Thomas Malthus

Question 1

Poor Laws

Answer 1

gave the poor a minimum income regardless of their earnings. Linked family income to price of bread.

Question 2

Corn Laws

Answer 2

Prohibited all grain importation until certain relatively high domestic prices had been reached.

Question 3

Malthus’ population theory

Answer 3

population grows at an exponential rate, food supply grows at an arithmetic rate. Meaning that population will surpass the food supply. Population could only be checked through preventive check (reduce the birth rate) and Positive checks (increase the death rate)

Question 4

Say’s law

Answer 4

Supply creates demand

Question 5

Malthus’ theory of Gluts

Answer 5

When workers marginal product is more than their wage so the employer makes a profit (meaning the workers do not have the ability to purchase the products they creates) Capitalists do not spend all of their income. This leads to insufficient demand and inventories build up

Question 6

Overview of Malthus

Answer 6

Absolves the wealthy and the governemtn for responsibility for the poor

• focused on rents and spending by landlords
• Dimishing returns in agriculture
• No forethought for technological improvements
• There is still a “Malthusian problem” in developing nations
• Anticipated Keynes in assuming that the difference in employment levels in the macroeconomy was due to insufficient demand. Keynes referred to Malthus as his predecessor