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The entrepreneur, according to the ideal, was the lynchpin of society.
Although labour was the source of all wealth, it was capital which called it forth
and set it in operation. The entrepreneur was the impressario, the creative force,
the initiator of the economic cycle. He it was who conceived the end, found the
means, bore the burden of risk, and paid out the other factors of production. All
this he did for the meagre return of a profit fixed by competition, unable ever to
rise more than momentarily above the common rate, and subject to a long-term
natural tendency to fall as, with the increasing cost and difficulty of producing
food, wages and rent trenched in upon it.
1
The worker, although indispensable
and deserving of the highest wages which society could afford, took no thought
for the morrow and had nothing to do but to perform at the entrepreneur’s
bidding a full day’s work for a wage fixed by competition at the level of
customary subsistence.
2
The landlord, on the other hand, was a mere parasite, a
member of the ‘unproductive class’, whose rent was an unearned income
equivalent to the whole surplus produce after the subsistence wages and the
common rate of profit had been paid.
3
If the worker was the horse and the
landlord the non-paying passenger, the entrepreneur was driver, conductor,
pathfinder, caterer and provider of provender all rolled into one.
Capital, it followed, was the mainspring of the economic machine: ‘that fund
by whose extent the extent of the productive industry of the country must always
be regulated.’ The national capital—the total fund for the employment of labour
in the hands of the entrepreneurs—was the real wealth and strength of the
country. It could never be too large: ‘there is no amount of capital which may
not be employed in a country, because demand is only limited by production.’
4
Derived entirely from the capitalist’s self-denying abstention from consumption,
savings were automatically invested in further production, raising wages and, via
the demand for food, the landlord’s rent. Capital could easily be diminished, by
the selfishness or fecklessness of the other two classes: by the landed rulers who
imposed heavy taxes on profits or transferred a portion to themselves by means of
corn laws, or by the working class who might under-breed, and so raise wages at
the expense of profits, or over-breed beyond the capacity of capital to employ
them, and so hasten the ‘stationary state’ of mass poverty.
1
Capital was the chief
benefactor of society, the parent of all progress, the only bulwark between
prosperity and the poverty of countries such as Ireland, with ‘labourers unfed for
want of employment, and land unproductive for want of labour…. The
connecting link is capital, and that link is wanting.’
2
1
Ricardo, Principles of Political Economy and Taxation, in Works and Correspondence
(ed. Sraffa), I. 110–27; cf. J.S.Mill, Principles of Political Economy (1904 ed.), p. 416.
2
Ricardo, op. cit., I. 162; and cf. I. 94, 100–1.
3
Ibid., I. 270, 335.
4
Ibid., 151–2, 290.
STRUGGLE BETWEEN THE IDEALS 183