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
But if the term has been generally understood in this way, people must
have been fully aware that value was essentially different from length:
they would know perfectly well that a piece of cloth of a yard long
would continue to be a yard long when it was sent to China; but that its
value, that is, its general power of purchasing in China, or the
estimation in which it was held there, would probably be essentially
altered. But allowing this most marked distinction, and that the value
of a commodity cannot be so well defined, and its variations so
accurately measured, as the length of a commodity—where is the false
analogy of endeavouring to measure these variations as well as we can?
We cannot certainly describe the wealth of a merchant, nor measure the
increase of his wealth during the last four years, with the same
exactness as we can describe the height of a boy, and measure the amount
of his growth during the same period. We can perform the latter
operation with the most perfect precision by means of a foot-rule. The
nature of wealth, and the best instruments used to measure its increase,
are such, that the same precision is unattainable; but there is no false
analogy involved in the process of measuring the wealth of a merchant at
one time with his wealth four years before, by the number of pounds
sterling which he possesses now, as compared with the number of pounds
sterling he possessed at the former period. What false analogy is
involved in applying money to measure the value of the advances of a
manufacturer, as compared with the value of his returns, in order to
estimate his profits? and what can the author mean by saying, that no
relation of value can exist between commodities at different
periods;[71] and that it is a case where money has no function to
perform?
Notwithstanding such assertions, we see every day the most perfect
conviction prevailing among all agriculturists, merchants,
manufacturers, and shopkeepers, and among all writers on political
economy, except the author, that to estimate the relation of
commodities, at different periods, in regard to their general power of
purchasing, and particularly the power of purchasing labour, the main
instrument of production, is a most important function, which it is
peculiarly desirable to have performed; and that, for moderately short
periods, money _does_ perform this function with very tolerable
accuracy. And for this specific reason; that, for moderately short
periods, a given quantity of money will represent, more nearly than any
other commodity, the general power of purchasing, and particularly the
power of setting labour in motion, so vital to the capitalist. It will
approach, in short, more nearly than any other commodity, to that
invariability which the author thinks so utterly useless in a measure of
value, and the very mention of which seems to excite his
indignation.[72]
Public-domain text, read in full here on John Shaqi.
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