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
As a matter of fact, when a rise in the value of hops or of corn is
spoken of, who ever thinks about the changes which may have taken place
in the values of iron, flax, or cabbages? For short periods, we consider
money as nearly a correct measure of the values of commodities, as well
as of their prices; and if hops and corn have risen in this measure, we
do not hesitate to say that their values have risen, without the least
reference to cloths, calicoes, or cambrics. This is a clear proof that,
in general, when we speak of the variations in the values of
commodities, we do not measure them by the variations in their general
power of purchasing, but by some sort of standard which we think better
represents the varying estimation in which they are held, determined at
all times by the state of the supply compared with the demand, and, on
an average, by the elementary costs of production.
The only variations in the general power of a commodity to purchase,
which are susceptible of a distinct and definite measure, are those
which arise from causes which affect the commodity itself, and not from
the causes which affect the innumerable articles against which it is
capable of being exchanged. In speaking, therefore, of the variations in
the value of particular commodities, it is not only more accordant with
the accustomed meaning attached to the expression, but absolutely
necessary with a view to precision, to consider them as exclusively
proportioned to, and measured by, the amount of the causes of value
operating upon themselves.
Mr. Ricardo, therefore, quite consistently with his own hypothesis,
considers a commodity, the producing labour of which has doubled, as
having increased to double its former value. It has increased in
relation to a standard which, according to him, is the sole cause of
value; it will command just double the quantity of all those commodities
which have not altered in their producing value; and if it will not
command just double the quantity of other commodities, it is not because
it will not command just double the _value_ which it did before, but
because, on account of the changes in the producing labour of the other
commodities, double the quantity of them has become more or less than
double the value.
Public-domain text, read in full here on John Shaqi.
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