It is little to have pointed out this astonishing contrast between useful value and exchangeable value, which the economists have been in the habit of regarding as very simple: it must be shown that this pretended simplicity conceals a profound mystery, which it is our duty to fathom.
I summon, therefore, every serious economist to tell me, otherwise than by transforming or repeating the question, for what reason value decreases in proportion as production augments, and reciprocally what causes this same value to increase in proportion as production diminishes. In technical terms, useful value and exchangeable value, necessary to each other, are inversely proportional to each other; I ask, then, why scarcity, instead of utility, is synonymous with dearness. For--mark it well--the price of merchandise is independent of the amount of labor expended in production; and its greater or less cost does not serve at all to explain the variations in its price. Value is capricious, like liberty: it considers neither utility nor labor; on the contrary, it seems that, in the ordinary course of affairs, and exceptional derangements aside, the most useful objects are those which are sold at the lowest price; in other words, that it is just that the men who perform the most attractive labor should be the best rewarded, while those whose tasks demand the most exertion are paid the least. So that, in following the principle to its ultimate consequences, we reach the most logical of conclusions: that things whose use is necessary and quant.i.ty infinite must be gratuitous, while those which are without utility and extremely scarce must bear an inestimable price. But, to complete the embarra.s.sment, these extremes do not occur in practice: on the one hand, no human product can ever become infinite in quant.i.ty; on the other, the rarest things must be in some degree useful, else they would not be susceptible of value. Useful value and exchangeable value remain, then, in inevitable attachment, although it is their nature continually to tend towards mutual exclusion.
I shall not fatigue the reader with a refutation of the logomachies which might be offered in explanation of this subject: of the contradiction inherent in the idea of value there is no a.s.signable cause, no possible explanation. The fact of which I speak is one of those called primitive,--that is, one of those which may serve to explain others, but which in themselves, like the bodies called simple, are inexplicable. Such is the dualism of spirit and matter. Spirit and matter are two terms each of which, taken separately, indicates a special aspect of spirit, but corresponds to no reality. So, given man"s needs of a great variety of products together with the obligation of procuring them by his labor, the opposition of useful value to exchangeable value necessarily results; and from this opposition a contradiction on the very threshold of political economy. No intelligence, no will, divine or human, can prevent it.
Therefore, instead of searching for a chimerical explanation, let us content ourselves with establishing the necessity of the contradiction. Whatever the abundance of created values and the proportion in which they exchange for each other, in order that we may exchange our products, mine must suit you when you are the BUYER, and I must be satisfied with yours when you are the SELLER. For no one has a right to impose his own merchandise upon another: the sole judge of utility, or in other words the want, is the buyer. Therefore, in the first case, you have the deciding power; in the second, I have it. Take away reciprocal liberty, and exchange is no longer the expression of industrial solidarity: it is robbery. Communism, by the way, will never surmount this difficulty.
But, where there is liberty, production is necessarily undetermined, either in quant.i.ty or in quality; so that from the point of view of economic progress, as from that of the relation of consumers, valuation always is an arbitrary matter, and the price of merchandise will ever fluctuate. Suppose for a moment that all producers should sell at a fixed price: there would be some who, producing at less cost and in better quality, would get much, while others would get nothing. In every way equilibrium would be destroyed. Do you wish, in order to prevent business stagnation, to limit production strictly to the necessary amount?
That would be a violation of liberty: for, in depriving me of the power of choice, you condemn me to pay the highest price; you destroy compet.i.tion, the sole guarantee of cheapness, and encourage smuggling. In this way, to avoid commercial absolutism, you would rush into administrative absolutism; to create equality, you would destroy liberty, which is to deny equality itself. Would you group producers in a single workshop (supposing you to possess this secret)? That again does not suffice: it would be necessary also to group consumers in a common household, whereby you would abandon the point. We are not to abolish the idea of value, which is as impossible as to abolish labor, but to determine it; we are not to kill individual liberty, but to socialize it. Now, it is proved that it is the free will of man that gives rise to the opposition between value in use and value in exchange: how reconcile this opposition while free will exists? And how sacrifice the latter without sacrificing man?
Then, from the very fact that I, as a free purchaser, am judge of my own wants, judge of the fitness of the object, judge of the price I wish to pay, and that you on the other hand, as a free producer, control the means of production, and consequently have the power to reduce your expenses, absolutism forces itself forward as an element of value, and causes it to oscillate between utility and opinion.
But this oscillation, clearly pointed out by the economists, is but the effect of a contradiction which, repeating itself on a vast scale, engenders the most unexpected phenomena. Three years of fertility, in certain provinces of Russia, are a public calamity, just as, in our vineyards, three years of abundance are a calamity to the wine-grower I know well that the economists attribute this distress to a lack of markets; wherefore this question of markets is an important one with them. Unfortunately the theory of markets, like that of emigration with which they attempted to meet Malthus, is a begging of the question. The States having the largest market are as subject to over-production as the most isolated countries: where are high and low prices better known than in the stock-exchanges of Paris and London?
From the oscillation of value and the irregular effects resulting therefrom the socialists and economists, each in their own way, have reasoned to opposite, but equally false, conclusions: the former have made it a text for the slander of political economy and its exclusion from social science; the latter, for the denial of all possibility of reconciliation, and the affirmation of the incommensurability of values, and consequently the inequality of fortunes, as an absolute law of commerce.
I say that both parties are equally in error.
1. The contradictory idea of value, so clearly exhibited by the inevitable distinction between useful value and value in exchange does not arise from a false mental perception, or from a vicious terminology, or from any practical error; it lies deep in the nature of things, and forces itself upon the mind as a general form of thought,--that is, as a category. Now, as the idea of value is the point of departure of political economy, it follows that all the elements of the science--I use the word science in antic.i.p.ation--are contradictory in themselves and opposed to each other: so truly is this the case that on every question the economist finds himself continually placed between an affirmation and a negation alike irrefutable. ANTINOMY, in fine, to use a word sanctioned by modern philosophy, is the essential characteristic of political economy; that is to say, it is at once its death-sentence and its justification.
ANTINOMY, literally COUNTER-LAW, means opposition in principle or antagonism in relation, just as contradiction or ANTILOGY indicates opposition or discrepancy in speech. Antinomy,--I ask pardon for entering into these scholastic details, comparatively unfamiliar as yet to most economists,--antinomy is the conception of a law with two faces, the one positive, the other negative.
Such, for instance, is the law called ATTRACTION, by which the planets revolve around the sun, and which mathematicians have a.n.a.lyzed into centripetal force and centrifugal force. Such also is the problem of the infinite divisibility of matter, which, as Kant has shown, can be denied and affirmed successively by arguments equally plausible and irrefutable.
Antinomy simply expresses a fact, and forces itself imperatively on the mind; contradiction, properly speaking, is an absurdity.
This distinction between antinomy (contra-lex) and contradiction (contra-dictio) shows in what sense it can be said that, in a certain cla.s.s of ideas and facts, the argument of contradiction has not the same value as in mathematics.
In mathematics it is a rule that, a proposition being proved false, its opposite is true, and vice versa. In fact, this is the princ.i.p.al method of mathematical demonstration. In social economy, it is not the same: thus we see, for example, that property being proved by its results to be false, the opposite formula, communism, is none the truer on this account, but is deniable at the same time and by the same t.i.tle as property.
Does it follow, as has been said with such ridiculous emphasis, that every truth, every idea, results from a contradiction,-- that is, from a something which is affirmed and denied at the same moment and from the same point of view,--and that it may be necessary to abandon wholly the old-fashioned logic, which regards contradiction as the infallible sign of error? This babble is worthy of sophists who, dest.i.tute of faith and honesty, endeavor to perpetuate scepticism in order to maintain their impertinent uselessness. Because antinomy, immediately it is misunderstood, leads inevitably to contradiction, these have been mistaken for each other, especially among the French, who like to judge everything by its effects. But neither contradiction nor antinomy, which a.n.a.lysis discovers at the bottom of every simple idea, is the principle of truth. Contradiction is always synonymous with nullity; as for antinomy, sometimes called by the same name, it is indeed the forerunner of truth, the material of which, so to speak, it supplies; but it is not truth, and, considered in itself, it is the efficient cause of disorder, the characteristic form of delusion and evil.
An antinomy is made up of two terms, necessary to each other, but always opposed, and tending to mutual destruction. I hardly dare to add, as I must, that the first of these terms has received the name thesis, position, and the second the name anti-thesis, counter-position. This method of thought is now so well-known that it will soon figure, I hope, in the text-books of the primary schools. We shall see directly how from the combination of these two zeros unity springs forth, or the idea which dispels the antinomy.
Thus, in value, there is nothing useful that cannot be exchanged, nothing exchangeable if it be not useful: value in use and value in exchange are inseparable. But while, by industrial progress, demand varies and multiplies to an infinite extent, and while manufactures tend in consequence to increase the natural utility of things, and finally to convert all useful value into exchangeable value, production, on the other hand, continually increasing the power of its instruments and always reducing its expenses, tends to restore the venal value of things to their primitive utility: so that value in use and value in exchange are in perpetual struggle.
The effects of this struggle are well-known: the wars of commerce and of the market; obstructions to business; stagnation; prohibition; the ma.s.sacres of compet.i.tion; monopoly; reductions of wages; laws fixing maximum prices; the crushing inequality of fortunes; misery,--all these result from the antinomy of value.
The proof of this I may be excused from giving here, as it will appear naturally in the chapters to follow.
The socialists, while justly demanding that this antagonism be brought to an end, have erred in mistaking its source, and in seeing in it only a mental oversight, capable of rectification by a legal decree. Hence this lamentable outbreak of sentimentalism, which has rendered socialism so insipid to positive minds, and which, spreading the absurdest delusions, makes so many fresh dupes every day. My complaint of socialism is not that it has appeared among us without cause, but that it has clung so long and so obstinately to its silliness.
2. But the economists have erred no less gravely in rejecting a priori, and just because of the contradictory, or rather antinomical, nature of value, every idea and hope of reform, never desiring to understand that, for the very reason that society has arrived at its highest point of antagonism, reconciliation and harmony are at hand. This, nevertheless, is what a close study of political economy would have shown to its adepts, had they paid more attention to the lights of modern metaphysics. It is indeed demonstrated, by the most positive evidence known to the human mind, that wherever an antinomy appears there is a promise of a resolution of its terms, and consequently an announcement of a coming change. Now, the idea of value, as developed by J. B. Say among others, satisfies exactly these conditions. But the economists, who have remained for the most part by an inconceivable fatality ignorant of the movement of philosophy, have guarded against the supposition that the essentially contradictory, or, as they say, variable, character of value might be at the same time the authentic sign of its const.i.tutionality,--that is, of its eminently harmonious and determinable nature. However dishonorable it may be to the economists of the various schools, it is certain that their opposition to socialism results solely from this false conception of their own principles; one proof, taken from a thousand, will suffice.
The Academy of Sciences (not that of Moral Sciences, but the other), going outside of its province one day, listened to a paper in which it was proposed to calculate tables of value for all kinds of merchandise upon the basis of the average product per man and per day"s labor in each branch of industry. "Le Journal des Economistes" (August, 1845) immediately made this communication, intrusive in its eyes, the text of a protest against the plan of tariff which was its object, and the occasion of a reestablishment of what it called true principles:--
"There is no measure of value, no standard of value," it said in its conclusions; "economic science tells us this, just as mathematical science tells us that there is no perpetual motion or quadrature of the circle, and that these never will be found.
Now, if there is no standard of value, if the measure of value is not even a metaphysical illusion, what then is the law which governs exchanges? . . . . . As we have said before, it is, in a general way, SUPPLY and DEMAND: that is the last word of science."
Now, how did "Le Journal des Economistes" prove that there is no measure of value? I use the consecrated expression: though I shall show directly that this phrase, MEASURE OF VALUE, is somewhat ambiguous, and does not convey the exact meaning which it is intended, and which it ought, to express.
This journal repeated, with accompanying examples, the exposition that we have just given of the variability of value, but without arriving, as we did, at the contradiction. Now, if the estimable editor, one of the most distinguished economists of the school of Say, had had stricter logical habits; if he had been long used, not only to observing facts, but to seeking their explanation in the ideas which produce them,--I do not doubt that he would have expressed himself more cautiously, and that, instead of seeing in the variability of value the LAST WORD OF SCIENCE, he would have recognized unaided that it is the first.
Seeing that the variability of value proceeds not from things, but from the mind, he would have said that, as human liberty has its law, so value must have its law; consequently, that the hypothesis of a measure of value, this being the common expression, is not at all irrational; quite the contrary, that it is the denial of this measure that is illogical, untenable.
And indeed, what is there in the idea of measuring, and consequently of fixing, value, that is unscientific? All men believe in it; all wish it, search for it, suppose it: every proposition of sale or purchase is at bottom only a comparison between two values,--that is, a determination, more or less accurate if you will, but nevertheless effective. The opinion of the human race on the existing difference between real value and market price may be said to be unanimous. It is for this reason that so many kinds of merchandise are sold at a fixed price; there are some, indeed, which, even in their variations, are always fixed,--bread, for instance. It will not be denied that, if two manufacturers can supply one another by an account current, and at a settled price, with quant.i.ties of their respective products, ten, a hundred, a thousand manufacturers can do the same. Now, that would be a solution of the problem of the measure of value. The price of everything would be debated upon, I allow, because debate is still our only method of fixing prices; but yet, as all light is the result of conflict, debate, though it may be a proof of uncertainty, has for its object, setting aside the greater or less amount of good faith that enters into it, the discovery of the relation of values to each other,-- that is, their measurement, their law.
Ricardo, in his theory of rent, has given a magnificent example of the commensurability of values. He has shown that arable lands are to each other as the crops which they yield with the same outlay; and here universal practice is in harmony with theory. Now who will say that this positive and sure method of estimating the value of land, and in general of all engaged capital, cannot be applied to products also? . . . . .
They say: Political economy is not affected by a priori arguments; it p.r.o.nounces only upon facts. Now, facts and experience teach us that there is no measure of value and can be none, and prove that, though the conception of such an idea was necessary in the nature of things, its realization is wholly chimerical. Supply and demand is the sole law of exchange.
I will not repeat that experience proves precisely the contrary; that everything, in the economic progress of society, denotes a tendency toward the const.i.tution and establishment of value; that that is the culminating point of political economy--which by this const.i.tution becomes transformed--and the supreme indication of order in society: this general outline, reiterated without proof, would become tiresome. I confine myself for the moment within the limits of the discussion, and say that SUPPLY and DEMAND, held up as the sole regulators of value, are nothing more than two ceremonial forms serving to bring useful value and exchangeable value face to face, and to provoke their reconciliation. They are the two electric poles, whose connection must produce the economical phenomenon of affinity called EXCHANGE. Like the poles of a battery, supply and demand are diametrically opposed to each other, and tend continually to mutual annihilation; it is by their antagonism that the price of things is either increased, or reduced to nothing: we wish to know, then, if it is not possible, on every occasion, so to balance or harmonize these two forces that the price of things always may be the expression of their true value, the expression of justice. To say after that that supply and demand is the law of exchange is to say that supply and demand is the law of supply and demand; it is not an explanation of the general practice, but a declaration of its absurdity; and I deny that the general practice is absurd.
I have just quoted Ricardo as having given, in a special instance, a positive rule for the comparison of values: the economists do better still. Every year they gather from tables of statistics the average prices of the various grains. Now, what is the meaning of an average? Every one can see that in a single operation, taken at random from a million, there is no means of knowing which prevailed, supply--that is, useful value--or exchangeable value,--that is, demand. But as every increase in the price of merchandise is followed sooner or later by a proportional reduction; as, in other words, in society the profits of speculation are equal to the losses,--we may regard with good reason the average of prices during a complete period as indicative of the real and legitimate value of products. This average, it is true, is ascertained too late: but who knows that we could not discover it in advance? Is there an economist who dares to deny it?
Nolens volens, then, the measure of value must be sought for: logic commands it, and her conclusions are adverse to economists and socialists alike. The opinion which denies the existence of this measure is irrational, unreasonable. Say as often as you please, on the one hand, that political economy is a science of facts, and that the facts are contrary to the hypothesis of a determination of value, or, on the other, that this troublesome question would not present itself in a system of universal a.s.sociation, which would absorb all antagonism,--I will reply still, to the right and to the left:--
1. That as no fact is produced which has not its cause, so none exists which has not its law; and that, if the law of exchange is not discovered, the fault is, not with the facts, but with the savants.
2. That, as long as man shall labor in order to live, and shall labor freely, justice will be the condition of fraternity and the basis of a.s.sociation; now, without a determination of value, justice is imperfect, impossible.
% 2.--Const.i.tution of value; definition of wealth.
We know value in its two opposite aspects; we do not know it in its TOTALITY. If we can acquire this new idea, we shall have absolute value; and a table of values, such as was called for in the memoir read to the Academy of Sciences, will be possible.
Let us picture wealth, then, as a ma.s.s held by a chemical force in a permanent state of composition, in which new elements, continually entering, combine in different proportions, but according to a certain law: value is the proportional relation (the measure) in which each of these elements forms a part of the whole.
From this two things result: one, that the economists have been wholly deluded when they have looked for the general measure of value in wheat, specie, rent, etc., and also when, after having demonstrated that this standard of measure was neither here nor there, they have concluded that value has neither law nor measure; the other, that the proportion of values may continually vary without ceasing on that account to be subject to a law, whose determination is precisely the solution sought.
This idea of value satisfies, as we shall see, all the conditions: for it includes at once both the positive and fixed element in useful value and the variable element in exchangeable value; in the second place, it puts an end to the contradiction which seemed an insurmountable obstacle in the way of the determination of value; further, we shall show that value thus understood differs entirely from a simple juxtaposition of the two ideas of useful and exchangeable value, and that it is endowed with new properties.
The proportionality of products is not a revelation that we pretend to offer to the world, or a novelty that we bring into science, any more than the division of labor was an unheard-of thing when Adam Smith explained its marvels. The proportionality of products is, as we might prove easily by innumerable quotations, a common idea running through the works on political economy, but to which no one as yet has dreamed of attributing its rightful importance: and this is the task which we undertake today. We feel bound, for the rest, to make this declaration in order to rea.s.sure the reader concerning our pretensions to originality, and to satisfy those minds whose timidity leads them to look with little favor upon new ideas.
The economists seem always to have understood by the measure of value only a standard, a sort of original unit, existing by itself, and applicable to all sorts of merchandise, as the yard is applicable to all lengths. Consequently, many have thought that such a standard is furnished by the precious metals. But the theory of money has proved that, far from being the measure of values, specie is only their arithmetic, and a conventional arithmetic at that. Gold and silver are to value what the thermometer is to heat. The thermometer, with its arbitrarily graduated scale, indicates clearly when there is a loss or an increase of heat: but what the laws of heat-equilibrium are; what is its proportion in various bodies; what amount is necessary to cause a rise of ten, fifteen, or twenty degrees in the thermometer,--the thermometer does not tell us; it is not certain even that the degrees of the scale, equal to each other, correspond to equal additions of heat.
The idea that has been entertained hitherto of the measure of value, then, is inexact; the object of our inquiry is not the standard of value, as has been said so often and so foolishly, but the law which regulates the proportions of the various products to the social wealth; for upon the knowledge of this law depends the rise and fall of prices in so far as it is normal and legitimate. In a word, as we understand by the measure of celestial bodies the relation resulting from the comparison of these bodies with each other, so, by the measure of values, we must understand the relation which results from their comparison.
Now, I say that this relation has its law, and this comparison its principle.
I suppose, then, a force which combines in certain proportions the elements of wealth, and makes of them a h.o.m.ogeneous whole: if the const.i.tuent elements do not exist in the desired proportion, the combination will take place nevertheless; but, instead of absorbing all the material, it will reject a portion as useless.
The internal movement by which the combination is produced, and which the affinities of the various substances determine--this movement in society is exchange; exchange considered no longer simply in its elementary form and between man and man, but exchange considered as the fusion of all values produced by private industry in one and the same ma.s.s of social wealth.
Finally, the proportion in which each element enters into the compound is what we call value; the excess remaining after the combination is NON-VALUE, until the addition of a certain quant.i.ty of other elements causes further combination and exchange.
We will explain later the function of money.
This determined, it is conceivable that at a given moment the proportions of values const.i.tuting the wealth of a country may be determined, or at least empirically approximated, by means of statistics and inventories, in nearly the same way that the chemists have discovered by experience, aided by a.n.a.lysis, the proportions of hydrogen and oxygen necessary to the formation of water. There is nothing objectionable in this method of determining values; it is, after all, only a matter of accounts.
But such a work, however interesting it might be, would teach us nothing very useful. On the one hand, indeed, we know that the proportion continually varies; on the other, it is clear that from a statement of the public wealth giving the proportions of values only for the time and place when and where the statistics should be gathered we could not deduce the law of proportionality of wealth. For that, a single operation of this sort would not be sufficient; thousands and millions of similar ones would be necessary, even admitting the method to be worthy of confidence.
Now, here there is a difference between economic science and chemistry. The chemists, who have discovered by experience such beautiful proportions, know no more of their how or why than of the force which governs them. Social economy, on the contrary, to which no a posteriori investigation could reveal directly the law of proportionality of values, can grasp it in the very force which produces it, and which it is time to announce.
This force, which Adam Smith has glorified so eloquently, and which his successors have misconceived (making privilege its equal),--this force is LABOR. Labor differs in quant.i.ty and quality with the producer; in this respect it is like all the great principles of Nature and the most general laws, simple in their action and formula, but infinitely modified by a mult.i.tude of special causes, and manifesting themselves under an innumerable variety of forms. It is labor, labor alone, that produces all the elements of wealth, and that combines them to their last molecules according to a law of variable, but certain, proportionality. It is labor, in fine, that, as the principle of life, agitates (mens agitat) the material (molem) of wealth, and proportions it.