David Ricardo ([1817] 1965) modified Smith’s model by introducing diminishing returns to land cultivation. Diminishing returns implies that as you apply more of a variable input (labor) to a fixed input (land), the productivity of each additional worker will eventually decline as long as technology is fixed. He claimed that land was of variable quality and finite. Thus, as an economy grows, population grows relative to land, and the productivity of the labor on the land will decline. According to Ricardo, the only way stagnation could be averted, at least temporarily, would be through the trade and imports of cheap food or wage goods. The essential doctrines of John Stuart Mill (1848) differed little, if at all, from those of Ricardo. He, like Smith, believed in the doctrine of laissez-faire , but he also recognized the possibility of modifying the system. He displayed a leaning to the socialist ideal, growing closer as his life advanced. He believed that we should sacrifice economic growth for the sake of the environment and limit population to fend off the risk of starvation. This vision concerning population control was in direct contrast with Thomas Malthus’s ([1798] 1959) prediction about population growth, which he said if left unchecked would lower economic growth and cause misery for mankind. Malthus stressed that population could easily outpace production. The apprenticeship system was one such opportunity emphasized by Malthus. While few people sought higher education in Malthus’s day, there were other opportunities for people to invest in themselves by postponing family formation or remaining unwed. At a very young age, an apprentice would work for a master craftsman in return for board and room. He would gradually learn the trade, become a journeyman, and finally become a master craftsman. Only once he established his own trade would he marry. This postponement of marriage in order to obtain a better life made society more prosperous. give the point of view of the following classical economists on economic development and explain the pros and cons.
David Ricardo ([1817] 1965) modified Smith’s model by introducing diminishing returns to land cultivation. Diminishing returns implies that as you apply more of a variable input (labor) to a fixed input (land), the productivity of each additional worker will eventually decline as long as technology is
fixed. He claimed that land was of variable quality and finite. Thus, as an economy grows, population grows relative to land, and the productivity of the labor on the land will decline. According to Ricardo, the only way stagnation could be averted, at least temporarily, would be through the trade and imports of cheap food or wage goods.
The essential doctrines of John Stuart Mill (1848) differed little, if at all, from those of Ricardo. He, like Smith, believed in the doctrine of laissez-faire , but he also recognized the possibility of modifying the system. He displayed a leaning to the socialist ideal, growing closer as his life advanced. He believed that we should sacrifice
This vision concerning population control was in direct contrast with Thomas Malthus’s ([1798] 1959) prediction about population growth, which he said if left unchecked would lower economic growth and cause misery for mankind. Malthus stressed that population could easily outpace production. The apprenticeship system was one such opportunity emphasized by Malthus. While few people sought higher education in Malthus’s day, there were other opportunities for people to invest in themselves by postponing
family formation or remaining unwed. At a very young age, an apprentice would work for a master craftsman in return for board and room. He would gradually learn the trade, become a journeyman, and finally become a master craftsman. Only once he established his own trade would he marry. This postponement of marriage in order to obtain a better life made society more prosperous.
- give the point of view of the following classical economists on economic development and explain the pros and cons.
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