The Economic Writings of William Thomas Thornton: A review article

The Economic Writings of William Thomas Thornton makes available numerous out-of-print books and articles by an important economist whose work has, until recently, been neglected by historians of economic thought. The collection, which is by no means complete, helps cement Thornton's reputation and restores his rightful place in the history of economics. This article discusses the collection's main strengths and weaknesses, and draws particular attention to the contemporary relevance of Thornton's work in the light of recent controversies surrounding his place in the annals of economic science, and to certain aspects of his successful East India Company career.     

J. S. Mill on Wages and Women: A Feminist Critique

"J. S. Mill on Wages and Women" questions the common belief that Mill, despite his feminism, never suggested an end to the sexual division of labor because of his devotion to the concept of efficiency and other tenets of classical economics. A review of Mill's analysis of a competitive labor market indicates that he believed it to be fully consistent with women's equality in the workforce. In fact, in his works on women, it becomes clear that Mill was concerned that the logical extension of classical economic principles might lead to the commodification of domestic duties, including child rearing, a notion he evidently feared. Therefore, it was Mill's fear of, rather than dedication to, extreme allegiance to efficiency and unimpeded capitalism that limited his feminism.     

The wages‐and‐profits fund: Classical remnants in Marshall's early theory of distribution

Abstract

This paper traces the development of Marshall's theory of wages from the late 1860s to the publication of the first edition of the Principles of Economics (1890). Section one attempts to unravel Marshall's recollections of early intellectual influences, many of which were often distorted or wrong. Specifically, J. S. Mill's, Fleeming Jenkin's and J. H. von Thünen's influence on Marshall's early theory of distribution is explored in this context. In section two, analyses of Marshall's theory of wages in Economics of Industry (1879) and in other published writings is presented. This section draws attention to the similarity between Marshall's treatment of wages and the classical wage fund doctrine. In the final section, we re‐examine Marshall's defence of his theory of value and distribution in the Economics of Industry in the face of criticism of it by American economists S. M. MacVane and J. L. Laughlin in the Quarterly Journal of Economics.     

Producer co-operatives in nineteenth-century British economic thought

Drawing on the popular radicalism of the day and his own development of the theory of the stationary state, John Stuart Mill had argued on normative and positive grounds that capitalist firms were transitional institutions and should/would evolve into producer co-operatives. In Britain, Mill's work set off a dialogue among mainstream economists. Contributors included Thornton, Fawcett, and Cairnes from Mill's “school,” as well as Jevons and Marshall who while sympathetic endorsed the less radical reform of profit sharing. Ironically, much of the socialist left, including Beatrice Potter (Webb), praised Mill's concerns, but rejected producer co-operatives in favour of nationalisation. By the early twentieth century, Mill's message resonated only with the guild socialists who kept the radical argument for producer co-operatives alive. The subtext of the paper is that modern liberals have too conveniently lost connection with this important history and its radical/liberal message of capitalism as a transitional mode.     

John Stuart Mill on wage inequalities between men and women

Abstract

Mill proposes an analysis of women’s low wages in a paragraph of Principles of Political Economy. The paper’s purpose is to confront this analysis with his conception of justice, rooted in his utilitarianism. Mill’s attachment to justice arises in a particular context, as the result of various intellectual influences. On the one hand, it underlies his concern for the situation of women on the labour market and his insistence on the role played by custom and laws in wage differences between men and women. On the other hand, the shortcomings of Mill’s analysis appear consistent with his vision of equal justice and freedom for women.     

The Anglo-Irish context for William Edward Hearn's economic beliefs and the ultimate failure of his Plutology

Abstract

William Edward Hearn is generally regarded as Australia's first economist of international note and his Plutology ([1863]1864) is invariably deemed to be Australia's first economics text. In this paper I argue that it is more appropriate to describe Hearn as an Anglo-Irish economist and, to this end, provide the Anglo-Irish context for the economic doctrines that he expressed in Plutology and elsewhere. I also argue that the failure of Plutology in the market place was, in part, due to a campaign waged against Hearn in London by John Elliot Cairnes, who was an undergraduate contemporary of Hearn's at Trinity College, Dublin.     

Scitovsky's The Joyless Economy and the economics of happiness

Abstract

Scitovsky's The Joyless Economy is especially well-known in recent economic studies on happiness. However, his insightful contributions have not been taken up as they deserve, mainly because they were, and still are, too original. By reconstructing Scitovsky's analysis on the basis of all his relevant writings, this article integrates his most original concepts, such as novelty, consumption skill, endogenous preferences, pleasurable uncertainty, into conventional economics; it compares Scitovsky's analysis to the economic thought of his time and to current consumer theory and it reveals his contributions to happiness economics, such as an original interpretation of the Easterlin paradox.     

Trade Unions Face a New Western Capitalist Society

Nicholas Georgescu-Roegen was hostile to work in economic theory that is based on the notion of a continuum of agents. In this essay, I use this hostility as a point of departure for an exploration of his views concerning representation, language and theory as they pertain to what he saw as economic science. In particular, I view his methodological stance to the "doing of economics," as expressed primarily in his epistemological writings, in the light of Richard Wollheim's reflections on "art and its objects."     

One step ahead: Thornton versus Longe

This Paper addresses the intriguing issue of whether William Thomas Thornton plagiarized Francis Longe's (1866) pamphlet denouncing the classical wage fund doctrine. In doing so, the paper comprehensively reviews all of the corroborative evidence surrounding the plagiarism allegation laid against Thornton, drawing particular attention to a little known letter to The Times written by Thornton, in an effort to clear his good name of any impropriety. It is the conclusion of this paper that Thornton has no case to answer; the evidence not only from Thornton's own early work on wages and trade unions, together with additional corroborative evidence suggests that far from having plagiarized Longe's (1866) work, Thornton apticipated many of his ideas.     

Japanese Consumption,External Disequilibrium and their Statistical Measurement

Georgescu-Roegen's work is usually divided into two categories, his earlier work on consumer and production theory and his later concern with entropy and bioeconomics beginning with his 1966 introductory essay to his collected theoretical papers published in the volume Analytical Economics. Most economists usually praise his earlier work on pure theory and ignore his later work which is highly critical of neoclassical economics. Those economists sympathetic to his later work usually take the position that he “saw the light” and gave up neoclassical theory some time in the 1960s to turn his attention to the issues of resource scarcity and social institutions. It is argued here that there is an unbroken path running from Georgescu's work in pure theory in the 1930s, 1940s, and 1950s, through his writings on peasant economies in the 1960s, leading to his preoccupation with entropy and bioeconomics in the last 25 years of his life. That common thread is his preoccupation with “valuation.” The choices our species makes about resource use and the distribution of economic output depends upon our valuation framework. Georgescu-Roegen's work begins in the 1930s with a critical examination of the difficulties with the hedonistic valuation framework of neoclassical economics, moves in the 1960s to the conflict between social and hedonistic valuation, and culminates in the 1970s and 1980s with his examination of the conflict between individual, social, and environmental values. This paper traces the evolution of Georgescu-Roegen's thought about valuation and the environmental and social policy recommendations which arise out of his bioeconomic framework.     

Does Mill's case for infant industry protection capture Hamilton's and List's arguments for promoting industrial development?

Abstract

Mill's case for infant-industry protection is widely regarded as capturing the arguments by Hamilton and List. This paper argues that they are actually analytically different. While all three were influenced by Smith's Wealth of Nations, Mill took from it something different than the other two. His endorsement passage for protection refers to a standalone industry. Hamilton and List attached significance to the pin-making type of division of labor at the economy-level but they emphasized the development of that division as the activation of backward and forward production linkages, à la Hirschman, with increasing diversification and differentiation of occupations and industries. Mill only considered employing customs duties in his passage, although in some personal correspondence in the 1860s he mentioned a subsidy. Contrary to mainstream misrepresentations, Hamilton and List did not restrict themselves to proposing customs duties, but suggested both trade and non-trade interventions to activate linkages. Mill's formulation focuses attention on very simple learning by doing to establish the standalone industry. Thanks to their conception of the development process, Hamilton and List appreciated the complexity of technology acquisitions and devoted far more attention to that subject. The implications of these differences for future research and policy considerations are briefly discussed.     

Sraffa and von Neumann

This paper discusses the relationship between Piero Sraffa's 1960 book and John von Neumann's 1937 paper on economic growth in the light of some of the material contained in Sraffa's unpublished papers and correspondence. It is argued that the two contributions share a similar outlook and exhibit conceptual parallels; in fact, they can both be said to belong to the 'classical' approach to the theory of value and distribution. The latter is characterized, among other things, by an asymmetric treatment of the distributive variables, the rate of return on capital and the real wage rate. Sraffa's papers show that when he came across the von Neumann model in the mid-1940s his own analysis was already quite advanced, including his analysis of joint production. The paper also contains an exchange of letters between John Richard Hicks and Sraffa on some of the issues dealt with in the latter's book.     

John Stuart Mill's utilitarianism and the social ethics of sustainable development

This paper considers the writings of John Stuart Mill in political philosophy and political economy as a prototype for ideals of a 'sustainable development' grounded in a norm of justice and social solidarity. Mill's conception of a just 'stationary state* of society is examined alongside his attempts to reconcile precepts of non-interference (individual freedom) and private property, with the constraints and obligations of social, economic, and ecological coexistence. It is shown that notwithstanding vaccillations, Mill ends up espousing an ethical norm of reciprocity and solidarity that is quite different from the premise of self-interest axiomatized in most economic models of competitive market economies. These intuitions about a duty of care complementary to the non-interference principle, when systematized, are shown to find a new contemporary application to questions of economic justice and environmental sustainability.     

J. K. Galbraith: Liberal Politics and the Economics of the Modern Business Firm

This appreciation of J. K. Galbraith (JKG) is one of an occasional series of Reputations that New Political Economy carries reviewing the work and life of significant political economists. It is appropriate to include JKG is this series, not only because of his obvious academic stature but also in recognition of the fact that ten years ago he opened the Political Economy Research Centre at the University of Sheffield, UK, from which NPE is managed. To some extent the discussion presented here is based on published work, but in addition an important source involves an interview with JKG conducted on 27 March 2003 in Cambridge, Massachusetts, by Michael Dietrich and Andrew Gamble. Much of the material covered in the interview is developed in more detail in a forthcoming book by JKG to be published in the near future. All quotations and information sources that are not obviously referenced in the text are based on this interview. The discussion is organised as follows. Following a brief introduction, the main section considers Galbraith as a political economist. The focus here is to trace the structure and evolution of JKG's intellectual project. This leads on to a consideration of Galbraith as a political animal and commentator on world affairs. One objective here is to trace the linkages between the intellectual and political projects. Finally, a conclusion is presented under the rubric of Galbraith the man.     

The age of the universal consumer: a reconsideration of Ricardo's politics *

This paper reconsiders Ricardo's political thought, its relationship with his political economy and, more generally, Ricardo's connection with the ‘philosophical radicalism’ of Bentham and James Mill. It is arguedinter alia, that Ricardo's politics were utilitarian and individualistic; that he developed a notion of a shared, homogeneous interest; that he believed that individuals should know their ‘real’ interests as a condition for their suffrage; and that he subscribed to a doctrine of virtual representation. It is also argued that Ricardo was considerably less ‘radical’ in his political views than some previous commentators have recognized.     

Feminist economics as a Postmodern Moment

Wicksell saw economics as a way to effect social change. In addition to academic writings, he produced a steady stream of pamphlets, newspaper editorials, and public lectures that brought theoretical economics to bear on social policy. In this paper, consideration is given to this wider variety of Wicksell's writings, and his unanimity rule for public goods decision making is examined within the context of his social philosophy. We argue that the unanimity rule, rather than being narrowly focused on efficiency concerns, operated as a practical mechanism to achieve Wicksell's larger goal of social justice. This stands in contrast to the interpretation of Wicksell commonly presented in the public choice literature.     

The contribution of Gerald Shove to the development of Cambridge Economics

Frank Gerald Shove was a close friend of Keynes and the other protagonists of the economic debates in Cambridge during the 1920s and 1930s. Shove's influence on those debates is not well documented because he published little and had all his notes destroyed after his death. This paper looks at Shove's most significant contributions to the debates of the 1930s. Attention is concentrated on the debates over increasing returns and imperfect competition. Shove emphasized the complexity of economic phenomena and the need to develop tools to deal with it. He found his analytical and methodological inspiration in Marshall's work. This position led him to clash with younger economists, in particular Joan Robinson, whose work on imperfect competition and whose efforts to achieve rigorous and ‘precise’ results failed, in his view, to capture the working of actual markets. The final section of the paper discusses the similarity of Shove's methodological outlook to that of Keynes. Both were well aware of the need to go beyond Marshall, but they wanted to retain the richness, complexity and realism of Marshall's approach.     

Enrico Barone's ‘Ministry of Production’: Content and Context

Abstract

Enrico Barone's famous article on economic planning, ‘Il Ministro della Produzione nello Stato Collettivista’ (‘The Ministry of Production in the Collectivist State’), which showed the theoretical possibility of an economically efficient collectivist planned economy, was published in Giornale degli Economisti in 1908. Barone's article has been widely cited, particularly in the comparative economic systems literature, but it has not been very widely read or analysed in recent years, and there is not much literature that places Barone's ‘Ministry’ model in the context of his other works or in its historical, social, or ideological context. The aims of this article are: (a) to analyse and clarify Barone's model in depth; (b) to place it in the context of Barone's other writings and the literature on the subject; and (c) to examine the apparent contradiction between Barone's hostility to socialism and his attempt to formulate the pure theory of the collectivist economy.