Plan of the work--Inquiry into the development and the relative
practical usefulness of the theories of welfare economics from Adam
Smith to the present day.
|I. THE CLASSICAL VIEW OF THE ECONOMIC PROBLEM||1|
Inconsistency in the current interpretation of classical economics--
Smith's labour-theory outlook and methods of increasing the size of
the national dividend (i) by widening the scope of division of labour
and exchange and (ii) by increasing capital accumulation and population--Ricardo's emphasis on diminishing returns and concept of Net
Revenue--J. S. Mill's systematisation of the physical output approach
--Quantitative importance of the physical level of analysis on economic
|II. THE MEASURING ROD OF LABOUR||15|
Smith's concept of the "quantity of labour commanded" as the
measure (i) of current subjective income and (ii) of maximum physical
output next year--Ricardo's "quantity of labour embodied" measure
and the Cost and Output approach to the national dividend--Net
Revenue as the measure of economic welfare.
|III. THE MEASURING ROD AND THE GLUT THEORY||34|
Malthus's development of the "labour-commanded" measure of value
into an Income approach to the national dividend--Malthus's measure
of value and his theory of "intrinsic value"--Relation between the
different measures of value and the Glut controversy.
|IV. THE CLASSICAL THEORY OF FREE COMPETITION
The "allocative" interpretation of Smith's theory of competition based
on very selective evidence--Classical theory of competition as an
auxiliary instrument of dynamic expansion of economic activity,
"widening" the scope of division of labour and opening up new investment opportunities--Ricardo's theory of Comparative Costs as a classic
piece of optimum analysis at the physical level.
|V. THE WELFARE SIGNIFICANCE OF PRODUCTIVE 70
Smith's "storage" and "value" versions of Productive Labour--
Their relation to the different measures of value--Doctrine of Productive Labour implies a fundamental weakness in the system of free
choice in relation to saving, investment and level of economic activity
--J. S. Mill's systematisation of the "storage" version--Reinterpretation of classical economics--Productive Labour doctrine as the mainspring of the classical theory of economic expansion.
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Theories of Welfare Economics.
Contributors: Hla Myint - Author.
Publisher: Harvard University Press.
Place of publication: Cambridge, MA.
Publication year: 1948.
Page number: vii.
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