Sismondi
SISMONDI & MALTHUS
J.C.L. Simonde de Simondi (1773-1842) originated more fundamental economic
concepts and theories than many economists of wider and more enduring fame -
was Sismondi who first developed the theory of equilibrium aggregate income,
an algebraic growth model, and who anticipated more celebrated economists on
a number of points: e.g. although Keynes lauded Malthus' 'Principles of
Political Economy' as a forerunner of his own 'General Theory', Marx was
perhaps closer to truth when he cynically characterized Malthus'
'Principles' as merely the "English translation" of Sismondi. (In his
'Theorien über den Mehrwert', 18?). Whatever, Sismondi generally considered
the ally of Malthus in his battle with economic ideas of Ricardo, despite
their hugely differing positions on number of important issues.
Sismondi was one of the first critics of capitalist, liberal economic
system, along with Ricardo and Malthus - however, he differed from them by
(from 1815) advocating state intervention in the economic process, while 2
English economists - despite knowledge of social evils caused by economic
laisser faire - stood by principles of their master Adam Smith who rejected
every kind of state intervention. His famous "conversion" from classical
economics to support for state controls and intervention to combat results
of overhasty mechanization and ruthless selfishness of the entrepreneurial
class was brought about by profound shock over conditions in England, plus
influence of Robert Owen - latter's 'Observations on the Effect of the
Manufacturing System' appeared in 1815, and Sismondi met him personally in
Paris in 1818. Sismondi refused to admit himself a socialist however:
considered idea of social equality and equal distribution of wealth as a
utopian dream, and opposed revolution - reason why Marx and Engels in
'Communist Manifesto' disdainfully classed him with "petty-bourgeois
Socialism". Although Sismondi's proposals do not add up to a rational and
logical system, they do contain germs of future social policy and labour
legislation - was one of first to point to terrible position of workers,
esp. women and children - and for need for protection for them and their
wages. Basically was a republican ("never a democrat") - believed in equal
protection and equal opportunity, but not equal conditions.
Sismondi's break with classical tradition came in 1815, when he wrote an
article, "Political Economy", for the 'Edinburgh Encyclopedia' in which he
presented the skeleton of the argument that was later fleshed out in his
'Nouveaux Principes' (1819), and repeated later in his 'Etudes sur
l'économie politique'. In particular, Sismondi attacked the dominant
Malthusian population theory of his time, questionning the famous "ratios"
of food and population growth, not simply on empirical grounds but because
he had detected fatal ambiguity in M.'s shifting use of the word
"tendencies" - worked out that in fact there wasno tendency for man to
increase faster than his food supply
Although from 1815 on different sides of the economic fence, Malthus and
Sismondi frequently corresponded - and met in April 1819 when Sismondi in
England, having recently married English woman Jessie Allen (1777-1853).
Along with George Ticknor and Lord John Russell, Malthus and Sismondi paid
visit to Sir James Mackintosh (he married to Sismondi's wife's sister,
Catherine Allen) at Mardocks, near Ware - colleague of Malthus at East India
College, Haileybury, where Malthus prof of political economy; hence, Malthus
and Sismondi linked by economics, and by friendship/family connections with
Allens/Mackenzie.
Malthus and Sis. got on very well - both originally great admirers of Adam
Smith (Sis. still regarded himself as a disciple, even after developing his
heretical views, which he saw as "modifications" or "complements" to Smith's
system - Sis. greatly admiring Smith's use of a combination of both facts
and theory), and kept up friendship - Sismondi in particular continued
always to honour his adversaries and reserved special affection for his
greatest adversary, Ricardo.
Almost total neglect of Sismondi's ideas remains a mystery: in S.'s own
view, it was due to his attacking a dominant system which had an attractive
symmetry, determinacy, and comprehensiveness. Was right to some extent - it
needed a system to beat a system, and his rambling examples and shifting
terms make it difficult to see the system underlying it all. Another major
factor was Sismondi's intellectual isolation - he belonged to no school in
economics and his policy positions put him at opposite end of political
spectrum from the "general glut" economists such as Malthus, Lauderdale and
Chalmers, whose proposals involved favouring landlords, government
sinecurists, and fundholders in the national debt, rather than Sismondi's
"proletarians". Moreover, although the basic Sismondian analysis and that of
Malthus are practically identical as theory, Malthus was never as much a
promoter of Sismondi as Sismondi was of him, possibly because Sismondi
preceded him into print with ideas which Malthus already held. . . .
Sismondi received equally shabby treatment from Karl Marx and his followers,
who owed several ideas to Sismondi. Marx's voluminous 'Theorien über den
Mehrwert', the first great history of economic thought, deliberately omitted
Sismondi [on grounds that a study of Sis. would have to come after a
discussion of competition and credit], although covering other economists
who were even less well known, and he was dismissed with patronizing
references elsewhere in Marx . . . Sismondi's independence and distrust of
rigid systems - perhaps born of his experiences with French Revolution and
the later reactions - made him unwilling to raise a banner or to fall in
behind anyone else's banner. He was simply a man who sought truth and tried
to deal with the sufferings he saw around him. This made his name and his
doctrines of little use to leaders of contemporary crusades or founders of
dogmatic movements." (Sowell, p. 88)
Bit on Mackenzie's - where Malthus and Sismondi were introduced:
In 1798 James Mackenzie (long article in DNB), aged 33, made 2nd marriage,
to Catherine Allen, who was known in some circles as the bluest of
blue-stockings; was one of nine daughters whose father, John Allen snr, is
alleged to have thrashed them (afterwards) if they did not talk sufficiently
brilliantly at dinner to amuse the guests. Sister Jessie married Sismondi,
while 2 other sisters married Josiah and John Wedgwood.
In 1798, with his brother-in-law John Allen jr, best friend Richard Sharp,
Samuel Rogers, Bobus Smith, and fellow-barrister James Scarlett (later Lord
Abinger), Mackintosh founded a dinner-club known as "The King of Clubs" and
which became famous for good talk. Then, in 1799, Mackintosh became more
widely known for his 39 lectures on 'The Law of Nature and Nations', which
delivered February-June in the Hall of Lincoln's Inn, attended by full house
of 150. "King of Clubs" flourished, and was afterwards joined by such men as
Lord Holland, Brougham, Romilly, Sydney Smith, and Ricardo - Malthus himself
did not become a member until 1812, but was not known as a shining
conversationalist, whereas Mackenzie was renowned for his great conversation
and locquacity.
Sir James' notable art of conversation was not, however, appreciated by
everyone, esp. his wife - according to her sister, Jessie Sismondi,
Catherine Mackenzie "could neither make herself nor others happy"; plus JS
also wrote of Sir James's wasted life, and how "he loved passionately and
fondly only one person in the world [his wife] and she never could love him,
though he was the only person in the world that truly loved her". Instead,
CM immersed herself in helping poor - shared some of concerns of
brother-in-law Sismondi, and got on well with him: campaigned against
slavery, child labour, and animal cruelty among other things. In 1829, Lady
Mackintosh "much out of health" and, according to her sisters, suffering
greatly from Sir James's "increasing loquacity" with old age, set out in
autumn 1829 to visit the Sismondis at Chene, Geneva with "some vague notion
of never returning". She died at Sismondis' house at Chene on 6 May 1830.
In 1817, Mackenzie made professor of law at East India College in 1817 and
moved to Mardocks, and was here in 1819 that Sismondi and Malthus met (among
other places).