Write a 2 page essay on Smith & Ricardo vs. Malthus, Bentham, Senior, J.S. Mill and Say.
It leads to increased productivity and consequently greater output, high wages and income per capita thus opulence of nations (Ekelund & Hebert 129). Natural harmony exists in economy due to the mechanism of the ‘invisible hand’ which drives individuals’ self-interests to promote greater good hence there is no need for government intervention. Competition in the market is vital and money is just for making trade more flexible.
David Ricardo (1772-1823) in his Principles of political economy and taxation (1817) was concerned with distribution of wealth within Smith’s analytical framework. Like Smith he advocated for competition without restraint. He also acknowledged existence of use value and exchange value but concentrated on the natural exchange value which is determined by scarcity and labor cost of production (Bhatia, 116). Since rent is not part of the cost (its value in excess of real production) and capital is past labor, this leaves labor cost to determine relative value of commodities (Ekelund & Hebert 156). However, different types of labor are adjusted in market by relative rates of rewards and wages gravitate towards subsistence. If more than subsistence then population (labor supply) increases depressing wages and vice versa (p. 120).
Thomas Robert Malthus (1766-1834) focus was on population. Unlike Ricardo, he saw an imbalance between population and means of subsistence hence ineffective demand. For Malthus population increased in geometrical progression while means of subsistence increased in arithmetic progression hence population was bound to outstrip supply of means of subsistence if not checked (Bhatia 135). Population growth thus needed to be checked through preventive and positive checks such as delayed marriage, celibacy, moral restraint, floods, droughts, famine, disease and war. For Smith and Ricardo, demand for labor determined rate of population increase and was always kept
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more