The Debate on Economic and Social Security in the Late Eighteenth Century: Lessons ofa Road Not Taken

Abstract

The luissez faire political economy of the late eighteenth century was marked by two sharply opposing views of the relation between social security or insecurity and economic growth: one associated with Adam Smith, Turgot and Condorcet; and another associated with Malthus. The latter school, with its faith in the motivating force of insecurity and fear, has been the more influential in subsequent economic thought. But, contrary to prevailing neoliberal stereotypes, Smith, Turgot and Condorcet had much to say to modem students of economics concerning the necessary and positive relationship between social security and economic development. This essay explores their vision of how to improve the life chances of the disadvantaged.

The Political Economy of Inclusion: The Rise and Fall of the Workhouse System

“…Thus, Smith saw no faults in the morals of the laboring poor. The poor were prudent, industrious, and reflective citizens (Rothschild 1995, p. 4), and they were so concerned with their social position that “a creditable day-labourer would be ashamed to appear in public without a linen shirt” (Smith [1776] 1976, p. 399).…”

Understanding the Precariat through Labour and Work

“…17. This term is owed to Emma Rothschild (1995), referring to another historical error by progressives. 18.…”

Perceptions of Poverty: The Historical Legacy

“…This idea recognised the need for schools, roads, water supply systems, etc., to improve the status of humankind, expand the economic infrastructure of the country and strengthen the basic foundation of society Regrettably, these schemes were not adopted before being overtaken by the calamitous events of the French Revolution, itself a process of social change provoked by peasant and 'citizen' impatience. The people demanded 'liberty' and 'equality' and took the law into their own hands to end their suffering beneath a yoke of virtual serfdom (Rothschild 1995;Ward 1996). They felt It is to the eternal credit of many parish commissioners and a moving testimony to their individual concern about the plight of potential supplicants that, in addition to keeping micro-level budget details on the cost of feeding inmates, they also 24 condemned to a life of unmitigated drudgery with little prospect of any reward for their labours.…”

“…Smith, who, in turn, had an immense respect for Turgot and his ideas, emerges as a truly radical as well as rational thinker on poverty He remained throughout a strong believer in the alleviation of human misery as being the primary purpose of economic activity While supporting free markets and limitations on state power, he also countenanced the intervention of government to improve the life chances of the poor. In his writing, there was little resort 'to the kind of social Darwinism that was to characterise so much of the subsequent neo-liberal agenda' (Ghai in Rothschild 1995). This is an Indeed, today, in an era when due recognition is being given to the importance of knowledge capital', it seems incomprehensible that, in an enlightened society, major business enterprises that pride themselves on capable and far-sighted management should continue to spend so much time and energy, while facing declining profits, increased expenses, lost turnover and diminished market penetration, in trying to beat down wages and the unit cost of labour.…”