The laws and conditions of the production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them ... It is not so with the Distribution of Wealth. That is a matter of human institution solely. The things once there, mankind, individually or collectively, can do with them as they like.
Interpretation
Wealth production follows natural laws, while wealth distribution is determined by human choices and institutions.
In this quote, John Stuart Mill emphasizes that the creation of wealth is governed by objective physical laws, implying that it operates within a framework of unchangeable truths. However, he contrasts this with the distribution of wealth, which is a flexible and subjective process, shaped by societal norms, values, and human decisions. This distinction highlights the difference between how wealth is generated and how it is allocated among people.
In practice
In a discussion about economic policies, one might cite Mill's quote to illustrate the contrast between natural and human-made systems.
The peculiar evil of silencing the expression of an opinion is, that it is robbing the human race; posterity as well as the existing generation; those who dissent from the opinion, still more than those who hold it. If the opinion is right, they are deprived of the opportunity of exchanging error for truth: if wrong, they lose, what is almost as great a benefit, the clearer perception and livelier impression of truth, produced by its collision with error.
As for charity, it is a matter in which the immediate effect on the persons directly concerned, and the ultimate consequence to the general good, are apt to be at complete war with one another.
To think that because those who wield power in society wield in the end that of government, therefore it is of no use to attempt to influence the constitution of the government by acting on opinion, is to forget that opinion is itself one of the greatest active social forces. One person with a belief is a social power equal to ninety-nine who have only interests.
There should be perfect freedom, legal and social, to do the action and stand the consequences. It would be a great misunderstanding of this doctrine to suppose that it is one of selfish indifference, which pretends that human beings have no business with each other's conduct in life, and that they should not concern themselves about the well-doing or well-being of one another, unless their own interest is involved.
Political Economy, in truth, has never pretended to give advice to mankind with no lights but its own; though people who knew nothing but political economy (and therefore knew it ill) have taken upon themselves to advise, and could only do so by such lights as they had.
Marriage is the only actual bondage known to our law. There remain no legal slaves, except the mistress of every house.
China adopted a capitalist system in the 1980s, and they went from a 60% poverty rate to 10%.
In time of peace there can, at all events, be no justification for the creation of a permanent debt by the Federal Government. Its limited range of constitutional duties may certainly under such circumstances be performed without such a resort.
The Middle East has the highest unemployment percentage of any region in the world we have the largest youth cohort of history coming into the market place that frustration does translate into the political sphere when people are hungry and without jobs.
Economists who adhere to rational-expectations models of the world will never admit it, but a lot of what happens in markets is driven by pure stupidity - or, rather, inattention, misinformation about fundamentals, and an exaggerated focus on currently circulating stories.
If you go back to the really long-run questions that interested me, the big question was why, over the centuries, the millennia, has growth been speeding up?
I'm quite worried about the fiscal imbalances that we've got and what that might mean in terms of financial crisis ahead.
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