1. “The real tragedy of the poor is the poverty of their aspirations.”

2. CLASSICAL ECONOMICS
By: Brianna Snyder

3. Classical Economics Overview
Were influenced by Wealth of Nations written by Adam Smith
Ideas aligned with the laissez-faire policy
Thought government should only perform important functions
Maintain a currency, enforce contracts, protect property, etc.
Favored economic growth through competitive free enterprise
The beliefs of the economists mostly appealed to the middle classes

4. Malthus on Population One of the most influential writers
Argued that nothing could improve the condition of the working class
Published the first edition of Essay on the Principle of Population in 1798
Argued that population would eventually exceed the food supply
The human population grows geometrically, but the food supply only grows arithmetically
Argued the only ways to prevent this disaster was through reducing the population growth through late marriage, chastity, etc.
Estimated that the situation of the working class would only worsen
If their wages were raised, these workers would have more children, which would then consume the extra wages and food

6. Ricardo on Wages Published Principles of Political Economy in 1817
Transformed Malthus’s ideas into the “iron law of wages”
If wages were raised, parents would have more children
Their children would then enter the labor market > more workers and lower wages
When the wages were lowered, the working class would then produce fewer children
Because of the few amount of children entering the labor market, wages would then rise > never ending cycle
This argument backed employers’ decision to not raise wages and supported the opposition of labor unions

7. Government Policies Based on Classical Economics
France
Leaders of the July Monarchy told the French to be self-sufficient and enrich themselves
The July Monarchy witnessed the construction of major capital-intensive projects such as roads, canals, and railways
Germany
In 1834, all of the major German states, with the exception of Austria, formed the Zollverein, or free trading union
German economists argued for this approach to economic growth

8. Government Policies Based on Classical Economics Cont.
Britain
Jeremy Bentham
Utilitarianism
the greatest happiness for the greatest number
Published Fragment on Government and The Principles of Morals and Legislation
Argued that the application of reason and utility would remove the legal clutter that prevented justice from being realized

9. Poor Laws
Followers of Jeremy Bentham passed the Poor Laws via the House of Commons
Government set out to make poverty the most undesirable of all social situations
Established workhouses which were seen as more unpleasant than life outside
Acted as an incentive to motivate poverty-stricken citizens to seek steady employment

10. The Repeal of the Corn Laws
Organized by manufacturers, the Anti-Corn Law League, sought to repeal the Corn Laws for more than 6 years
This repeal would abolish the tariffs protecting the domestic price of grain
This repeal was influenced by the Irish famine
This repeal was the zenith of the lowering of British tariffs that had begun during the s
Marked the opening of an era of free trade that would continue until the twentieth century