Showing posts with label Mill's Theory. Show all posts

Sunday, November 5, 2023

1.John Stuart Mills.

Biography.

· Born-: On 20^th May in 1806.

· Place-: at 13 Rodney street in pentonvile, London.

· Education-:

§ age of 3 years he studied greek.

§ Age of 8 he started studying Latin.

§ He mastering Mathematics, Chemistry, Physics & Logics.

· Died-: On 7^th May in 1873.

Ø J.S Mills is economist and also English philosopher, politician and civil servant. He is a member of Liberal Party.

Ø Mills was essentially a social philosopher because he improving role of the individual in the society.

Ø Mills was a classical liberal and a social performer. He died 07^th May in 1873.

Ø J.S Mills done by many notable works during his periods.

Ø Including principles of economy, autobiography, examination of sir William Hamilton’s philosophy, on liberty, a system of logic, the subsection of women & utilitarianism.

Ø He did believe in the superiority of socialism in which economic production would be driven by worker owned comparatives.

Ø But he also believed in free enterprise competition & individual initiative.

Impact of world from Stuart Mills

J.S Mills profoundly influenced the shape of nineteenth century British thought &political discourse.

Mill argues a number of controversial principles. He protects radical empiricism in logic & mathematics

In the subsection of women, he compares the legal status of women to the status of slaves and argues for equality in marriage under law

Written by,

J.H.H Dilhara

J.G.A.V. Anupama

2. Essence of Mill’s Theory.

John Stuart Mill was an English philosopher, political economist, politician, and civil servant. One of the most-influential thinkers in the history of classical liberalism, he contributed widely to social theory, political theory, and political economy.
He was introduced to many theories to the world, including Utilitarianism, Individual Liberty, Principles of Political Economy, Women’s Right, Representative Democracy,
Education, Social Welfare & Government Intervention and Harm Principle. Among these theories the essence of the mill’s theory is “Utilitarianism & On Liberty”.

UTILITARIANISM.

This theory was founded by Jeremy Bentham, and this was developed by J.S Mill.

A utilitarianism would not care whether an action is done out of deception, lie or manipulation if it produces maximum benefits to many people.

Model of Utilitarianism,

Mills disagrees with Bentham.
Mill said, we can’t calculate the amount of pleasure or pain that an act produces.
Basic of morality

Basic Principles of Utilitarianism,

equal benefit or greatest happiness of the people.

LIBERTY.

Jhon Stuart Mill is universally regarded as the champion of liberty.
His views regarding liberty are expressed in his book “on Liberty” which was published in (1859).
A liberal classical economist, Mill was an advocate of individual rights, progressive social policies & utilitarianism. Mill believed that economic philosophy, along with social awareness, should play a role in politics & shape public policy.
Mill’s best-known works include principles of political economy, utilitarianism, on Liberty and subsection of a women. The purpose of life is happiness.
There is no happiness without Liberty. Thus, Liberty is a precondition for a Utility & has priority over utility.
There are two traditions in liberalism,

Tradition of utility.
Tradition of natural rights.

Written by,

J.H.H Dilhara.

Reference; https://en.m.wikipedia.org/wiki/John_Stuart_Mill

3.Jeremy Bentham

Jeremy Bentham’s Influence

Biography

Ø Born-: 15^th February 1748. London, England.

Ø Died -: 06^th June 1832.

Ø Region -: Western philosophy.

Ø School -: Utilitarianism Legal Positivism Liberalism Radicalism Epicureanism.

Ø Main interests -: Political philosophy, philosophy of law, ethics, economics Notable Ideas Principle of utility Felicific calculus.

Ø Influences -: Protagoras, Epicurus, John Locke, David Hume, Montesquieu, Helvetius, Hobbes, Beccaria, Adam Smith.

Ø Influenced -: John Stuart Mill, Thomas Hodgskin, William Thompson, Henry Sidgwick, Michel Foucault, Peter Singer, John Austin, Robert Owen, H. L. A. Hart, Francis Y. Edgeworth, A. V. Dicey, Étienne Dumont.

Jeremy Bentham’s Theory

Jeremy Bentham’s is best known for his theory of utilitarianism, which is moral and ethical framework that focuses on maximizing overall happiness and minimizing suffering. According to Bentham, the right action is the one that produces the greatest number of people. He believed that individuals should act in a way that promotes the general welfare and that laws and institutions should be designed to maximize happiness. Bentham’s theory has had a significant impact on various fields, including ethics, politics and law.

Influenced of John Stuart Mills theory

There are two parts of the Benthamite system distributed him in particular.

· Dogmastism in the view of the philosophical radicals, particularly evident in their insistence.

· Distributing aspect of the philosophical radicals was that in some ways there were not radical enough.

References

1. https://utilitarianism.net/utilitarian-thinker/jeremy-bentham/#:~:text=Jeremy%20Bentham%20is%20often%20regarded,%2C%20Priestley%2C%20Helv%C3%A9tius%20and%20Beccaria

2. https://iep.utm.edu/jeremy-bentham/

written by

J.G.A.V Anupama

4.

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

· https://en.wikipedia.org/wiki/John_Stuart_Mill

5.Mill’s social philosophy

A blend of classical liberalism and social reform, John Stuart Mill's social philosophy reflects his open-mindedness and intellectual evolution. Mill contributed greatly to 19th century political thought and social reform. His social philosophy includes several key elements:

· Individual Liberty: At the heart of Mill's philosophy is the principle of individual liberty. He strongly advocated the freedom of individuals to think, speak and act without their actions harming others. His famous statement, "The only object which can rightly exercise force against any member of the civilized community against his will, is to prevent injury to others," underscores this principle.

· Utilitarianism: Mill's social philosophy combines elements of utilitarianism, an ethical theory that seeks to maximize overall happiness while minimizing suffering in society.

· State intervention: Although an advocate of individual liberty, Mill recognized legitimate reasons for state intervention. He believed that the state had a role to prevent harm to others and promote social welfare. However, he was deeply concerned about potential state abuse, setting a high bar for intervention through his "harm doctrine".

· Practical Implications: Mill's philosophy has practical significance for contemporary society, emphasizing the protection of freedom of speech, thought and expression, which underscores the importance of strong civil liberties.

· Equality of gender: With his wife Harriet Taylor Mill wrote a work called "The Subject of Woman". John Stuart Mill advocated reforming the legal and social status of women by highlighting the fundamental importance of gender equality.

Mill's social philosophy, expressed in such seminal works as "On Liberty" and "Utilitarianism," has left a lasting mark on modern political thought. At its core, Mill's philosophy championed individual liberty, the pursuit of happiness, and the minimization of government interference in the lives of citizens.

In 1865, Mill's reputation as a logician, philosopher and political economist culminated in his appointment as a Member of Parliament. Although his time in Parliament was relatively short, his influence remained undiminished in retirement, cementing his legacy as one of Britain's most influential thought leaders. Mill's unique blend of liberalism and social reform continues to inspire contemporary debates about individual rights, social well-being, and the role of the state.

Written by: H.H.Nethmini

References:

https://www.stbenedicts.org.uk/blog/?pid=3&nid=7&storyid=502#:~:text=Mill%20argues%20that%20for%20society,Mill's%20liberal%20and%20utilitarian%20views.

https://en.m.wikipedia.org/wiki/John_Stuart_Mill

6.Mill’s Millian Economics

Millian Economics refers to the modifications and contributions made by John Stuart Mill to the mainstream of orthodox economic theory. Mill, influenced by both orthodox and heterodox thinkers, critically approached technical economic theory. He made fundamental changes to Ricardo's theory of value and recognized the importance of historical and institutional circumstances in economic analysis. Mill emphasized the role of both competition and custom in governing the distribution of income, criticizing the orthodox English economists for neglecting the role of custom. He also differentiated between the laws of production (which are fixed and natural) and the laws of distribution (which are influenced by social and institutional arrangements). Mill's contributions to economic thinking included integrating questions of social philosophy into economic analysis and differentiating between the laws of production and distribution.

In his work "The Subjection of Women," published in 1869, John Stuart Mill expressed his long-held views on the equality of the sexes. He argued that the existing social relations between men and women, which involved the legal subordination of women, were fundamentally wrong and hindered human improvement. Mill advocated for the replacement of this principle with one of perfect equality, where neither sex held power or privilege over the other. Despite facing hostility for his views, Mill remained committed to advocating for women's rights.

He recognized that theoretical predictions may be modified or even negated by social forces, and therefore, economic theory must be tempered by an understanding of the specific social context in which it is applied. Mill emphasized the importance of considering both abstract theory and institutional-historical material in order to gain a comprehensive understanding of economic phenomena. This contextual analysis was a departure from the purely theoretical approach of classical economists like Ricardo.

WrittenBy:W.J.K.V.Tekla Tharukshi

Reference: https://www.econlib.org/library/Mill/mlP.html?chapter_num=1#book-reader

7.John Stuart Mill's theory of value

John Stuart Mill's theory of value

John Stuart Mill's theory of value and relative prices presents a departure from Ricardo's labor theory of value. Mill emphasized the continuity between his theory and the classical tradition. He proposed a cost of production theory of value, where money costs reflect the real costs of labor and abstinence. Mill and Senior had comparable theories of value, though Mill abandoned the search for an absolute value and focused on explaining relative prices. He recognized that land rent could be a social cost when alternative land uses exist.

Mill categorized commodities into three groups based on supply elasticity. Rare, Manufacturing and Agriculture. He argued that prices depended on cost of production for manufactured goods with perfectly elastic supply, while agricultural goods' prices depended on cost in the least favorable conditions due to increasing costs. He applied the principle of diminishing marginal returns to agriculture but not to manufacturing. Although he acknowledged that both utility and difficulty of attainment were necessary for a commodity to have a price, his terminology sometimes obscured the application of supply and demand laws to all three commodity groups.

Mill discussed equilibrium prices and recognized how competition equalized demand and supply, resulting in price adjustments. He did not use mathematical equations but laid the foundation for supply-and-demand functions. Mill made original contributions to value theory in areas like non-competing labor markets, pricing for firms producing multiple products in fixed proportions, rent as a price-determining factor when land has alternative uses, and economies of scale. He believed that value theory was complete by his time.

Despite some humorous criticism of his belief that the theory of value was complete, it can be argued that our understanding of supply and demand in competitive markets hasn't fundamentally changed since Mill, although more technical advancements and insights have been made. Mill's main gap was his inability to analyze less-than-perfectly competitive markets, a gap that some argue still exists today.

Written by,

K.P.P.Madusanka

(Oxford University Press, 1981)

References

Oxford University Press. (1981). John Stuart Mill on value. The Cambridge Journal of Economics,(67-69).

8.John Stuart Mill’s trade theory

The economists presented many trade theories between the countries. Key among them is Recardo’s theory. But Ricardian failure to determine the exact rate of international exchange between the two countries.

Therefore, John Stuart Mill presented RECIPROCAL DEMAND THEORY. It derives from Recardo’s Comparative theory.

“Reciprocal demand is two nations relative strength and elasticity of demand for each other’s commodity in respect of their product.”

This model buildup on some assumptions.

· The trade takes place between two countries, A and B.

· Trade is in two commodities.

· In both countries the production is governed by constant return to scale.

· The trade between two countries is governed by the principle of the comparative costs.

· The pattern of demand is similar in two countries.

· There is perfectly comparative condition in the market.

· There is no restriction on trade and government follows a policy of laissez faire.

· There is full employment of resources in both the countries.

· The exports of each country are sufficient to pay for its imports.

· Mill has considered that amount of labor is fixed, and different units of goods are produced with this fixed amount of labor.

· Trade is based on comparative advantage between both countries.

The reciprocal demand measure through offer curves. Therefore, offer curves refer as reciprocal demand curve.

OA= domestic term of trade of Germany

OB= domestic term of trade England

OE=England’s offer curve

OG= Germany’s offer curve

OR=International Term Of Trade Line

Shaded area = No trade Zone

Output Produced With Fixed Labour Units

Mill’s theory of reciprocal demand can be explained on the basis table.

Country	Units of wine	Units of cloths
England	10	10
Portugal	6	8

Specialization

Based on comparative advantage

England

Portugal

Specialize in Wine.

Export Wine.

Import of Cloth

Specialize in Cloth.

Export Cloth.

Import of Wine.

Domestic Term of Trade

England’s Domestic term of trade

1W=1C

Portugal’s Domestic term of trade

3W=4C or 1.5W=2C

0.75W=1C

Gains from trade

England must sacrifice 1W for producing 1C.

If England must sacrifice less than 1W by importing 1C then international trade will be in favor of England.

Germany can produce only 0.75W by sacrificing 1C.

If Portugal gets more than 0.75W by exporting 1C then international trade will be in favor of Portugal.

The theoretical structure of J. S. Mill’s theory of reciprocal demand rests upon the foundation of Ricardian principle of comparative cost.

However, he could introduce exchange rate theory and identified who will benefit from it.

Written by S. H. C. Oshadhi

Reference :

(H.G.MANUR, 1995, pp. 3-10)