(404.) One of the objections most frequently urged against machinery is, that it has a tendency to supersede much of the hand-labour which was previously employed; and in fact unless a machine diminished the labour necessary to make an article, it could never come into use. But if it have that effect, its owner, in order to extend the sale of his produce, will be obliged to undersell his competitors; this will induce them also to introduce the new machine, and the effect of this competition will soon cause the article to fall, until the profits on capital, under the new system, shall be reduced to the same rate as under the old. Although, therefore, the use of machinery has at first a tendency to throw labour out of employment, yet the increased demand consequent upon the reduced price, almost immediately absorbs a considerable portion of that labour, and perhaps, in some cases, the whole of what would otherwise have been displaced.
That the effect of a new machine is to diminish the labour required for the production of the same quantity of manufactured commodities may be clearly perceived, by imagining a society, in which occupations are not divided, each man himself manufacturing all the articles he consumes. Supposing each
