Smith & Ricardo vs. Malthus, Bentham, Senior, J.S. Mill and Say - Essay Example

Smith & Ricardo vs. Malthus, Bentham, Senior, J.S. Mill and Say Ricardo’s principle on political economy and taxation was immediately adopted by many writers, who started using his doctrine and ideology on economic issues. John Ramsay McCulloch who is a writer of the British most influential journal was among great writers that adopted Ricardo’s ideology. Ricardo agreed with Adam Smith’s ideology absolute and comparative advantage. Smith’s idea had two sections, the first section was mercantilism and this section derived its name from its developers who are the merchants.

Mercantilism addresses the responsibilities of a strong state in supporting monopolies and protecting trade lines and shipping. This principle discourages importation while encouraging exportation (Ricardo,5). Adam smith’s theory of absolute advantage explained that if the government was not involved in business and every individual is allowed to conduct business at his own best interest then more goods and services would be availed at reduced prices and the wealth of individual citizens and the nation would increase in equal measure.

Ricardo agreed with smith’s theory since the theory of comparative advantage and absolute advantage shared the same strong assumptions that: (1) efficiency objective – both theories assumed that efficiency and total production is the countries’ goal which might not always be the case. (2) Both theories tend to assume transportation cost between countries is zero. (3) The theory assumes that resource mobility is absolutely mobile within a country and immobile between countries. (4) Both theories assumed that there was full employment in a country (Smith, 35).

Malthus has vehemently opposed Ricardo’s doctrine on political economics stating that it was impossible for effective demand to incur a deficiency. However Malthus did not quantify his argument by explaining how effective demand could be in excess or deficient. This aspect of invalid quantification of the argument resulted in anonymous adherence to Ricardo’s doctrine by statesmen, city and the academic world. Effective demand which was an idea that Malthus tried to nature, vanished into thin air since its discussion ceased and it was also ceased to exist in the city’s literature (Malthus, 10).

Jeremy Bentham, became the leading theorist in Anglo-American in the field of philosophy of law. James mill was Benthans student and collaborator. He held an absolutely different opinion on monetary economy in comparison to Ricardo’s ideas. He was absolutely aware of the relevance of saving that is forcefully imposed on consumer prosperity, saving and investment relation. The monetary view was based on the fundamental concepts employed on his theory of utilitarian decision making. His work is valued and considered as a leeway to modern economics.

The utilitarian concept stated that nature has placed human beings under sovereign governance of either pain or pleasure and on the other hand the measure of wrong and right. These factors in their entirety govern mankind in whatever he thinks, says or does (Bentham, 21). John Stuart Mill’s personal life was described by Sowell as one that woeful lacks in understanding or with an empathetic gesture to those around him. Mill was involved in the early beginning of the utility theory and schedule broad concept of demand.

Mill echoed Malthus and his teacher – Benthen on the issue of political economics and taxation (Mill, 40). Work Cited Bentham, Jeremy. Utilitarianism. BiblioBazaar. 2009. Print Malthus, T. R. An Essay on the Principle of Population. Cambridge University Press. 1992. Print. Mill, Stuart J. Utilitarianism. Broadview Press. 2010. Print Ricardo, David. The Principles of Political Economy and Taxation. Courier Dover Publications. 2012. Smith, Adam. The Wealth of Nations. Digireads.com Publishing. 2004. Print