HARMONIES OF ECONOMICS. The theory that individual interests consciously pur sued as such are naturally harmonious was early suggested by many writers, but it was first definitely stated by Henry C. Carey in America and Frederic Bastiat in France, two writers whose works appeared within a year of each other, and whose conflicting claims to original ity have never been satisfactorily decided. They sharply antagonize the English school, especially as represented by Ricards and Mal thus. The most important of those conclusions to which exception is taken are summed up by Bastiat in his
•theory of harmony" promises increasing pros perity to all the factors of production on one condition on which Bastiat insists — namely, liberty. Since self-interest when pursued ever so eagerly, or with ever so great an indifference to other men's interests, works good to all, all interference with its action is necessarily det rimental. The state should absolutely limit its function to the maintenance of justice. Laws restricting the exchange of commodities or otherwise interfering with industrial liberty under pretext of securing harmony of interests are not only destructive to that harmony which can only coexist with liberty, but they are a violation of natural right. Bastiat is, of course, a champion of the doctrine of laissez-faire. The wide divergence of Bastiat's theory of harmony and the facts of life suggests the fundamental fallacy of his system. It rests upon a false theory of nature. Carey in
mony of Interests (1849) agrees with Bastiat, but unlike the Frenchman, he made use of arguments from real life. He advocated state intervention and became an expounder of the doctrine of protection. Neither writer has had disciples of note, though extensive use has of course been made of their arguments. Consult Ingram, 'History of Political Economy' ; Walker, 'Land and Its Rent' ; B6hm-Bawerk, 'Capital and Interest' ; and Lassalle, 'Bastiat, Schulze von Delitzsch.'