Mill's Eclecticism
Mill’s
eclecticism refers to his approach to incorporating various ideas and
perspectives into his economic thinking. He was not bound by rigid adherence to
a single economic theory or school of thought but rather drew from different
sources to develop his own unique perspective.
- · Challenge
to
the
theories of economists like Ricardo,
- · Incorporation of Smithian methodology
- · Acceptance
of Comte’s view
Mill’s eclecticism allowed him to bring a
broad intellectual perspective to economics and make original contributions to
the field.
Mill's developments to the classical
Ricardian framework
Revision
of Classical Economic Theory:
Mill
made significant reformation to classical economic theory, particularly in
response to criticisms of the Ricardian model. He incorporated new developments
into the Ricardian framework, while also advocating for a continuous
reexamination of the relevance of theory to facts.
The
distinction between Laws of Production and Laws of Distribution:
Mill
emphasized the distinction between the immutable laws of production and the
changeable laws governing the distribution of personal income. He sought to
establish consistency between economic theory and policy application, aligning
himself more with the tradition of Adam Smith than with Ricardo.
Cost
of Production Theory of Value:
Mill rejected the Ricardian labor theory of
value and developed a long-run cost of production theory of value that included
both labor and capital costs. This theory accounted for the role of both
factors in determining value.
Incorporation
of Smithian methodology
Mill’s
views on the role of theory and his contextual analysis align him more with the
Smithian view rather than Ricardo’s. Mill believed that theoretical outcomes
should not be accepted uncritically and that other factors, such as custom, may
modify theoretical predictions in the context of a given society. This approach
distinguishes him from Ricardo and reflects Smith’s belief that economic policy
should be based on a contextual analysis of how theoretical propositions work
out in a given social context. Mill’s eclecticism in comparing capitalism and
communism is also a reflection of this Smithian-type contextual analysis.
Acceptance
of Comte's view
Mill’s
eclecticism is evident in his acceptance of Comte’s view that economic activity
must be studied in the broader context of all human social activity. He
recognized that economic theory alone cannot fully explain human behavior and
social phenomena. By incorporating Comte’s perspective, Mill sought to develop
a more comprehensive understanding of economics that takes into account the
complexities of human society.
J.
S. Mill's eclecticism and open mindedness set him apart from strict classical economists.
He sought to bridge the gap between theory and policy, advocating for social
reform while recognizing the benefits of individual freedom and market competition.
Written by:
K A D Ishini Sulochana Wanigarathne
References
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