An Essay On the Principle of Population

Principles of Political Economy

Led to the “POOR LAWS” – giving the poor minimum income despite their earnings. (if you have few money, the government will give you extra to sustain/ feed yourself).

Growing population necessitated import of food.

IMPORTS

PRICE OF DOMESTIC GRAIN

RENTAL INCOME

Fearing this, They passed a law (Corn Laws) imposing high tariffs on imported grain.

*COMPETITION DRIVES DOWN

PRICES OF GOODS

WILLIAM GODWIN –

Population growth would not be a problem, once population limit is reached, humanity will refuse to propagate further.

MARQUIS DE CONDORCET

Population would increase as a result of beneficent reforms, but the food supply would increase more rapidly.

THE IDEAS OF CONDORCET AND GODWIN WERE REJECTED BY MALTHUS.

Vices and misery that plague society are not because of evil human institutions, as put by Condorcet, but the prolific fertility of the human race.

The abolition of war by Condorcet would remove an essential remedy for population growth.

He rejected Godwin’s egalitarian society which mean more food for masses. Such welfare programs would counter hunger as a factor limiting population growth.

POPULATION INCREASES

GEOMETRICALLY

POPULATION

SCARCITY

The Population Theory was proposed earlier, by Richard Cantillon.

Food is restricted by the amount of Land.

Related to Turgo’s Law of Diminishing Productivity.

The Preventive Checks approved by Malthus, he termed “MORAL RESTRAINT”

Reduces Birth Rate

CELIBACY

MARRY AT A LATER AGE

BIRTH CONTROL “VICES”

Thomas Malthus: represented “punishments” for people who had not practiced “moral restraint”.

Includes Famine, Misery, Plague and War.

THOMAS MALTHUS’ own form of laizzes faire:

“We should facilitate the operations of nature in producing mortality.”

“Instead of recommending cleanliness to the poor, we should encourage the contrary. We should make streets narrower, crowd more people into houses, and court the return of the plague. We should [reject] specific remedies for diseases.”

Malthus:

“With regard to illegitimate children, they should not have parish assistance, but be left entirely to the support of private charity.”

Following Malthus Ideas, in 1834, Law abolished all relief for able-bodied people outside workhouses.

Charles Dickens' Oliver Twist is a perfect portrayal of British Society and the effect of Thomas Malthus's ideas on the Poor Laws.

“Oliver, an innocent child, is trapped in a world where his only options seem to be the workhouse, Fagin's gang, a prison, or an early grave.” - Wikipedia

POPULATION

POPULATION

SUBSISTENCE WAGE

SUBSISTENCE WAGE

THEREFORE, ONLY MORAL RESTRAINT CAN IMPROVE STANDARD OF LIVING

INDUSTRIAL REVOLUTION

LED TO A DRAMATIC INCREASE IN POPULATION DUE TO IMPROVEMENTS IN MEDICINE, AT THE SAME TIME AN INCREASE IN FOOD DUE TO TECHONOLOGICAL PROGRESS.

Rejection of Say’s Law

Importance of Landlords

Malthus’ support of Corn Laws

SAYS’ LAW:

“The level of aggregate demand will be exactly equal to the amount of product that manufacturers choose to produce. ”

Supply always = Demand

Supply ╪

Demand

Belief in Say’s law will induce people to produce more than they can sell.

So that,

Demand > Supply

GLUT:

“To flood (the market) with goods so that supply exceeds demand.”

- Merriam Webster’s Dictionary

Malthus felt that the key to avoiding such gluts lay in the amount spent by the land-owning class.

If they spent freely, there would be adequate demand, gluts would be avoided and unemployment would be low.

SPENDING BY LANDLORDS

EFFECTIVE DEMAND

THEREFORE, Workers alone cant buy all the goods produced. The extra output is bought by capitalists/ landlords.

TOTAL WAGE< TOTAL VALUE OF PRODUCTS

Malthus felt that the key to avoiding such gluts lay in the amount spent by the land-owning class.

If they spent freely, there would be adequate demand, gluts would be avoided and unemployment would be low.

SPENDING BY LANDLORDS

EFFECTIVE DEMAND

As a result,

THOMAS ADVOCATED THE CORN LAW’S (INCREASE ON TARRIFS IMPOSED ON IMPORTED CORN).

TARRIF ON IMPORTED CORN

PRICE OF IMPORTS RENT/

INCOME OF LANDLORDS

SPENDING BY LANDLORDS

EFFECTIVE DEMAND

THEREBY PREVENTING

MARKET GLUT

PEOPE WILL PREFER TO BUY LOCAL PRODUCE

THOMAS MALTHUS RECOMMENDS GOVERNMENT SPENDING ON PUBLIC WORKS IN TIMES OF ECONOMIC DISTRESS.

Malthus’ ideas had an impact on keynes.

Keynes believed that when spending increases in an economy, earnings also increase, which can lead to even more spending and earnings.

He also proposed to increase government spending in times of depression which is the same with malthus.

Franklin Roosevelt did so during the great depression which helped revive the US Economy.

Thomas Malthus failed to address the processes by which people obtain food.

EVEN WITH ENOUGH FOOD SUPPLY, STARVATION CAN STILL HAPPEN.

AMARTYA SEN : IF A SEGMENT OF THE POPULATION LACKS ADEQUATE INCOME TO PURCHASE FOOD, FAMINE MAY OCCUR EVEN IF FOOD IS AVAILABLE.

“Currently, the world can sustain 11 billion people. Today we have 7 billion people. And yet, A lot of people in the developing world are dying of hunger.” – SciShow

“The problem is not population, the problem is how many rich people can the world sustain.” – SciShow, The Science of Overpopulation

PPT by Irene Sumalde