The General Theory of Employment

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The General Theory of Employment, Interest

and Money

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The General Theory of Employment,

Interest and Money

Author John Maynard Keynes

Country United Kingdom

Language English

Genre(s) Nonfiction

Publisher Palgrave Macmillan

Publication date 1936

Media type PrintPaperback

Pages 472 (2007 Edition)

ISBN 9780230004764

OCLCNumber 62532514

The General Theory of Employment, Interest and Money was written by the English economist

John Maynard Keynes. The book, generally considered to be hismagnum opus, is largely
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credited with creating the terminology and shape of modernmacroeconomics. Published in

February 1936 it sought to bring about a revolution, commonly referred to as the "KeynesianRevolution", in the way economists thought - especially in relation to the proposition that a

market economy tends naturally to restore itself to full employment after temporary shocks.

Regarded widely as the cornerstone of Keynesian thought, the book challenged the established

classical economicsand introduced important concepts such as theconsumption function, themultiplier, the marginal efficiency of capital andliquidity preference.

Contents

[hide]

1 Background 2 Summary

o 2.1 Prefaceo 2.2 Book I: Introductiono 2.3 Book II: Definitions and Ideaso 2.4 Book III: The Propensity to Consumeo 2.5 Book IV: The Inducement to Investo 2.6 Book V: Money-Wages and Priceso 2.7 Book VI: Short Notes Suggested by the General Theory

3 Receptiono 3.1 Criticismo 3.2 Endorsement

4 Introductions to The General Theory 5 See also 6 Notes 7 References 8 External links

[edit] Background

Although The General Theory was written during theGreat Depressionand was taken by manyto justify the assumption by government of the responsibility for the achievement and

maintenance offull employment, it is for the most part a highly abstract work of theory and by

no means a tract on policy. Its full meaning and significance continues to be debated even today.

As a book, its style differs from modern mainstream economic texts because its concepts areexpressed almost entirely in prose with little explicit mathematical modelling, following the

practice ofAlfred Marshalland his other successors in 1930s Cambridge, England, and in

contrast toneoclassical economics, which emphasizes mathematical modelling. It is enlivened bysome brilliant rhetorical passages, including the description of the stock market in Chapter 12

and the concluding chapter 24 on the (rather tentative) policy implications Keynes derived from

his theory.
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[edit] Summary

The central argument ofThe General Theory is that the level of employment is determined, notby the price of labour as inneoclassical economics, but by the spending of money (aggregate

demand). He argues that it is wrong to assume thatcompetitivemarkets will, in the long run,

deliver full employment or that full employment is the natural, self-righting, equilibrium state ofa monetary economy. On the contrary, under-employment and under-investment are likely to be

the natural state unless active measures are taken. One implication of The General Theory is that

a lack ofcompetitionis not the fundamental problem and measures to reduce unemployment bycutting wages or benefits are not only hard-hearted but ultimately futile.

[edit] Preface

Keynes wrote four prefaces, to the English, German, Japanese and French editions, each with a

slightly different emphasis. In the english preface, he addresses the book to his fellow

economists, yet mentions he hopes it will be helpful to others who read it. He also claims that the

connection between this book and his Treatise on Money, written five years earlier, will mostlikely be clearer to him than anyone else, and that any contradictions should be viewed as an

evolution of thought.

[edit] Book I: Introduction

The first book introduced what Keynes asserted would be a book that changed the way the worldthinks.

Chapter 1: The General Theory (only half a page long) consists simply of this radicalclaim:

"I have called this book the General Theory of Employment, Interest and Money, placing the

emphasis on the prefix general. The object of such a title is to contrast the character of my

arguments and conclusions with those of the classical theory of the subject, upon which I was

brought up and which dominates the economic thought, both practical and theoretical, of thegoverning and academic classes of this generation, as it has for a hundred years past. I shall

argue that the postulates of the classical theory are applicable to a special case only and not to the

general case, the situation which it assumes being a limiting point of the possible positions ofequilibrium. Moreover, the characteristics of the special case assumed by the classical theory

happen not to be those of the economic society in which we actually live, with the result that its

teaching is misleading and disastrous if we attempt to apply it to the facts of experience." (p. 3)

Chapter 2: The Postulates of the Classical Economics[1] Chapter 3: The Principle of Effective Demand

[edit] Book II: Definitions and Ideas

Chapter 4: The Choice of Units
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Chapter 5. Expectation as Determining Output and Employment Chapter 6. The Definition of Income, Saving and Investment Chapter 7. The Meaning of Saving and Investment Further Considered

[edit] Book III: The Propensity to Consume

Book III moves to cover what causes people to consume, and therefore stimulate economic

activity. In a depression the government, he argued, needs to kick start the economy's motor bydoing anything necessary. In Chapter 10 he says,

"If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disusedcoalmines which are then filled up to the surface with town rubbish, and leave it to private

enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so

being obtained, of course, by tendering for leases of the note-bearing territory), there need be no

more unemployment and, with the help of the repercussions, the real income of the community,and its capital wealth also, would probably become a good deal greater than it actually is. It

would, indeed, be more sensible to build houses and the like; but if there are political andpractical difficulties in the way of this, the above would be better than nothing." (p. 129)

Chapter 8. The Propensity to Consume: I. The Objective Factors Chapter 9. The Propensity to Consume: II. The Subjective Factors Chapter 10. The Marginal Propensity to Consume and the Multiplier

[edit] Book IV: The Inducement to Invest

See also:Keynesian beauty contest

TheMarginal Efficiency of Capitalis the relationship between the prospective yield of aninvestment and its supply price or replacement cost. Keynes says on page 135: "I define the

marginal efficiency of capitalas being equal to that rate of discount which would make the

present value of the series of annuities given by the returns expected from the capital-assetduring its life just equal to its supply price."

Chapter 11. TheMarginal Efficiency of Capital Chapter 12. The State of Long-term Expectation Chapter 13. The General Theory of the Rate of Interest Chapter 14. The Classical Theory of the Rate of Interest Chapter 15. The Psychological and Business Incentives to Liquidity Chapter 16. Sundry Observations on the Nature of Capital Chapter 17. The Essential Properties of Interest and Money Chapter 18. The General Theory of Employment Re-stated

[edit] Book V: Money-Wages and Prices

This book focuses on various theories of unemployment, including Arthur Pigou's.
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Chapter 19. Changes in Money-WagesIn this chapter Keynes demonstrates that with short-term interest rates near zero, lower wages for

all workers (compared to lower wages for a particular group of workers) will not lead to higher

employment. This was to tackle the argument that in depressions, what needs to happen is wage

cuts, to get people to hire labour again.

Chapter 20. The Employment Function Chapter 21. The Theory of Prices

[edit] Book VI: Short Notes Suggested by the General Theory

"It is better that a man should tyrannise over his bank balance than over his fellow citizens and

whilst the former is sometimes denounced as being but a means to the latter, sometimes at least itis an alternative." (p. 374)

"... the ideas of economists and political philosophers, both when they are right and when theyare wrong, are more powerful than is commonly understood. Indeed the world is ruled by little

else. Practical men, who believe themselves to be quite exempt from any intellectual influence,

are usually the slaves of some defunct economist. Madmen in authority, who hear voices in theair, are distilling their frenzy from some academic scribbler of a few years back. I am sure that

the power of vested interests is vastly exaggerated compared with the gradual encroachment of

ideas. Not, indeed, immediately, but after a certain interval; for in the field of economic and

political philosophy there are not many who are influenced by new theories after they aretwenty-five or thirty years of age, so that the ideas which civil servants and politicians and even

agitators apply to current events are not likely to be the newest. But, soon or late, it is ideas, not

vested interests, which are dangerous for good or evil." (pp. 383-4))

Chapter 22. Notes on the Trade Cycle Chapter 23. Notes on Merchantilism, the Usury Laws, Stamped Money and Theories of

Under-consumption

Chapter 24: Concluding Notes on the Social Philosophy towards which the GeneralTheory might Lead

[edit] Reception

Keynes did not set out a detailed policy program in The General Theory, but he went on inpractice to place great emphasis on the reduction of long-term interest rates[2]and the reform of

the international monetary system[3]as structural measures needed to encourage both investmentand consumption by the private sector.

[edit] Criticism

From the outset there has been controversy over what Keynes really meant. Many early reviewswere highly critical.[4]
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The success of what came to be known as neoclassical synthesisKeynesian economicsowed a

great deal to the Harvard economistsAlvin HansenandPaul Samuelson, as well as to the OxfordeconomistSir John Hicks. Hansen and Samuelson offered a lucid explanation of Keyness theoryofaggregate demandwith their elegant 45 degreeKeynesian crossdiagram, while Hicks created

theIS/LMdiagram. Both of these diagrams can still be found in text-books.

Just as the reception of The General Theory was encouraged by the 1930s experience of mass

unemployment, its fall from favour was associated with the stagflation of the 1970s. Althoughfew modern economists would disagree with the need for at least some intervention, policies

such aslabour market flexibilityare underpinned by theneoclassicalnotion of equilibrium in the

long run. Although Keynes explicitly addressesinflation, The General Theory does not treat it asan essentially monetary phenomenon nor suggest that control of the money supply or interest

rates is the key remedy for inflation. This conflicts both withneoclassicaltheory and with the

experience of pragmatic policy-makers[5]

. Furthermore the mainKeynesianprescription for

inflation,incomes policy, has lost credibility.

However, many of the innovations introduced by The General Theory continue to be central tomodernmacroeconomics. For instance, the idea that recessions reflect inadequate aggregatedemand and thatSay's Law(in Keynes's formulation, that "supply creates its own demand") does

not hold in a monetary economy. President Richard Nixon famously said in 1971 (ironically,

shortly beforeKeynesian economicsfell out of fashion) that "We are all Keynesians now", aphrase often repeated by Nobel laureatePaul Krugman.[6]

[edit] Endorsement

Nevertheless, starting withAxel Leijonhufvud, this view ofKeynesian economicscame under

increasing challenge and scrutiny[7]

and has now divided into two main camps.

The majority new consensus view, found in most current text-books and taught in all

universities, isNew Keynesian economics, which accepts theneoclassicalconcept of long-run

equilibrium but allows a role foraggregate demandin the short run. New Keynesian economistspride themselves on providing microeconomic foundations for the sticky prices and wages

assumed by Old Keynesian economics. They do not regard The General Theory itself as helpful

to further research.

The minority view is represented byPost Keynesianeconomists, all of whom accept Keyness

fundamental critique of theneoclassicalconcept of long-run equilibrium, and some of whom

think The General Theory has yet to be properly understood and repays further study.

[edit] Introductions to The General Theory

The earliest attempt to write a student guide was Robinson (1937) and the most successful (by

numbers sold) was Hansen (1953). These are both quite accessible butOld Keynesian. An up-to-

datePost Keynesianattempt, aimed mainly at graduate and advanced undergraduate students, isHayes (2006).Paul Krugman(a New Keynesian) has written an introduction to the 2007

Palgrave edition of The General Theory.[6]
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Malthusian catastrophe

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A Malthusian catastrophe (also phrased Malthusian check, Malthusian crisis, Malthusiandisaster, or Malthusian nightmare) was originally foreseen to be a forced return tosubsistence-

level conditions oncepopulation growthhad outpacedagriculturalproduction. Later

formulations considereconomicgrowth limits as well. The term is also commonly used indiscussions ofoil depletion. Based on the work of political economistThomas Malthus(17661834), theories of Malthusian catastrophe are very similar to theIron Law of Wages. The main

difference is that the Malthusian theories predict what will happen over several generations or

centuries, whereas the Iron Law of Wages predicts what will happen in a matter of years anddecades.

An August 2007 science review inThe New York Timesraised the claim that theIndustrialRevolutionhad enabled the modern world to break out of the Malthusian Trap,[1]while a front

pageWall Street Journalarticle in March 2008 pointed out various limited resources which may

soon limit human population growth because of a widespread belief in the importance ofprosperity for every individual and the rising consumption trends of large developing nations

such asChinaandIndia.[2]

Contents

[hide]

1 Traditional Malthusian theory 2 Neo-Malthusian theory 3 Application to energy/resource consumption 4 Criticism 5 See also 6 Notes 7 References 8 External links

[edit] Traditional Malthusian theory

In 1798, Thomas Malthus publishedAn Essay on the Principle of Population, describing his

theory of quantitative development of human populations:

I think I may fairly make two postulata. First, That food is necessary to the existence of man.

Secondly, That the passion between the sexes is necessary and will remain nearly in its present
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://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Wall_Street_Journalhttp://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-0http://en.wikipedia.org/wiki/Industrial_Revolutionhttp://en.wikipedia.org/wiki/Industrial_Revolutionhttp://en.wikipedia.org/wiki/The_New_York_Timeshttp://en.wikipedia.org/wiki/Iron_Law_of_Wageshttp://en.wikipedia.org/wiki/Thomas_Malthushttp://en.wikipedia.org/wiki/Oil_depletionhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Population_growthhttp://en.wikipedia.org/wiki/Subsistencehttp://en.wikipedia.org/wiki/Malthusian_catastrophe#p-searchhttp://en.wikipedia.org/wiki/Malthusian_catastrophe#head


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state. These two laws, ever since we have had any knowledge of mankind, appear to have been

fixed laws of our nature, and, as we have not hitherto seen any alteration in them, we have noright to conclude that they will ever cease to be what they now are, without an immediate act of

power in that Being who first arranged the system of the universe, and for the advantage of his

creatures, still executes, according to fixed laws, all its various operations.

...

Assuming then my postulata as granted, I say, that the power of population is indefinitely greater

than the power in the earth to produce subsistence for man. Population, when unchecked,

increases in a geometrical ratio.

Malthus 1798, Chapter 1,[3]

A series that is increasing ingeometric progressionis defined by the fact that the ratio of any two

successive members of the sequence is a constant. For example, a population with an average

annual growth rate of, say, 2% will grow by a ratio of 1.02 per year. In other words, the ratio ofeach year's population to the previous year's population will be 1.02. In modern terminology, a

population that is increasing in geometric progression is said to be experiencingexponential

growth.

Alternately, in anarithmetic progression, any two successive members of the sequence have a

constant difference. In modern terminology, this is called linear growth.

If unchecked over a sufficient period of time, and if the ratio between successive sequence

members is larger than 1.0, then exponential growth will always outrun linear growth. Malthussaw the difference between population growth and resource growth as being analogous to this

difference between exponential and linear growth. Even when a population inhabits a newhabitatsuch as the American continent at Malthus' time, or when recovering from wars andepidemic plaguesthe growth of population will eventually reach the limit of the resource base.

(Malthus 1798, chapter 7:A Probable Cause of Epidemics).

[edit] Neo-Malthusian theory

Main article:World populationMain article:Overpopulation

Neo-Malthusiantheory argues that unless at or below subsistence level, a population'sfertility

will tend to move upwards. Assume for example that a country has 10 breeding groups. Overtime this country's fertility will approach that of its fastest growing group in the same way that

will eventually come to resemble
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regardless of how large the constant a is or how small the constant b is. Under subsistence

conditions the fastest growing group is likely to be that group progressing most rapidly inagriculturaltechnology. However, in above-subsistence conditions the fastest growing group is

likely to be the one with the highest fertility. Therefore the fertility of the country will approachthat of its most fertile group. This, however, is only part of the problem.

In any group some individuals will be more pro-fertility in their beliefs and practices than others.

According to neo-Malthusian theory, these pro-fertility individuals will not only have morechildren, but also pass their pro-fertility on to their children, meaning a constant selection for

pro-fertility similar to the constantnatural selectionfor fertilitygenes(except much faster

because of greater diversity). According to neo-Malthusians, this increase in fertility will lead to

hyperexponential population growth that will eventually outstrip growth in economic production.This appears to make any sort of voluntary fertility control futile, in the long run. Neo-

Malthusians argue that although adult immigrants (who, at the very least, arrive withhuman

capital) contribute to economic production, there is little or no increase in economic productionfrom increased natural growth and fertility. Neo-Malthusians argue that hyperexponentialpopulation growth has begun or will begin soon in developed countries.

To this can be added that farmland deteriorates with use. Some areas where there was intensive

agriculture in classic times (i.e., the feudal era) had already declined in population because their

farmland was worn out, long before he wrote.

At the time Malthus wrote, and for 150 years thereafter, most societies had populations at or

beyond their agricultural limits.[citation needed] AfterWorld War II, the so-calledGreen Revolution

produced a dramatic increase in productivity of agriculture, and, consequently, growth of the

world's food supply. In response, the growth rate of the world's population accelerated rapidly,resulting in predictions byPaul R. Ehrlich,Simon Hopkins,

[4]and many others of an imminent

Malthusian catastrophe. However, populations of most developed countries grew slowly enoughto be outpaced by gains in productivity. By 1990, agricultural production appeared to begin

peaking in several world regions.[5]

By the early 21st century, many technologically developed countries had passed through the

demographic transition, a complex social development encompassing a drop intotal fertility

ratesin response to lowerinfant mortality, more education of women, increasedurbanization,and a wider availability of effectivebirth control, causing thedemographic-economic paradox.

Developed and developing countries follow two distinct paths. Most developed countries have

sufficient food supply, low fertility rates, and stable (in some cases even declining) populations.In some cases, population growth occurs due to increasing life expectancies, even though fertilityrates are below replacement. For example, As of 2008,Spainhas approximately 4.6 km2 of

arable land or permanent crops per 1,000 residents, and its average fertility rate is well below

replacement level (1.3 children/woman). Its population has grown less than 50% in the last 40years.[6]The corresponding ratio forNigeriais only 2.1 km2 of arable land or crops per 1,000

residents; Nigerian total fertility rate is 5.0 children/woman, and its population has more than

tripled during the same 40 years. The Malthusian catastrophe appears to have been temporarily
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averted in Spain, although the Neo-Malthusian theory argues that the situation is only temporary;

on the other hand, a significant part of population of Nigeria lives near subsistence levels.

David PimentelandRon Nielsen, working independently, determined that the human population

as a whole has passed the numerical point where all can live in comfort, and that we have entered

a stage where many of the world's citizens and future generations are trapped in misery .

[7]

Thereis evidence that a catastrophe is underway as of at least the 1990s; for example, by the year 2000,

children in developing countries were dying at the rate of approximately 11,000,000 per annumfrom strictly preventable diseases.[8][9]These data suggest that, by the standard of misery, the

catastrophe is underway. The term 'misery' can generally be construed as: highinfant mortality,

low standards of sanitation,malnutrition,inadequate drinking water, widespread diseases, war,and political unrest.

Regarding famines, data demonstrate the world's food production has peaked in some of the very

regions where food is needed the most. For example, inSouth Asia, approximately half of theland has been degraded such that it no longer has the capacity for food production.[9]In China

there has been a 27% irreversible loss of land for agriculture, and it continues to lose arable landat the rate of 2,500 square kilometres per year.[10]

InMadagascar, at least 30% of the landpreviously regarded as arable is irreversibly barren. On the other hand, recent data show the

number of overweight people in the world now outnumbers that of malnourished, and the rising

tide ofobesitycontinues to expand in both rich and poor countries.[11]

On the assumption that thedemographic transitionis now spreading from the developed

countries toless developed countries, theUnited Nations Population Fundestimates that humanpopulation may peak in the late 21st century rather than continue to grow until it has exhausted

available resources.[12]Some have expressed doubt about the validity of the UN projections,

claiming that they are below the projections by others.[9]

The most important point is that none of

the projections show the population growth beginning to decline before 2050. Indeed, the UN"high" estimate does not decline at all, even out to 2300, indicating the potential for a Malthusian

catastrophe.[12]

The actual growth curve of the human population is another issue. In the latter part of the 20th

century, many argued that it followedexponential growth; however, a more recent view is that

the growth in the last millennium has been faster, at a superexponential (possiblyhyperbolic,double-exponential, orhyper-exponential) rate.[13]Alternatively, the apparently exponential

portion of the human population growth curve may actually fit the lower limb of alogistic curve,

or a section of aLotkaVolterra cycle.
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World population from 1800 to 2100, based onUN 2004 projections(red, orange, green) andUSCensus Bureau historical estimates(black).

Historians have estimated the total human population on earth back to 10,000 BC.[14]

The figure

on the right shows the trend of total population from 1800 to 2005, and from there in threeprojections out to 2100 (low, medium, and high).[12]The second figure shows the annual growth

rate over the same period. If population growth were exactly exponential, then the growth rate

would be a flat line. The fact that it was increasing from 1920 to 1960 indicates faster-than-exponential growth over this period. However, the growth rate has been decreasing since then,

and is projected to continue decreasing.[15]

The United Nations population projections out to

2100 (the red, orange, and green lines) show a possible peak in the world's population occurringas early as 2040 in the most optimistic scenario, and by 2075 in the "medium" scenario.
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A chart of estimated annual growth rates in world population, 1800-2005. Rates before 1950 areannualized historical estimates from theUS Census Bureau. Red = USCB projections to 2025.

The graph of annual growth rates (below) does not appear exactly as one would expect for long-term exponential growth. For exponential growth it should be a straight line at constant height,

whereas in fact the graph from 1800 to 2005 is dominated by an enormous hump that began

about 1920, peaked in the mid-1960s, and has been steadily eroding away for the last 40 years.

The sharp fluctuation between 1959 and 1960 was due to the combined effects of theGreat LeapForwardand a natural disaster in China.[15]Also visible on this graph are the effects of theGreat

Depression, the two world wars, and possibly also the1918 flu pandemic.

Though short-term trends, even on the scale of decades or centuries, cannot prove or disprove the

existence of mechanisms promoting a Malthusian catastrophe over longer periods, the prosperity

of a small fraction of the human population at the beginning of the 21st century, and thedebatability ofecological collapsemade byPaul R. Ehrlichin the 1960s and 1970s, has led some

people, such as economistJulian L. Simon, to question its inevitability.[16]

A 2004 study by a group of prominent economists and ecologists, includingKenneth Arrowand

Paul Ehrlich[17]

suggests that the central concerns regarding sustainability have shifted from

population growth to the consumption/savings ratio, due to shifts in population growth ratessince the 1970s. Empirical estimates show that public policy (taxes or the establishment of more

complete property rights) can promote more efficient consumption and investment that are

sustainable in an ecological sense; that is, given the current (relatively low) population growth

rate, the Malthusian catastrophe can be avoided by either a shift in consumer preferences orpublic policy that induces a similar shift.

However, some contend that the Malthusian catastrophe is not imminent. A 2002 study[18]

by theUN Food and Agriculture Organizationpredicts that world food production will be in excess of

the needs of the human population by the year 2030; however, that source also states that
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hundreds of millions will remain hungry (presumably due to economic realities and political

issues).

[edit] Application to energy/resource consumption

Further information:Oil depletion

A bell-shaped production curve, as originally suggested byM. King Hubbertin 1956.

Another way of applying the Malthusian theory is to substitute other resources, such as sourcesofenergyfor food, and energy consumption for population. (Since modern food production andlogistics is energy and resource intensive, this is not a big jump. Most of the criteria for applying

the theory are still satisfied.) Since energy consumption is increasing much faster than

population, and most energy comes from non-renewable sources, the catastrophe appears more

imminent, though perhaps not as certain, than when considering food and population continue tobehave in a manner contradicting Malthus's assumptions.

Retired physics professorAlbert Bartlett, a modern-dayMalthusian, has lectured on "Arithmetic,Population and Energy" over 1,500 times. He published an article entitledThoughts on Long-

Term Energy Supplies: Scientists and the Silent Liein Physics Today (July 2004). For a responseto Bartlett's argument, see two articles on energy and population in Physics Today, November2004,[19]and following letters to the editor.

A further way of analyzing resource limitation is the dwindling area for storage ofsoil

contaminantsandwater pollution. The high rate of increase in toxic chemicals in the

environment (especially persistent organic chemicals and endocrine altering chemicals) is

creating a circumstance of resource limitation (e.g. safe potable water and safe arable land).

[edit] Criticism

Ester Bserupwrote in her bookThe Conditions of Agricultural Growth: The Economics of

Agrarian Change under Population Pressure that population levels determine agricultural

methods, rather than agricultural methods determining population (via food supply). A major

point of her book is that "necessity is the mother of invention".

Julian Simonwas one of many economists who challenged the Malthusian catastrophe, citing (1)

the existence of new knowledge, and educated people to take advantage of it, and (2) "economic
http://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=3http://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=3http://en.wikipedia.org/wiki/Oil_depletionhttp://en.wikipedia.org/wiki/Oil_depletionhttp://en.wikipedia.org/wiki/Oil_depletionhttp://en.wikipedia.org/wiki/M._King_Hubberthttp://en.wikipedia.org/wiki/M._King_Hubberthttp://en.wikipedia.org/wiki/M._King_Hubberthttp://en.wikipedia.org/wiki/Future_energy_developmenthttp://en.wikipedia.org/wiki/Future_energy_developmenthttp://en.wikipedia.org/wiki/Future_energy_developmenthttp://en.wikipedia.org/wiki/Albert_Bartletthttp://en.wikipedia.org/wiki/Albert_Bartletthttp://en.wikipedia.org/wiki/Albert_Bartletthttp://en.wikipedia.org/wiki/Malthusianhttp://en.wikipedia.org/wiki/Malthusianhttp://en.wikipedia.org/wiki/Malthusianhttp://fire.pppl.gov/energy_population_pt_0704.pdfhttp://fire.pppl.gov/energy_population_pt_0704.pdfhttp://fire.pppl.gov/energy_population_pt_0704.pdfhttp://fire.pppl.gov/energy_population_pt_0704.pdfhttp://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-18http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-18http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-18http://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Water_pollutionhttp://en.wikipedia.org/wiki/Water_pollutionhttp://en.wikipedia.org/wiki/Water_pollutionhttp://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=4http://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=4http://en.wikipedia.org/wiki/Ester_B%C3%B6seruphttp://en.wikipedia.org/wiki/Ester_B%C3%B6seruphttp://en.wikipedia.org/wiki/Julian_Lincoln_Simonhttp://en.wikipedia.org/wiki/Julian_Lincoln_Simonhttp://en.wikipedia.org/wiki/File:Hubbert_peak_oil_plot.svghttp://en.wikipedia.org/wiki/File:Hubbert_peak_oil_plot.svghttp://en.wikipedia.org/wiki/File:Hubbert_peak_oil_plot.svghttp://en.wikipedia.org/wiki/File:Hubbert_peak_oil_plot.svghttp://en.wikipedia.org/wiki/Julian_Lincoln_Simonhttp://en.wikipedia.org/wiki/Ester_B%C3%B6seruphttp://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=4http://en.wikipedia.org/wiki/Water_pollutionhttp://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Soil_contaminanthttp://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-18http://fire.pppl.gov/energy_population_pt_0704.pdfhttp://fire.pppl.gov/energy_population_pt_0704.pdfhttp://en.wikipedia.org/wiki/Malthusianhttp://en.wikipedia.org/wiki/Albert_Bartletthttp://en.wikipedia.org/wiki/Future_energy_developmenthttp://en.wikipedia.org/wiki/M._King_Hubberthttp://en.wikipedia.org/wiki/Oil_depletionhttp://en.wikipedia.org/w/index.php?title=Malthusian_catastrophe&action=edit&section=3


14/14

freedom", that is, the ability of the world to increase production when there is a profitable

opportunity to do so.[20]

The economistHenry Georgeargued that Malthus didn't provide any evidence of a natural

tendency for a population to overwhelm its ability to provide for itself. George wrote that even

the main body of Malthus' work refuted this theory; that examples given show social causes formisery, such as "ignorance and greed... bad government, unjust laws, or war," rather than

insufficient food production.[21]
http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-19http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-19http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-19http://en.wikipedia.org/wiki/Henry_Georgehttp://en.wikipedia.org/wiki/Henry_Georgehttp://en.wikipedia.org/wiki/Henry_Georgehttp://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-20http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-20http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-20http://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-20http://en.wikipedia.org/wiki/Henry_Georgehttp://en.wikipedia.org/wiki/Malthusian_catastrophe#cite_note-19

Documents

The General Theory of Employment