythinkitbetterto
employthatgreatproportionofherlabour，inprovidingsuchluxuriesandcomfortsasshe
herselfiscapableofproducing。
（3。xviii。10）If，however，thecolonyisdependantfornecessariesuponthemothercountry，
the
exclusivecompanyexercisesoverthecolonyapoweraltogetherdespotic。Itmaycompelherto
givethewholeproduceofherlabour，fornomoreofthenecessariesinquestion，thanwhatis
justsufficienttoenablethepopulationofthecolonytolive。Ifitisthenecessariesoflife，which
thecolonyreceives，theconclusionisobvious。Ifitiscommodities，suchasiron，andinstruments
ofiron，withoutwhichherlabourcannotbeproductivelyemployed，theresultispreciselythe
same。Shemaybemadetopayforthesearticlessomuchofthewholeproduceofherlabour，
thatnothingbutwhatisnecessarytokeepthepopulationalivemayremain。Itwouldbethe
interestofthemothercountry，nottolessenthepopulation；because，withthepopulation，the
producewouldbelessened，andhencethequantityofcommoditieswhichthemothercountry
couldreceive。
（3。xviii。11）Instead，however，oftradingwithhercoloniesbymeansofanexclusive
company，
themothercountrymayleavethetradeopentoallherownmerchants，onlyprohibitingthe
colonyfromtradingwiththemerchantsofanyothercountry。Inthiscase，thecompetitionofthe
merchantsinthemothercountryreducesthepriceofallthearticlesreceivedbythecolony，as
lowastheycanbeafforded—inotherwords，aslowasinthemothercountryitself，allowance
beingmadefortheexpenseofcarryingthem。Ifitbesaidthatthecoloniesaffordamarket；I
reply，thatthecapital，whichsuppliescommoditiesforthatmarket，wouldstillprepare
commodities，ifthecolonieswereannihilated；andthosecommoditieswouldstillfind
consumers。Thelabourandcapitalofacountrycannotpreparemorethanthecountrywillbe
willingtoconsume。Everyindividualhasadesiretoconsume，eitherproductivelyor
unproductively，whateverhereceives。Everycountry，therefore，containswithinitselfamarket
forallthatitcanproduce。Thiswillbemadestillmoreevident，whenthesubjectof
consumption，thecauseandmeasureofmarkets。，comesunderconsideration。Thereis，therefore，
noadvantagewhatsoeverderived，underfreedomofcompetition，fromthatpartofthetradewith
acolonywhichconsistsinsupplyingitwithgoods，sincenomoreisgainedbyit，thansuch
ordinaryprofitsofstockaswouldhavebeengainedifnosuchtradehadexisted。Itis
neverthelesstruethatthecolonymaylosebysuchatraffic，ifthegoods，whichsheisthus
compelledtopurchaseofthemothercountry，mighthavebeenpurchasedcheaperinother
countries。
（3。xviii。12）Iftherebeanypeculiaradvantage，therefore，tothemothercountry，itmustbe
derivedfromthecheapnessofthegoods，withwhichthecolonysuppliesher。Itisevident，thatif
thequantityofgoods，sugar，forexample，whichthecolonysendstothemothercountry，isso
greatastoglutthemothercountry；thatistosupplyitsdemandbeyondthemeasureofother
countries，andmakethepriceoftheminthemothercountrylowerthanitisinothercountries，
themothercountryprofitsbycompellingthecolonytobringitsgoodsexclusivelytohermarket，
sinceshewouldhavetopayforthemashighasothercountries，ifthepeopleofthecolonywere
atlibertytosellwherevertheycouldobtainthegreatestprice。
（3。xviii。13）Thisadvantage，ifdrawnbythemothercountry，wouldbedrawnattheexpense
of
thecolony。Infreetrade，bothpartiesgain。Intheadvantageproducedbyforcing，whateveris
gainedbytheonepartyislostbytheother。Themothercountry，incompellingthecolonytosell
goodscheapertoherthanshemightsellthemtoothercountries，merelyimposesuponhera
tribute；notdirect，indeed，butnotthelessrealbecauseitisdisguised。
（3。xviii。14）Ifanyadvantageisderivedfromrestraining，anyotherwisethanbyanexclusive
company，thetradewiththecolonies，itmustconsistinforcingthecoloniestoselltononebut
themothercountry，notinforcingthemtobuyfromnonebutthemothercountry。Agreat
improvement，therefore，incolonialpolicywouldbe，tothrowopenthesupplyofthecolonies，
permittingthemtopurchasethegoodswhichtheywant，wherevertheycouldfindthemost
favourablemarket，onlyrestrainingtheminthesaleoftheirgoods：allowingthemtobuy
wherevertheypleased，permittingthemtoselltononebutthemothercountry。
（3。xviii。15）Itisatthesametimetobeobserved，thatifthemerchantsofthemothercountry
havefreedomtoexportthegoodswhicharederivedfromthecolonies，thepriceofthesegoods
willberaisedintheirowncountrytothelevelofthepriceinothercountries。Thecompetitionof
themerchantswill，also，raisethepriceofthegoodstoacorrespondentheightinthecolonies；
andthusthebenefittothemothercountryislost。
（3。xviii。16）Treatiesofcommercearesometimesconcluded，forthepurposeoflimitingthe
freedomoftrade。Onecountrycanbelimitedtoanotherinbuttwoways；eitherinitspurchases，
oritssales。SupposethatGreatBritainbindssomeothercountrytopurchasecertain
commoditiesexclusivelyfromher；GreatBritaincanderivenoadvantagefromsuchatreaty。
Thecompetitionofhermerchantswillmakethemsellthosecommoditiesascheaptothe
merchantsofthatcountry，astotheirowncountrymen。Theirstockisnotmoreprofitably
employedthanitwouldbeifnosuchtradeexisted。Therearecasesinwhichacountrymaygain
bybindinganothercountrytoselltononebutitself。Ifonecountryisboundtosellno
commoditieswhatsoever，excepttoanotherparticularcountry；thisisthesamecase，exactly，
withthatofacolonyboundtoselltononebutthemothercountry。Asnofreecountry，however，
islikelytobinditselftosellnoneofitscommoditiesexcepttooneother，thisisnotacasewhich
weneedtoregardaspracticableorreal。
（3。xviii。17）Onecountrymaybinditselftosellexclusivelytoanotherparticularcountry，not
all
thearticlesithasforforeignsale，butonlysomeofthem。
（3。xviii。18）Thesemaybearticleswhichyieldnothing，eveninastateoffreedom，butthe
ordinaryprofitsofstock；ascloth，hardware，hats，&；c。：ortheymaybearticleswhichyield
somethingoverandabovetheordinaryprofitsofstock；ascorn，wine，minerals，&；c。which
are
thesourceofrent。
（3。xviii。19）Onecountrycanderivenoadvantagefromcompellinganothertoselltoit，
exclusively，articlesofthefirstsort。Ifthepricewhichthefavouredcountrypaysforthegoodsis
notsufficienttoaffordtheordinaryprofitsofstock，theywillnotbeproduced。Ifthepricewhich
itpaysissufficienttoaffordtheordinaryprofitsofstock，itwould，atthatprice，obtainthe
goods，withoutanytreatyofrestriction。
（3。xviii。20）Thecaseisdifferent，wherethegoodsyieldsomething，asrent，ortheprofitsofa
monopoly，overandabovetheprofitsofstock。Thequantitywhichmaybesentinthiscaseto
thefavouredcountry，maysinktherethepriceoftherestrictedcommoditylowerthanitisinthe
neighbouringcountries；andlowerthantherestrictedcountrywould，ifnotunderrestriction，be
enabledtosellitinthosecountries。Tothisextent，andtothisonly，canonecountrybenefit，by
confiningthetradeofanothertoitself。Therestrictionmayoperatetoadiminutionoftheprofits
ofamonopolizedcommodity，oradiminutionofrent。
（3。xviii。21）Thereisonemodeofpresentingthissubject，whichisapttopuzzleamindnot
accustomedtotracetheintricaciesofthisscience。
（3。xviii。22）Supposetwocountries，AandB，ofwhichAisboundbytreaty，orotherwise，to
receiveallitsshoesfromB，andtoselltoBallitssugars：Suppose，also，thatAcould，ifleftat
liberty，obtainitsshoes50percent。cheaperfromsomeothercountry；inthatcase，itmayfora
momentappear，thatB，obtainsthesugarswhichitbuysofA，with50percent。lessofitsown
labour，thanitwouldifAwereallowedtopurchasewhereitpleased。
（3。xviii。23）IfBpaidforthesupposedsugarsinshoes，itwould，nodoubt，pay50percent。
more
inthecaseofafreetrade。
（3。xviii。24）Butiftherewereanyotherarticlewithwhichitcouldpurchasethosesugars，and
whichitcouldaffordascheapasanyothercountry，itwouldlosenothinginthecaseofafree
trade；itwouldpurchasethesamequantityofsugarwiththeproduceofthesamequantityof
labourasbefore；only，thatproducewouldbe，notshoes，butsomeotherarticle。
（3。xviii。25）ThattherewouldbearticleswhichBcouldaffordascheapasanyothercountry，
is
certain，becauseotherwiseitcouldhavenoforeigntrade。
（3。xviii。26）Itmaybesaid，however，thatthoughBmighthavearticleswhichitcouldsellas
cheapasothercountries，theymightnotbeindemandinthecountrywhichproducedthesugars。
Butifshoesonlywereindemandinthecolonies，thoseotherarticlescouldpurchaseshoes
wheretheywerecheapest；andthusobtainthesamequantityofsugar，inthefree，asinthe
restrictedstateofthetrade。
Chapter4。Consumption（4。1）Ofthefoursetsofoperations，Production，Distribution，Exchange，andConsumption，
whichconstitutethesubjectofPoliticalEconomy，thefirstthreearemeans。Nomanproduces
forthesakeofproducing，andnothingfarther。Distribution，inthesamemanner，isnot
performedforthesakeofdistribution。Thingsaredistributed，asalsoexchanged，tosomeend。
（4。2）ThatendisConsumption。Thingsareproducedthattheymaybeconsumed；and
distributionandexchangeareonlytheintermediateoperationsforbringingthethings，which
havebeenproduced，intothehandsofthosewhoaretoconsumethem。
SectionI。OfProductiveandUnproductiveConsumption（4。i。1）OfConsumption，therearetwospecies；thedistinctivepropertiesofwhichitisof
great
importancetocomprehend。
（4。i。2）Theseare，1st，ProductiveConsumption；2dly，UnproductiveConsumption。
（4。i。3）1。Thatproductionmaytakeplace，acertainexpenditureisrequired。Itisnecessary，
that
thelabourershouldbemaintained；thatheshouldbeprovidedwiththeproperinstrumentsofhis
labour，andwiththematerialsofthecommoditywhichitishisbusinesstoproduce。
（4。i。4）Whatisthusexpended，forthesakeofsomethingtobeproduced，issaidtobe
consumed
productively。
（4。i。5）Inproductiveconsumption，threeclassesofthingsareincluded。Thefirstis，the
necessariesofthelabourer，underwhichtermareincludedallthathiswagesenablehimto
consume，whethertheseconfinehimtowhatisrequiredforthepreservationofexistence，or
affordhimsomethingforenjoyment。Thesecondclassofthingsconsumedforproductionis
machinery；includingtoolsofallsorts，thebuildingsnecessaryfortheproductiveoperations，and
eventhecattle。Thethirdisthematerialsofwhichthecommoditytobeproducedmustbe
formed，orfromwhichit，mustbederived。Suchistheseedfromwhichthecornmustbe
produced，theflaxorwoolofwhichthelinenorwoollenclothmustbeformed，thedrugswith
whichitmustbedyed，orthecoalswhichmustbeconsumedinanyofthenecessaryoperations。
（4。i。6）Ofthesethreeclassesofthings，itisonlythesecond，theconsumptionofwhichisnot
completedinthecourseoftheproductiveoperations。Themachineryandbuildings，employedin
production，maylastforseveralyears；thenecessaries，however，ofthelabourer，andthe
materials，eitherprimaryorsecondary，ofthecommoditytobeproduced，areallcompletely
consumed。Evenofthedurablemachinery，thewearandtearamounttoapartialconsumption。
（4。i。7）2。Thusitis，thatmenconsumeforthesakeofproduction。Theyalsoconsume，
however，
withoutproducing，andwithoutanyviewtoproduction。Thewageswhichamanaffordstoa
ploughman，aregivenforthesakeofproduction；thewageswhichhegivestohisfootmanand
hisgroom，arenotgivenforthesakeofproduction。Theflaxwhichthemanufacturerpurchases，
andconvertsintolinen，heconsumesproductively；thewinewhichhepurchases，andusesathis
table，heconsumesunproductively。Theseinstancesaresufficienttoillustratewhatismeant，
whenwespeakofunproductiveconsumption。Allconsumption，whichdoesnottakeplacetothe
endthatanincomeorrevenuemaybederivedfromit，isunproductiveconsumption。
（4。i。8）Fromthisexplanation，itfollows，thatproductiveconsumptionisitselfameans；itisa
meanstoproduction。Unproductiveconsumption，ontheotherhand，isnotameans。Thisspecies
ofconsumptionistheend。This，ortheenjoymentwhichisinvolvedinit，isthegoodwhich
constitutedthemotivetoalltheoperationsbywhichitwaspreceded。
（4。i。9）Fromthisexplanation，italsofollows，that，byproductiveconsumption，nothingis
lost：no
diminutionismadeoftheproperty，eitheroftheindividual，orofthecommunity；forifonething
isdestroyed，anotherisbythatmeansproduced。Thecaseistotallydifferentwithunproductive
consumption。Whateverisunproductivelyconsumed，islost。Whateverisconsumedinthis
manner，isadiminutionoftheproperty，bothoftheindividualandofthecommunity；because，
inconsequenceofthisconsumption，nothingwhateverisproduced。Thecommodityperishesin
theusing，andallthatisderivedisthegood，thepleasure，thesatisfaction，whichtheusingofit
yields。
（4。i。10）Thatwhichisproductivelyconsumedisalwayscapital。Thisisapropertyof
productive
consumption，whichdeservestobeparticularlyremarked。Amancommencesthemanufacture
ofclothwithacertaincapital。Partofthiscapitalheallotsforthepaymentofwages；another
parthelaysoutinmachinery：andwithwhatremainshepurchasestherawmaterialofhiscloth，
andtheotherarticles，theuseofwhichisrequired，inpreparingitforthemarket。Itthusappears，
thatthewholeofeverycapitalundergoestheproductiveconsumption。Itisequallyobviousthat
whateverisconsumedproductivelybecomescapital；forifthemanufacturerofcloth，whose
capitalwehaveseentobeproductivelyconsumed，shouldsaveaportionofhisprofits，and
employitinthedifferentkindsofproductiveconsumptionrequiredinhisbusiness，itwould
performexactlythefunctionsperformedbyhiscapital，andwould，intruth，beanadditionto
thatcapital。
（4。i。11）Thewholeofwhattheproductivepowersofthecountryhavebroughtintoexistence，
in
thecourseofayear，iscalledthegrossannualproduce。Ofthisthegreaterpartisrequiredto
replacethecapitalwhichhasbeenconsumed；torestoretothecapitalistwhathehaslaidoutin
thewagesofhislabourersandthepurchaseofhismaterials，andtoremuneratehimforthewear
andtearofhismachinery。Whatremainofthegrossproduce，afterreplacingthecapitalwhich
hasbeenconsumed，iscalledthenetproduce；andisalwaysdistributed，eitherasprofitsof
stock，orasrent。
（4。i。12）Thisnetproduceisthefund，fromwhichalladditiontothenationalcapitalis
commonly
made。Ifthenetproduceisallconsumedunproductively，thenationalcapitalremainsunaltered。
Itisneitherdiminishednorincreased。Ifmorethanthenetproduceisconsumedunproductively，
itistakenfromthecapital；andsofarthecapitalofthenationisreduced。Iflessthanthenet
produceisunproductivelyconsumed，thesurplusisdevotedtoproductiveconsumption；andthe
nationalcapitalisincreased。
（4。i。13）Thoughaveryaccurateconceptionmaythusbeformedofthetwospeciesof
consumption；andthetwospeciesoflabour；productive，andunproductive；itisnoteasytodraw
thelinepreciselybetweenthem。Almostallourclassificationsareliabletothisinconvenience。
Betweenthings，whichdifferthemostwidely，therearealmostalwaysordersofthings，which
approachbyinsensiblegradations。Wedivideanimalsintotwoclasses，therationaland
irrational：andnotwoideascanbemoreclearlydistinguished。Yetbeingsmaybefound，of
whichitwouldbedifficulttosay，towhichofthetwoclassestheybelonged。Inlikemanner，
thereareconsumers，andlabourers，whomayseem，withsomepropriety，tobecapableofbeing
ranked，eitherintheproductive，ortheunproductiveclass。Notwithstandingthisdifficulty，itis
absolutelynecessary，forthepurposesofhumandiscourse，thatclassificationshouldbe
performed，andthelinedrawnsomewhere。Thismaybedone，withsufficientaccuracybothfor
scienceand。forpractice。Itischieflynecessarythatthemoreimportantpropertiesoftheobjects
classifiedshouldbedistinctlymarkedinthedefinitionoftheclass。Itisnotdifficult，afterthis，
tomakeallowance，inpractice，forthosethingswhichhe，asitwere，upontheconfinesoftwo
classes；andpartake，insomedegree，ofthepropertiesofboth。
SectionII。ThatWhichIsAnnuallyProducedIsAnnually
Consumed（4。ii。1）Fromwhatwehavenowascertainedofthenatureofproductionandconsumption，it
will
easilybeseen，thatthewholeofwhatisannuallyproducedisannuallyconsumed；or，thatwhat
isproducedinoneyear，isconsumedinthenext。
（4。ii。2）Everything，whichisproduced，belongstosomebody，andisdestinedbytheowners
to
someuse。Therearehowever，buttwosortsofuse：thatforimmediateenjoyment，andthatfor
ultimateprofit。Touseforultimateprofit，istoconsumeproductively。Touseforimmediate
enjoyment，istoconsumeunproductively。
（4。ii。3）Wehavejustobserved，thatwhatisusedforultimateprofit，islaidout，as
expeditiously
aspossible，inwagesoflabour，machinery，andrawmaterial。Thisisafactofprimary
importance；andmanyerrorsofthosewhoreasonlooselyinPoliticalEconomy，arisefromthe
neglectofit。Whateverissavedfromtheannualproduce，inordertobeconvertedintocapital，is
necessarilyconsumed；becausetomakeitanswerthepurposeofcapital，itmustbeemployedin
thepaymentofwages，inthepurchaseofrawmaterialtobeworkedintoafinishedcommodity，
or，lastly，inthemakingofmachines，effectedinlikemannerbythepaymentofwages，andthe
workingupofrawmaterials。Withrespecttothatpartoftheannualproduce，whichisdestined
forunproductiveconsumption，thereislessfrequentlyanymistake。Asitwouldbeattendedwith
alosstolayinagreaterstockofarticlesofthisclassthanisrequired，forimmediateuse，allof
them，exceptafew，ofwhichthequalityisimprovedbytheirage，arealwaysexpeditiously
consumed，orputinacourseofconsumption。
（4。ii。4）Ayearisassumed，inpoliticaleconomy，astheperiodwhichincludesarevolving
circle
ofproductionandconsumption。Noperioddoessoexactly。Somearticlesareproducedand
consumedinaperiodmuchlessthanayear。Inothers，thecircleisgreaterthanayear。Itis
necessary，fortheendsofdiscourse，thatsomeperiodshouldbeassumedasincludingthiscircle。
Theperiodofayearisthemostconvenient。Itcorrespondswithonegreatclassofproductions，
thosederivedfromthecultivationoftheground。Anditiseasy，whenwehaveobtainedformsof
expression，whichcorrespondaccuratelytothisassumtion，tomodifytheminpracticetothe
caseofthosecommodities，thecircleofwhoseproductionandconsumptioniseithergreateror
lessthanthestandardtowhichourgeneralpropositionsareconformed。
SectionIII。ThatConsumptionIsCo—ExtensiveWith
Production（4。iii。1）Itrequiresonlyafewexplanationstoshow，thatthisisadirectcorollaryfromthe
propositionestablishedintheprecedingsection。
（4。iii。2）Amanproduces，onlybecausehewishestopossess。Ifthecommodity，whichhe
produces，isthecommoditywhichhedesirestopossess，hestopswhenhehasproducedasmuch
ashedesires；andhissupplyisexactlyproportionedtohisdemand。Thesavage，whomakeshis
ownbowandarrows，doesnotmakebowsandarrowsbeyondwhathewishestopossess。
（4。iii。3）Whenamanproducesagreaterquantityofanycommoditythanhedesiresfor
himself，
itcanonlybeononeaccount；namely，thathedesiressomeothercommoditywhichhecan
obtaininexchangeforthesurplusofwhathehimselfhasproduced。Itseemshardlynecessaryto
offeranythinginsupportofsonecessaryaproposition；itwouldbeinconsistentwiththeknown
lawsofhumannaturetosuppose，thatamanwouldtakethetroubletoproduceanythingwithout
desiringtohaveanything。Ifhedesiresonething，andproducesanother，itisonlybecausethe
thingwhichhedesirescanbeobtainedbymeansofthethingwhichheproduces，andbetter
obtained，thanifhehadendeavouredtoproduceithimself。
（4。iii。4）Afterlabourhasbeendividedanddistributed，toanyconsiderableextent，andeach
producerconfineshimselftosomeonecommodityorpartofacommodity，asmallportiononly
ofwhatheproducesisusedforhisownconsumption。Theremainderhedestinesforthepurpose
ofsupplyinghimwithalltheother’commoditieswhichhedesires；andwheneachmanconfines
himselftoonecommodityandexchangeswhatheproducesforwhatisproducedbyother
people，itisfoundthateachobtainsmoreoftheseveralthings，whichhedesires，thanhewould
haveobtained，hadheendeavouredtoproducethemallforhimself。
（4。iii。5）Sofarasamanconsumesthatwhichheproduces，thereis，properlyspeaking，
neither
supplynordemand。Demandandsupply，itisevident，aretermswhichhavereferenceto
exchange；toabuyerandaseller。Butinthecaseofthemanwhoproducesforhimself，thereis
noexchange。Heneitherofferstobuyanythingnortosellanything。Hehastheproperty；hehas
producedit；anddoesnotmeantopartwithit。Ifweapply，byasortofmetaphor，theterms
demandandsupplytothiscase，itisimplied，intheverytermsofthesupposition，thatthe
demandandsupplyareexactlyproportionedtooneanother。Asfarthenasregardsthedemand
andsupplyofthemarket，wemayleavethatportionoftheannualproduce，whicheachofthe
ownersconsumesintheshapeinwhichheproducesorreceivesit，altogetheroutofthequestion。
（4。iii。6）Inspeakinghereofdemandandsupply，itisevidentthatwespeakofaggregates。
When
wesayofanyparticularnation，atanyparticulartime，thatitssupplyisequaltoitsdemand，we
donotmeaninanyonecommodity，oranytwocommodities。Wemean，thattheamountofits
demand，inallcommoditiestakentogether，isequaltotheamountofitssupplyinall
commoditiestakentogether。Itmayverywellhappen，notwithstandingthisequalityinthe
generalsumofdemandsandsupplies，thatsomeonecommodityorcommoditiesmayhavebeen
producedinaquantityeitheraboveorbelowthedemandforthoseparticularcommodities。
（4。iii。7）Twothingsarenecessarytoconstituteademand。Theseare，1st，awishforthe
commodity；2dly，anequivalenttogiveforit。Ademandmeansthewilltopurchase，andthe
meansofpurchasing。Ifeitheriswanting，thepurchasedoesnottakeplace。Anequivalentisthe
necessaryfoundationofalldemand。Itisinvainthatamanwishesforcommodities，ifhehas
nothingtogiveforthem。Theequivalentwhichamanbringsistheinstrumentofdemand。The
extentofhisdemandismeasuredbytheextentofhisequivalent。Thedemandandtheequivalent
areconvertibleterms，andtheonemaybesubstitutedfortheother。Theequivalentmaybecalled
thedemand，andthedemandtheequivalent。
（4。iii。8）Wehavealreadyseen，thateveryman，whoproduces，hasawishforother
commodities，
thanthosewhichhehasproduced，totheextentofallthathebringstomarket。Anditisevident，
thatwhateveramanhasproduced，anddoesnotwishtokeepforhisownconsumption，isa
stockwhichhemaygiveinexchangeforothercommodities。Hiswill，therefore，topurchase，
andhismeansofpurchasing，inotherwords，hisdemand，isexactlyequaltotheamountofwhat
hehasproducedanddoesnotmeantoconsume。
（4。iii。9）Buteachmancontributestothegeneralsupplythewholeofwhathehasproduced
and
doesnotmeantoconsume。Inwhatevershapeanypartoftheannualproducehascomeintohis
hands，ifbeproposestoconsumenopartofithimself，hewishestodisposeofthewhole；and
thewhole，therefore，becomesmatterofsupply：ifheconsumesapart，hewishestodisposeof
alltherest，andalltherestbecomesmatterofsupply。
（4。iii。10）Aseveryman’sdemand，therefore，isequaltothatpartoftheannualproduce，orof
the
propertygenerally，whichhehastodisposeof，andeachman’ssupplyisexactlythesamething，
thesupplyanddemandofeveryindividualareofnecessityequal。
（4。iii。11）Demandandsupplyaretermsrelatedinapeculiarmanner。Acommoditywhichis
supplied，isalways，atthesametime，acommoditywhichistheinstrumentofdemand。A
commoditywhichistheinstrumentofdemand，isalways，atthesametime，acommodityadded
tothestockofsupply。Everycommodityisalways，atoneandthesametime，matterofdemand，
andmatterofsupply。Oftwomenwhoperformanexchange，theonedoesnotcomewithonlya
supply，theotherwithonlyademand；eachofthemcomeswithbothademandandasupply。The
supply，whichhebrings，istheinstrumentofhisdemand；andhisdemandandsupplyareof
courseexactlyequaltooneanother。
（4。iii。12）Butifthedemandandsupplyofeveryindividualarealwaysequaltooneanother，
the
demandandsupplyofalltheindividualsinthenation，takenaggregately，mustbeequal。
Whatever，therefore，betheamountoftheannualproduce，itnevercanexceedtheamountofthe
annualdemand。Thewholeoftheannualproduceisdividedintoanumberofshares，equalto
thatofthepeopletowhomitisdistributed。Thewholeofthedemandisequaltoasmuchofthe
wholeofthesharesastheownersdonotkeel）fortheirownconsumption。Butthewholeofthe
sharesisequaltothewholeoftheproduce。Thedemonstration，therefore，iscomplete。
（4。iii。13）Howcompletesoeverthedemonstrationmayappeartobe，thatthedemandofa
nation
mustalwaysbeequaltoitssupply，andthatitnevercanbewithoutamarketsufficiently
enlargedforthewholeofitsproduce，thispropositionisseldomwellunderstood，andis
sometimesexpresslycontradicted。
（4。iii。14）Theobjectionisraiseduponthisfoundation，thatcommoditiesareoftenfoundto
be
tooabundantfordemand。
（4。iii。15）Thematteroffactisnotdisputed。Itwilleasily，however，beseen，thatitaffectsnot
the
certaintyofthepropositionwhichitisbroughttooppugn。
（4。iii。16）Thoughitbeundeniable，thatthedemand，whicheverymanbrings，isequaltothe
supply，whichhebrings，hemaynotfindinthemarketthesortofpurchaser，whichhewants。No
manmayhavecomedesiringthatsortofcommodity，ofwhichhehastodispose。Itisnotthe
lessnecessarilytrue，thathecamewithademandequaltohissupply；forhewantedsomething
inreturnforthegoodswhichhebroughtItmakesnodifferencetosay，thatperhapsheonly
wantedmoney；formoneyisitselfgoods；and，besides，nomanwantsmoneybutinordertolay
itout，eitherinarticlesofproductive，orarticlesofunproductiveconsumption。
（4。iii。17）Everymanhavingademandandasupply，bothequal；ifanycommoditybein
greater
quantitythanthedemand，someothercommoditymustbeinless。
（4。iii。18）Ifeverymanhasademandandsupplybothequal，thedemandandsupplyinthe
aggregatearealwaysequal。Suppose，thatofthesetwoequalquantities，demandandsupply，the
oneisdividedintoacertainnumberofparts，andtheotherintoasmanyparts，allequal；andthat
thesepartscorrespondexactlywithoneanother；thatasmanypartsofthedemandasarefor
corn，justsomanypartsofthesupplyareofcorn；asmanyoftheoneasareforcloth，somanyof
theotherareofcloth，andsoon：itisevident，inthiscase，thattherewillbenoglutofanything
whethertheamountoftheannualproducebegreatorsmall。Letusnextsuppose，thatthisexact
adaptationtooneanotherofthepartsofdemandandsupplyisdisturbed；letussupposethat，the
demandforclothremainingthesame，thesupplyofitisconsiderablyincreased：therewillof
coursebeaglutofcloth，becausetherehasbeennoincreaseofdemand。Buttotheverysame
amounttheremustofnecessitybeadeficiencyofotherthings；fortheadditionalquantityof
cloth，whichhasbeenmade，couldbemadebyonemeansonly，bywithdrawingcapitalfromthe
productionofothercommodities，andtherebylesseningthequantityproduced。Butifthe
quantityofanycommodityisdiminished，ademandequaltothegreaterquantityremaining，the
quantityofthatcommodityisdefective。Itis，therefore，impossible，thatthereshouldeverbein
anycountryacommodityorcommoditiesinquantitygreaterthanthedemand，withoutthere
being，toanequalamount，someothercommodityorcommoditiesinquantitylessthanthe
demand。
（4。iii。19）Theeffects，whichareproduced，inpractice，bythewantofadaptationintheparts
of
demandandsupply，arefamiliar。Thecommodity，whichhappenstobeinsuperabundance，
declinesinprice；thecommodity，whichisdefectiveinquantity，rises。Thisisthefluctuationof
themarket，whicheverybodysufficientlyunderstands。Thelownessoftheprice，inthearticle
whichissuperabundant，soonremoves，bythediminutionofprofits，aportionofcapitalfrom
thatlineofproduction：Thehighnessofprice，inthearticlewhichisscarce，invitesaquantityof
capitaltothatbranchofproduction，tillprofitsareequalized，thatis，tillthedemandandsupply
areadaptedtooneanother。
（4。iii。20）Thestrongestcase，whichcouldbeput，infavourofthesuppositionthatproduce
may
increasefasterthanconsumption，wouldundoubtedlybethat，inwhich，everymanconsuming
nothingbutnecessaries，alltherestoftheannualproduceshouldbesaved。Thisis，indeed，an
impossiblecase，becauseitisinconsistentwiththelawsofhumannature。Theconsequencesof
it，however，arecapableofbeingtraced；andtheyservetothrowlightupontheargument，by
whichtheconstantequalityhasbeendemonstratedofproduceanddemand。
（4。iii。21）Insuchacase，whatcametoeveryman’sshareoftheannualproduce，batinghis
own
consumptionofnecessaries，wouldbedevotedtoproduction。Allproductionwouldofcoursebe
directedtorawproduceandafewofthecoarsermanufactures；becausethesearethearticlesfor
whichalonetherewouldbeanydemand。Aseveryman’sshareoftheannualproduce，batinghis
ownconsumptionwouldbelaidoutforthesakeofproduction，itwouldbelaidoutinthe
articlessubservienttotheproductionofrawproduceandthecoarsermanufactures。Butthese
articlesarepreciselyrawproduceandafewofthecoarsermanufacturesthemselves。Everymans
demand，therefore，wouldconsistwhollyinthesearticles；butthewholeofthesupplywould
consistalsointhesamearticles。Andithasbeenproved，thattheaggregatedemandand
aggregatesupplyareequalofnecessity；becausethewholeortheannualproduce，batingthe
portionconsumedbytheshareholders，isbroughtastheinstrumentofdemand；andthewholeof
theannualproduce，withthesameabatement，isbroughtassupply。
（4。iii。22）Itappears，therefore，byaccumulatedproof，thatproductioncanneverbetoorapid
for
demand。Productionisthecause，andthesolecause，ofdemand。Itneverfurnishessupply，
withoutfurnishingdemand，bothatthesametime，andbothtoanequalextent。
（4。iii。23）Ithasbeenobjected，that，forthevalidityoftheargumentitisnecessaryto
suppose，
"thatnewtastesandnewwantsspringupwiththenewcapital。"Asinglereflectionwill，Ithink，
makeitclearthatthetaste，andwants，inquestion，areessentiallyandnecessarilyimpliedinthe
veryexistenceofthecapital。
（4。iii。24）Thenewcapitalisalltobelaidoutinthepurchaseofsomething，accordingtothe
plansoftheowner。Itisofinfiniteimportancetoobserve，thateverycreationofcapitalisthe
creationofademand。Itissurprisingthatthismaterialpointissofrequentlyoverlooked。It
seemstobelittlelessthanselfevident，andifadmitted，itcarriesinitselfananswertoevery
argumentthathasbeen，orthatcanbeadduced，infavouroftheglut。
（4。iii。25）Whatisitthatwemean，whenwesaythedemandofanation，speakingofthe
aggregate，andincludingadefinitecircleofproductionandconsumption，suchasthatofayear？
Dowe，orcanwe，meananythingbutitspowerofpurchasing？Andwhatisitspowerof
purchasing？Ofcourse，thegoodswhichcometomarket。What，ontheotherhand，isitwemean，
when，speakinginlikemanneraggregately，andincludingthesamecircle，wesaythesupplyof
thenation？Dowe，orcanwemeananything，butthegoodswhichcometomarket？The
conclusionistooobvioustoneedtobedrawn。
（4。iii。26）Whatproducestheconfusionofideas，whichsooftenoccursintheconsideration
of
thissubject，istheglut，whichmay，anddoestakeplace，ofparticularcommodities。Doesit
followfromthis，thattherecanbeaglutofcommoditiesintheaggregate，whenitisnecessarily
truethattherecannotbeanaggregatesupplywithoutanequalaggregatedemand，equalbothin
quantityandinvalue？
（4。iii。27）Totheargument，whichshowsthattothesamedegree，inwhichoneormore
commoditiesmaybeinsuchabundanceasexceedsthedemand，someothercommoditiesmust
fallshortofthedemand，ithasbeenreplied，thatthecommoditieswhicharesuppliedin
superabundancefallinvalue，thatthisinvolvesalltheeviloftheglut，andisthereforeareplyto
thewholeoftheargumentwhichdeniesitsexistence。
（4。iii。28）Thisisareplyinwordsonly。Whatismaintainedinmyargumentis，thattherecan
be
noglutofcommoditiesintheaggregate，thoughtheremaybeinparticularinstances。Theanswer
madetomeisthattheremaybeaglutinparticularinstances。
（4。iii。29）Intheverywordsofthepretendedreply，thecertaintyofthedisputedfactis
admitted。
Thevalue，itissaid，ofthegoods，whichareinthestateofsuperabundance，falls。Ifthisisnota
playupontheword，itimpliestheverythingwhichitisbroughttodispute，thatwheneverone
setofgoodsissuppliedabovethedemand，anotherissuppliedbelowthedemand。
（4。iii。30）Whatisitthatisnecessarilymeant，whenwesaythatthesupplyandthedemand
are
accommodatedtooneanother？Itisthis：thatgoodswhichhavebeenproducedbyacertain
quantityoflabour，exchangeforgoodswhichhavebeenproducedbyanequalquantityoflabour。
Letthispropositionbedulyattendedto，andalltherestisclear。
（4。iii。31）Thus，ifapairofshoesisproducedwithanequalquantityoflabourasahat，so
longas
ahatexchangesforapairofshoes，solongthesupplyanddemandareaccommodatedtoone
another。Ifitshouldsohappenthatshoesfellinvalue，ascomparedwithhats，whichisthesame
thingashatsrisinginvaluecomparedwithshoes，thiswouldimplythatmoreshoeshadbeen
broughttomarket，ascomparedwithhats。Shoeswouldthenbeinmorethanthedueabundance。
Why？Becauseinthemtheproduceofacertainquantityoflabourwouldnotexchangeforthe
produceofanequalquantity。Butfortheverysamereasonhatswouldbeinlessthanthedue
abundance，becausetheproduceofacertainquantityoflabourinthemwouldexchangeforthe
produceofmorethananequalquantityinshoes。
（4。iii。32）Whatistrueofanyoneinstanceistrueofanynumberofinstances。Itistherefore
universallytrue，that，astheaggregatedemandandaggregatesupplyofanationnevercanbe
unequaltooneanother，sotherenevercanbeasuperabundantsupplyinparticularinstances，and
henceafallinexchangeablevaluebelowthecostofproduction，withoutacorresponding
deficiencyofsupply，andhenceariseinexchangeablevalue，beyondcostofproduction，inother
instances。Thedoctrineoftheglut，therefore，seemstobedisprovedbyreasoningperfectly
conclusive。
（4。iii。33）Letusrecapitulatethepoints。Aglut，asitissupposedinthisdoctrine，namelyan
excessofproductionintheaggregate，cantakeplaceonlybyacontinuedincreaseofproduction。
Letusimaginethatwehavejustcometothesupposedpoint，when，thesupplybeingfull，any
additionalproductionwillbesomuchofglut。Theadditionalproductiontakesplace，andcomes
tomarket。Whatistheconsequence？Thisnewproductseeksanequivalent。Thatistosay，itisa
newdemand。Howthenisitpossibletosaythateverynewsupplyisaglut，whenanewdemand
iscreatedequaltoit？Itisobviouslynugatorytosay，thatthisnewsupplymaynotfind
purchasers，orthenewdemandmaynotfindthecommoditiestowhichitisdirected；forthisis
onlytosaythatinparticularinstancestheremay，frommiscalculation，besuperabundanceor
defect。Thenaturaleffects，insuchacase，maybeeasilytraced，andtheyafforddecisive
evidence。Thecommodities，ofwhichtheadditionalproductionconsists，maybenaturally
supposedtoconsistofsomeofthesortswhicharepreviouslyinthemarket。Bysupposition，the
goodspreviouslyinthemarketwereaccommodatedtooneanother，nospeciesbeingeitherin
defective，orsuperabundantsupply。Theadditionwhichismadetosomesortsofthesegoods，by
thenewproduction，wouldrenderthemsuperabundant，iftherewasnotanewdemandcreated。
Thesegoodswouldfallinexchangeablevalueascomparedwithothers，otherswouldrisein
exchangeablevalueascomparedwiththem。Butthereisanewdemandcreated；fortheownerof
thenewproduce，ashehascomeintothemarkettosellgoodsofsomekinds，sohehascometo
buygoodsofsomeotherkinds。Asthesupply，whichhebrought，ofcertainkindsofgoods
tendedtoreducetheirvalue，sothedemand，whichhebrings，forotherkindstendstoincrease
theirvalue。Theresultis，thatnowtherearecertainkindsofgoods，whichitislessprofitable
thanusualtoproduce；others，whichitismoreprofitablethanusualtoproduce：andthisisan
inequality，whichtendsimmediatelytocorrectitself。Thisisthemode，inwhicheveryaddition
ismadetotheproductionsofacountry，anditisamode，whichisevidentlythesameatevery
stageoftheprogress，fromthegreatestdefect。tothegreatestexcess，ofnationalriches。It
commonly，ofcourse，happens，thattheman，whobringsintothemarketanadditionofproduce，
endeavourstobringitingoodsthatareindefectivesupply，andtopurchasegoodsthatarein
superabundantsupply；andthestateofthemarketgenerallyenableshimtodoso：sothatan
additionofproducebroughtintothemarketmayjustasoftenremedyaglutasbeinanydegree
thecauseofit。
（4。iii。34）ThedoctrineofMr。Malthus，onthesubjectoftheglut，seems，atlast，toamountto
this：thatifsavingweretogoonatacertainrate，capitalwouldincreasefasterthanpopulation；
andthatifcapitaldidsoincrease，wageswouldbecomeveryhigh，andprofitswouldsustaina
correspondingdepression。Butthis，ifitwereallallowed，doesnotprovetheexistenceofaglut；
itonlyprovesanotherthing，namely，thattherewouldbehighwagesandlowprofits。Whether
suchanincreaseofcapital，scarcelycomingwithintherangeevenofarationalsupposition，
wouldbeagoodthingoranevilthing，itwouldinfalliblyproduceitsownremedy，asthepower，
ofcapitaltoincreaseisdiminishedwiththediminutionofprofits。
（4。iii。35）Mr。Malthusfurthersays，thatthehighwagesthusproducedwouldgenerate
idlenessin
theclassoflabourers。Thepredictionmaybedisputed；but，allowedtobecorrect，whatisits
import？If，wagescontinuingthesame，lessworkisdone，thisishigherpayforanequalquantity
oflabour；itisthereforethesamethingasariseofwages。Itwouldmerelyacceleratethat
diminutionofprofits，whichmustintimeretardandfinallystoptheincreaseofcapital，in
consequenceofwhichwageswouldnaturallyfall。This，therefore，isnotadifferentobjection
fromtheformer；itispreciselythesameobjection，onlyinadifferentform。
（4。iii。36）Mr。Malthus，thus，totallyfailingtoproveaglut，evenfromacontinuedincreaseof
capitalgreaterthanthegreatestincreaseofpopulation，substitutes，forargumentstoprovethat
effect，argumentstoprovecertainothereffects。
（4。iii。37）Hesays，thatweretheannualproducethustogoonincreasing，itsvaluewouldbe
diminished。Butthisismerelyaplayupontheword。Hesays，Icallthevalueofacommoditythe
numberofdays’wagesitisequalto。Ifthenwagesaremorethandoubled，thoughyoudoublethe
amountofyourcommodities，andhavetwiceasmuchofeverything，yetyouwillhaveless
value。Anarbitrarychange，however，inthemeaningofawordprovesnothing。Thefacts，and
theirrelations，remainthesome，whateverMr。Malthus，orI，maychoosetocallthem。Thefacts
stillaremerelythese，thatsocietywouldhavethesupposedamountofcommodities，andallits
benefits，andthatwageswouldbeveryhigh。
（4。iii。38）Mr。Malthusfurthersays，thatthisrapidincreaseofcapitalwouldtendtodiminish
production。Thatonwhichtheincreaseofproductiondepends，istheincreaseofitstwo
instruments，capitalandlabourers。BytheverysuppositionwhichMr。Malthushimselfhas
made，andonwhichheisreasoning，bothoftheseinstrumentsareincreasingattheirmostrapid
possiblerate。Itseemsthereforeamostextraordinarysupposition，thatproductionshouldnotbe
increasingatitsmostrapidpossiblerate。
（4。iii。39）Ifitbetrue，asMr。Malthussupposes，thatthehighwagessupposedwould
diminish
labour，itwillbetruethatlessworkwillbedone，andlessproductioneffected，thanifeveryman
workedmore。Letussupposethatthediminutionoflabourgoesongradually，aswagesincrease，
tillatlasteachmandoesonlyhalfasmuchworkasbefore，whatthenistheconsequence？
Merelythis，thatifpopulationisgoingonatitsgreatestpossiblerate，doublingitselfintwenty
years，therewillnotbeagreaterincreaseofproductionfromlabour，thantherewouldbeifit
doubleditselfonlyinfortyyears，andeachmanperformedtwiceasmuchwork。Thiswouldstill
beamorerapidratethanthatatwhichcapitalincreases，exceptinsomeveryrareand
extraordinarycircumstances。But，iflabourweresoverydear，andcapitalsoabundant，the
consequencewouldbe，thataslittleaspossibleofproductionwouldbeperformedbyman’s
labour，asmuchaspossiblebymachineryandcattle。Ingenuitywouldberackedtofindthe
meansofsupersedingthemostcostlyinstrument。Machineswouldbemultipliedandimproved
withoutend；andamuchgreaterproportionoftheannualproducewouldbetheresultofcapital，
amuchlesstheresultofimmediatelabour。Thediminutionofproductionwouldnotthereforebe
nearlyinproportiontothediminutionofeachman’slabour。
（4。iii。40）Thesupposedeffectsthereforearereallyofnoimportance，otherwiseitmightstill
be
questionedhowfartheinferenceiswarranted，thathighwagestendtodiminishindustry。
Experienceseemstobeveryfullontheoppositeside。Wherewagesareexcessivelylow，asin
Ireland，thereisnoindustry；whereexcessivelyhigh，asintheAmericanUnitedStates，thereis
thegreatest。WhatdoesMr。Malthushimselfmeanbythestimuluswhichhesaysisgivento
industrybyanenlargementofthemarket？
SectionIV。InWhatMannerGovernmentConsumes（4。iv。1）Allconsumptioniseitherbyindividuals，orbythegovernment。Havingtreatedofthe
consumptionofindividuals，itonlyremainsthatwetreatofthatwhichhasgovernmentforits
cause。
（4。iv。2）Althoughtheconsumptionbygovernment，asfarasreallynecessary，isofthe
highest
importance，itisnot，unlessveryindirectly，subservienttoproduction。Thatwhichisconsumed
bygovernment，insteadofbeingconsumedascapital，andreplacedbyaproduce，isconsumed，
andproducesnothing。Thisconsumptionis，indeed，thecauseofthatprotection，underwhichall
productionhastakenplace；butifotherthingswerenotconsumedinawaydifferentfromthatin
whichthingsareconsumedbygovernment，therewouldbenoproduce。Thesearereasonsfor
placingtheexpenditureofgovernmentundertheheadofunproductiveconsumption。
（4。iv。3）Therevenueofgovernmentmustbederivedfromrent，fromprofitsofstock，orfrom
wagesoflabour。