The Turgot Collection

Observations on a Paper
by Saint-Péravey
on the Subject of Indirect Taxation

Turgot returns to a familiar theme, the view that taxation must ultimately fall on land. He makes points of value to later economists who abandoned this doctrine, derived from the Phsyiocrats. Continual changes in economic data make it impossible to arrive at constant numerical relationships among prices, a fact that Turgot uses to throw into question some calculations in the paper on which he is commenting. He goes on criticize attempts to regulate interest. A return on capital is essential: without it, lenders would not lend and economic progress could not occur. It is also incorrect to think that the accumulation of capital withdraws money from circulation; but even if it did, this would not be a bad thing.