Principles of Political Economy (Malthus book)

In Principles of Political Economy, Malthus' rebuts David Ricardo's work, particularly rejecting idea developed by Jean Baptiste Say that theorizes that supply generates its own demand, known as Say's law. Say believes that an overflow of supply of certain goods will trigger a lack of supply of another type of good. Malthus' idea suggests that the amount of goods supplied may be a result of the demand. This idea firmly goes against the notion that Ricardo and Say hold that the economy will fix itself through demand. ==Second edition==

A second edition of Malthus' Principles of Political Economy was published in 1836. After the first version's publication, Adam Smith develops the idea that an object's inherent value is related to the labor that went into its creation. Additionally, Smith creates the notion that a good's price also moves in the direction of the price of other commodities. After careful contemplation, Malthus adopts Smith's theory of value. This new thought process goes against his previous belief that there is no accurate way to measure an object's value. Although this new conclusion would only call for revision of the sixth and seventh sections of his second chapter, Malthus uses this new revelation as an excuse to re-examine his whole book. For the most part, his additions simply clarify sections and omit ideas more clear in other sections. He does not alter any of his main ideas in his book. Malthus died before he was able to publish the new edition, but it is believed he made all his intended alterations. His work was later collected and published in 1836. ==Responses and critiques==

Malthus' book received mixed feedback from other economists of the time. Twentieth century British economist John Maynard Keynes is considered an admirer of Malthus' work. However, Keynes also critiques Thomas Malthus. He faults Malthus' work for being "unable to explain clearly (apart from an appeal to the facts of common observation) how and why effective demand could be deficient or excessive." Mill took the approach that the government is too corrupt and that a moral individual would not accept its help. Without Malthus' suggested government intervention, Blake believes the economy would remain stuck in a depression. ==Impact==

Malthus' work did not spark many economic debates at the time of its publication. In fact, many denied Malthus' ideas on recessions. Say's law remained the more commonly accepted theory at the time due to its popularity. Malthus' book does not attract much attention until the Great Depression occurs and it becomes evident that depressions are real. After this, economists such as John Maynard Keynes begin to look more deeply into Malthus' ideas and utilize them in their own work. ==References==