Economic independence

“ The economy’s triumph as an independent power at the same time spells its own doom, because the forces it has unleashed have eliminated the economic necessity that was the unchanging basis of earlier societies. ”

“ But the very task of dealing with vast resources, over vast areas, under the conditions of free competition furnished by the West, has produced the rise of those captains of industry whose success in consolidating economic power now raises the question as to whether democracy under such conditions can survive. ”

“ During a ceremony at the Jefferson Memorial here in Washington, we discussed the four basic economic freedoms: the freedom to work, the freedom to enjoy the fruits of one's labor, the freedom to own and control one's property, and the freedom to participate in a free market. ”

“ Commerce and the growth of colonies, the extension of the middle class, the redistribution of wealth, the growth of cities, the dependence in relations of trade of one nation upon another, all these things shook the ancient organisation of society. The industrial system grew up upon the basis of a naturalistic theory of all economic relations. Unlimited freedom in labour and in the use of capital were claimed. ”

“ That while providing revenue for the support of the general government by duties upon imports, sound policy requires such an adjustment of these imposts as will encourage the development of the industrial interest of the whole country; and we commend that policy of national exchanges which secures to working-men liberal wages, to agriculture remunerating prices, to mechanics and manufacturers adequate reward for their skill, labour, and enterprise, and to the nation commercial prosperity and independence. ”

“ Whatever power they did secure, whether as potent subsidiary organs of the municipal polity for the regulation of trade, or as the chief or sole medium for the acquisition of citizenship, or as integral parts of the common council, was, generally speaking, the logical sequence of a gradual economic development, and not the outgrowth of a revolutionary movement by which oppressed craftsmen endeavoured to throw off the yoke of an arrogant patrician gild merchant. ”

“ With natural opportunities thus set free to labour, with capital and improvements exempt from tax and exchange released from restrictions, the spectacle of willing men unable to turn their labour into the things they want would become impossible; the recurring paroxysms which paralyse industry would cease; every wheel of production would be set in motion; trade would increase in every direction and wealth augment on every hand. ”

“ Economic conditions require readjustment, important matters of trade must be regulated, vital questions of finance and taxation must be handled, in fact, the whole country must settle down to production, manufacture, distribution of merchandise, and the transaction of the nation’s regular business. ”

“ Land Ownership and Liberty
The owners of American wealth have been molded gradually into a ruling class. Years of brutal, competitive, economic struggle solidified their ranks,—distinguishing friend from enemy; clarifying economic laws, and demonstrating the importance of coördination in economic affairs. Economic control, once firmly established, opened before the wealth owning class an opportunity to dominate the entire field of public life. ”

“ Notwithstanding the enormous increase of productive power by the universal introduction of labor-saving machinery and the discovery of new agents for the increase of wealth, the task of the laborer is scarcely lightened, the hours of toil are but little shortened, and few producers are lifted from poverty into comfort and pecuniary independence. The associated monopolies, the international syndicates, and other income classes demand dear money, cheap labor, and a strong government, and, hence, a weak people. ”

“ Economic "states rights" or individualism—the theory upon which the present day industry as well as the modern state was founded. Under this theory each economic group must be free to go its way, cutting a path for itself through the ranks of its competitors, and making its triumphant advance over their prostrate remains. ”

“ But with independence came enlarged interests of agriculture — absolutely new interests of manufactures — interests of commerce, of fisheries, of navigation, of common domain, of common debts, of common revenues and taxation, of the administration of justice, of public defense, of public honor; in short, interests of common nationality and sovereignty — interests which at last compelled the adoption of a more perfect union — a national government. ”

“ Moreover, with the growth of the modern state, with the interest increasing importance of business, and of industrial and commercial interests, as compared with changes of dynasty or the personal rivalries of rulers, economic questions have grown in relative importance. In our own country, particularly since the subjects of slavery and of States' rights ceased to absorb the attention of our people, economic questions have pushed rapidly into the foreground. ”

“ The American workers, as a part of the price of empire, will be compelled to produce surplus [Pg 265] wealth—wealth which they can never consume; wealth the control of which passes into the hands of the imperial ruling class, to be invested by them in the organization of the Empire and the exploitation of the resources and other economic opportunities of the dependent territory. ”

“ That exchange of commodities which free-trade promises so greatly to increase, will ultimately have the effect of specializing, in a greater or less degree, the industry of each people. So that beginning with a barbarous tribe, almost if not quite homogeneous in the functions of its members, the progress has been, and still is, towards an economic aggregation of the whole human race ”

“ The sweets of a free commerce with every part of the earth will soon reimburse you for all the losses you have sustained. The full tide of wealth will flow in upon your shores, free from the arbitrary impositions of those whose interest and whose declared policy it was to check your growth. Your interests will be fostered and nourished by governments that derive their power from your grant, and will be obliged, by the influence of cogent necessity, to exert it in your favour. ”

“ The mutual freedom and security of labour and capital compel production to go forward; and labour and capital take their respective stations, and perform their respective duties, altogether with reference to the laws which govern production. ”

“ If we encourage the labor of our own people in the development of the great resources of the country, we shall not only preserve our own commercial independence, but we shall soon be, as we ought to be in view of such advantages, the creditor nation of the world, and compel other countries to resort to us for the raw materials for their own manufacturing districts. ”

“ To accomplish these imperative results in the quickest and easiest way has alone been my object in trying to stimulate them to throw themselves, as it were, upon their own resources; that is, combine together on the capital furnished them by men for their domestic expenditures, on such a system as to bring a part, at least, of the retail trade into their hands, and so gain the independent and responsible handling of money, with all its incalculable stimulus to invention, enterprise, and independence of thought. ”

“ Only after we have mastered the principles upon which American industry is based, shall we be in a position to solve the problems which arise directly from the nature of our economic organization.
46. INDUSTRIAL REFORM.—Our industrial life is so clearly based upon certain fundamental institutions, such as private property, free contract, and free competition, that an industrial "system" is said to exist. Certain great evils, notably poverty, have accompanied the development of this system. ”

“ The economic system we should ultimately wish to see would be one in which the state would be the sole recipient of economic rent, while private capitalistic enterprises should be replaced by self-governing combinations of those who actually do the work. ”

“ The restoration of the consuming power of the 300 millions and more made destitute by the war, the restoration of the world’s power of production in agriculture and in manufacture, the gradual lifting of the heavy burden of public debt, the reduction of taxation, the restoration to normal of the international exchanges, and the extension of international credits, are all subjects for study and recommendation by trained economists and experienced men of affairs. ”

“ In Europe and America, where capital has been concentrated in great commercial and manufacturing establishments, and free institutions prevail almost as the natural consequence, industry is everything; and those who direct and command it are, happily, looked up to as the source of the wealth, the strength, the virtue, and the happiness of the nation. The concentration of capital in such establishments may, indeed, be considered, not only as the natural consequence, but as the prevailing cause of the free institutions by which the mass of the people in European countries are blessed. ”

“ Free Trade, by liberating commerce from the bondage under which it groaned, gave food to starving multitudes, redressed a flagrant and tyrannical abuse of power, shielded a kingdom from the throes of revolution, and added a new and magical impetus to material progress in every quarter of the globe. ”

“ For, it is only with the produce of its labor and capital that one country can demand, or can obtain, in exchange, the produce of the labor and capital of another. The idea that the lowering of wages can increase, or the increase of wages can diminish, the trade of a country, is as baseless as the idea that the prosperity of a country can be increased by taxes on imports, or diminished by the removal of restrictions on trade. ”

“ One will be inclined to numerous offices, large salaries, and an expensive government; the other, from the moderate fortunes of the inhabitants, and their simple way of life will prefer low taxes, small salaries, and a very frugal civil establishment. One imports almost every article of consumption and pays for it in produce; the other is far removed from navigation, has very little to export, and must therefore supply its own wants. Consequently one will favour commerce, the other manufactures; one wishes slaves, the other will be better without them. ”

“ With what exultation have we seen a free commerce delineating our wide-spreading canvass with all the representations of national prosperity! With what anguish do we behold commercial restrictions wrenching the pencil from this successful artist, and obliterating the work! Our commerce, both before and since the revolution, increased the national prosperity, with undeviating progress, and we are exchanging its solid benefits for restrictions, bounties, exclusive privileges, and monopolies, recommended by recondite and intricate speculations about the balance of trade. ”

“ For the first time it then seemed to the intelligent and generous of the working classes of a great nation, that they had obtained a government who sincerely desired the freedom and dignity of the many, and who did not look upon it as their natural and legitimate state to be instruments of production, worked for the benefit of the possessors of capital. ”

“ Our rulers will best promote the improvement of the nation by strictly confining themselves to their own legitimate duties, by leaving capital to find its most lucrative course, commodities their fair price, industry and intelligence their natural reward, idleness and folly their natural punishment, by maintaining peace, by defending property, by diminishing the price of law, and by observing strict economy in every department of the state. ”

“ As the State formerly played a most important part in the revolutions which abolished the old economic systems, so it must again be the State which should abolish capitalism. ”

“ I wish commerce to be fully protected and encouraged, that the people may have an opportunity of disposing of their crops at market, and of procuring such supplies as they may be in want of. I presume that there can be no political happiness, unless industry be cherished and protected, and property secured. Suppose a poor man becomes rich by honest labor, and increases the public stock of wealth: shall his reward be the loss of that liberty he set out with? Will you take away every stimulus to industry, by declaring that he shall not retain the fruits of it? ”

“ The scientific and harmonious adjustment of the relations of capital to labor, of the employers to the employed, in the constitution of our free competitive society as it will still remain after Slavery is dead, is the next great practical question which will force itself upon our attention, and insist upon being definitively settled, before we can enter upon that ulterior triumphant national development which is reserved, in the decrees of destiny, for us as a people. ”

“ With the founders of this Republic we hold that the true theory of politics is that the machinery of government must be owned and controlled by the whole people; but in the light of our industrial development we hold, furthermore, that the true theory of economics is that the machinery of production must likewise belong to the people in common. ”

“ When this time arrives, a change in your economy will gradually take place. The relations held by labor with capital, which have heretofore been so modified by the easier conditions of the former, with its abundance of free soil to absorb its surplus, will be driven back to its old state of greater dependence. ”

“ He considered it as an art. “Political Economy,” he says, in the introduction to the fourth book, “proposes two distinct objects: first, to provide a plentiful revenue or subsistence for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and, secondly, to supply the state or common weal with a revenue sufficient for the public service. It proposes [43] to enrich both the people and the sovereign.” ”