On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
It is by giving the workman more money, or any other commodity in which
wages are paid, and which has not fallen in value, that his situation is
improved. The increase of population, and the increase of food will
generally be the effect, but not the necessary effect of high wages. The
amended condition of the labourer, in consequence of the increased value
which is paid him, does not necessarily oblige him to marry and take
upon himself the charge of a family--he may, if it please him, exchange
his increased wages for any commodities that may contribute to his
enjoyments--for chairs, tables, and hardware; or for better clothes,
sugar, and tobacco. His increased wages then will be attended with no
other effect than an increased demand for some of those commodities; and
as the race of labourers will not be materially increased, his wages
will continue permanently high. But although this might be the
consequence of high wages, yet so great are the delights of domestic
society, that in practice it is invariably found that an increase of
population follows the amended condition of the labourer; and it is only
because it does so, that a new and increased demand arises for food.
This demand then is the effect of an increase of population, but not the
cause--it is only because the expenditure of the people takes this
direction, that the market price of necessaries exceeds the natural
price, and that the quantity of food required is produced; and it is
because the number of people is increased, that wages again fall.
What motive can a farmer have to produce more corn than is actually
demanded, when the consequence would be a depression of its market price
below its natural price, and consequently a privation to him of a
portion of his profits, by reducing them below the general rate? "If,"
says Mr. Malthus, "the necessaries of life, the most important products
of land, had not the property of creating an increase of demand
proportioned to their increased quantity, such increased quantity would
occasion a fall in their exchangeable value.[53] However abundant might
be the produce of a country, its population might remain stationary. And
this abundance without a proportionate demand, and with a very high corn
price of labour, which would naturally take place under these
circumstances, might reduce the price of raw produce, like the price of
manufactures, to the cost of production."
Public-domain text, read in full here on John Shaqi.
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