Thomas Malthus - History of Economic Thought

Thomas Malthus and his works

1. Classical Economics
Elaboration and
Cleavages within the
classical system
Thomas Malthus

2. 1766-1834
Known economist and
demographer for his
theory on population
outrunning food supplies.
What we'll discuss
Thomas RObert
Malthus

3. The Cycle of Misery
The population grow geometrically,
however substinence only grow
arithmetically. Any period once human
population exceed what land can offer
will lead to misery (famine) and vice
(war). Humans must practice restraint
or the postponement of marriage and
abstinence.

4. Irish Potato famine
(1845-1849)
This is when the potato crops failed due to
blights. The blights came from water mold
Phytopthora infestants.

6. Law Of population
As worker population increases, wage
decreases. Which the working class will cope by
working more jobs to have the same income as
before. During this distress, they will be
discouraged to marry or to have children. Also,
with cheapness of labor, cultivators will hire
more to cultivate their land. This will help in
increasing food production to feed the added
population.

7. Population will be thinned through war,
famine, pestilence, or plague. Even if
real wages increase, it would still
decrease as population grow.
Populace will practice foresight and
prudence (i.e. not having children or
married). As raising a family, the more
people needed to feed so people will
tend to not raise a family.
Positive check Preventive check

8. Malthus did not consider that there would be technological
advancements in agricultural science. Also, the specialization of
trade saved Britain from the Malthusian danger.

9. Laws of Production In
Agriculture
The basic insight Malthus he gave is now referred to as the
law of diminishing returns. However, unlike the latter,
Malthus did not consider factors as constant. He considers
the changes in population and size of capital stock.
First, the quality of earth is which it can made to yield is
greater portion of the necessaries of life than is required for
the maintenance of the persons employed.

10. Second, there is a perpetually assured demand on the
properties of the land.

As more agricultural products are produced, more cultivators
will use the less fertile land. Which makes production prices
higher. Which will incentivize landowners to develop less
fertile land.However, it will make the landowners in more
fertile lands benefit more as they will receive higher receipts
with no change in costs.

11. One thing that differs law of
diminishing returns and Malthus is
that Malthus' idea was grounded in
agriculture, even though it was
applicable in manufacturing.

Malthus believed- which other
classicists do not- that rising rents
spur capital improvements in
agriculture with the result growing
income of the landowners can be
treated as profit.

12. Malthus and the law
of markets
In the case of overproduction there are two goods:
essentials (food) and non-essentials (non-food). There was
never a problem with essentials as it will create its own
demand. However, non-essentials will rely on the taste of
landlords and capitalists. Thus, rich people should spend
more in non-essentials and hire more workers to create
jobs.

13. Malthus and
economic policy
Malthus does not believe in free
trade in agriculture industry. He
supported the Corn Law which
supports high price for corn and
grain to protect English farmers
from cheap imports after the
Napoloeonic war.

14. Despite fears of rising population,
he did not support the use of
contraceptives. It is because
family responsibilities will spur
man to work.
He also supported the Poor Law
in which able bodied workers
should work rather than seeking
charity.

15. so why is
it still
relevant?
People are still very grounded to the fact
that the resources of the planet is finite.
One day, we will use up the resources of
the planet and will deal with the cycle of
misery.