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.
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.