The Philoeconopolist Test

(c) 1998 Robert M. Barber
         Philoeconopolist

All Rights Reserved

First Edition
March 18, 1998

"A paper money consisting in bank notes,
 issued by people of undoubted credit,
 payable upon demand without any condition,
 and in fact always readily paid as soon
 as presented, is, in every respect, equal
 in value to gold and silver money"

                          Adam Smith
                          Wealth of Nations
                          page 263


"The sole use of money is to circulate
 consumable goods"

                          Adam Smith
                          Wealth of Nations
                          page 280


"The man who borrows in order to spend
 will soon be ruined, and he who lends to
 him will generally have occasion to repent
 of his folly"

                          Adam Smith
                          Wealth of Nations
                          page 291


"The merchant or monied man makes money by
 lending money to government"

                          Adam Smith
                          Wealth of Nations
                          page 578





Public debts  574
------------


Revenue
-------
   Government Duties

      1. Military Defense
      2. Legal system (Judicial)
      3. Public Works & Public Institutions
         a. Commerce
         b. Instruction
            1) Youth
            2) All ages


Taxes  498
-----
Maxims

   1.  Contribute
   2.  Certain
   3.  Convenient
   4.  Little

Tax upon the rent of land

Taxes on produce

Taxes on profits

Taxes on capital value

Taxes on wages

Capitation taxes

Taxes upon consumable commodities


Wages of Labour  78
---------------
1.  Summer and Winter wages
2.  Do not fluctuate with price of provisions
3.  Wages of Labour vary
4.  Opposite from price


Political Inequalities  126
----------------------
Policy of Europe
   1.  Restraining competition
   2.  Increasing
   3.  Obstructing


Political Inequalities  133
----------------------
Materials from the Country
   1.  Price is augmented
   2.  Sending with rude


Division of Stock  224
-----------------
Capital as revenue or profit
   1.  Circulating capital
   2.  Fixed capitals


Fixed capital  227
-------------
1.  Articles which facilitate labour
2.  Profitable buildings
3.  Improvements of land
4.  Aquired and useful abilities


Division of stock  228
-----------------
General stock divides itself

   1.  Reserved for immediate consumption

   2.  Fixed capital  227

       1.  Articles which facilitate labour
       2.  Profitable buildings
       3.  Improvements of land
       4.  Aquired and useful abilities

   3.  Circulating capital

       1.  Circulating and distributed
       2.  Stock of provisions
       3.  Of the materials
       4.  Work completed


Money  236
-----
Fixed capital and stock of money
   1.  Deductions from the neat revenue
   2.  No part of the gross or neat revenue
   3.  Savings in expence of machines


Money  255
-----
Frequent and regular repayments
   1.  Thriving or declining circumstances
   2.  Secured from issuing paper money


Restraints of particular imports  349
--------------------------------
Most advantageous employment of capital he commands
   1.  Near hone
   2.  Greatest value


Restraints of particular imports  359
--------------------------------
   Necessary for defense
      1.  Ships prohibited from trading
      2.  Bulky articles of importation
      3.  Loading in Holland
      4.  Fish not caught by British ship

   Tax imposed
      1.  Price enhanced
      2.  Necessaries of life

   Disorder
      1.  Without a bounty
      2.  Thrown out of employment


On imports from particular countries  371
------------------------------------
   National prejudice and animosity
      1.  Favour
      2.  Re-exported
      3.  Criterion

   Pay less
      1.  Value of currency
      2.  Expence of coinage
      3.  Foreign bills of exchange  


Conclusion of mercantile system  426
-------------------------------
Bounties
   1.  Naval stores from America
   2.  Materials of manufacture
   3.  Hemp and flax
   4.  Wood from America
   5.  Raw silk
   6.  Pipe
   7.  Hemp from heland


Agricultural Systems  459
--------------------

   Error of this system

      1.  Reproduces
      2.  Servants
      3.  Increase
      4.  Parsimony
      5.  Trade and manufactures


Division of Labour  13
What he is worth  527
Representation  459
Hints own interest  456
1, 2 and 3  371
Philosopher  16
Money makes money  98
Handiman  14
Wages high  85
Money Profit Interest  55
Value  34, 35
Quantity of work  13
482
Mortgage of gov't  467
Company owns Country  510
462
461
460
459
IV  499
536
Taxes on wages  536
544


     line 306: The wages of the inferior classes of workmen, I have endeavoured to show in the first book, are everywhere
     necessarily regulated by two different circumstances; the demand for labour, and the ordinary or average price of
     provisions. The demand for labour, according as it happens to be either increasing, stationary, or declining, or to
     require an increasing, stationary, or declining population, regulates the subsistence of the labourer, and determines in
     what degree it shall be, either liberal, moderate, or scanty. The ordinary or average price of provisions determines the
     quantity of money which must be paid to the workman in order to enable him, one year with another, to purchase this
     liberal, moderate, or scanty subsistence. While the demand for labour and the price of provisions, therefore, remain the
     same, a direct tax upon the wages of labour can have no other effect than to raise them somewhat higher than the tax.
     Let us suppose, for example, that in a particular place the demand for labour and the price of provisions were such as
     to render ten shillings a week the ordinary wages of labour, and that a tax of one-fifth, or four shillings in the pound,
     was imposed upon wages. If the demand for labour and the price of provisions remained the same, it would still be
     necessary that the labourer should in that place earn such a subsistence as could be bought only for ten shillings a week
     free wages. But in order to leave him such free wages after paying such a tax, the price of labour must in that place
     soon rise, not to twelve shillings a week only, but to twelve and sixpence; that is, in order to enable him to pay a tax of
     one-fifth, his wages must necessarily soon rise, not one-fifth part only, but one-fourth. Whatever was the proportion of
     the tax, the wages of labour must in all cases rise, not only in that proportion, but in a higher proportion. If the tax, for
     example, was one-tenth, the wages of labour must necessarily soon rise, not one-tenth part only, but one-eighth. 
     line 308: A direct tax upon the wages of labour, therefore, though the labourer might perhaps pay it out of his hand,
     could not properly be said to be even advanced by him; at least if tile demand for labour and the average price of
     provisions remained the same after the tax as before it. In all such cases, not only the tax but something more than the
     tax would in reality be advanced by the person who immediately employed him. The final payment would in different
     cases fall upon different persons. The rise which such a tax might occasion in the wages of manufacturing labour would
     be advanced by the master manufacturer, who would both be entitled and obliged to charge it, with a profit, upon the
     price of his goods. The final payment of this rise of wages, therefore, together with the additional profit of the master
     manufacturer, would fall upon the consumer. The rise which such a tax might occasion in the wages of country labour
     would be advanced by the farmer, who, in order to maintain the same number of labourers as before, would be obliged
     to employ a greater capital. In order to get back this greater capital, together with the ordinary profits of stock, it would
     be necessary that he should retain a larger portion, or what comes to the same thing, the price of a larger portion, of the
     produce of the land, and consequently that he should pay less rent to the landlord. The final payment of this rise of
     wages, therefore, would in this case fall upon the landlord, together with the additional profit of the farmer who had
     advanced it. In all cases a direct tax upon the wages of labour must, in the long-run, occasion both a greater reduction
     in the rent of land, and a greater rise in the price of manufactured goods, than would have followed from the proper
     assessment of a sum equal to the produce of the tax partly upon the rent of land, and partly upon consumable
     commodities. 
     line 354: It is thus that a tax upon the necessaries of life operates exactly in the same manner as a direct tax upon the
     wages of labour. The labourer, though he may pay it out of his hand, cannot, for any considerable time at least, be
     properly said even to advance it. It must always in the long-run be advanced to him by his immediate employer in the
     advanced rate of his wages. His employer, if he is a manufacturer, will charge upon the price of his goods this rise of
     wages, together with a profit; so that the final payment of the tax, together with this overcharge, will fall upon the
     consumer. If his employer is a farmer, the final payment, together with a like overcharge, will fall upon the rent of the
     landlord. 

Make your own free website on Tripod.com