Catechism of Political Economy Or Familiar Conversations On the Manner in Whic

Cover Catechism of Political Economy Or Familiar Conversations On the Manner in Whic
Catechism of Political Economy Or Familiar Conversations On the Manner in Whic
Say, Jean Baptiste, 1767-1832
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To provide for extraordinary expenses which the ordinary revenues are not sufficient to discharge.
How do they pay the interest of the loans they con- tract ?
They pay it either by laying on a new tax, or by economising, from the ordinary expenses, a sum suf- ficient to pay the annual interest.
Loans, then, are a means of consuming a principal, of which the interest is paid by a portion of the taxes ?
Yes.
Who are the lenders ?
Individuals who have capitals at their' disposal.
Since government
...represents the society, aud society is composed of individuals, it is then the society which lends to itself?
ON PUBLIC LOANS. 81 Yes : it is a part of the individuals who lend to the whole of the individuals ; that is to say, to the society or to its government.
What effect is produced by public loans on the public riches? Do they augment or diminish them?
The loan in itself neither increases nor diminishes them : it is a value which passes from the hands of individuals to the hands of the government, a simple transfer.


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