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Unit 14: John Stuart Mill and His Representative Government


          Mill visualized society as composed of free, equal, independent and virtuous citizens, who  Notes
          contributed their best towards the common good and would in turn receive fair rewards for their
          contributions. He rejected the hereditary class system, because it was inherently inefficient and
          obstructed progress. Mill diluted the distinction between the three social classes in the Ricardian
          system. He did not attack the landowning class for receiving a steady increase in rent, while the
          capitalist faced diminishing returns and the labourer survived at the bare level of subsistence, a
          point picked by George Bernard Shaw (1856-1950) later to furnish the economic basis of Fabian
          Socialism. Mill was critical of idleness and opulence, just as his father was, and attacked the
          conspicuous consumption of the new middle class in the same way as he castigated the old
          aristocracy. As opposed to the big bourgeois, he praised the small, landed proprietors for he learnt
          of their importance from Tocqueville as preservers of American democracy.
          Mill insisted that while increased production was important for poor countries, it was  better
          distribution of existing wealth that mattered in advanced ones. He visualized a happy society as one
          that consisted of
               a well paid and affluent body of labourers; no enormous fortunes, except what were
               earned and accumulated during a single lifetime; but a much larger body of persons
               than at present, not only exempt from the coarser toils, but with sufficient leisure, both
               physical and mental, from mechanical details, to cultivate freely the graces of life, and
               afford examples of them to the classes less favourable circumstances for their growth
               (Mill 1963: 755).
          Mill advocated taxing inheritance above a modest level, rather than industry and the economy, for
          that would curtail the incentive to work harder and save more than his peers. In case of intestacy
          or property without a legal will, it would revert to the state after providing enough for the
          descendants. He opposed taxation on investments, for that would harm those who could not
          work, and for whose security it was started. He did not like taxing incomes and savings
          simultaneously, for that would undercut the willingness of those who kept a portion of their
          money for productive investments, by which wealth was created and “distributed in wages among
          the poor” (Mill ibid: 816). While he desired to preserve the entrepreneurship of the bourgeois, he
          attacked the landed aristocracy which grew wealthy “without working, risking or economizing”
          (Mill ibid: 819-820). It was for this reason that he was against primogeniture. Thus, Mill combined
          both a production and a distribution view of economics.
          In general, Mill believed that the policy of laissez faire was the ideal, but it could be set aside for the
          purposes of education, care of children and the insane, planned colonization, relief for poor,
          public utilities like water and regulation of hours of work. The state would ensure that none
          starved. He did not advocate abolition of property or its equalization. He desired general
          embourgeoisement so that everyone worked for a living, enjoyed a decent standard of living and
          had sufficient leisure to cultivate one’s mind.
          Mill’s “socialism” was essentially libertarian, for it aimed at the full development of the individual’s
          faculties and the liberation of the human potential. “The aim of improvement should be not solely
          to place human beings in a condition of which they will be able to do without one another but to
          enable them to work with or for one another in relations not involving dependence”.
          Mill was attracted to socialism because of its idea of human cooperation or partnership, but he
          was equally keen to preserve individuality and freedom. He did not advocate socialization of the
          means of production. He realized the need to change capitalism by bringing in the ethic of social
          welfare and cooperation. This was because capitalism, even with the incentive of self-interest, had
          not been able to eliminate parasitism, for those unwilling to work were able to develop ways to
          shirk work. Socialism with communal ownership had superior methods, which forced lazy members
          to produce and work. The difference was that in a capitalist society a employer could dismiss a
          lazy worker, but in a socialist society he could be reformed by public opinion, which to Mill was


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