The End of the Debate

Malthus reviewed Of Population in 1821 in the Edinburgh Review. He questioned the facts and said that it had no theory. In 1820 his own Principle of Political Economy revisited the arithmetical and geometrical ratios. In line with his 1815 essay, Malthus continues to predict an advance in cultivation towards the zero-rent margin. The prospects for the lower classes remained almost as bleak as in the Essay. This chapter examines his argument. It shows that a lack of aggregate demand was yet another reason, similar to Keynes, to be pessimistic about the future. It links his discussion of macroeconomics to social stratification and the three factors of production. The three classes contribute in different ways to consumption, saving and investment. The state can leverage on that difference through regulations such as the Corn Laws. The chapter concludes with an examination of Godwin’s Thoughts on Man (1831). In this, his final book, he revisits the topics of sense perception, memory and habit to show why he felt confident that looking forward through looking backward would give him a purchase on commerce, economics and the post-market culture.