Question

Evaluate the argument between Ricardo and Malthus concerning the stability of a market system?. What were J. S Mill's views on this issue? How relevant are the views to today's world?

Answer 1

The arguments between Ricardo and Malthus concerning the stability of a market system is as follows.
Thomas Malthus favours that the capital list are not producing goals in order to consumption or consume the busy can you produce the goods for the accumulation of wealth means the main purpose of the capitalist is to produce the goods just for the creation of wealth not for the creation of a simple consumption this is a strong belief of Thomas Malthus on the theory of stability of a market system that the market system based on the production activities and the response of the consumer in the economy.
But David Ricardo is in the favour of Adam Smith and both supports the market stability and the full and optimum utilisation of the sources with full employment in the economy they believe that overall growth is limited to a particular point by the rate of capital accumulation and the other cost concern to it.
David Ricardo and Thomas Malthus agreed on that the attainment of the full employment depends whether the people produces more or less and what they plan to spend must be on the basis of availability of resources and the optimum utilisation of the resources but it only depends whether a capitalist want to accumulate the wealth or they want to rotate the economic cycle of production and consumption and distribution.
JS Mill defence the statement by explaining the redistribution of income in the economy and this is the only reason they believe on the fact that production consumption and distribution can only be possible smoothly when there is a proper distribution and social justice in the economy the market stability is depend on the equal distribution of resources and its proper utilisation.