Sterile Versus Productive Expenses

THE productive expenses are employed in agriculture, meadows, pastures, forests, mines, fishing, etc.

• This is to perpetuate riches in the form of grain, beverages, wood, cattle, raw materials for the handicrafts, etc.

The sterile expenses are used on handicraft products, housing, clothing, interest on money, servants, commercial expenses, foreign commodities, etc.

The Farmer annually gives the 600 livres employed in agriculture to the Cultivator.

• The Cultivator sells this.
• He gives the Proprietor a revenue of 600 livres.
• He gets a net product.

The annual advances of 300 livres in sterile expenses are employed for:

• the capital
• the expenses of commerce
• the purchase of raw materials for the handicrafts
• the subsistence and other needs of the artisan until he has sold his product.

Of the 600 livres revenue, the Proprietor spends:

• 300 on purchases from the productive class, such as bread, wine, meat, etc.
• 300 on purchases from the sterile class, such as clothing, furnishings, implements, etc.

The more he spends on luxury, as ornamentation. the more goes to the sterile class

• The more he spends on subsistence, the more goes to the productive class

The reproduction of revenue would fall from 600 livres to 500 livres if:

• the Proprietor’s ornamental luxury increases by 1/6
• the Artisan’s ornamental luxury increases by 1/6
• the Cultivator’s ornamental luxury increases by 1/6

The reproduction of revenue would rise from 600 livres to 700 livres if the exportation of raw materials increased, or:

• the Proprietor’s consumption increases by 1/6
• the Artisan’s consumption increases by 1/6
• the Cultivator’s consumption increases by 1/6

Thus, an excess of ornamental luxury may quickly magnificently ruin an opulent Nation.

The 300 livres revenue devoted to productive expenditures in the table brings back money to the productive class.

• This reproduces the 300 livres net, which makes up a part of the reproduction of the Proprietor’s revenue.
• Giving back the amount to the Productive class reproduces the total revenue yearly.

These 300 livres return to the productive class at first through the sale of the products purchased by the Proprietor.

• These are then spent by the Farmer:
  • half on the consumption of products from the productive class
  • half on clothing, implements, tools, etc. of the sterile class.

They arise again with the net product.

The 300 livres of the Proprietor’s revenue which were devoted to sterile expenditures are spent by the artisan.

• Half of it is spent on productive expenditures
  • This is for the purchase of subsistence, raw materials, and for foreign commerce.
• The other half is distributed among the sterile class
  • This is for living expenses, and to restore the advances.

This circulation and this reciprocal distribution continues by subdivisions in the same order, down to the last penny of the sums which pass reciprocally from one class of expenditures to the other class of expenditures.

Circulation brings 600 livres to the sterile class, from which it is necessary to deduct 300 livres for the annual advances, leaving 300 livres for wages. These wages are equal to the 300 livres which this class receives from the productive class, and the advances are equal to the 300 livres of revenue which go to this same sterile class.

The productions of the other class amount to 1200 livres, after deducting taxes, tithes, and interest on the advances of the Husbandman, which will be considered separately, in order to avoid undue complications in analyzing the expenditures.

In the expenditure of the 1200 livres of production, the Proprietor of the revenue buys 300 livres of them. Another 300 livres goes to the sterile class, of which a half, or 150 livres, is consumed for subsistence by this class; the other half, or 150 livres, being taken for foreign commerce, which comes under this same class.

Finally, 300 livres are consumed in the productive class, by the men who produce them, and 300 livres for feeding and care of the cattle.

Thus of the 1200 livres of product this class expends 600 livres, and its advances of 600 livres are returned to it in money through the sales which it makes to the Proprietor and to the sterile class.

1/8 of the total product enters into foreign commerce, either as exports or for raw materials and subsistence for the workers of the country who sell their products to the other Nations.

The sales of the Merchant balance the purchases of merchandise and of gold and silver which are obtained from abroad.