Question

Explain Thomas Robert Mathus's Theory of Population and how David Ricardo incorporates it into his theory of the distribution of income and how that evolves over the course of capitalists development.

Answer 1

Thomas Robert Malthus Theory Of Population -

This Theory Is Also Known As Malthusian Theory Of Population. In This Theory Of Population Thomas Robert Explain That Through Preventative Checks And Positive Checks The Population Would Be Controlled To Balance The Food Supply With The Population Level.

Preventative Checks -

This Will Helps To Correct The Imbalances. In That Malthu's Also Suggested Preventative Measures To Control Population.

Positive Checks -

This Will Helps To Correct The Imbalances Between Food Supply And Population Growth In The Form Of Natural Disaster Such As Earthquake, Flood, Etc.

Devid Ricardo Theory Of Distribution -

This Is The First Theory Used By Economics Which Aims To Explain How Income Is Equally Distributed In Society.

There Are Three Kinds Of People In This Model.

1) Capitalists -

Capitalist Are The Investors, Who Invest In Economic Growth, In Return They Earn/Gain Profit.

2) Workers -

The Workers Are The Labor Force, They Get Wage In Return.

3) Landlords -

The Landlord Are The Person Who Provides Their Land For Production In Return They Get Rent On Their Land.

The Capitalist Produce That Good Which Are In Demand. This Will Lead To More Development Of Product And More Choice Of Goods. And If The Capitalist Fulfilled All Market Demand That Will Lead To The Growth Of Company As Well As The Growth Of The Country.