This page needs to be proofread.
28 Manual of Political Economy.
BOOK I. CH. IV.
to result from the diminished consumption of luxuries on the part of the rich. It is assumed that all the labourers were previously fully employed. But a new fund, which is now intended to be paid to the labourers, has arisen from the increased savings of the rich; where, therefore, are the labourers amongst whom this increased fund is to be distributed? Those labourers, it is true, who have manufactured the luxuries which the rich now no longer purchase, will be thrown out of employment. But the capital of the manufacturers of these luxuries will be now seeking fresh investments, and will be therefore sufficient to give employment either directly or indirectly to the same number of labourers as were previously maintained by it, and therefore the new capital created by the increased savings of the rich still apparently remains unemployed. But although the assumption has been made that all the labourers were previously fully employed, yet let us consider what this means. It must be interpreted thus: That all able-bodied labourers were in full employment, and that they received certain wages for a certain quantity of work. There can be no doubt that the labourers would willingly receive more wages if they could be obtained. It is quite impossible that the wages can be increased unless the capital is increased; now, however, there is an increase of capital, and therefore the wages of the labourers will rise. If the labourers were before supplied with all the necessaries of life, they in their turn will begin to consume more luxuries, and the labour which before had produced luxuries for the rich is now available to meet this new demand on the part of the labourer. It may, however, be argued that if the capital continued in this way to increase, the labourers' wages would also be constantly increasing, and at length all their wants might be satisfied. When such a happy event was consummated, then the hours of toil would be shortened, and men would not be compelled to labour so ceaselessly as at the present time. Human beings are not endowed with an uncontrollable instinct for physical toil; the wants of life must be satisfied by physical labour, but civilization has no nobler mission to fulfil than to diminish the labour which is required to satisfy the physical wants of life. Hence the vaunted