The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790Malthus, T. R. (Thomas Robert)
General
The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790
Malthus, T. R. (Thomas Robert)
Currency question -- Great Britain; Value
The result would be similar, if instead of supposing the same quantity
of produce to be obtained by the same quantity of labour, we were to
suppose the greatest variations to take place in the fertility of
the soil, and, consequently, in the productive power of labour. In
all cases it would still be found that, as Adam Smith says, it is
the produce which varies in value, not the labour for which it will
exchange; and if money were obtained in the way in which its value
would unquestionably be the most constant, all these variations would
appear in the money prices of commodities, whenever the demand for
labour varied; while the money price of a given quantify of labour
would remain the same.[I]
The following Table will further illustrate the necessary constancy
in the value of labour, and some of its most important results, in a
clearer manner and in a shorter compass than if each case were taken
separately.
The first column represents the varying fertility of the soil, by the
varying quantity of corn which can be obtained by the labour of a given
number of men.
The second column represents the yearly corn wages of each labourer,
determined by the state of the demand and supply of produce compared
with labour.
The third column represents the variable advances of produce, in the
form of corn wages, which, according to the rate at which the labourers
are paid, are necessary to obtain the produce of the first column.
The fourth column represents the rate of profits determined in the
common way, by the proportion which the excess of the produce in the
first column above the produce paid to the labourers in the third,
bears to these advances.
The fifth and sixth columns represent the quantity of labour required
to produce the varying corn wages of the given number of men, with the
profits estimated also in quantity of labour; and the reader will see
at once that these two columns must necessarily, from the manner in
which profits and wages are estimated, make up the constant quantity
and value of labour which appears in the seventh column.
The eighth and ninth columns show the value of a given quantity of
corn, and the value of the produce of a given number of men under the
varying circumstances supposed.
_Table illustrating the invariable Value of Labour and its Results._
KEY:
1. Quarters of Corn produced by Ten Men, of varying Fertility of the
Soil.
2. Yearly Corn Wages to each Labourer, determined by the Demand and
Supply.
3. Advances in Corn Wages, or variable Produce commanding the Labour
of Ten Men.
4. Rate of Profits under the foregoing Circumstances.
5. Quantity of Labour required to produce the Wages of Ten Men under
the foregoing Circumstances.
6. Quantity of Profits on the Advances of Labour.
7. Invariable Value of the Wages of a given Number of Men.
8. Value of 100 Quarters of Corn under the varying Circumstances
supposed.
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