History of Economic Thought, 65(1), Jul. 2023
History of Economic Thought, 64(2), Jan. 2023
History of Economic Thought, 64(1), July 2022
History of Economic Thought, 63(2), Jan. 2022
History of Economic Thought, 63(1), July 2021
History of Economic Thought, 62(2), January 2021
History of Economic Thought, 62(1), October 2020
History of Economic Thought, 61(2), January 2020
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History of Economic Thought, 60(1), July 2018Contents
Jou Ishii, J. R. McCulloch on the Effect of Machinery
J. R. McCulloch on the Effect of Machinery
The differences between the theories of displacement and of compensation of machinery are related not only to issues regarding employment and income distribution but also to the dif- ferent perspectives on the market economy. Neoclassical as well as contemporary economists criticise Ricardo’s machinery theory in the third edition of his Principles(1817), which casts serious doubt on the efficiency of a market economy. The compensation theory advocated by economists, such as McCulloch, was in accordance with the neoclassical criticism of Ricardo, wherein they perceive a market economy to be an efficient one. The development of the com- pensation theory has rarely been studied so far, although its development can be observed in the same way as that of the displacement theory.
This study examines the formation of McCulloch’s compensation theory in his debate with Ricardo and its relevance to the neoclassical criticism of Ricardo’s machinery theory. McCulloch insisted on the general benefits of machinery from the beginning as stated in ‘Taxation and the Corn-Laws’(1820). The basic framework of McCulloch’s compensation theory emerged in ‘Effects of Machinery and Accumulation’(1821), in which he argued that workers displaced by the introduction of machinery could be employed again owing to the expansion of production, which would be stimulated by the growing demand for commodities caused by the fall in prices. In the correspondence with Ricardo, after the publication of the third edition of Ricardo’s Principles, McCulloch withdrew his criticism that Ricardo had accepted the possibility of a general glut and focused his criticism on the decrease in gross produce. McCulloch assumes that in arguing this, the maximum amount of a product could necessarily be achieved in the competitive market under a given condition.
JEL classification numbers: B12, B31, O33.
Barton, J. 1817. Observations on the Circumstances Which Influence the Condition of the Labouring Classes of Society. London: Printed for J. and A. Arch by W. Mason.
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Hozumi, F. 1958. Haijo Setsu to Hosyo Setsu(The Displacement Theory and the Compensation Theory). Economic Review(Kyoto University)82(2): 14-28(in Japanese). Jonung, L. 1981. Ricardo on Machinery and the Present Unemployment: An Unpublished
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McCulloch, J. R. 1816. An Essay on the Reduction of the Interest of National Debt. London:
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Ken Kato, The Transit of Ideas that Facilitated the American Social Reforms: John R. Commons and the “Wisconsin Idea” in the Progressive Era
The Transit of Ideas that Facilitated the American Social Reforms:
John R. Commons and the “Wisconsin Idea” in the Progressive Era
This study discusses the content of the “Wisconsin Idea.” It attempts to examine John R. Commons’s view on this idea and his influence on several social reforms, and it tracks how an active role played by economists led to the application of this idea to the American social reforms.
Commons took part in the social gospel movement under the guidance of Richard T. Ely. As a member of this movement, Commons worked towards the achievement of social and political reforms rooted in Christianity and social sciences. According to Frederic C. Howe(1912), in the 1910s, Wisconsin was regarded as an American state likely to accept German social reforms. During this Progressive Era, in Wisconsin, several social and political reforms were executed based on the “Wisconsin Idea,” which was named such by Charles McCarthy(1912). The idea was developed by several brain trusts under the governor Robert M. La Follette. As a member of one of these brain trusts, Commons was also involved in several social reforms. Owing to his experience not only as a former social gospeler but also as a member of such a brain trust, Commons attempted to improve social welfare through the enactment of legal rules based on cooperation between the state university and the state government. Without this cooperation, it would not have been possible to establish the comprehensive social legislation in Wisconsin.
Commons’s analysis reveals that, through the expansion of university extension programs, it was possible to enhance the professional ethics of workers and improve the social welfare of their community, and that there was a need for the associated economists to recognize the permanent interests of the nation to adopt appropriate social reforms. Therefore, it would not be an exaggeration to state that Commons was the very embodiment of the “Wis- consin Idea.”
JEL classification numbers: B15, I38, N93.
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― . 1996. The Social Gospel, Ely, and Commons’s Initial Stage of Thought. Journal of Economic Issues 30(3)(Sep.):641 ―65.
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38 経済学史研究 60 巻 1 号
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Tomonori Isaka, Scrope’s Natural Rights Theory and Criticism of Laissez-faire
Scrope’s Natural Rights Theory and Criticism of Laissez-faire
This study clarifies the main features of G. P. Scrope’s political economy.
What makes his work distinctive is his idea that the laissez-faire principle is justified only under certain conditions. On the one hand, Scrope’s economics is firmly grounded in the “principle of freedom”(free competition or free markets). On the other hand, based on the natural rights theory, he maintains that the principle of freedom rests only on the assumption that it is expedient for general interests. Whenever private property is seen as inconsistent with the welfare of society, ‘society is justified- nay, bound- to modify it.’
The Irish land question and the poverty resulting from it is where Scrope most clearly presents his criticism of laissez-faire. Not only does he propose introducing (and later, improving) poor laws in Ireland, but also suggests that the government should purchase tracts of privately-owned lands, improve them, and sell or lease them as small farms. According to Scrope, land ownership in Ireland is ‘contrary to the interests and natural rights of the community,’ and, the government should exercise its ‘strict right’ to recover waste land. However, Scrope never directs his criticism of laissez-faire towards the activities of capitalists. For him, a capitalist mode of production is the key to civilisation and economic growth. He explicitly criticises Hodgskin’s argument that labourers should own all their production. His abstinence theory justifies the rights of capitalists to earn profits, and his attack on currency policy takes the readers’ attention away from the hostile relationship between capitalists and labourers.
It is important to distinguish where his criticism of laissez-faire is applied and where it isn’t. It is misleading to emphasise only one aspect of his argument as this is paramount to generalising his argument.
JJEL classification numbers: B12, B31.
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― . 1832. The Natural and Artificial Right of Property Contrasted. London: B. Steil.
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Scrope, G. P. 1830 a. A Letter to the Agriculturists of England, on the Expediency of Extending the Poor Law to Ireland. London: James Ridgway.
― . 1830 b. The Common Cause of the Landlord, Tenant, and Labourers, and the Common Cure of Their Complaint: in a Letter to the Agriculturists of the South of England. London: James Ridgway.
― . 1831 a. The Political Economists. Quarterly Review 44(87): 1―52.
― . 1831 b. Poor-Law for Ireland. Quarterly Review 44(88): 511―54.
― . 1832 a. A Plain Statement of the Cause of, and Remedies for, the Prevailing Distress: For the Consideration of a Reformed Parliament, and of Those Who Will Have to Elect Its Members. London: James Ridgway.
― . 1832 b. Jones on the Doctrine of Rents. Quarterly Review 46(91): 81―117.
― . 1832 c. The Right of Industry and the Banking System. Quarterly Review 47(94): 407―57.
― . 1832 d. Amendments of the Poor Laws. Quarterly Review 48(96): 320―45.
― . 1833 a. Plan of a Poor-Law for Ireland, with a Review of the Arguments For and Against It. London: J. Ridgway.
― . 1833 b. Principles of Political Economy, Deduced from the Natural Laws of Social Welfare, and Applied to the
Present State of Britain. London: Longman, Rees, Orme, Brown, Green, and Longman[. 本文中では PPE と略記]
― . 1835 a. The Letter of George Poulett Scrope, Esq., M. P. to the Chairman of the Central Committee of the Hand Loom Worsted Weavers, of the West-Riding of York: with Their Answer to the Same. Bradford: H. Warrman.
― . 1835 b. Political Economy, Versus, the Hand-Loom Weavers: Two Letters of George Poulett Scrope, Esq., M. P. to the Chairman of the Central Committee of the Hand-Loom Worsted Weavers, of the West-Riding of York: with Their Answer to the Same. Bradford: T. Inkersley.
― . 1836. Foreign Poor-Laws / Irish Poverty. Quarterly Review 55(109): 35―73.
― . 1846 a. How Is Ireland to Be Governed?: A Question Addressed to the New Administration of Lord Melbourne in 1834, with a Postscript, in which the Same Question Is Addressed to the Administration of Sir Robert Peel in 1846. London: James Ridgway.
― . 1846 b. Letters to the Right Hon. Lord John Russell, on the Expediency of Enlarging the Irish Poor-Law to the Full Extent of the Poor-Law of England. London: James Ridgway.
― . 1846 c. Letter to Sir Robert Peel, on the Mode of Meeting the Present Crisis. London: James Ridgway.
― . 1847 a. Extracts of Evidence Taken by the Late Commission of Inquiry into the Occupation of Land in Ireland, on the Subject of Waste Lands Reclamation; with a Prefatory Letter to the Right Hon. Lord John Russell. London:
― . 1847 b. Letters to Lord John Russell, M. P. on the Further Measures Required for the Social Amelioration of Ireland. London: James Ridgway.
― . 1847 c. Remarks on the Irish Poor Relief Bill. London: James Ridgway.
― . 1848a. How to Make Ireland Self-Supporting; or, Irish Clearances, and Improvement of Waste Lands. London:
― . 1848 b. The Irish Relief Measures, Past and Future. London: James Ridgway.
― . 1848 c. A Plea for the Rights of Industry in Ireland. Being the Substance of Letters Which Recently Appeared in the Morning Chronicle, with Additions. London: James Ridgway.
― . 1848 d. Rights of Industry, or the Social Problem of the Day, as Exemplified in France, Ireland, and Britain. London: James Ridgway.
― . 1849 a. The Irish Poor Law. How Far Has It Failed? And Why?: A Question Addressed to the Common Sense of His Countrymen. London: James Ridgway.
― . 1849 b. A Labour Rate Recommended in Preference to Any Reduction of the Area of Taxation, to Improve the Operation of the Irish Poor-Law: In Three Letters to the Editor of the Morning Chronicle. London: James Ridgway.
― . 1849 c. Votes in Aid and Rates in Aid of the Bankrupt Irish Unions: Two Speeches Delivered in the House of Commons. London: James Ridgway.
― . 1850. Draft Report Proposed to the Select Committee of the House of Commons on the Kilrush Union with Prefatory Remarks. London: James Ridgway.
― . 1873. Political Economy, for Plain People: Applied to the Past and Present State of Britain, 2nd ed. London: Longmans, Green.
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― . 2000. The ‘Secret Concatenation’ in the Mid-nineteenth Century: The Case of George Poulett Scrope, a Still Neglected Political Economist. History of Political Economy 32(3): 553―84.
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Timm Graßmann, The Unsolved Problem of Economic Crisis as a Turning Point of Marx’s Critique of Political Economy, 1844-45
The Unsolved Problem of Economic Crisis as a Turning Point of Marx’s Critique of Political Economy, 1844-45
With the continuing publication of the complete works of Karl Marx and Friedrich Engels (Marx-Engels-Gesamtausgabe, MEGA), a bulk of new material concerning Marx’s studies of economic crises has been made available- with further releases expected to follow. These publications have revealed Marx’s enormous efforts to examine in detail every economic cri- sis through which he lived. The most prominent examples are the three Books of Crisis (Krisenhefte), which he compiled in 1857-58 amidst the first truly global economic crisis. This paper sets out to, first, provide an overview of new MEGA-texts regarding Marx’s studies of contemporaneous 19th century revulsions. In the main part, a closer look will be taken at the origin of Marx’s crisis studies in the 1840s. A comparison between his notes on James Mill’s Elements of Political Economy, written in the Paris Notebooks(1844), and his excerpts from John Stuart Mill’s Essays on Some Unsettled Questions of Political Economy, taken in his Manchester Notebooks(1845), reveals Marx’s changing stance on classical political economy’s ‘general glut controversy,’ i.e., the debate over the (im)possibility of overproduction crises in commodity-producing societies. In between his stays in Paris and Manchester, Marx took extensive notes on the works of Simonde de Sismondi in his Brussels Notebooks
(1845), which played a major role in his break from anthropological-essentialist thinking. JEL classification numbers: B00, B51, E32.
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Taichi Tabuchi, Ricardo’s Theory of Value and International Trade: On the Invalidity of the Alleged ‘Labour Theory of Value'
Ricardo’s Theory of Value and International Trade: On the Invalidity of the Alleged ‘Labour Theory of Value’
This paper presents a new interpretation of Ricardo’s international trade theory. It shows that Ricardo’s value theory in his Principles can be understood exclusively as the cost-of-production theory of value, which integrates the domestic value theory and international value theory, requisitely taking into consideration changes in the value of money when it is applied to the analysis of international exchange.
In Section II, we critically re-examine the standard interpretation of Ricardo’s trade theory in the so-called ‘Ricardian Model’ in textbooks today. Based on the concepts of ‘comparative advantage’ and ‘gains from trade’ within the two-country two-commodity framework, we show that it is a distorted interpretation, which originated from J. S. Mill’s arguments and established through the debate between Viner and Haberler, in the opposite direction of Ricardo’s original value theory. In Section III, we present that Ricardo consistently adopted the cost-of-production theory of value, which is valid not only for domestic, but also international, exchange based on the concept of natural price, with the so-called ‘labour theory of value’ being merely a subset rule in the analysis of domestic exchange. We then show that Ricardo’s original value theory inevitably takes into consideration the differences and adjustments in the value of money in international exchange, in the analysis of international exchange. Finally, we will briefly review that Ricardo was heading in the right direction towards today’s theory of international trade including intermediate goods.
JEL classification numbers: B12, B17.
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English Translation Series: Japanese Historians of Economic Thought〈6〉 Shiro Sugihara, Nature, Human Beings, and Labour Translated by Robert Chapeskie and Natsu Matsui
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