Principles of Political Economy (Malthus)
Principles of Political Economy (1820) was a successful book by Thomas Robert Malthus (1766-1834). The last chapter of the book was devoted to rebutting Say's law, and argued that the economy could stagnate with a lack of "effectual demand". In other words, wages if less than the total costs of production cannot purchase the total output of industry, causing prices to fall; price falls decrease incentives to invest, creating a downward spiral.
- See Malthus, Thomas Robert (1820), Principles of Political Economy Considered with a View of their Practical Application (1 ed.), London: John Murray, retrieved 2012-12-08
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