Jul 7, 2025 3:05 AM
A v. interesting work to compare to Smith; was intended mostly as a response to him, Malthus, & Say. Doesn't mince words. Well-structured: the parts where he differs from past economists are clearly stated & argued; where he stays the same he aptly summarizes and doesn't waste our time. Best read after Smith. The influential innovations appear to me his theory of rent & his theory of value. His rent theory is amended from Malthus & takes rent of a land to be the difference in production between the land in question & the worst land cultivated (which produces 0 rent). Allows fascinating comparisons & shows that wages of workers & profit of capitalists are directly opposed to each other & also of no consequence to the landlord's rent. Theory of value perhaps even more important; value of product is directly dependent on amount of labor required to produce it, determines the natural price of commodities, and is not affected by supply and demand changes (which affect market price only). Value is also no longer regulated (as earlier economists said) by price of labor or price of food, & is independent of money. Relevant later chapter on machinery which predicts, in opposition to economists' sentiment at the time, that use of machines directly competes with the laboring class & harms them insofar as that. Good work & absolute classic from 1817. Does in 300 pages what Smith does in 600. Looking forward to reading more economics.
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