Theory and Reality

"Wau, Sudan - 20 July 1998"

A woman, victim of famine, collects

last grains scattered on the ground

after the distribution of food rations

by UNICEF

© AFP / Éric Feferberg

From the book "An Essay on the Principle of Population" (1798)

by the economist Thomas Robert Malthus (1766-1834)

Numerical version from the collection of works provided online

by McMaster University - Archive for the History of Economic Thought.

Chapter 16

...

Dr Adam Smith defines the wealth of a nation to consist. In the annual produce of its land and labour. This definition evidently includes manufactured produce, as well as the produce of the land. Now supposing a nation for a course of years was to add what it saved from its yearly revenue to its manufacturing capital solely, and not to its capital employed upon land, it is evident that it might grow richer according to the above definition, without a power of supporting a greater number of labourers, and, therefore, without an increase in the real funds for the maintenance of labour. There would, notwithstanding, be a demand for labour from the power which each manufacturer would possess, or at least think he possessed, of extending his old stock in trade or of setting up fresh works. This demand would of course raise the price of labour, but if the yearly stock of provisions in the country was not increasing, this rise would soon turn out to be merely nominal, as the price of provisions must necessarily rise with it. The demand for manufacturing labourers might, indeed, entice many from agriculture and thus tend to diminish the annual produce of the land, but we will suppose any effect of this kind to be compensated by improvements in the instruments of agriculture, and the quantity of provisions therefore to remain the same. Improvements in manufacturing machinery would of course take place, and this circumstance, added to the greater number of hands employed in manufactures, would cause the annual produce of the labour of the country to be upon the whole greatly increased. The wealth therefore of the country would be increasing annually, according to the definition, and might not, perhaps, be increasing very slowly.

The question is whether wealth, increasing in this way, has any tendency to better the condition of the labouring poor. It is a self-evident proposition that any general rise in the price of labour, the stock of provisions remaining the same, can only be a nominal rise, as it must very shortly be followed by a proportional rise in the price of provisions. The increase in the price of labour, therefore, which we have supposed, would have little or no effect in giving the labouring poor a greater command over the necessaries and conveniences of life. In this respect they would be nearly in the same state as before. In one other respect they would be in a worse state. A greater proportion of them would be employed in manufactures, and fewer, consequently, in agriculture. And this exchange of professions will be allowed, I think, by all, to be very unfavourable in respect of health, one essential ingredient of happiness, besides the greater uncertainty of manufacturing labour, arising from the capricious taste of man, the accidents of war, and other causes.

...