That Which Is Seen — Outline
Thesis
“Between a good and a bad economist this constitutes the whole difference--the one takes account of the visible effect; the other takes account both of the effects which are seen and also of those which it is necessary to foresee.”
Development
- 1.
Introductory: the seen and the unseen
Introduction“For this purpose I shall examine the consequences of certain economical phenomena, by placing in opposition to each other those which are seen, and those which are not seen.”
- 2.
Case I: the broken window fallacy
I.--The Broken Window.“Society loses the value of things which are uselessly destroyed”
- 3.
Case II: disbanding of troops
II.--The Disbanding of Troops.“You do not see that to dismiss a hundred thousand soldiers is not to do away with a million of money, but to return it to the tax-payers.”
- 4.
Case III: taxation
III.--Taxes.“the expense of the official is seen, because the act is performed, while that of the tax-payer is not seen, because, alas! he is prevented from performing it.”
- 5.
Case IV: state support of the arts
IV.--Theatres, Fine Arts.“It displaces enjoyments, it transposes wages--that is all.”
- 6.
Case V: public works
V.--Public Works.“a public enterprise is a coin with two sides. Upon one is engraved a labourer at work, with this device, that which is seen; on the other is a labourer out of work, with the device, that which is not seen.”
- 7.
Case VI: intermediaries versus state distribution
VI.--The Intermediates.“The sophism of the Socialists on this point is, showing to the public what it pays to the intermediates in exchange for their services, and concealing from it what is necessary to be paid to the State.”
- 8.
Case VII: protectionist restrictions
VII.--Restrictions.“that which is not seen supersedes that which is seen, and at this point there remains, as the residue of the operation, a piece of injustice, and, sad to say, a piece of injustice perpetrated by the law!”
- 9.
Case VIII: machinery and labour
VIII.--Machinery.“Here is the whole mystery: behind that which is seen lies something which is not seen.”
- 10.
Case IX: state credit
IX.--Credit.“they can have but one result; viz., to displace credit, not to augment it.”
- 11.
Case X: colonial expenditure in Algeria
X.--Algeria.“in every public expense, behind the apparent benefit, there is an evil which it is not so easy to discern.”
- 12.
Case XI: frugality versus luxury
XI.--Frugality and Luxury.“It is, therefore, false to say that economy does actual harm to trade; as described above, it is equally beneficial with luxury.”
- 13.
Case XII: the right to work and the right to profit
XII.--He Who Has a Right to Work Has a Right to Profit.“Both of these live upon such of their effects as are seen. They will die by means of those effects which are not seen.”
Conclusion
“Thus we learn by the numerous subjects which I have treated, that, to be ignorant of political economy is to allow ourselves to be dazzled by the immediate effect of a phenomenon; to be acquainted with it is to embrace in thought and in forethought the whole compass of effects.”