David Li Jiatu: the pinnacle of classical political economy (below)

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Li Yiping/Wen

1. Li Jiatu's distribution theory

The focus of Li Jiatu's research is the distribution problem. Obviously, in the economic environment he faced, it is difficult to develop the distribution problem well, and it is difficult to develop in the economy and society. The distribution of Li Jiatu refers to how social products are divided between workers, capitalists, and landlords. Li Jiatu's economics is in the era of the era of machinery. Most of the newly -born industrial bourgeoisie exists in the form of entrepreneurs. They represent advanced productivity, break the soil, and strive to move forward. The landlord class has a large amount of land and is a vested interest. Li Jiatu believes that the distribution should be conducive to the industrial bourgeoisie rather than the landlord class.

Li Jiatu believes that salary is the price of labor. According to the theory of labor value, the value of labor should be determined by the labor amount consumed by production labor. Therefore, the value of labor is neither the currency obtained by the workers nor the living materials obtained by the workers, but to maintain the value of the living materials necessary for workers and their families under certain social conditions. In this way, although Li Jiatu does not know the difference between labor and labor, after a roundabout road, the value of labor is actually equivalent to the value of labor. Marx wrote: "If you don't talk about confusing labor and labor, then Li Jiatu correctly stipulates the average salary, or the value of labor."

Li Jiatu further proves why the value of labor (force) is the value of the minimum living materials of workers. To this end, he proposed the natural price and market price of labor. The natural price of labor depends on the price of the food, necessities and petty products required by the workers and their families. Although the market price of labor (force) will fluctuate around natural prices, the overall trend is to continue to be adapted to natural prices. If the supply of population and labor increases, the market price of labor will inevitably decrease, and otherwise it will increase.

Second, Li Jiatu's land rental doctrine

Li Jiatu believes that land rent is part of the land products that are paid to the landlord for the original and destroyed productivity of the land. According to Li Jiatu's opinions, the existence of land rent must have two conditions, namely the limitedness of the land and the difference in the degree of fertilization of the land. He said that if all the land has the same characteristics, the quantity is unlimited, and the quality is exactly the same, then there is no need to pay the cost when using it, unless it is special in location.

Li Jiatu believes that due to the increase in demand for agricultural products, it is necessary to farm the land that is getting worse and worse. Therefore, the price of agricultural products is determined by agricultural products in inferior places. In the inferior places, excellent places will form a level difference, and this is the level of leases. Following, Li Jiatu inspected the class lease Ⅱ, that is, adding the same amount of capital and labor on the same land, and the additional capital and labor are different from the efficiency of the additional capital and labor before. The more, the decrease in its reward shows.

In Li Jiatu's land rental doctrine, there are only levels of landless leases and no absolute rent. He said, "Land with very small fertility must not produce any land rent; the common land in fertility can provide medium -to -land rent because of the increase in population; land with large fertilizers can provide high land rent." According to Marx's political economics, the absolute land rent is due to the existence of the private ownership of the land, so renting any land must be rented. Li Jiatu denied the absolute rent because he could not explain the formation of absolute rent. Marx believes that the social value of agricultural products determined by the production conditions of inferior places is an excess profit of the average profit of general production prices. Due to the existence of land privacy, the excess profits here do not participate in the average of the profit, but are retained in agriculture and paid to the landlord in the form of absolute land rent.

Third, the argument between Malassas and Li Jiatu

Following the issue of distribution, Li Jiatu and Malassas have launched a fierce debate. Thomas Robert Marcus (1776-1834) was born in a land-aristocratic family in Sati, Britain, and studied philosophy and theology at the University of Cambridge. Marcus is a representative of the landlords of the British bourgeoisie of the 19th world. His economic theory stood on the position of the land aristocracy against the industrial bourgeoisie, and the landlord and the bourgeoisie were opposed to the proletariat.

What makes Malsas famous for his population theory. The Population theory of Marsas was the product of the sharpness of the British social class in the 18th century. In the second half of the 18th century, the rural areas of the United Kingdom deprived of farmers' land were approaching the completion, and the industrial revolution began. The role of circle movement and industrial revolution has caused a large number of unemployed people.

The population theory of Malassas is based on the following two premises: first, food is necessary for human survival. Second, the lust between gender is inevitable and almost maintains the status quo. Starting from this, Marcus believes that the population increases in geometric levels, and the number of living materials increases according to the number of active surgery, so the population must be controlled. Methods to control the population include poverty, war and moral suppression. Marcus asserted that the salary level of workers depends entirely on the population of workers. He believes that living information is limited. When the growth of the worker's population exceeds the number of living materials and the labor market is too required, wages will decline. The decline in wages can cause poverty, which can reduce fertility. The academic community calls this "the law of iron wages".

Marcus opposed the "Founding Poverty Law" and opposed the poor of the poor to obtain relief and survival. He believed that the relief poor would only make the poor more and more and violate the laws of natural population. He wrote: "A person born in the world he has been occupied, if he cannot get food and clothing from his parents who have legitimate demands, if society does not need his labor, then he has no rights to require the minimum amount of minimum requests. In fact, he has no right to live there. On the grand feast of nature, there is no seat. Nature calls him to leave and will quickly execute her order. If he is not in her, he is not in her. The words of some guests ". David Lee Jiatu represents the interests of the new industrial bourgeoisie, and he and Malassas started the argument. Li Jiatu believes that in the case of continuous increase in food prices, the ultimate benefit can only be the landlord class. Li Jiatu pointed out that the capitalist -he is the first person to be responsible for society -but now he is in a situation of being attacked on both sides. First, due to the increase in grain price, he will pay a higher salary. Secondly, as the increasingly worse land is put into use, the rent of high -quality land is increasing, so the landlord's situation is becoming more and more superior. The poor working class will always struggle on the edge of hunger, and every child with increased wages is disappeared. Li Jiatu demanded the abolition of the "Grain Law". The "Grain Law" prohibits imported cheap food, maintains high domestic food, and maintains all the interests of the land. Li Jiatu's new industrial bourgeoisie said at the time, which was roughly equivalent to the entrepreneur of the private economy we talked about.

In fact, Li Jiatu and Marcus are just out of pursuit of economic sciences and respect for a kind of economics. They are actually very good friends. Marcus once entrusted Li Jiatu to operate stocks on behalf of them. Marcus once wrote to Li Jiatu, "Unless it is wrong, or it brings you inconvenience ... I still take the opportunity to sell you as soon as possible so as to earn how much I can make. His own stock was sold until the best time.

Interestingly, although Marsas' economic thoughts represent the interests of the landlord class, they did not have much land, and Li Jiatu opposed the interests of the land owner, but had a lot of land. Marcus wrote: "Some strange is that Li Jiatu is a large amount of rented income, but he will underestimate the importance of the landlord in the country. However, I have never had any income in the local rent, but I may have to be blamed and think that I have passed. The importance of the landlord is estimated. " They are loyal to their academic views. Li Jiatu said in the last letter to Malassas, "Dear Marsas, now my job is completed. Like other controversies, after many discussions, we still express their opinions and control. There is no friendship that affects our friendship. "

 "Principles of Political Economics and Taxation"


[English] David Li Jiatu | 大
Guo Dali Wang Yan | Translation
Translation Lin Publishing House
October 2014 

Fourth, Li Jiatu's comparative cost doctrine

Li Jiatu developed Smith's comparative advantage theory. Adam Smith's "Research on the Nature and Causes of National Wealth" began to discuss from division of labor, division of labor and exchange is a market economy. The principle of division of labor is a relatively advantage. Smith gave an example to clarify the comparative advantage. He said that in the hunting society, when a person began to hunt and built bows and arrows, he discovered that he was better at making bows and arrows. He specially made bow and arrows to change prey more efficient than both. The other person started to hunt and build bows and arrows at the beginning. Later, he found that he was better at hunting. He hunted and changed the bow and arrows to be more efficient than both. As a result, they each played their own comparative advantages and then exchanged it. This not only made their "cakes" greater, but also the cakes of the entire society made greater. Smith extended the exchange between individuals to the exchange between the country. I believe that all countries have their own comparative advantages and have their own position in international division of labor. If the cost of producing from other countries is lower than that of the country, then the country should not produce it. It is more cost -effective to use the money exchanged for the money that you are best produced to buy other countries. Therefore, he not only advocates the domestic free market economy, but also the international free trade.

Li Jiatu went on and developed Smith's comparative advantage theory, making it a famous "comparative cost" doctrine of dominating international trade. Smith talked about absolute advantage, Li Jiatu talked about a relatively comparative advantage. For example, Li Jiatu said that if both people can make shoes and hats, one of them is stronger than the other in both professions. However, only one -five or 20 % stronger when making a hat -making, and one -third or 33 % stronger when making shoes. Personal exchanges, the output of two people can be done greater. In Li Jiatu's view, it is reasonable for individuals, and it is also reasonable for the country. Free trade should be implemented between countries.

In fact, this comparative cost advantage for free exchange between individuals is the premise of extending to the country's mutual assistance and friendship between the two countries. Once it is involved in national security, it is difficult to trade freely. If it is really a free trade with its respective advantages, China's trade will not have a lot of surplus compared to the United States: we have our own comparative advantages to replace the US dollar. We are willing to use these dollars to buy high -tech products in the United States. If the United States is willing to sell, it will not have a large number of deficit compared to our trade. The key to the problem is that the United States excuses national security and is unwilling to sell these products with comparative advantages. The suitable law between individuals of a country is not necessarily suitable for the country. The sacred contribution of Li Jiatu made himself the pinnacle of classical economics, and the economics was welcomed by generally, so that when the housewives hired a family female teacher, they would ask whether they would teach Li Jiatu's economics to the children.

(The author is a member, professor, and blog director of the Academic Committee of the Academic Committee of the Political Economics Research Center of Renmin University of China with Chinese characteristics of Chinese characteristics)

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