Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public PolicyClark, John Bates
General
Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public Policy
Clark, John Bates
Economics
_Refutations of Malthusianism._--The Malthusian law of population has
been so frequently "refuted" as to prove its vitality. It is in the
main as firmly impressed in the belief of scientific men as it ever
was, and some of the arguments which have been relied upon to
overthrow it require only to be stated in order to be discarded. One
of these is the claim that the statement of the law is untrue because,
during the century in which the American continent, Australia, parts
of Africa, and great areas elsewhere were in process of occupation,
mankind has not actually pressed on the limits of subsistence. No
intelligent view regards that fact as constituting anything but an
illustration of the Malthusian law. A vast addition to the available
land of the world would, of course, defer the time of land crowding
and the disastrous results which were expected from it, but with the
steady growth of population the stay of the evil influence would be
only temporary.
_An Objection based on a Higher Standard of Living._--The second
objection is also an illustration rather than a refutation of the
Malthusian doctrine; it asserts that the standard of living is now
higher than it was, and the population does not increase fast enough
to force workers to lower it. Malthus's entire conclusion hung upon an
_if_. The rate of pay conformed to a standard, and if that standard
were low, wages would be so; while if it were higher, wages would be
higher also.
_The Real Issue concerning the Doctrine of Population._--There is a
real incompleteness in all such statements. Does the standard of
living itself tend to rise with the rise of wages and to remain above
its former level? When men make gains can they hold them, or, at any
rate, some part of them, or must they fall back to the level at which
they started? And this amounts to asking whether, after a rise in
pay, there is time enough before a fall might otherwise be expected to
allow the force of habit to operate, to accustom the men to a better
mode of living and forestall the conduct that would bring them down to
their old position. The standard of living, of course, will affect
wages only by controlling the number of laborers, and the
discouragement due to Malthusianism lies in the fact that it seems to
say that the number of workers is foreordained to increase so quickly,
after a rise in wages, as to bring them to their old level. Whether it
does or does not do this is a question of fact, and the answer is a
very clear one. The higher standards actually have come from the
higher pay, and they have had time to establish themselves.
Subsistence wages have given place to wages that provided comforts,
and these again to rates that provided greater comforts and modest
luxuries; and the progress has continued so long that, if habit has
any power whatever, there is afforded even by the Malthusian law
itself a guarantee that earnings will not fall to their former level
nor nearly to it.
Public-domain text, read in full here on John Shaqi.
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