Question

John Stuart Mill's philosophy of stationary economy could be summarized as follow: "A better condition is one in which there is a 'stationary state of capital wealth', a situation in which 'no one is poor, and no one desires to be richer' ". How is the idea of a stationary economy achievable?

Answer 1

In arguing for the stationary state, Mill was arguing for the recovery of limits as crucial to asserting human ends. Setting limits is important from Mill’s point of view to achieve a stationary economy. Economic growth is valid only till the point when it is limited to satisfying a level necessary for existence. For instance, while comparing the economic growth of developed nations vis-à-vis underdeveloped nations, Mill emphasized the need for balance and argued that expansion of production can lead to economic growth only in underdeveloped nations. However, in developed nations the important economic issue is distribution rather than production.

To realize the stationary concept of Mill, human beings need to assert conscious human control. Beyond that certain level required for existence, economic growth loses its rationale and exhibits opportunities for human growth. The transformation of thoughts from endless stimulation of wants to satisfying the needs makes it possible to develop human capacities. Hence along with a stable population, the moral intellect of people has to grow for a stationary economy. For instance, in US, not every individual can afford high quality of health care because to meet these needs another section of the society will bear the economic cost. But as per Mill, this is a false tradeoff as it ignores the benefits and just focuses on cost.