A Treatise on Political Economy - The Production, Distribution, and Consumption of Wealth

consumption; that is to say, a decrease in the prosperity of the community, which consists of production and consumption. Even the goods already in existence are not consumed as effectively as they should be. For, in the first place, the owner original: "proprietor" withholds them from the market as much as possible. Next, these goods pass into the hands, not of those who need them most, but of those who have the most greed original: "avidity", cunning, and dishonesty—and often with the most flagrant disregard for natural fairness original: "equity" and humanity.

Suppose a shortage of grain original: "corn"; in this period, the term usually referred to the primary cereal crop of a region, such as wheat in England occurs, and the price rises as a consequence. It is still possible that the laborer, by redoubling his efforts or through an increase in wages, may earn enough to buy it at the market price. In the meantime, the government official original: "magistrate" fixes the price of grain at half its natural rate. What is the consequence? Another consumer, who had already provided for himself and consequently would have bought no more grain had it remained at its natural price, gets ahead of the laborer. Now, out of mere unnecessary precaution and to take advantage of the forced cheapness, he adds to his own stockpile that portion which should have gone to the laborer. The first person has a double supply, while the other has none at all. Sales are no longer regulated by needs and means, but by the superior speed and aggression of the buyers. It is therefore not surprising that a price ceiling original: "maximum of price" on commodities only serves to worsen their scarcity.

A law that simply fixes the price of things at the rate they would naturally reach is merely useless original: "nugatory", or serves only to alarm producers and—