Essay on Economic Theory PDF
Preview Essay on Economic Theory
An Essay on Economic Theory An English translation of Richard Cantillon’s Essai sur la Nature du Commerce en Général An Essay on Economic Theory An English translation of Richard Cantillon’s Essai sur la Nature du Commerce en Général Translated by Chantal Saucier Edited by Mark Thornton 4 AnEssayonEconomicTheory ©2010bytheLudwigvonMisesInstituteandpublishedunderthe CreativeCommonsAttributionLicense3.0. http://creativecommons.org/licenses/by/3.0/ LudwigvonMisesInstitute 518WestMagnoliaAvenue Auburn,Alabama36832 mises.org ISBN:978-1-61016-001-8 Foreword RobertF.Hébert F oLLoWINgACENtuRyofneglect,WilliamStanleyJevons,inthe firstblushofdiscovery,proclaimedCantillon’sEssai,“thecradleofpoliti- caleconomy.”Subsequentgrowthanddevelopmentofeconomicthought hasnotreallyalertedustothesubtletiesofthissuccinctappraisal.Acra- dleholdsnewlife;andtherecanbelittledoubtthattheEssaiaddednew lifetotheorganizingprinciplesofeconomics.But“politicaleconomy” doesnotaccuratelydescribethesubjectCantillonaddressed.Indeed, hescrupulouslyavoidedpoliticalissuesinordertoconcentrateonthe mechanicsofeighteenth-centuryeconomiclife.Whenconfrontedby “extraneous”factors,suchaspolitics,Cantilloninsistedthatsuchconsid- erationsbeputaside,“soasnottocomplicateoursubject,”hesaid,thus invokingakindofceteris paribus assumptionbeforeitbecamefashion- ableineconomicstodoso. ThisismerelyonewayinwhichCantillonwasaheadofhistime.He precededAdamSmithbyageneration.Bothwritersmadeimportant foundationalcontributionstoeconomics,butfromperspectivesthatwere quitedifferent.Smithwasaphilosopherandeducator.Hisapproachto economicsreflectedtheconcernsandapproachesofphilosophicinquiry stretchingbacktoThomasHobbes.TheHobbesiandilemmawashowto securepeaceandprosperitywithoutsubmittingtoanall-powerfulcentral government.Smithgaveananswerbasedonthenatureandfunctionofan exchangeeconomyoperatingunderaruleoflaw.The Wealth of Nations isfullofusefuladvicetothosewhoholdpoliticalpower.Hence,Smith earnedhissobriquet“fatherofpoliticaleconomy.” Cantillonwasabusinessmanandbanker.Hisapproachtoeconom- icsreflectedtheconcernsofpracticalmenwhosetaboutmakingaliv- ing,andhisanalysisconcentratedonthestructureandmechanicsofan emergingmarketeconomy.Theeconomyhedescribedwasanenterprise 5 6 AnEssayonEconomicTheory economy,notapoliticalone,inwhichcertainindividualsplayedkeyroles, somepassiveandsomeactive.government,asweknowit,wasrelatively passiveinCantillon’seconomy.Themostactiveandcentralparticipant wastheentrepreneur,whomotivatestheentireeconomicsystem.unlike anypreviouswriter,Cantillonexplicatedthevitalroleoftheentrepreneur withperceptionandvigor.Hence,hedeservestobecalled“thefatherof enterpriseeconomics.” TheseconsiderationsalonewouldjustifyrenewedinterestinCantillon andhiswork,buttherehavealwaysbeenimpedimentstoovercome.We knowlittleofCantillon’slifeandthecircumstancesofhisauthorship.The manuscriptthatwaseventuallypublishedin1755circulatedprivatelyin Franceforalmosttwodecadesbefore;whenpublished,itappearedunder mysteriouscircumstances.Thedesignatedpublisher,Fletchergyles,never existedattheaddressgiven;anddespitethephrase“traduitdel’Anglois” onthetitlepage,noEnglishoriginalwaseverfound.Moreover,astatisti- calsupplementtotheEssaihasgonemissing,andhasneverbeendiscov- ered.Inthe1970saJapanesescholarunearthedaFrenchmanuscriptatthe municipallibraryinRouenbearingthetitle,“EssayDelaNatureDuCom- merceengénéral,”whichencouragedspeculationthatthefirstwordmay havebeencarelesslytranscribedfromanEnglishoriginal,stillundiscov- ered.Allofthishasgiveneconomicdetectivesmuchtosiftthroughand explain.Buttheonesteadfastrealizationthroughouthasbeenthepowerof Cantillon’sanalysis. MarkthorntonandChantalSaucierhaveaccomplishedtheardu- oustaskofbringingforthanewandimprovedtranslationofCantillon’s famouswork.HeretoforetheonlyEnglishtranslationoftheEssaiavail- ablehasbeenthe1931editionproducedbyHenryHiggsfortheRoyal EconomicSociety.Thoughcompetent,ithasbecomelessserviceableover time,asmoreandmoreofitsshortcomingsdevolved(nottheleastof whichistheantiquateduseof“undertaker”inplaceof“entrepreneur”). Saucierprovidesamoreaccurateandlucidaccount,bettersuitedtothe 21stcentury.Thornton’shandshowsnotonlyincompetentguidanceof thetranslatorbutintheinclusionofnumerousexplanatoryfootnotesthat addhistoricalcontext. Agehasdimmedmymemoryoftheexacthourandday,butwhenI wasmuchyoungerIpresentedapaperonCantillontoasmallgroupof economistsgatheredinKeynesHallatCambridgeuniversity.Afterward Saucier/Thornton 7 IwasapproachedbyaproperEnglishgentlemanwhowishedtodiscuss furtherthemeritsofCantillon’swork.DuringtheensuingconversationI mentionedmybeliefthatanewtranslationoftheEssaiwaswarranted.My listenerenthusiasticallyagreed.Atsomepointitdawnedonmethathehad notmentionedhisname.SoIasked.“Shackle,”hereplied.Iwasmomen- tarilystunned.g.L.S.Shackle(1903-1992)wasBritain’sleadingintellect onthethemesthatarecentraltoCantillon’sanalysis,namelyimagination anduncertainty.Ifhewerealivetoday,I’msureShacklewouldwelcome thisnewtranslation,alongsidetherestofuswhohaveanabidinginterest inCantillonandhisideas. 8 AnEssayonEconomicTheory Saucier/Thornton 9 Contents IntroductionbyChantalSaucierandMarkThornton........... 13 Part One: Production, Distribution, and Consumption Chapter One: Wealth..........................21 Chapter Two: HumanSocieties..................... 23 Chapter Three: Villages..........................27 Chapter Four: Markettowns......................31 Chapter Five: Cities...........................35 Chapter Six: CapitalCities....................... 39 Chapter Seven: TheLaborofthePlowmanisoflessValue thanthatoftheArtisan................41 Chapter Eight: SomeArtisansearnmore,othersless, accordingtothedifferentCasesand Circumstances...................... 45 Chapter Nine: TheNumberofLaborers,Artisansand others,whoworkinaStateisnaturally proportionedtotheDemandforthem........ 49 Chapter Ten: ThePriceandIntrinsicValueofaThing ingeneralisthemeasureoftheLandand LaborwhichenterintoitsProduction........53 Chapter Eleven: TheParorRelationbetweentheValueof LandandLabor.....................59 Chapter Twelve: AllClassesandIndividualsinaState subsistorareenrichedattheExpenseofthe ProprietorsofLand...................69 Chapter Thirteen: TheCirculationandExchangeof goodsandMerchandiseaswellastheir ProductionarecarriedoninEuropeby Entrepreneurs,andatarisk..............73 9
The list of books you might like
