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
Now though, in the more advanced stages of society, the producer is not
always at the same time the demander and consumer; yet the effectual
demand for commodities must, on an average, be proportioned to the
productive services set in motion to obtain them;[89] and when the
different kinds of producers are reduced to a common denominator, such
as common agricultural day-labour, and profits are deducted as the
remuneration of the capitalist, and rent as the remuneration of the
landowner, the proportion which the remaining produce bears to the
number of such producers must represent, exactly in the same manner as
in the early periods of society, the degree of scarcity in which the
commodity exists compared with the producers; and therefore the value of
the commodity is measured by the quantity of it which will command a
day’s common labour. In fact, if it be once allowed that when labour is
exclusively concerned, the number of days’ labour necessary to produce a
commodity at any place and time represents the natural value of the
commodity at that place and time[90], then, as it is quite certain that
the value in exchange of any other commodity compared with the first,
will be accurately in proportion to the respective quantities of the
same kind of labour which they will command, it follows necessarily,
that the value of the second commodity must always be in proportion to
the quantity of labour it will command, however its value may have been
affected by profits, rents, taxes, monopolies, or the accidental state
of its supply compared with the demand.
Seventhly: It has been stated that the values of commodities must be
proportioned to the causes of value operating upon them. The author of
the Critical Dissertation has a chapter on the causes of value, and, at
the conclusion of it, adverting to the variety of considerations
operating upon the human mind, which he thinks have been overlooked by
political economists, he observes, “these considerations are the causes
of value; and the attempt to proportion the quantities in which
commodities are exchanged for each other to the degree in which one of
these considerations exists, must be vain and ineffectual. All, in
reality, that can be accomplished on this subject, is to ascertain the
various causes of value; and, when this is done, we may always infer,
from an increase or diminution of any of them, an increase or diminution
of the effect.”[91]
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