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'''''Principles of Political Economy''''' was the most important [[economics]] or [[political economy]] textbook of the mid nineteenth century, and was written by [[John Stuart Mill]]. The first edition was published in 1848, and was revised until its seventh edition in 1871, shortly before Mill's death in 1873. |
'''''Principles of Political Economy''''' was the most important [[economics]] or [[political economy]] textbook of the mid nineteenth century, and was written by [[John Stuart Mill]]. The first edition was published in 1848, and was revised until its seventh edition in 1871, shortly before Mill's death in 1873. |
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==Preface and Preliminary Remarks== |
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==Introduction== |
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Mill's ''Principles'' were written in a style of prose far flung from the introductory texts of today. Devoid of the mathematical graphs and formulae that were only developed after his death, principally by [[Alfred Marshall]], Mill wrote with the rich tone of grandeur that is found in all his books. His book continued to be used well into the twentieth century as the foundational textbook, for instance in [[Oxford University]] until 1919. |
Mill's ''Principles'' were written in a style of prose far flung from the introductory texts of today. Devoid of the mathematical graphs and formulae that were only developed after his death, principally by [[Alfred Marshall]], Mill wrote with the rich tone of grandeur that is found in all his books. His book continued to be used well into the twentieth century as the foundational textbook, for instance in [[Oxford University]] until 1919. |
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Revision as of 19:19, 21 July 2007
Principles of Political Economy was the most important economics or political economy textbook of the mid nineteenth century, and was written by John Stuart Mill. The first edition was published in 1848, and was revised until its seventh edition in 1871, shortly before Mill's death in 1873.
Preface and Preliminary Remarks
Mill's Principles were written in a style of prose far flung from the introductory texts of today. Devoid of the mathematical graphs and formulae that were only developed after his death, principally by Alfred Marshall, Mill wrote with the rich tone of grandeur that is found in all his books. His book continued to be used well into the twentieth century as the foundational textbook, for instance in Oxford University until 1919.
Book I Production
- I Of the Requisites of Production
- II Of Labour as an Agent of Production
- III Of Unproductive Labour
- IV Of Capital
- V Fundamental Propositions respecting Capital
- VI Of Circulating and Fixed Capital
- VII On what depends the degree of Productiveness of Productive Agents
- VIII Of Co-operation, or the Combination of Labour
- IX Of Production on a Large, and Production on a Small Scale
- X Of the Law of the Increase of Labour
- XI Of the Law of the Increase of Capital
- XII Of the Law of the Increase of Production from Land
- XIII Consequences of the Foregoing Laws
Book II Distribution
- I Of Property
- II The same subject continued
- III Of the Classes among whom the Produce is distributed
- IV Of Competition and Custom
- V Of Slavery
- VI Of Peasant Proprietors
- VII Continuation of the same subject
- VIII Of Metayers
- IX Of Cottiers
- X Means of abolishing Cottier Tenancy
- XI Of Wages
- XII Of Popular Remedies for Low Wages
- XIII The Remedies for Low Wages further considered
- XIV Of the Differences of Wages in different Employments
- XV Of Profits
- XVI Of Rent
Book III Exchange
In his third book, Mill addressed one of the issues left unresolved by David Ricardo's theory of comparative advantage, namely to whom the gains of trade were distributed. Mill's answer was that international trade benefited most the country whose demand for goods is most elastic.
- I Of Value
- II Of Demand and Supply, in their relation to Value
- III Of Cost of Production, in its relation to Value
- IV Ultimate Analysis of Cost of Production
- V Of Rent, in its relation to Value
- VI Summary of the Theory of Value
- VII Of Money
- VIII Of the Value of Money, as dependent on Demand and Supply
- IX Of the Value of Money, as dependent on Cost of Production
- X Of a Double Standard, and Subsidiary Coins
- XI Of Credit, as a Substitute for Money
- XII Influence of Credit on Prices
- XIII Of an Inconvertible Paper Currency
- XIV Of Excess of Supply
- XV Of a Measure of Value
- XVI Of some Peculiar Cases of Value
- XVII Of International Trade
- XVIII Of International Values
- XIX Of Money, considered as an Imported Commodity
- XX Of the Foreign Exchanges
- XXI Of the Distribution of the Precious Metals through the Commercial World
- XXII Influence of the Currency on the Exchanges and on Foreign Trade
- XXIII Of the Rate of Interest
- XXIV Of the Regulation of a Convertible Paper Currency
- XXV Of the Competition of Different Countries in the same Market
- XXVI Of Distribution, as affected by Exchange
Book IV Influence of the Progress of Society on Production and Distribution
In his fourth book Mill set out a number of possible future outcomes, rather than predicting one in particular. The first followed the Malthusian line that population grew quicker than supplies, leading to falling wages and rising profits. The second, per Smith, said if capital accumulated faster than population grew then real wages would rise. Third, echoing David Ricardo, should capital accumulate and population increase at the same rat, yet technology stay stable, there would be no change in real wages because supply and demand for labour would be the same. However growing populations would require more land use, increasing food production costs and therefore decreasing profits. The fourth alternative was that technology advanced faster than population and capital stock increased. The result would be a prospering economy. Mill felt the third scenario most likely, and he assumed technology advanced would have to end at some point.[1] But on the prospect of continuing economic growth, Mill was more ambivalent.
"I confess I am not charmed with the ideal of life held out by those who think that the normal state of human beings is that of struggling to get on; that the trampling, crushing, elbowing, and treading on each other's heels, which form the existing type of social life, are the most desirable lot of human kind, or anything but the disagreeable symptoms of one of the phases of industrial progress.[2]
- I General Characteristics of a Progressive State of Wealth
- II Influence of the Progress of Industry and Population on Values and Prices
- III Influence of the Progress of Industry and Population on Rents, Profits, and Wages
- IV Of the Tendency of Profits to a Minimum
- V Consequences of the Tendency of Profits to a Minimum
- VI Of the Stationary State
- VII On the Probable Futurity of the Labouring Classes
Book V On the Influence of Government
- I Of the Functions of Government in General
- II On the General Principles of Taxation
- III Of Direct Taxes
- IV Of Taxes on Commodities
- V Of some other Taxes
- VI Comparison between Direct and Indirect Taxation
- VII Of a National Debt
- VIII Of the Ordinary Functions of Government, considered as to their Economical Effects
- IX The same subject continued
- X Of Interferences of Government grounded on Erroneous Theories
- XI Of the Grounds and Limits of the Laisser-faire or Non-Interference Principle
See also
- Essays on Some Unsettled Questions of Political Economy (1844) John Stuart Mill
Notes
References
- Hollander, Samuel (1985) The Economics of John Stuart Mill, University of Toronto Press
- Pressman, Steven (2006) Fifty Major Economists, Routledge, ISBN-10 0415366496
- Schwartz, Pedro (1972) The New Political Economy of J.S. Mill, Duke University Press
External links
- Principles of Political Economy, by John Stuart Mill from the Economics, Finance and Management Department of the University of Bristol.
- Principles of Political Economy, by John Stuart Mill on Econlib, with American spelling.