PAPM 1000 Chapter Notes - Chapter 6: Corn Laws, Heredity, Malthusianism
4 Dec 2017
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Chapter 6 the classical school thomas robert malthus. Policy implications: the poor laws: according to malthus, then, poverty and misery are the natural punishment for the failure by the lower class to restrain their reproduction, there must be no government relief for the poor. To give them aid would cause more children to survive, thereby ultimately worsening the problem of hunger. 2: but, the consumption by workers employed in productive labor can never alone furnish a sufficient motive to the continued accumulation and employment of capital. The need for unproductive consumption: rent, said malthus, is a surplus based on the difference between the price of agricultural produce and the costs of production (wages, interest, and profits). Its expenditure therefore adds to effective demand without adding to the cost of production: costs must be kept down if a nation is to maintain its competitive position in world markets.
