CHAPTER XI. ABSOLUTE PRICES.

 If we wish to judge between freedom of trade and protection, to calculate the probable effect of any political phenomenon, we should notice how far its influence tends to the production of abundance or scarcity¹, and not simply of cheapness or dearness of price. We must beware of trusting to absolute prices: it would lead to inextricable confusion.

 

Mr. Protectionist, after having established the fact that protection raises prices, adds:

 

"The augmentation of price increases the expenses of life, and consequently the price of labor², and every one finds in the increase of the price of his produce the same proportion as in the increase of his expenses. Thus, if everybody pays as consumer, everybody receives also as producer."

 

It is evident that it would be easy to reverse the argument, and say: If everybody receives as producer, everybody must pay as consumer.

 

Now what does this prove? Nothing whatever, unless it be that protection transfers riches, uselessly and unjustly. Spoliation does the same.

 

Again, to prove that the complicated arrangements of this system give even simple compensation, it is necessary to adhere to the "consequently" of Mr. Protectionist, [91] and to convince oneself that the price of labor rises with that of the articles protected. This is a question of fact. For my own part I do not believe in it, because I think that the price of labor, like everything else, is governed by the proportion existing between the supply and the demand. Now I can perfectly³ well understand that restriction⁴ will diminish the supply of produce, and consequently raise its price; but I do not as clearly see that it increases the demand for labor, thereby⁵ raising the rate of wages. This is the less conceivable to me, because the sum of labor required depends upon the quantity of disposable capital; and protection, while it may change the direction of capital, and transfer it from one business to another, cannot increase it one penny.

 

This question, which is of the highest interest, we will examine elsewhere. I return to the discussion of absolute prices, and declare that there is no absurdity⁶ which cannot be rendered specious⁷ by such reasoning as that which is commonly resorted to by protectionists.

 

Imagine an isolated⁸ nation possessing a given quantity of cash, and every year wantonly burning the half of its produce; I will undertake to prove by the protective theory that this nation will not be the less rich in consequence of such a procedure. For, the result of the conflagration⁹ must be, that everything would double in price. An inventory¹⁰ made before this event, would offer exactly the same nominal¹¹ value as one made after it. Who, then, would be the loser? If John buys his cloth dearer, he also sells his corn at a higher price; and if Peter makes a loss on the purchase of [92] his corn, he gains it back by the sale of his cloth. Thus "every one finds in the increase of the price of his produce, the same proportion as in the increase of his expenses: and thus if everybody pays as consumer, everybody also receives as producer."

 

All this is nonsense, and not science.

 

The simple truth is, that whether men destroy their corn and cloth by fire, or by use, the effect is the same as regards price, but not as regards riches, for it is precisely¹² in the enjoyment¹³ of the use, that riches—in other words, comfort, well-being—exist.

 

Restriction may in the same way, while it lessens¹⁴ the abundance of things, raise their prices, so as to leave each individual as rich, numerically speaking, as when unembarrassed by it. But because we put down in an inventory three bushels of corn at $1, or four bushels at 75 cents, and sum up the nominal value of each inventory at $3, does it thence follow that they are equally capable of contributing to the necessities of the community?

 

To this truthful¹⁵ and common-sense view of the phenomenon of consumption it will be my continual endeavor to lead the protectionists; for in this is the end of all my efforts, the solution of every problem. I must continually repeat to them that restriction, by impeding¹⁶ commerce, by limiting the division of labor, by forcing it to combat difficulties of situation and temperature, must in its results diminish the quantity produced by any fixed¹⁷ quantum of labor. And what can it benefit us that the smaller quantity produced under the protective system bears the same nominal value as the greater quantity produced under the free [93] trade system? Man does not live on nominal values, but on real articles of produce; and the more abundant these articles are, no matter what price they may bear, the richer is he.

 

The following passage occurs in the writings of a French protectionist:

 

"If fifteen millions of merchandise sold to foreign nations, be taken from our ordinary produce, calculated at fifty millions, the thirty-five millions of merchandise which remain, not being sufficient for the ordinary demand, will increase in price to the value of fifty millions. The revenue of the country will thus represent fifteen millions more in value.... There will then be an increase of fifteen millions in the riches of the country; precisely the amount of the importation of money."

 

This is droll¹⁸ enough! If a country has made in the course of the year fifty millions of revenue in harvests and merchandise, she need but sell one-quarter to foreign nations, in order to make herself one-quarter richer than before! If then she sold the half, she would increase her riches by one-half; and if the last hair of her wool, the last grain of her wheat, were to be changed for cash, she would thus raise her product to one hundred millions, where before it was but fifty! A singular manner, certainly, of becoming rich. Unlimited¹⁹ price produced by unlimited scarcity!

 

To sum up our judgment²⁰ of the two systems, let us contemplate²¹ their different effects when pushed to the most exaggerated extreme.

 

According to the protectionist just quoted, the French would be quite as rich, that is to say, as well provided [94] with everything, if they had but a thousandth part of their annual produce, because this part would then be worth a thousand times its natural value! So much for looking at prices alone.

 

According to us, the French would be infinitely²² rich if their annual produce were infinitely abundant, and consequently bearing no value at all.

 

1 scarcity   

n.缺乏，不足，萧条

参考例句：

• The scarcity of skilled workers is worrying the government.熟练工人的缺乏困扰着政府。
• The scarcity of fruit was caused by the drought.水果供不应求是由于干旱造成的。

2 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

3 perfectly   

adv.完美地，无可非议地，彻底地

参考例句：

• The witnesses were each perfectly certain of what they said.证人们个个对自己所说的话十分肯定。
• Everything that we're doing is all perfectly above board.我们做的每件事情都是光明正大的。

4 restriction   

n.限制，约束

参考例句：

• The park is open to the public without restriction.这个公园对公众开放，没有任何限制。
• The 30 mph speed restriction applies in all built-up areas.每小时限速30英里适用于所有建筑物聚集区。

5 thereby   

adv.因此，从而

参考例句：

• I have never been to that city,,ereby I don't know much about it.我从未去过那座城市，因此对它不怎么熟悉。
• He became a British citizen,thereby gaining the right to vote.他成了英国公民，因而得到了投票权。

6 absurdity   

n.荒谬，愚蠢；谬论

参考例句：

• The proposal borders upon the absurdity.这提议近乎荒谬。
• The absurdity of the situation made everyone laugh.情况的荒谬可笑使每个人都笑了。

7 specious   

adj.似是而非的；adv.似是而非地

参考例句：

• Such talk is actually specious and groundless.这些话实际上毫无根据，似是而非的。
• It is unlikely that the Duke was convinced by such specious arguments.公爵不太可能相信这种似是而非的论点。

8 isolated   

adj.与世隔绝的

参考例句：

• His bad behaviour was just an isolated incident. 他的不良行为只是个别事件。
• Patients with the disease should be isolated. 这种病的患者应予以隔离。

9 conflagration   

n.建筑物或森林大火

参考例句：

• A conflagration in 1947 reduced 90 percent of the houses to ashes.1947年的一场大火，使90%的房屋化为灰烬。
• The light of that conflagration will fade away.这熊熊烈火会渐渐熄灭。

10 inventory   

n.详细目录，存货清单

参考例句：

• Some stores inventory their stock once a week.有些商店每周清点存货一次。
• We will need to call on our supplier to get more inventory.我们必须请供应商送来更多存货。

11 nominal   

adj.名义上的；(金额、租金)微不足道的

参考例句：

• The king was only the nominal head of the state. 国王只是这个国家名义上的元首。
• The charge of the box lunch was nominal.午餐盒饭收费很少。

12 precisely   

adv.恰好，正好，精确地，细致地

参考例句：

• It's precisely that sort of slick sales-talk that I mistrust.我不相信的正是那种油腔滑调的推销宣传。
• The man adjusted very precisely.那个人调得很准。

13 enjoyment   

n.乐趣；享有；享用

参考例句：

• Your company adds to the enjoyment of our visit. 有您的陪同，我们这次访问更加愉快了。
• After each joke the old man cackled his enjoyment.每逢讲完一个笑话，这老人就呵呵笑着表示他的高兴。

14 lessens   

变少( lessen的第三人称单数 )； 减少（某事物）

参考例句：

• Eating a good diet significantly lessens the risk of heart disease. 良好的饮食习惯能大大减少患心脏病的机率。
• Alcohol lessens resistance to diseases. 含有酒精的饮料会减弱对疾病的抵抗力。

15 truthful   

adj.真实的，说实话的，诚实的

参考例句：

• You can count on him for a truthful report of the accident.你放心，他会对事故作出如实的报告的。
• I don't think you are being entirely truthful.我认为你并没全讲真话。

16 impeding   

a.(尤指坏事)即将发生的，临近的

参考例句：

• Fallen rock is impeding the progress of rescue workers. 坠落的石头阻滞了救援人员的救援进程。
• Is there sufficient room for the kiosk and kiosk traffic without impeding other user traffic? 该环境下是否有足够的空间来摆放信息亭？信息亭是否会妨碍交通或者行走？ 来自About Face 3交互设计精髓

17 fixed   

adj.固定的，不变的，准备好的；(计算机)固定的

参考例句：

• Have you two fixed on a date for the wedding yet?你们俩选定婚期了吗？
• Once the aim is fixed,we should not change it arbitrarily.目标一旦确定，我们就不应该随意改变。

18 droll   

adj.古怪的，好笑的

参考例句：

• The band have a droll sense of humour.这个乐队有一种滑稽古怪的幽默感。
• He looked at her with a droll sort of awakening.他用一种古怪的如梦方醒的神情看着她.

19 unlimited   

adj.无限的，不受控制的，无条件的

参考例句：

• They flew over the unlimited reaches of the Arctic.他们飞过了茫茫无边的北极上空。
• There is no safety in unlimited technological hubris.在技术方面自以为是会很危险。

20 judgment   

n.审判；判断力，识别力，看法，意见

参考例句：

• The chairman flatters himself on his judgment of people.主席自认为他审视人比别人高明。
• He's a man of excellent judgment.他眼力过人。

21 contemplate   

vt.盘算，计议；周密考虑；注视，凝视

参考例句：

• The possibility of war is too horrifying to contemplate.战争的可能性太可怕了，真不堪细想。
• The consequences would be too ghastly to contemplate.后果不堪设想。

22 infinitely   

adv.无限地，无穷地

参考例句：

• There is an infinitely bright future ahead of us.我们有无限光明的前途。
• The universe is infinitely large.宇宙是无限大的。