Economists From England

"The science of political economy is essentially practical, and applicable to the common business of human life. There are few branches of human knowledge where false views may do more harm, or just views more good."

"The question is, what is saving?"

"Surely then some distinction between the different kinds of labour, with reference to their different effects on national wealth, must be admitted to be not only useful, but necessary; and if so, the question is what this distinction should be, and where the line between the different kinds of labour should be drawn."

"To estimate the value of Newton's discoveries, or the delight communicated by Shakespeare and Milton, by the price at which their works have sold, would be but a poor measure of the degree in which they have elevated and enchanted their country; nor would it be less grovelling and incongruous to estimate the benefit which the country has derived from the Revolution of 1688, by the pay of the soldiers, and all other payments concerned in effecting it."

"The proposition of Mr. Ricardo, which states that a rise in the price of labour lowers the price of a large class of commodities, has undoubtedly a very paradoxical air; but it is, nevertheless, true, and the appearance of paradox would vanish, if it were stated more naturally and correctly."

"If a country can only be rich by running a successful race for low wages, I should be disposed to say at once, perish such riches!"

"But, fortunately for mankind, the neat rents of the land, under a system of private property, can never be diminished by the progress of cultivation."

"It is quite obvious therefore, that the knowledge and prudence of the poor themselves, are absolutely the only means by which any general and permanent improvement in their condition can be effected. They are really the arbiters of their own destiny; and what others can do for themselves. These truths are so important to the happiness of the great mass of society, that every opportunity should be taken of repeating them."

"THERE is scarcely any inquiry more curious, or, from its importance, more worthy of attention, than that which traces the causes which practically check the progress of wealth in different countries, and stop it, or make it proceed very slowly, while the power of production remains comparatively undiminished, or at least would furnish the means of a great and abundant increase of produce and population."

"In general it may be said that demand is quite as necessary to the increase of capital as the increase of capital is to demand."

"A feather will weigh down a scale when there is nothing in the opposite one."

"Thirty or forty proprietors, with incomes answering to between one thousand and five thousand a year, would create a much more effectual demand for the necessaries, conveniences, and luxuries of life, than a single proprietor possessing a hundred thousand a year."

"Every exchange which takes place in a country, effects a distribution of its produce better adapted to the wants of society.... If two districts, one of which possessed a rich copper mine, and the other a rich tin mine, had always been separated by an impassable river or mountain, there can be no doubt that an opening of a communication, a greater demand would take place, and a greater price be given for both the tin and the copper;and this greater price of both metals, though it might be only temporary, would alone go a great way towards furnishing the additional capital wanted to supply the additional demand; and the capitals of both districts, and the products of both mines, would be increased both in quantity and value to a degree which could not have taken place without the this new distribution of the produce, or some equivalent to it."

"It is a mere futile process to exchange one set of commodities for another, if the parties; after this new distribution of goods has taken place, are not better off than they were before."

"But such consumption is not consistent with the actual habits of the generality of capitalists. The great object of their lives is to save a fortune, both because it is their duty to make a provision for their families, and because they cannot spend an income with so much comfort to themselves, while they are obliged perhaps to attend a counting house for seven or eight hours a day... ...There must therefore be a considerable class of persons who have both the will and power to consume more material wealth than they produce, or the mercantile classes could not continue profitably to produce so much more than they consume."

"It is not the most pleasant employment to spend eight hours a day in a counting house."

"...where are we to look for the consumption required but among the unproductive labourers of Adam Smith?..."

"It is also very important to observe, that menial servants are absolutely necessary to make the resources of the higher and middle classes of society efficient in the demand for material products."

"The effect therefore on national wealth of those classes of unproductive consumers which are supported by taxation, must be very various in different countries, and must depend entirely upon the powers of production, and upon the manner in which the taxes are raised in each country."

"If one fourth of the capital of a country were suddenly destroyed, or entirely transferred to a different part of the world, without any other cause occurring of a diminished demand for commodities, this scantiness of capital would certainly occasion great inconvenience to consumers, and great distress among the working classes; but it would be attended with great advantages to the remaining capitalists."

"When Hume and Adam Smith prophesied that a little increase of national debt beyond the then amount of it, would probably occasion bankruptcy; the main cause of their error was the natural one, of not being able to see the vast increase of productive power to which the nation would subsequently obtain."

"The employment of the poor in roads and public works, and a tendency among landlords and persons of property to build, to improve and beautify their grounds, and to employ workmen and menial servants, are the means most within our power and most directly calculated to remedy the evils arising from that disturbance in the balance of produce and consumption."

"In prosperous times the mercantile classes often realize fortunes, which go far towards securing them against the future; but unfortunately the working classes, though they share in the general prosperity, do not share in it so largely as in the general adversity."

"And these riches, that are derived from this art of wealth-getting, are truly unlimited; for just as the art of medicine is without limit in respect to health, and each of the arts is without limit in respect of its end..."

"MALTHUSIAN, adj. Pertaining to Malthus and his doctrines. Malthus believed in artificially limiting population, but found that it could not be done by talking. One of the most practical exponents of the Malthusian idea was Herod of Judea, though all the famous soldiers have been of the same way of thinking."

"Malthus was not wrong in the ways commonly supposed. From his 18th-century perspective, he simply had no basis for seeing the human ability to "overshoot" carrying capacity. It was inconceivable to Malthus that human societies could, by taking advantage of favorable conditions (new technology, abundant fossil fuels), temporarily increase human numbers and appetites above the long-term capacity of environments to provide needed resources and services. But it is inexcusable today not to recognize the way populations can sometimes overshoot sustainable carrying capacity and what happens to them after they have done it."

""Are there no prisons?" said the Spirit turning on him for the last time with his own words. "Are there no workhouses?" The bell struck twelve."

"Malthus ... quotes the words of a poet, that the poor man comes to the feast of Nature and finds no cover laid for him, and adds that 'she bids him begone', for he did not before his birth ask of society whether or not he is welcome. This is now the pet theory of all genuine English bourgeois, and very naturally, since it is the most specious excuse for them."

"If, then, the problem is not to make the 'surplus population' useful, ... but merely to let it starve to death in the least objectionable way, ... this, of course, is simple enough, provided the surplus population perceives its own superfluousness and takes kindly to starvation. There is, however, in spite of the strenuous exertions of the humane bourgeoisie, no immediate prospect of its succeeding in bringing about such a disposition among the workers. The workers have taken it into their heads that they, with their busy hands, are the necessary, and the rich capitalists, who do nothing, the surplus population."

"Population trends have always provoked doom-fraught oracles, because their popular interpreters suppose that every new series will be infinitely sustained; yet, beyond the short term, expectations based on them are never fulfilled."

"Anyone would expect that Malthus, who taught the future servants of the East India Company, would draw, for his pessimistic evidence, on the huge, poor and prolific population of India. There is, however, only passing reference to Hindustan in his great Essay on The Principle of Population."

"Mr. Malthus's first octavo volume on this subject (published in the year 1798) was intended as an answer to Mr. Godwin's Enquiry concerning Political Justice. It was well got up for the purpose, and had an immediate effect. It was what in the language of the ring is called a facer. It made Mr. Godwin and the other advocates of Modern Philosophy look about them. It may be almost doubted whether Mr. Malthus was in the first instance serious in many things that he threw out, or whether he did not hazard the whole as an amusing and extreme paradox, which might puzzle the reader as it had done himself in an idle moment, but to which no practical consequence whatever could attach."

"Nature herself in times of great poverty or bad climatic conditions, as well as poor harvest, intervenes to restrict the increase of population of certain countries or races; this, to be sure, by a method as wise as it is ruthless."

"In 1860, sixty-three per cent of the couples married in Great Britain had families of four or more children; in 1925 only twenty per cent had more than four."

"The doctrine of population has been conspicuously absent, not because I doubt in the least its truth and vast importance, but because it forms no part of the direct problem of economics."

"In short, we can say that the theory of Malthus, by shaping into a pseudo-scientific form the secret desires of the wealth-possessing classes, became the foundation of a whole system of practical philosophy, which permeates the minds of both the educated and uneducated, and reacts, (as practical philosophy always does) upon the theoretical philosophy of our century."

"Malthus… has been the whipping boy of idealists and techno-optimists for two hundred years. His famous essay proposed that human population, if unconstrained, would grow exponentially while food supplies grew only arithmetically, and that therefore population growth faced strict and inevitable natural limits. Most commentators, however, took the math at face value and overlooked the part about constraints. These “checks’ on population come in the form of famine, pestilence, war, and ‘moral restraint,” i.e., the will to postpone marriage or forgo parenthood (from a perhaps antiquated notion that the ability to support a family might enter into anyone’s plans for forming one, or even that society could influence such choices). Malthus’s essay has been mostly misconstrued to mean that the human race was doomed at a certain arbitrary set point, and the pejorative ‘malthusian” is attached to any idea that suggests that human ingenuity cannot make accommodation for more human beings to join the party on Spaceship Earth. Interestingly, Malthus’s essay was aimed at the reigning Enlightenment idealists of his own youth, the period of the American and French Revolutions, in particular the seminal figures of William Godwin and the Marquis de Condorcet. Both held that mankind was infinitely improvable and that a golden age of social justice, political harmony, equality, abundance, brotherhood, happiness, and altruism loomed imminently. Although sympathetic to social improvement, Malthus deemed these claims untenable and thought it necessary to debunk them."

"On the whole, Malthus neither rendered an original contribution to the problem of reproduction, nor even grasped it fully. In his controversy with the followers of Ricardo, he operated with the concepts of simple commodity circulation, just as they did in their controversy with Sismondi. His quarrel with that school turns on the ‘unproductive consumption’ by the parasites of the surplus value; it is not a quarrel about the social foundations of capitalist reproduction. Malthus’ edifice tumbles to the ground as soon as the absurd mistakes in his theory of profits are uncovered. Sismondi’s criticism remains valid, and his problems remain unsolved even if we accept Ricardo’s theory of value with all its consequences."

"Capitals accumulate faster than population;"

"Malthus was wrong only in his optimism that population will saturate and stabilize. Thomas Malthus worried that finite land (from which all energy derived via captured sunlight prior to the exploitation of fossil fuels) would translate to a cessation of population growth once saturated. His prediction of when that would happen missed the mark by perhaps a few centuries due to the unforeseen arrival of fossil fuels onto the scene. Economists use “Malthusian” as a derogatory synonym for “wrong,” and bludgeon any similar-sounding suggestion about future limits by employing an expression of (blind) faith that something else as transformational as fossil fuels will surely always come along in time to obviate the concern. The ironic problem here is that the reason Malthus was “wrong” (fossil fuels) will also make him wrong about saturating population at some presumably steady-state peak. The connection is overshoot."

"Population regulates itself by the funds which are to employ it, and therefore always increases or diminishes with the increase or the diminution of capital. Every reduction of capital is therefore necessarily followed by a less effective demand for corn, by a fall in price, and by a diminished cultivation."

"It is true that the attempt made by Malthus to destroy the foundations of the Ricardian system failed and that the chief tenets of classical political economy continued to enjoy considerable authority."

"In his comfortable parsonage, he contemplated the misery of the great majority of mankind with equanimity, and pointed out the fallacies of the reformers who hoped to alleviate it."

"The most effectual encouragement to population is, the activity of industry, and the consequent multiplication of the national products."

"The liberal reward of labour, as it is to the effect of increasing wealth, so it is the cause of increasing population. To complain of it, is to lament over the necessary effect and cause of the greatest public prosperity."

"Never let me hear anyone say again that a Socialist State cannot provide outlets for those with initiative. The rewards given to ability in the U.S.S.R. at all levels are far greater than those given to the employed in capitalist Britain. I have seen it and it works."

"Jim has never been pro-Europe. He is an English nationalist and a party man. He saw renegotiation as a way of keeping the Labour Party together... He has become, despite himself, a strong advocate that the renegotiation must succeed... Jim played it absolutely straight, and I admire him for that."

"Jim Callaghan was a formidable opponent, one who could best me across the dispatch box. In other circumstances he would have been a successful prime minister. He was a superb party manager. Despite our disagreements, I always respected him because I knew he was moved by deep patriotism."

"Jim is a populist. He is conscious of this, welcomes the description. This means that on many issues he is well to the right of me. But nevertheless he is a man for the moment. He has produced stability, a stable style and stable government. What he believes in is the regeneration of industry. He likes the company of businessmen, feels at home with them, shares most of the same attitudes. He likes them almost as much as he likes the Labour Party. What he cannot abide is the long-haired intellectual and all his works."

"In Britain, Thatcher's predecessor, Labour's James Callaghan, explained to party members in 1976 that they used to believe recessions could be ended through higher spending and more inflation: ‘I tell you now, in all candour, that that option no longer exists,’ and in so far as it ever did exist, it was only by ‘injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step.’ Thatcher’s fight against the unions to close 115 loss-making and environmentally damaging coal mines made her admired and hated, but did you know that the two previous Labour prime ministers, Callaghan and Harold Wilson, closed no less than 257 coal mines in total?"