Malthus, T. R. (Thomas Robert), 1766-1834; Malthusianism
The question of a market, again, is not a mere question of numbers but
of wants. A carpet factory, for example, among a people who preferred
bare floors would have no market, whatever the numbers and even the
wealth of the people. Say does not do full justice to Malthus in this
connection. He thinks that the author of the _Essay on Population_
cannot consistently believe in the possibility of a great abundance of
products together with a stationary number of parsimonious consumers.
But Malthus had allowed that in one case, the case of food, there could
be no over-production,[667] the want in that case being constant,
whereas, curiously enough, Ricardo thinks that food is the one object of
which there might be a glut. “If every man were to forego the use of
luxuries and be intent only on accumulation, a quantity of necessaries
might be produced for which there could not be any immediate
consumption. Of commodities so limited in number there might undoubtedly
be a universal glut, and consequently there might neither be demand for
an additional quantity of such commodities nor profits on the employment
of more capital. If men ceased to consume they would cease to produce.
This admission does not impugn the general principle,” for there is no
likelihood of such a contingency as it supposes;—there is a limit to the
desire of food, but there is no limit to the desire of other good
things.[668] The insatiableness of human desires is here assumed by
Ricardo to be always full-grown, instead of what it is, in perhaps
three-fourths of the world, an undeveloped possibility. Till we know
that the possibility has become actual, we cannot take for granted that
all we produce will be wanted. Malthus did not enter with sympathy or
even with full intelligence into the spirit of modern trade. But he sees
that large manufacture, with its complement of speculative trading, must
succeed or fail precisely as it has judged rightly or judged wrongly of
its markets, for it no longer, like the old English small production,
waits for orders—it anticipates, woos, and coaxes them. He believes that
the awakening of man’s insatiable wants will tend to secure us against
both over-population and over-production, by creating a high standard of
living. The taste for luxuries, whatever its positive advantages, from
the educational or artistic point of view, confers at least this
economical benefit.[669]
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