DAVID RICARDO (1772-1823)
Published the PRINCIPLES OF POLITICAL ECONOMY AND TAXATION in which he examines how wealth is distributed among
people. Recardo further analyzed Malthus's IRON LAW OF WAGES.
1. Demand and supply apply also to wages so wages cannot be lower than the level of SUBSITENCE, because lower wages
would decrease the supply of labor.
2. Subsisntence depends on the price of FOOD and other farm products.
3. higher farm crops neccesite higher wages.
4. THIS PROCESS INVOLVES LANDLORDS, INDUSTRIALISTS and WORKERS.
JEREMY BENTHAM (1748-1832)
1. UTILITARIANISM "The greatest good of greatest number" every social instituion must be judged by its usefulness in
increasings the good of the individual.
2. How is good recognized?" Anything that increases the pleasure of the or diminishes the pain of the person is
good.
3. Social good is the sum total of all individual goods.
4. lack of money is the cause of human misery, enough money could bring happiness.
5. If the wealth of an individual excess SUFFICIENCY, his pleasure does not increase PROPORTIONALLY.
6. If the excessive welath is made available to the poor, it brings HAPPINESS TO THE POOR. thus a greater equality
of wealth is desirable.