C H A P T E R T E N
Political Economy and
the Discovery of Society
hen the significance of poverty was realized, the stage was set
for the nineteenth century. The watershed lay somewhere
around 1780. In Adam Smith's great work poor relief was no problem
as yet; only a decade later it was raised as a broad issue in Townsend's
Dissertation on the Poor Laws and never ceased to occupy men's minds
for another century and a half.
The change of atmosphere from Adam Smith to Townsend was, in-
deed, striking. The former marked the close of an age which opened
with the inventors of the state, Thomas More and Machiavelli, Luther
and Calvin; the latter belonged to that nineteenth century in which
Ricardo and Hegel discovered from opposite angles the existence of a
society that was not subject to the laws of the state, but, on the con-
trary, subjected the state to its own laws. Adam Smith, it was true,
treated material wealth as a separate field of study; to have done so
with a great sense of realism made him the founder of a new science,
economics. For all that, wealth was to him merely an aspect of the life
of the community, to the purposes of which it remained subordinate;
it was an appurtenance of the nations struggling for survival in history
and could not be dissociated from them. In his view, one set of condi-
tions which governed the wealth of nations derived from the improv-
ing, stationary, or declining state of the country as a whole; another set
derived from the paramountcy of safety and security as well as the
needs of the balance of power; still another was given by the policy of
the government as it favored town or countryside, industry or agricul-
ture; hence it was only within a given political framework that he
deemed it possible to formulate the question of wealth, by which he
for one meant the material welfare of "the great body of the people."
There is no intimation in his work that the economic interests of the
capitalists laid down the law to society; no intimation that they were
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