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A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a Contemporary MalaiseThe Malthus-Ricardo Debate on General Glut and Secular Stagnation

A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a... [Adam Smith contends that a market economy gravitates to full employment and that its growth is limited only by the rate of capital accumulation and the cost of foodstuffs. JB Say asserts that demand is determined by supply; that people produce goods to obtain the means to make offerings to purchase the goods they desire. Thomas Malthus contends that capitalists do not produce goods in order to consume; they produce to accumulate wealth, which creates a deficiency in demand. Too high a rate of saving will render demand insufficient to support full employment. David Ricardo defends Adam Smith’s position in his debate with Malthus. He and Malthus agree that the attainment of full employment hinges on whether people produce more than they plan to spend.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a Contemporary MalaiseThe Malthus-Ricardo Debate on General Glut and Secular Stagnation

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Publisher
Palgrave Macmillan US
Copyright
© The Editor(s) (if applicable) and The Author(s) 2016
ISBN
978-1-349-71984-6
Pages
10 –43
DOI
10.1057/9781137562210_2
Publisher site
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Abstract

[Adam Smith contends that a market economy gravitates to full employment and that its growth is limited only by the rate of capital accumulation and the cost of foodstuffs. JB Say asserts that demand is determined by supply; that people produce goods to obtain the means to make offerings to purchase the goods they desire. Thomas Malthus contends that capitalists do not produce goods in order to consume; they produce to accumulate wealth, which creates a deficiency in demand. Too high a rate of saving will render demand insufficient to support full employment. David Ricardo defends Adam Smith’s position in his debate with Malthus. He and Malthus agree that the attainment of full employment hinges on whether people produce more than they plan to spend.]

Published: Aug 5, 2016

Keywords: Adam Smith; aggregate demand; General Glut; Law of Markets; Malthus; Ricardo

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