Friday, February 18, 2011

Guest Post: Awareness of Poverty Over Three Centuries � naked capitalism

Guest Post: Awareness of Poverty Over Three Centuries naked capitalism

The first Poverty Enlightenment

In his excellent history of the idea of distributive justice, Samuel Fleischacker (2004, p.7) argues that in pre-modern times, “the poor appeared to be a particularly vicious class of people, a class of people who deserved nothing”. In the early 18th century, Robert Moss instructed the poor man “to rest contented with that state or condition in which it hath pleased God to rank him”. The French doctor and moralist Philippe Hecquet wrote in 1740 that “The poor are like the shadows in a painting: they provide the necessary contrast”. To the extent that any effort was made to explain poverty it was seen as either “God’s will” or a purely private matter, stemming from bad personal behaviour, such as laziness. Indeed, hunger was often seen as a good thing, as it motivated poor people to work.

A new questioning of longstanding social ranks emerged in the later 18th century, most notably in France. In the 1780s, The Marriage of Figaro, a play by Pierre Baumarchais, had Parisian audiences taking side with the servants in laughing at the aristocracy. Some of this new egalitarian spirit spilled across the English Channel, though it met with some stiff resistance. In 1806 Patrick Colquhoun, the founder of the police force in England, wrote that poverty “is a most necessary and indispensable ingredient in society, without which nations and communities could not exist in a state of civilisation.”

The first Poverty Enlightenment was the time when poverty started to be seen as a politico-economic outcome rather than the manifestation of some natural order. Poor people started to aspire to be otherwise. But poverty was still widely accepted in the literature as a more-or-less inevitable fact of life. The economics of the 18th and 19th centuries did not offer any serious challenge to this view. Some economists saw poverty as an essential condition for economic development. No doubt it was agreed that rising real wage rates would reduce poverty, but it was argued that this would undermine wealth accumulation by reducing labour supply and (in the Mercantilist schema) making exports uncompetitive, and even corrupting the values of workers as they aspired to luxury goods. Thomas Malthus famously saw ecological disaster ahead, with poverty and famine as the only check against rising population. Nor did Adam Smith – far more optimistic than Malthus about the scope for overall social progress – entertain much hope that the fruits of economic development would be equitably distributed; Smith (1776, p.232) wrote that: “Whenever there is great prosperity, there is great inequality. For one very rich man, there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many.”