Why Ricardo and Malthus Were Pessimistic about the Future of Capitalism - Essay Example

Why Adam Smith created a whole new model of reality and his similarity to Newton
The fourteen-century crisis leads to the emergence of modern capitalism. Land ownership and agricultural production gave rise to conflicts. The arrangements of manorialism hinder the development of capitalism. This was when lords force serfs to produce which hinder them from getting interests through technological innovations. The serfs could only produce what was enough for their families. The expansion of power and wealth by lords led to conspicuous consumption. The crisis in the century was through bad weather, productivity in agriculture, and limitations on technology. There was a division of classes due to the rise of relationships which were contractual between serfs and lords.

Feudalism laid the foundations necessary for mechanistic development. Exploration also facilitates the development of capitalism. The rise of competition led to the creation of a new model. It led to winning and losing. Feudalism which led to mechanistic led to the ownership of corporations and private sectors. Decisions of private sectors, prices of different commodities, goods production, and distribution characterize investments, which led to free markets (Heilbroner et al, 2011). Roman Empire introduces merchant capitalism which was advanced. This proceeds to the development of Islamic capitalism. Industrial capitalism, revolutions, and division of labor are some of the factors that led to the creation of a new model.

There are many similarities between Newton and Adam Smith. For example, Adam Smith identified the didactical mode which he termed a Newtonian method. Smith helped in discovering general laws of economics while Newton discovered natural laws of motion. John Millar declared Smith as Newton’s political economy. Both contributed to the project of social cohesion and balance. According to Newton, simplicity pleases nature but focuses on the economy which embarrassed Smith.
Why Ricardo and Malthus were pessimistic about the future of capitalism.

Ricardo and Malthus are pessimistic about the future of capitalism. Malthus from his theory fails anticipated production advances that technology can influence agriculture. Due to industrialization, people work less and fewer lands are put to use. Agricultural produce has then deteriorated. On the other hand, Ricardo believed that due to population growth, landowners earn economically unjustifiable income. This threatened capitalist capacity because it reduces profits in industries. The crisis of global energy challenged Malthus and Ricardo. This crisis slows down the economy and technology in the world. Therefore, they came up with an innovation perspective that involved technical innovation.
Read More