Mr Micawber and the Ethical Dimension of Economics
“Annual income, 20 pounds. Annual expenditure, 19 pounds. Result? Happiness. Annual income, 20 pounds. Annual expenditure, 21 pounds. Result? Misery.” Mr Micawber’s advice to David Copperfield in Charles Dickens’s eponymous novel.
It is possible to state the most basic of economic principles in terms of simple arithmetic. Few have expressed it better than Dickens, through the words of his character Mr Micawber, in his advice to the young David Copperfield.
Joseph, in the old testament, offered related advice to the leaders of Egypt: guard the surplus from good years in order to provide food for future years that might yield a poor harvest.
How might a putative David Copperfield spend his extra pound? Whether it’s the pound he had not received, or the one left over, what priorities should the wise man bear in mind when spending it?
If he has overspent his budget, who among his dependents must suffer in his attempt to recover it? If he has a surplus, who benefits? The sensible person would disapprove if it were spent on booze or drugs. Most would sympathise if it was used to provide medicine for his sick child.
What if 20 pounds is not enough to meet the basic needs of a possible David and the family for whom he is responsible? We all can point to examples of…