Part 1

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THE productive Expenditures are employed in agriculture, meadows, pastures, forests, mines, fishing, etc. to perpetuate riches in the form of grain, beverages, wood, cattle, raw materials for the handicrafts, etc.

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

The sale of the net product which the Cultivator has produced during the preceding year, by means of the annual Advances of 600 livres employed in agriculture by the Farmer, furnishes the proprietor a revenue of 600 livres.

The annual advances of 300 livres in sterile expenses are employed for the capital and the expenses of commerce, for the purchase of raw materials for the handicrafts, and for the subsistence and other needs of the artisan until he has finished and sold his product.

Of the 600 livres of revenue, one half is spent by the Proprietor on purchases from the productive class, such as bread, wine, meat, etc., and the other half on purchases from the sterile class, such as clothing, furnishings, implements, etc.

These expenditures may incline more or less to one side or the other, as the spender goes in more or less for luxury in the way of subsistence or luxury, in the form of ornamentation. Here the average situation is taken, where the reproductive expenditures renew the same revenue from year to year. But it is easy to see what changes would be caused in the annual reproduction of revenue, as the sterile expenditures or the productive expenditures became more or less important than the other: it is easy, I say, to tell this from the very changes which would take place in the table.

For, suppose that luxury in the form of ornamentation should increase by a sixth in the case of the Proprietor, by a sixth in the case of the Artisan, and by a sixth in the case of the Cultivator, the reproduction of revenue would fall from 600 livres to 500 livres. If, on the contrary, an increase of expenditure of the same extent occurred in the consumption or the exportation of raw materials, the reproduction of revenue would rise from 600 livres to 700 livres, and so on. Thus we see that an excess of luxury in the way of decoration may quickly ruin with magnificence an opulent Nation.

The 300 livres of revenue which were devoted to productive expenditures in the table bring back to this class, in money, advances which reproduce 300 livres net, which make up a part of the reproduction of the Proprietor’s revenue; And by the distribution of the remaining sums which return to this same class, the total revenue is reproduced yearly. These 300 livres I say, which return to the productive class at first through the sale of the products which the Proprietor buys of them, are spent by the Farmer, half upon the consumption of products furnished by this same class, and the other half upon clothing, implements, tools, etc. which he buys of the sterile class. And 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 on productive expenditures in the purchase of subsistence, raw materials, and for foreign commerce; the other half is distributed among the sterile class itself 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.

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