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An Essay on the Influence of a Low Price of Corn on the Profits: Full and Fine Text of 1815 Edition
This scarce antiquarian book is a facsimile reprint of the original. Due to its age, it may contain imperfections such as marks, notations, marginalia and flawed pages. Because we believe this work is culturally important, we have made it available as part of our commitment for protecting, preserving, and promoting the world's literature in affordable, high quality, modern editions that are true to the original work.
- GenresEconomics
47 pages, Kindle Edition
First published January 30, 2013
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Displaying 1 - 2 of 2 reviews
March 16, 2023
One of the foundations of early Free Market Capitalist theory, aka one of the most boring things I have ever read.
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September 9, 2021Ricardo concluded that- The high price of corn defended at home by preventing cheaper imports is not beneficial to the economy of a country. It also raises rents on fertile agricultural lands.
[Law of Diminishing Returns and Economic Rent
we should gradually withdraw our capital from the cultivation of such lands, and import the produce which is at present raised upon them. The capital withdrawn would be employed in the manufacture of such commodities as would be exported in return for the corn.
We might just as fairly have been told, when the steam-engine, or Mr Arkwright's cotton-machine, was brought to perfection, that it would be wrong to adopt the use of them, because the value of the old clumsy machinery would be lost to us. Would it be wise at a great expense to use some of the worst of these machines, when at a less expense we could hire the very best from our neighbors.
If, then, the price of labor falls, which it must do when the price of corn is lowered, the real profits of all descriptions must rise; and no person will be so materially benefited as the manufacturing and commercial part of society.
I must again observe that a rise in the value of money lowers all things; whereas a fall in the price of corn, only lowers the wages of labor, and therefore raises profits.
One of the fundamental tenets of economic theory
[Law of Diminishing Returns and Economic Rent
we should gradually withdraw our capital from the cultivation of such lands, and import the produce which is at present raised upon them. The capital withdrawn would be employed in the manufacture of such commodities as would be exported in return for the corn.
We might just as fairly have been told, when the steam-engine, or Mr Arkwright's cotton-machine, was brought to perfection, that it would be wrong to adopt the use of them, because the value of the old clumsy machinery would be lost to us. Would it be wise at a great expense to use some of the worst of these machines, when at a less expense we could hire the very best from our neighbors.
If, then, the price of labor falls, which it must do when the price of corn is lowered, the real profits of all descriptions must rise; and no person will be so materially benefited as the manufacturing and commercial part of society.
I must again observe that a rise in the value of money lowers all things; whereas a fall in the price of corn, only lowers the wages of labor, and therefore raises profits.
One of the fundamental tenets of economic theory
Displaying 1 - 2 of 2 reviews