The Online Library of Liberty

A project of Liberty Fund, Inc.

• Monticello, October 25, 1818.
• Prospectus.
• Advertisement.
• Abstract, Or Analytical Table.
• Advertisement.
• Supplement to the First Section of the Elements of Ideology.
• Second Section of the Elements of Ideology, Or a Treatise On the Will and Its Effects.
• Introduction.
• First Part of the Treatise On the Will and Its Effects. of Our Actions.
• Chapter I.: Of Society.
• Chapter II.: Of Production, Or the Formation of Our Riches.
• Chapter III.: Of the Measure of Utility, Or of Value.
• Chapter IV.: Of the Change of Form, Or of Fabricating Industry, Comprising Agriculture.
• Chapter V.: Of the Change of Place, Or of Commercial Industry.
• Chapter VI.: Of Money.
• Chapter VII.: Reflections On What Precedes.
• Chapter VIII.: Of the Distribution of Our Riches Amongst Individuals.
• Chapter IX.: Of the Multiplication of Individuals, Or of Population.
• Chapter X.: Consequences and Developement of the Two Preceding Chapters.
• Chapter XI.: Of the Employment of Our Riches, Or of Consumption.
• Chapter XII.: Of the Revenues and Expenses of Government and Its Debts.
• Chapter XIII.: Conclusion.
• A Treatise On Political Economy, &c.: Supplement to the First Section of the Elements of Ideology.
• Second Section of the Elements of Ideology, Or a Treatise On the Will and Its Effects.
• Introduction.
• First Part of the Treatise On the Will and Its Effects. of Our Actions.
• Chapter I.: Of Society.
• Chapter II.: Of Production, Or of the Formation of Our Riches.
• Chapter III.: Of the Measure of Utility Or of Values.
• Chapter IV.: Of the Change of Form, Or of Manufacturing Industry, Comprising Agriculture.
• Chapter V.: Of the Change of Place, Or of Commercial Industry.
• Chapter VI.: Of Money.
• Chapter VII.: Reflections On What Precedes.
• Chapter VIII.: Of the Distribution of Our Riches Amongst Individuals.
• Chapter IX.: Of the Multiplication of Individuals, Or of Population.
• Chapter X.: Consequences and Developments of the Two Preceding Chapters.
• Chapter XI.: Of the Employment of Our Riches, Or of Consumption.
• Chapter XII.: Of the Revenues and Expenses of a Government, and of Its Debts.
• Chapter XIII.: Conclusion.

CHAPTER XII.

Of the revenues and expenses of government and its debts.

The history of the consumption of government is but a part of the history of general consumption.

Government is a very great consumer, living not on its profits but on its revenues.

It is good that the government should possess real property. Independently of other reasons it calls for so much the less of taxes.

A tax is always a sacrifice which the government demands of individuals. While it only lessens every one's personal enjoyments, it only shifts expenses from one to another.

But when it encroaches on productive consumption it diminishes public riches.

The difficulty is to see clearly when taxes produce the one or the other of these two effects.

To judge well of this we must divide them into six classes.

We show in the first place that the taxes of each of these six classes are injurious in ways peculiar to themselves.

We show afterwards who in particular are injured by each of them.

Is a conclusion asked? Here it is. The best taxes are, first, the most moderate, because they compel fewer sacrifices and occasion less violence. Secondly, The most varied, because they produce an equilibrium amongst themselves. Thirdly, The most ancient, because they have already mixed with all prices, and every thing is arranged in consequence.

As to the expenses of government they are necessary but they are sterile. It is desirable that they be the smallest possible.

It is still more desirable that government should contract no debts.

It is very unfortunate that it has the power of contracting them.

This power, which is called public credit, speedily conducts all the governments which use it to their ruin; has none of the advantages which are attributed to it; and rests on a false principle.

It is to be desired that it were universally acknowledged that the acts of any legislative power whatsoever cannot bind their successors, and that it should be solemnly declared that this principle is extended to the engagements which they make with the lenders.