Adnan Jaafar

Adnan Jaafar (Writing Assignment 3)
Corn Laws were introduced in England in 1804 with the reason to protect domestic farmers against competition by the foreign by imposing a heavy duty on foreign corn. Ricardo was one of the opponents that against toward the “Corn Laws” that was introduced in England. He argued that this law would guarantee the price of the lease would be driven up while the productivity of homeland would be diminished. Along these lines, the landlords would gain most of the profit, and it would diminish the profit gained by the industrial capitalists. Ricardo added most of wealth gained by the landlord would be wasted on unnecessary things such as cars and houses rather than spending it in investment. Because of that, Ricardo assumed that British economy would face a crisis where gained wealth were not properly spent. On the other hand, Thomas Malthus was one of supporters that favor the “Corn Laws”. He believed that with this law it could improve for the production of British agricultural. He felt that it was necessary to put high tax on import of wheat to preserve and increase the production of agricultural in-home land. “Great Britain should naturally grow an independent supply of corn.” (Malthus, 1814). He has a different view of this law than Ricardo where he believed that “Corn Laws” would preserve the benefit for the crop prices in homeland.
Say’s law was introduced by Jean-Baptiste who was a French classical economist. Say’s law was important because it dealt the economic activity and on how wealth was created by society. He believed that supply creates its own demand because to buy products, there must be products to be sell. Ricardo was in favor with Say’s Law which saying, “Demand depends only on supply”. “No man produces, but with a view to consume or sell, and he never sells, but with an intention to purchase some other commodity, which may be immediately useful to him, or which may contribute to future production. By producing, then, he necessarily becomes either the consumer of his own goods, or the purchaser and consumer of the goods of some other person” (Ricardo, 1951). From this quote, Ricardo believed that whenever there was a demand, there would be a supply to accommodate the demand and there would be no production more than consumption needs. That was how he believed in Say’s law. On the other hand, Malthus denied the legality of Say’s law where he believed that there was evidence of general gluts. Based on Malthus Principle of Political Economy, he claimed that economic crisis could happen when there was general excess supply as the result of insufficient consumption. He believed that there was more production in many fields, but the problem was when supply exceeded the demand. Malthus argued that gluts arose from the result of profits were declining as the result of insufficient in demand. Furthermore, the imbalance of income’s distribution resulted the insufficient demand.
References:
Malthus, T. R. (1814). Observations on the Effects of the Corn Laws. London: J. Murray. p.17. Malthus, T. R. (1815). Retrieved on 10/14/2018
Users.wfu.edu. (2018). online Available at: http://users.wfu.edu/cottrell/says_law.pdf. Accessed 14 Oct. 2018.

Adnan Jaafar (Writing Assignment 2)
One of the Ricardo’s view of the future market economy in the long term was the theory of comparative advantage. He introduced this theory in his book entitled the ‘Principles of Political Economy and Taxation’. This theory claimed the benefit of international trade could be promoted when nations represent considerable authority underway of merchandise in which they have a flat-out preferred standpoint as well as a relative favorable position over different nations with a specific end goal. This theory proposed that international trade would bring profit to all exchanging accomplices and gives a formal justification to organized commerce arrangement. It dishonors the mercantilist perspective of exchange, which sees the gathering of fare surpluses as the way to profit by rate. “To bring Ricardo’s ideas to the data, one must overcome a key empirical challenge. Suppose, as Ricardo’s theory of comparative advantage predicts, that different economic activities based on their productivity differences” (Costinot ; Donaldson, 2012).
Next, Ricardo supported the theory of wages. He supported this theory held wages relied upon the relative measures of capital accessible for the installment of specialists and the extent of the work drive. Wages increment just with an expansion in capital or a lessening in the quantity of specialists. Ricardo indicated that wage looks for a level that is only adequate to empower laborers to subsist and propagate their race, without either increment or reduction. As Ricardo argued “profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food”(Medema ; Samuels, 2013).
Furthermore, Malthus was one of the economists that focused his thought on everything about populations. He explained his thought about population in his book entitled ‘An Essay on the Principle of Population’. According to Malthus, populace development is a result of the entire procedure of economic improvement, yet the expansion in populace cannot occur without proportionate increment in riches. Insignificant increment in populace cannot give an upgrade to financial extension. Populace development empowers advancement only of it create an expansion successful demand. The interest in work relies upon rate of capital amassing. Malthus does not preclude the need from claiming reserve funds and speculation for economic development, however he proposes a level of ideal inclination to spare. Along these lines, Malthus had a photo of a propelled economy appreciating development with utilization, speculation, and investment funds extending together. He also characterizes the issue of advancement as clarifying the distinction between potential gross national item and actual gross national item. Malthus does not trust in any long run hypothesis, he is worried about the brief time frame changes of riches. However, the vital issue is one of achieving an abnormal state of potential gross item. As per Malthus, the extent of potential gross national item relies ashore, work, capital, and association. At the point when these four components are consolidated in right extent, they boost the creation in two noteworthy areas such as the rural part and the modern segment of the economy.

References:
Costinot, A., ; Donaldson, D. (2012). Ricardo’s Theory of Comparative Advantage: Old Idea, New Evidence. The American Economic Review, 102(3), 453-458. Retrieved from http://www.jstor.org/stable/23245574. Retrieved on 10/8/2018.

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Steven G Medema & Warren J. Samuels. (2013). The Classical School: The History of Economic Thought: A Reader; Second Edition. Page: 292. Retrieved on 10/8/2018.

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