Published in 1798 by the English clergyman Thomas Malthus, *An Essay on the Principle of Population* put forward the pessimistic viewpoint that technological progress could not bring about a lasting increase in the standard of living.

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Thomas Robert Malthus was an English clergyman whose influential 1798 work, *An Essay on the Principle of Population*, introduced a simple but powerful economic model. This model was based on the idea that a feedback loop connects population size to living standards: agricultural output determines living standards, which in turn affects population growth. From this, Malthus concluded that any sustained increase in income per capita was impossible, presenting a pessimistic view on economic progress.

Thomas Malthus

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CORE Econ - The Economy 2.0: Microeconomics

Malthus's model is a simplified framework for explaining the relationship between employment and output. It is constructed using core economic concepts that are widely applicable, particularly the production function and the diminishing average product of labor. The theory posits two key relationships: first, that agricultural output is determined by the size of the workforce, and second, that living standards influence population growth. The interplay of these elements creates a feedback loop that, according to the model, traps income at a subsistence level.

Malthusian Model: Core Concepts and Economic Relationships

The Malthusian cycle was not permanent. The rapid technological advancements and the increasing reliance on non-renewable resources during the Industrial Revolution caused productivity per person to grow at an unprecedented rate. This rapid growth in technology was the key to breaking the Malthusian trap. As long as the pace of innovation was fast enough to outstrip the population growth that typically followed income increases, the vicious circle of poverty could be broken, leading to a sustained rise in living standards.

Industrial Revolution Challenged Malthus's Claims

Thomas Malthus and Adam Smith had contrasting views on economic progress. While Adam Smith's *The Wealth of Nations* provided an optimistic vision of economic progress, Malthus did not share the same view. He believed that even if technology improved and raised the productivity of labor, people would still have more children as soon as they were somewhat better off, leading to population growth until living standards fell to subsistence level, halting the population increase. This vicious circle of poverty was widely accepted as inevitable. 

Comparing Views of Adam Smith and Thomas Malthus

An Essay on the Principle of Population (1798)

The Malthusian economic model is founded on a simple feedback mechanism. It proposes that agricultural output, which dictates the population's living standards, is determined by the number of people employed in farming. Subsequently, these living standards directly influence the rate of population growth, creating a cycle that Malthus believed would prevent any long-term increase in income per person.

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