CHAPTER XI.

ABSOLUTE PRICES.


If we wish to judge between freedom of trade and protection, to
calculate the probable effect of any political phenomenon, we should
notice how far its influence tends to the production of _abundance_ or
_scarcity_, and not simply of _cheapness_ or _dearness_ of price. We
must beware of trusting to absolute prices: it would lead to
inextricable confusion.

Mr. Protectionist, after having established the fact that protection
raises prices, adds:

"The augmentation of price increases the expenses of life, and
consequently the price of labor, and every one finds in the increase
of the price of his produce the same proportion as in the increase of
his expenses. Thus, if everybody pays as consumer, everybody receives
also as producer."

It is evident that it would be easy to reverse the argument, and say:
If everybody receives as producer, everybody must pay as consumer.

Now what does this prove? Nothing whatever, unless it be that
protection _transfers_ riches, uselessly and unjustly. Spoliation does
the same.

Again, to prove that the complicated arrangements of this system give
even simple compensation, it is necessary to adhere to the