Tim Taylor - Charles Dickens sums up Victorian-era economics the way only he can. Man, he really punches hard too:
Here's a piece by Dickens written for the weekly journal Household Words that he edited from 1850 to 1859. It's from the issue of January 26, 1856, with his first-person reporting on "A Nightly Scene in London." Poverty in high-income countries is no longer as ghastly as in Victorian England, but for those who take the time to see it in our own time and place, surely it is ghastly enough.
Economists might also wince just a bit at the reaction of some economists to poverty, who Dickens calls "the unreasonable disciples of a reasonable school." Dickens writes: "I know that the unreasonable disciples of a reasonable school, demented disciples who push arithmetic and political economy beyond all bounds of sense (not to speak of such a weakness as humanity), and hold them to be all-sufficient for every case, can easily prove that such things ought to be, and that no man has any business to mind them. Without disparaging those indispensable sciences in their sanity, I utterly renounce and abominate them in their insanity ..."
One of the problems I have with learning nothing but pre-Depression economics throughout undergrad is that nobody seems to really have the slightest clue how miserable the world was for the masses before the Depression, so they teach the most abominable nonsense with a completely straight face. After the break, read some more Dickens:
On the fifth of last November, I, the Conductor of this journal, accompanied by a friend well-known to the public, accidentally strayed into Whitechapel. It was a miserable evening; very dark, very muddy, and raining hard.
There are many woful sights in that part of London, and it has been well-known to me in most of its aspects for many years. We had forgotten the mud and rain in slowly walking along and looking about us, when we found ourselves, at eight o'clock, before the Workhouse.
Crouched against the wall of the Workhouse, in the dark street, on the muddy pavement-stones, with the rain raining upon them, were five bundles of rags. They were motionless, and had no resemblance to the human form. Five great beehives, covered with rags— five dead bodies taken out of graves, tied neck and heels, and covered with rags— would have looked like those five bundles upon which the rain rained down in the public street.
"What is this! " said my companion. "What is this!"
"Some miserable people shut out of the Casual Ward, I think," said I.
We had stopped before the five ragged mounds, and were quite rooted to the spot by their horrible appearance. Five awful Sphinxes by the wayside, crying to every passer-by, " Stop and guess! What is to be the end of a state of society that leaves us here!"
As we stood looking at them, a decent working-man, having the appearance of a stone-mason, touched me on the shoulder.
"This is an awful sight, sir," said he, "in a Christian country!"
"GOD knows it is, my friend," said I.
"I have often seen it much worse than this, as I have been going home from my work. I have counted fifteen, twenty, five-and-twenty, many a time. It's a shocking thing to see."
"A shocking thing, indeed," said I and my companion together. The man lingered near us a little while, wished us good-night, and went on.
We should have felt it brutal in us who had a better chance of being heard than the working-man, to leave the thing as it was, so we knocked at the Workhouse Gate. I undertook to be spokesman. The moment the gate was opened by an old pauper, I went in, followed close by my companion. I lost no
time in passing the old porter, for I saw in his watery eye a disposition to shut us out.
"Be so good as to give that card to the master of the Workhouse, and say I shall be glad to speak to him for a moment."
We were in a kind of covered gateway, and the old porter went across it with the card. Before he had got to a door on our left, a man in a cloak and hat bounced out of it very sharply, as if he were in the nightly habit of being bullied and of returning the compliment.
"Now, gentlemen," said he in a loud voice, "what do you want here?"
"First," said I, " will you do me the favor to look at that card in your hand. Perhaps you may know my name."
"Yes," says he, looking at it. " I know this name."
"Good. I only want to ask you a plain question in a civil manner, and there is not the least occasion for either of us to be angry. It would be very foolish in me to blame you, and I don't blame you. I may find fault with the system you administer, but pray understand that I know you are here to do a duty pointed out to you, and that I have no doubt you do it. Now, I hope you won't object to tell me what I want to know."
"No," said he, quite mollified, and very reasonable, " not at all. What is it?"
"Do you know that there are five wretched creatures outside?"
"I haven't seen them, but I dare say there are."
"Do you doubt that there are?"
"No, not at all. There might be many more."
''Are they men? Or women?"
"Women, I suppose. Very likely one or two of them were there last night, and the night before last."
"There all night, do you mean?"
My companion and I looked at one another, and the master of the Workhouse added quickly, "Why, Lord bless my soul, what am I to do? What can I do ? The place is full. The place is always full—every night. I must give the preference to women with children, mustn't I? You wouldn't have me not do that?"
"Surely not," said I. "It is a very humane principle, and quite right; and I am glad to hear of it. Don't forget that I don't blame you."
"Well!" said he. And subdued himself again. ...
"Just so. I wanted to know no more. You have answered my question civilly and readily, and I am much obliged to you. I have nothing to say against you, but quite the contrary. Good night!"
"Good night, gentlemen!" And out we came again.
We went to the ragged bundle nearest to the Workhouse-door, and I touched it. No movement replying, I gently shook it. The rags began to be slowly stirred within, and by little and little a head was unshrouded. The head of a young woman of three or four and twenty, as I should judge; gaunt with want, and foul with dirt; but not naturally ugly.
"Tell us," said I, stooping down. "Why are you lying here?"
"Because I can't get into the Workhouse."
She spoke in a faint dull way, and had no curiosity or interest left. She looked dreamily at the black sky and the falling rain, but never looked at me or my companion.
"Were you here last night?"
"Yes, All last night. And the night afore too."
"Do you know any of these others?"
"I know her next but one. She was here last night, and she told me she come out of Essex. I don't know no more of her."
"You were here all last night, but you have not been here all day?"
"No. Not all day."
"Where have you been all day?"
"About the streets."
''What have you had to eat?"
"Come!" said I. "Think a little. You are tired and have been asleep, and don't quite consider what you are saying to us. You have had something to eat to-day. Come! Think of it!"
"No I haven't. Nothing but such bits as I could pick up about the market. Why, look at me!"
She bared her neck, and I covered it up again.
"If you had a shilling to get some supper and a lodging, should you know where to get it?"
"Yes. I could do that."
"For GOD'S sake get it then!"
I put the money into her hand, and she feebly rose up and went away. She never thanked me, never looked at me— melted away into the miserable night, in the strangest manner I ever saw. I have seen many strange things, but not one that has left a deeper impression on my memory than the dull impassive way in which that worn-out heap of misery took that piece of money, and was lost.
Stick that in your utility function and differentiate it.
And in case you think the world got better after the mid-19th century, you can go read Orwell's The Road to Wigan Pier.