Malthus, T. R. (Thomas Robert), 1766-1834; Malthusianism
growing population except at an increased cost.[541] Now, if the supply
is absolutely required, the most costly portion of it, whether it be got
by an extension of cultivation to poorer lands, or by a more thorough
cultivation of the richer, will determine the price of all the rest, for
there cannot be two prices in the same market; and the profits of the
producer of it will determine the profits of all his fellow-cultivators,
for there cannot be two rates of profit in the same business.
Furthermore, the agricultural profits will determine the rate in other
businesses, for in a full-formed society the rate in the others must
bear a fixed relation to the rate in this business, so that the one
cannot materially vary without the other.[542] Therefore the greater
cost of the last portion of the necessary supply of food will lower
profits generally, will thereby increase the range of extra profits from
the richer soils, and will thereby raise rents.
The difference between the two men is, that what Malthus makes only one
cause, Ricardo makes the only one, the increased cost of
cultivation.[543] Ricardo and his friends have certainly put cause for
effect.[544] It is of course in the first instance the high prices that
lead to the costly cultivation, and not _vice versâ_, for without the
high prices the produce of the costly cultivation would not be
profitable.
Malthus was asked by the Committee on Emigration: “Among other effects
of resorting to a soil inferior to any now in cultivation, which is
involved in the proposition of cultivating waste lands, would not one be
to raise the rents of all the landlords throughout Great Britain and
Ireland?”—He answered: “I think not. The cultivating of poor lands is
not the cause of the rise of rents; the rise of the price of produce
compared with the costs of production, which is the cause of the rise of
rents, takes place first, and then such rise induces the cultivation of
the poorer land. That is the doctrine I originally stated, and I believe
it to be true; it was altered by others afterwards.”[545]
On the other hand, what makes the high prices permanent instead of
temporary, is the fact that the cultivation essential to the
completeness of the supply cannot be other than costly.[546] It is,
therefore, not wrong to consider costly cultivation as one cause of the
permanence of high prices, and therewith of high rents. But Ricardo goes
further, and counts it the only cause.
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