Definitions in Political Economy,: Preceded by an Inquiry Into the Rules which Ought to Guide Political Economists in the Definition and Use of Their Terms; with Remarks on the Deviation from These Rules in Their WritingsMalthus, T. R. (Thomas Robert)
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Definitions in Political Economy,: Preceded by an Inquiry Into the Rules which Ought to Guide Political Economists in the Definition and Use of Their Terms; with Remarks on the Deviation from These Rules in Their Writings
Malthus, T. R. (Thomas Robert)
Classical school of economics; Economics
It is perfectly true, that both the landlords and the labourers who are
paid in money will finally exchange it for something else, as no one
enjoys money _in kind_, except the miser; but the landlord who may spend
perhaps a good deal in post-horses, dinners at inns, and menial
servants, would be little likely to accept from the hop-planter the
articles which he could get at the fair in exchange for his hops; and
though the expenditure of the labourer is much more simple, and may be
said to consist almost entirely in food and clothing, yet it is quite
certain that the power of commanding a given quantity of labour can
never be represented, with any approach towards correctness, by a given
quantity of corn and clothing. As a matter of fact, the labourer in this
country is paid in money; and while it often happens that for many years
together the money-price of labour remains the same, the money-price of
corn is continually altering, and the labourer may, perhaps, receive the
value of twice as much corn in one year as he does in another.
What an entirely false view, then, does it give of the real state of
things, what a complete obscuration instead of illustration of the
subject is it, to represent the demand for shoes as determined by the
supply of hats, or the demand for hops by the supply of cloth, cheese,
or even corn. In fact, the doctrine that one half of the commodities of
a country necessarily constitute an adequate market or effectual demand
for the other half, is utterly without foundation. The great producers
who are the great sellers, before they can venture to think about the
supplies of hats, shoes, and cloth, on which they may perhaps expend a
tenth part of a tenth part of what they have brought to market, must
first direct their whole attention to the replacing of their capital,
and to the question whether, after replacing it, they will have realized
fair profits. Whatever may be the number of intermediate acts of barter
which may take place in regard to commodities—whether the producers send
them to China,[20] or sell them in the place where they are produced:
the question as to an adequate market for them, depends exclusively upon
whether the producers can replace their capitals with ordinary profits,
so as to enable them successfully to go on with their business.
Public-domain text, read in full here on John Shaqi.
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