PAPM 1000 Lecture Notes - Lecture 4: John Stuart Mill, James Mill, Free Trade

• School: Carleton University
• Department: Public Affairs and Policy Management
• Course: PAPM 1000
• Professor: Marc Hanvelt

Document Summary

Ricardo, malthus, james mill and john stuart mill, say, leonard, sismondi, Distribution of income between classes (at the time mobility not part of discussion, till end of 19th c, individuals" functions in society rather than class) Surplus of workers, wages down, living standard down, population down; self regulating. Not about amount of labour can command with, but embodied in each commodity. Profit= [income- (wage+ capital)]/ (work + capital. Price of corn based on difficulty of production to produce the last bushel, differential advantage of other lands= rent. Making surplus profit based on differential advantage of band; cost of production will increase, lose surplus profit (rent depends on differential productivity of land) Rent increases, wage needs to increase, rate of profit decrease. Improve conditions of workers means reducing profits of labour (class warfare) Stationary state, eventually profits become 0 (collapse of social order)