Read Grand Pursuit: A History of Economic Genius Page 5


  Living standards of urban workers were further undermined by the degradation of the physical environment. The mass migration from the country to the city was taking place before the germ theory of disease had been discovered and before garbage collection, sewers, and clean water supplies were commonplace. Despite the greater poverty of rural England, life expectancy in the countryside was about forty-five versus thirty-one or thirty-two in Manchester or Liverpool. Filth and malnutrition simply weren’t as deadly in less-contagious circumstances. At a time when cities like Liverpool were expanding at rates between 31 and 47 percent every decade, epidemics posed a constant threat. The richest of the rich were not immune—Prince Albert, Queen Victoria’s husband, was carried off by typhoid—but the risks were magnified by poor nutrition and crowding. As the influx of migrants into cities accelerated in the first half of the nineteenth century, the health of the average worker stopped improving with income or actually deteriorated. Life expectancy at birth rose from thirty-five to forty between 1781 and 1851, but raw death rates stopped falling in the 1820s. Infant mortality rose in many urban parishes, and adult height—a measure of childhood nutrition, which is affected by disease as well as diet—of men born in the 1830s and 1840s fell.62

  Reactionaries and radicals alike wondered if England was suffering from a Midas curse. “This successful industry of England, with its plethoric wealth, has as yet made nobody rich; it is an enchanted wealth,” thundered Carlyle.63 The economic historian Arnold Toynbee argued that the first half of the nineteenth century was “a period as disastrous and as terrible as any through which a nation has ever passed. It was disastrous and terrible, because side by side with a great increase of wealth was seen an enormous increase in pauperism; and production on a vast scale, the result of free competition, led to a rapid alienation of classes and the degradation of a large body of producers.”64

  True, as England’s leading philosopher, John Stuart Mill, pointed out, the gradual removal of laws, levies, and licenses that tied the “lower orders” to particular villages, occupations, and masters had increased social mobility: “Human beings are no longer born to their place in life . . . but are free to employ their faculties and such favorable chances as offer, to achieve the lot which may appear to them most desirable.”65 But even Mill, a libertarian with strong Socialist sympathies, could see little improvement in the well-being of most Englishmen: “Hitherto it is questionable if all the mechanical inventions yet made have lightened the day’s toil of any human being.”66

  Thus, in the second year of the potato famine in Ireland, the authors of The Communist Manifesto repeated Engels’s earlier claim that as the nation grew in wealth and power, the condition of its people only worsened: “The modern labourer . . . instead of rising with the progress of industry, sinks deeper and deeper below the conditions of existence of his own class. He becomes a pauper, and pauperism develops more rapidly than population and wealth. And here it becomes evident that the bourgeoisie is unfit any longer to be the ruling class in society. . . . The proletarians have nothing to lose but their chains. They have the world to win. WORKING MEN OF ALL COUNTRIES, UNITE!67

  • • •

  Having been ejected from France for publishing a satirical sketch of the Prussian king, Marx, his growing family, and the family retainer had been living in Belgium on a publisher’s advance for his economics treatise. At the end of his month-long stay in London, Marx had returned to his suburban villa in Brussels, where he promptly put off the task of writing the final version and threw himself into a lecture series . . . on the economics of exploitation. In January, after league officials threatened to hand the assignment to someone else, he finally picked up his pen. Just before news of fighting in Paris between Republicans and the municipal guard reached Great Windmill Street, his partially finished final draft arrived in the mail. On February 21, the league had one thousand copies of the Manifesto, written in German, printed and delivered to the German border with France. All but one copy was promptly confiscated by the Prussian authorities.

  Marx and Engels waited impatiently for Armageddon. Like many nineteenth-century romantics, they “saw themselves as living in a general atmosphere of crisis and impending catastrophe” in which anything could happen.68 John of Patmos, the author of the book of Revelation, had supplied them with the perfect finale for modern society and their Manifesto: society splits into two diametrically opposed camps, there is a final battle, Rome falls, the oppressed receive justice, the oppressors are judged, and the end of history comes.

  • • •

  History did not end in 1848. The French revolution of that year led not to Socialism or even universal male suffrage, but to the reign of Napoléon III. The declaration of the French Republic resulted in Marx’s summary ejection from Belgium and, a few weeks after he had found a new bolt-hole in Paris, persecution by the French authorities. When the Paris police threatened to banish him to a swampy, disease-ridden village hundreds of miles from the capital, Marx objected on grounds of health and began to look around for a country that would take him. In August 1849 he moved to London, that “Patmos of foreign fugitives” and home of the former French king Louis Philippe and countless other political exiles.69 It would be for only a short time, he consoled himself.

  Marx’s arrival in London coincided with one of the worst cholera epidemics in the city’s history. By the time it had run its course, 14,500 adults and children had died.70 The outbreak encouraged Henry Mayhew, the journalist, to undertake a remarkable series of newspaper stories about London’s poor.71 A scientist manqué who had a terrible relationship with his father, Mayhew was plump, energetic, and engaging, but absolutely hopeless about money. At thirty-seven, the former actor and cofounder of the humor magazine Punch was still recovering from a humiliating bankruptcy that had cost him his London town house and nearly landed him in jail. After months of grinding out pulp fiction with self-mocking titles such as The Good Genius That Turned Everything into Gold, Mayhew saw a chance for a comeback.

  Mayhew’s eighty-eight-part series took Chronicle readers on a house-by-house tour in the “very capital of cholera.”72 Jacob’s Island was a particularly noxious corner of Bermondsey on the south side of the Thames immortalized by Dickens in Oliver Twist. Mayhew promised readers a sensational portrait of the district’s inhabitants “according as they will work, they can’t work, and they won’t work.”73 He assured the audience that he was no “Chartist, Protectionist, Socialist, Communist,” which was perfectly true, but a “mere collector of facts.”74 With a team of assistants and a few cabmen more or less on retainer, he plunged into the houses with “crazy wooden galleries . . . with holes from which to look upon the slime beneath; windows, broken and patched, with poles thrust out, on which to dry the linen that is never there; rooms so small, so filthy, so confined, that the air would seem to be too tainted even for the dirt and squalor which they shelter.”75

  Mayhew found that London’s working population was by no means a single monolithic class but a mosaic of distinct and highly specialized groups.76 He ignored the city’s single biggest occupation—150,000 domestic servants—whose numbers demonstrated how large the rich loomed in the city’s economy. Nor did he take an interest in the 80,000 or so construction workers employed in building railroads, bridges, roads, sewers, and so on. Instead Mayhew concentrated on a handful of manufacturing trades. As the historian Gareth Stedman Jones explains, London’s labor market was a marriage of extremes. On the one hand, the city attracted highly skilled artisans who catered to the wealthy and who earned one-fourth to one-third more than in other towns, as much as the clerks and shopkeepers who comprised the “lower” middle class. On the other hand, it thrived on an uninterrupted influx of unskilled labor. Laborers also earned higher wages than their counterparts in the provinces, but their living conditions were apt to be worse because of the overcrowded, decrepit housing in areas like Whitechapel, Stepney, Poplar, Bethnal Green, and Southwark, which had been exhaustively doc
umented by parliamentary commissions of the 1840s. Clerks, salespeople, and other white-collar workers could afford the new omnibuses or trains and were escaping to the fast-growing suburbs. Unskilled workers had no choice but to stay within walking distance of their places of employment.

  Competition from provincial towns and other countries was a constant source of pressure to find ways to save on labor costs. The system of “sweating” or piecework, often performed in the worker’s own lodging, was tailor-made to keep industries such as dressmaking, tailoring, and shoe manufacturing that would otherwise have migrated out of London on account of its high rents, overheads, and wages. Thus, Stedman Jones concludes, London’s poverty, with its sweatshops, overcrowding, chronic unemployment, and reliance on charity, was, in fact, a by-product of London’s wealth. The city’s rapid growth led to rising land prices, high overheads, and high wages. High wages attracted more waves of unskilled newcomers but also created constant pressure on employers to find ways to replace more expensive labor with cheap labor.

  London’s needlewomen epitomized the phenomenon, and they were the subjects of Mayhew’s most sensational stories. “Never in all history was such a sight seen, or such tales heard,” he promised.77 Using census figures, Mayhew calculated that there were 35,000 needlewomen in London, 21,000 of whom worked in “respectable” dressmaking establishments that ranged from the bespoke to those that catered to the lower middle class. The other 14,000, he wrote, worked in the “dishonorable” or sweated sector.78 Mayhew contended that piecework rates “of the needlewomen generally are so far below subsistence point, that, in order to support life, it is almost a physical necessity that they must either steal, pawn, or prostitute themselves.”79

  On this occasion, Mayhew was more impresario than observer. In November, with the help of a minister, he organized “a meeting of needlewomen forced to take to the streets.” He promised strict privacy of the assembly. Men were barred. Two stenographers took verbatim notes. Under dimmed lights, twenty-five women were given tickets of admission. They mounted the stage and were encouraged to share their sorrows and sufferings. The minister exhorted them to speak freely. To Mayhew’s amazement, they did:

  The story which follows is perhaps one of the most tragic and touching romances ever read. I must confess that to myself the mental and bodily agony of the poor Magdalene who related it was quite overpowering. She was a tall, fine-grown girl, with remarkably regular features. She told her tale with her face hidden in her hands, and sobbing so loud that it was with difficulty I could catch her words. As she held her hands before her eyes I could see the tears oozing between her fingers. Indeed I never remember to have witnessed such intense grief.80

  Mayhew’s account in the Morning Chronicle confirmed Thomas Carlyle’s worst fears about modern industrial society, inspiring a choleric rant against economists:

  Supply-and-demand, Leave-it-alone, Voluntary Principle, Time will mend it; till British industrial existence seems fast becoming one huge poison-swamp of reeking pestilence physical and moral; a hideous living Golgotha of souls and bodies buried alive; such a Curtius’ gulf, communicating with the Nether Deeps, as the Sun never saw till now. These scenes, which the Morning Chronicle is bringing home to all minds of men, thanks to it for a service such as Newspapers have seldom done—ought to excite unspeakable reflections in every mind.81

  Among these unspeakable reflections was the image of a volcano on the verge of eruption. “Do you devour those marvelous revelations of the inferno of misery, of wretchedness, that is smoldering under our feet?” Douglas Jerrold, then editor of Punch and Mayhew’s father-in-law, asked a friend. “To read of the sufferings of one class, and the avarice, the tyranny, the pocket cannibalism of the others, makes one almost wonder that the world should go on.”82

  Mayhew’s series in the Morning Chronicle, “Labour and the Poor,” ran for the entire year of 1850. When about half of the articles had run, he revealed his larger ultimate aim. He wanted to invent, he confessed, “a new Political Economy, one that will take some little notice of the claims of labour.” He justified his ambition by suggesting that an economics that did “justice as well to the workman as to the employer, stands foremost among the desiderata, or the things wanted, in the present age.”83

  • • •

  Carlyle’s friend John Stuart Mill had given precisely the same reason for embarking on his Principles of Political Economy, published in 1848, only two years earlier, and already the most-read tract on economics since Adam Smith’s The Wealth of Nations.

  “Claims of Labor have become the question of the day,” Mill wrote during the Irish potato famine in 1845, when he conceived the idea for the book.84 At the time, the thirty-nine-year-old Mill had long been in love with Harriet Taylor, an unhappily married intellectual whom Carlyle described as “pale . . . and passionate and sad-looking” and a “living Romance heroine.”85 As Mill’s frustration over Harriet’s husband’s refusal to grant her a divorce grew, so did his sympathy with her Socialist ideals.

  In taking up political economy, Mill hoped to overcome Carlyle’s objection that the discipline was “dreary, stolid, dismal, without hope for this world or the next”86 and Taylor’s that it was biased against the working classes. Agreeing with Dickens, Mill saw a particular need to “avoid the hard, abstract mode of treating such questions which has brought discredit upon political economists.” He blamed them for enabling “those who are in the wrong to claim, & generally to receive, exclusive credit for high & benevolent feeling.”87

  Mill no doubt had in mind David Ricardo, the brilliant Jewish stockbroker and politician who took up economics as a third career at age thirty-seven. Between 1809 and his untimely death in 1823, Ricardo not only recast the brilliant but often loosely expressed ideas of Adam Smith as an internally consistent, precisely defined set of mathematical principles but also proposed a remarkable number of original ideas concerning the benefits of trade for poor as well as rich nations and the fact that countries prosper most when they specialize. Nonetheless, many potential readers of his On the Principles of Political Economy and Taxation were as repelled by Ricardo’s tendency to convey his ideas in abstract terms as by his dour conclusions. His iron law of wages—stating that wages may go up or down based on short-run fluctuations in supply and demand but always tend toward subsistence—incorporated Malthus’s law of population and ruled out any meaningful gains in real wages.88

  Mill noted that Ricardo, Smith, and Malthus were all vocal champions of individual political and economic rights, opponents of slavery, and foes of protectionism, monopolies, and landowner privileges. He himself favored unions, universal suffrage, and women’s property rights. In response to the economic crisis and social strife of the Hungry Forties, he advocated the repeal of the 50 percent tax on imported grain. The typical laborer spent at least one-third of his meager pay on feeding himself and his family. Mill correctly predicted that once the tax on imports was abolished food prices would decline and real wages would rise. Yet even he remained profoundly pessimistic about the scope of improvements in the lives of workers. Like Carlyle, he was convinced that the repeal of the Corn Laws would only buy time, as the invention of the railroad, the opening up of the North American continent, and the discovery of gold in California had. Such developments, while beneficial, could not repeal the immutable laws by which the world was governed.

  Malthus’s law of population and Ricardo’s iron law of wages and law of diminishing returns—the notion that using more and more labor to farm an acre would produce less and less extra output—all dictated that population would outrun resources and that the nation’s wealth could be enlarged only at the expense of the poor, who were doomed to spend “the great gifts of science as rapidly as . . . [they] got them in a mere insensate multiplication of the common life.”89 Government could do no more than create conditions in which enlightened self-interest and laws of supply and demand could work efficiently.

  For Mill, economies are governed
by natural laws, which couldn’t be changed by human will, any more than laws of gravity can. “Happily,” Mill wrote as he was finishing Principles in 1848, “there is nothing in the laws of Value which remains for the present or any future writer to clear up; the theory of the subject is complete.”90

  Henry Mayhew, for one, refused to accept this conclusion. By his lights, Mill had failed in his attempt to turn political economy into a “gay science,” that is, a science capable of increasing the sum of human happiness, freedom, or control over circumstances.91 The fact that Mill had not jettisoned the iron law of wages was all the more reason for trying again. Ultimately, Mayhew did not succeed in mounting a challenge to the classical wage doctrine, and neither did anyone else of his generation. Still, his landmark series on London labor became the unofficial Baedeker for a younger generation of “social investigators” who were inspired by his reporting and shared his desire to learn how much improvement was possible without overturning the social order.

  • • •

  In August 1849, less than two years after Karl Marx had arrived in London amid a cholera epidemic, the whole world seemed to be descending upon his sanctuary to see the Great Exhibition. The first world’s fair was the brainchild of another German émigré, Queen Victoria’s husband, Prince Albert, but Marx, who was by then living with his wife, Jenny, their three young children, and their housekeeper in two dingy rooms over a shop in Soho, wanted nothing to do with it. He fled to seat G7 in the high-domed reading room of the British Museum with its cathedral-like gloom and refreshing quiet. Ignoring breathless newspaper accounts about the construction of the Crystal Palace in Hyde Park, Marx filled notebook after notebook with quotations, formulas, and disparaging comments as he pored over the works of the English economists Malthus, Ricardo, and James Mill, the father of John Stuart Mill. Let the philistines pray in the bourgeois Pantheon, he told himself. He would have no truck with false idols.