Henry Carey Essay Research Paper Henry Charles

9 September 2017

Henry Carey Essay, Research Paper

Henry Charles Carey

( 1793 B 1879 )

One of the most extremely regarded and best known economic expert of the early 18 100s was Henry Carey. Of all the many American economic experts in the first half of the 19th century, the best known, particularly outside of America, was Henry Carey. Bing born in Philadelphia, Carey & # 8217 ; s positions were that typically of an American. The manor, in which he opposed other economic experts and established his ain theories, distinguished him as a outstanding figure non merely in his hometown of Philadelphia but in the full United States. He rejected Malthus and Ricardo on several evidences and accused them of diverting from the positions of Adam Smith. His belief in the alteration of economic idea stemmed from the fact that early classical thought, developed in Europe, was non suited for a freshly discovered state such as the United States which consisted of abundant land and scarce labor. These facets will be viewed in item while analyzing Carey & # 8217 ; s principle theories. However, before undertaking the unprecedented theories of Carey, a description of the adult male & # 8217 ; s life and calling, and Hagiographas should foremost be examined.

The Life of Henry Carey

He was born in 1793 in Philadelphia. He was the boy of a self-made Irish immigrant, Mathew Carey. His male parent, whom was a leader in early American economic thought, emigrated from Ireland on history of the political turbulence during the clip. Henry Carey was besides self taught and in 1821 at the age of 28 false ownership of his male parents publishing imperativeness. Carey who was a mostly self-educated adult male, retired from active concern at forty-two in order to give the remainder of his life to his literary calling. Carey was known for his tremendous published end product. Many believe his measure took off from the significance he was seeking to confirm because it was joging, repetitive, and diffused the message. The publications included 13 books, approximately three 1000 pages of published piece of lands, and possibly an equal measure of newspaper articles, columns and correspondence covering economic and political subjects. Here is a list of Carey=s most creditable plants: Try on the Rate of Wages ( 1835 ) , The Principles of Political Economy ( 1837-1840 ) , The Credit System of France, Great Britian and the United States ( 1838 ) , An Answer to the Questions: What Constitutes Currency? What are the Causes of its Unsteadiness? And what is the Remedy? ( 1840 ) , The Past, Present, and the Future ( 1848 ) , The Harmony of Interest ( 1851 ) , The Principles of Social Science ( 1857-1860 ) , and The Unity of Laws as Exhibited in the Relations of Physical, Social, Mental, and Moral Science ( 1872 ) . Carey after retiring from the publishing imperativeness acquired a great trade of luck, in which he invested in a broad scope of endeavors, including coal mines, paper Millss, gas companies, and existent estate. From this one can see that Carey non merely wrote but besides was involved in the economic system. He worked for the printing imperativeness every bit good he invested in the economic system to drive it to new degrees. Due to this engagement Carey became a outstanding figure in his native metropolis and province through his voice and pen. Which were really active in all affairs of public involvement, he exerted considerable influence on public sentiment and some on the economic experts of his twenty-four hours. Through his life, in the old ages of 1825, 1857, and 1859 he traveled to Europe where he met with John Stuart Mill, Covour, Humbolt Liebig, Chevalier, Ferrarra, and Bergfall. With some of them Carey had established an familiarity with, and continued to portion experiences and surveies with in ulterior old ages through Hagiographas. After all his travels, his plants and surveies lead him to go one of the taking citizens of Philadelphia, and an influential figure in the province where more than one President had sought his advise. At the clip of his decease, in 1879 at the age of 86, he was named as America=s most widely known private citizen at the clip.

During the class of his Hagiographas the positions of Carey in relation to old economic theories and beliefs of other economic experts changed well. & # 8220 ; Carey is a all right illustration of the trouble of suiting economic experts into orderly pigeonholes. He is at one time a classical optimist, a critic of classicism, and a protectionist. & # 8221 ; ( Newman, 96 ) His positions toward classical school did non stem excessively far in his first two of the above mentioned books. However, by the clip of the publication of his 3rd book, The Past, Present, and the Future, his belief & # 8217 ; s and positions took their ain class, stemming far from the classical position. By this clip his unfavorable judgments of Malthus and Ricardo were going to a great extent evident. Carey developed these positions and emphasized them over and over in his succeeding books. These positions are the concluding behind them will be discussed in the followers.

Carey=s Four Major Theories and Positions

1 ) Permanent Protectionism

Incompatibilities have been evident in Carey=s doctrines. In his early authorship, earlier in his life Carey supported a more classical economic attack recommending free trade and the philosophies of Adam Smith. By 1845, nevertheless, he became an fervent protectionist. His Hagiographas reflected the protectionist and nationalist outlook developed over the old ages. Many of the thoughts Carey wrote about in his book titled The Principles of Social Science resembled that of Freidrich List. In this book Carey attacks the industrial Acts of the Apostless of England and alternatively of international divisions of labor he favors the impression of independent nationality where each state, on its ain, would give itself its ain economic activity. One writer, who wrote about Carey, stated that & # 8220 ; about all the immoralities in the universe he attributed to international trade, and all the virtuousnesss flowed from domestic commerce. & # 8221 ; ( Oser, 235 ) This position was realized because foreign trade, in eyes of a protectionist, destroyed little communities and replaced them with metropoliss that would focus on their economic patterns on giving domestically produced points to other states. For illustration, produce grown on American dirt would be transported to another land, therefore the green goods grown in the provinces would non be returned to the dirts of the provinces. This simple fact would take to a battalion of unfortunates including ; dirt exhaustion, unemployment, war and break. By 1951, Carey had established his theory of protection @ . His book entitled AHarmony of Interest @ reflected this protectionist theory. Many of his thoughts of protectionism resembled those of Freidrich List.

As international trade additions so does the in additive of transit. During these old ages, the people who owned these transit bureaus would gain greatly from the usage of international trade, hence, they would hold influence over the husbandmans. As a consequence the international division of labor would do an addition in employment and neglect production. & # 8220 ; The more people engage in transit, the worse for society, for the transit of goods does least to advance development of the head or betterment of the bosom & # 8221 ; ( Oser, 235 ) . Due to the jobs of presenting goods across a big distance from the agriculturist to the purchaser, the exchange of goods between them becomes slower and inconsistent. Carey even goes on to impute the facts of fires and the costs of fire insurance with their impact on transit and international trade. He says,

The loss therefore ensuing from the absence of power to develop the mineral hoarded wealths of the Earth, and from the changeless waste of belongings and of labor, is more than the entire value of the ware received in the Union from every one-fourth of the universe ; and yet, it is policy which forbids the gap of mines, and the development of the coal and metallic ores that so much abound ; and by agencies of which constructions of every sort could be built of minerals that would put at rebelliousness the hazard of fire. ( Oser, 235 )

Overall the effects of free trade would be the devastation of all states for the benefit of one. Protection, in the eyes of Carey, would help to free agribusiness from the loads of the costs of transit from the manufacturers to the consumers. Unfortunately, Carey did non see the twenty-four hours when states would follow this policy, but no longer so three decennaries after his decease Great Britian and other taking states of the universe would hold implemented it. So looking back Carey had two chief points on protectionism. The first was the benefit of association and the second was the necessity of returning to the Earth what is taken from it. In the first point, Carey develops the powers of association, how it sustains and promotes individualism. In the 2nd point, he states the importance of returning to the Earth its birthrate, its foods ; otherwise the Earth will go low of its harvest home ability.

2 ) The Ricardian Rent Theory

Carey=s resistance of the Ricardian Rent Theory is expressed in his APrinciples of Political Economy @ . His chief statement against the Ricardian Theory lies in the procedure of land cultivation. Ricardo, he says- and it is a important sentence & # 8220 ; had ne’er witnessed as at the minute we do from the window at which we write, the advancement of a new settlement. & # 8221 ; ( Gray, 252 ) Carey believed that the poorer lands were cultivated foremost, because the first agriculturists, non holding the proper tools required to unclutter the better dirts, or to run out the Lowlandss, were forced to seek out the higher lands. These higher lands had comparatively small lumber and flora because the dirt was dilutant. These higher lands were sought out for protective grounds ; protection from wild animals, barbarians, and fatal febrilities. As the population increased, they acquired more accomplishments and tools, enabling the fledglings to cultivate the richer, more comfortable dirts. Ricardian Theory stated the antonym. Ricardo stated that the fledglings had the first pick to the lands, therefore taking the richer dirts. He besides stated that as population additions, people go from better to poorer dirts, and rent is based on derived functions in productiveness measured at the border. This means that harmonizing to Ricardo, rents would fall, whereas under Carey, rents would lift. So as the first colonists immigrated to the provinces, many of them did non hold tools of any sort needed for the cultivation, hence, they would non be able to cut down trees that grow on the fertile land. This R

esulted in coercing the colonists to seek for waste dry unproductive dirts. After erstwhile these sterile lands would be exhausted of their alimentary content and the husbandmans would hold to seek new land. However, this clip the population would be larger, ensuing in more available labor and tools herewith leting the husbandmans to cut the forest and utilize the rich soils beneath it. This was how Carey envisioned his theory of rent and why he believed Ricardo’s was inappropriate. He states,

The philosophy of Mr. Ricardo is that of increasing scattering and failing ; whereas under the existent Torahs of nature there is a inclination towards a changeless addition of power of association and combination to which entirely adult male is indebted for the ability to repress the more productive dirts. As he descends the hills and meets his neighbour adult male, the attempts are combined, employment & # 8217 ; s are dived, single modules are stimulated into action, belongings becomes more and more divided, equality grows, commercialism becomes enlarged, and individuals and belongings become more unafraid ; and every measure in this way is but readying for future advancement. ( Oser, 237 )

Carey had combated Ricardo so extensively on this land that it motivated other economic experts to reexamine the whole strategy of the theory of rent. Taking American experience as an illustration, Carey held that the poorest land was frequently cultivated foremost, because it was the most accessible. The richer dirt may be & # 8220 ; the panic of the immigrant & # 8221 ; ( Newman, 96 ) because it may be overgrown by flora, covered with wood, or inhabited by barbarians or wild animals. Therefore, sing life from the point of position of a colonist in a new state, Carey is & # 8220 ; led to deny, and so with invective and maltreatment, the Law of Diminishing Returns ( and with it the Ricardian Law of Rent ) & # 8221 ; ( Gray, 251 ) . The terminal consequence of it was a rectification and accommodation made to Ricardo & # 8217 ; s Theory. In the terminal Carey did non get rid of Ricardo & # 8217 ; s Theory but advanced it to a truer significance.

3 ) Theory of the Law of Harmony

Among different categories in society, there have ever been struggles and vigorish. Carey expands upon this vigorish saying its celerity and its length of service. He comments on that the strong have ever tried to tread the weak, and subsequently have combined to restrict the power of their oppressors. He besides looks at the in-between groups, between consumers and manufacturers, such as the attorney, the agent, and the bargainers. Carey believed that they profit unduly at the consumers and manufacturers expense, and therefore hinder the advancement of society. Carey goes on to province that all categories of people are driven by net income, even at the exclusion of the consumer good. The construct can be summarized as ; the harmoniousness of categories will take to a harmoniousness of states, with the love of peace going diffused throughout the Earth. Henry Carey examines how the strong in society have ever tried to rule the weak, such as the landholders or the slave proprietors, at the clip, which basically robbed the services of others for their ain benefit. However, Carey had suggested that the existent and lasting involvements of all the categories of work forces are truly the same, although their evident and impermanent involvements differ. It is explained best by this common cooperation bing between workers and capitalists.

Assume that a worker, utilizing an axe, cuts more wood in a twenty-four hours than he can in a month without it. Suppose the capitalist who lends the workers the axe charges him three-quarterss of his merchandise for its usage ; the worker will still be better off than antecedently, notwithstanding the big proportion claimed by the capitalist as net income. ( Oser, 237 )

Carey goes on to state, & # 8220 ; Persons and states, blinded by the thought of present net income and magnificence, pursue so to the exclusion of a common good. In the long tally everybody stands to derive as society grows wealthier and more productive. & # 8221 ; ( Carey, 247 ) This account clearly demonstrates the benefits that can be achieve by both people as is the instance with the axe illustration, where both the worker and the capitalists are both better off in the long tally though cooperation.

4 ) Malthusian Theory of Population

Carey opposed the Malthusian Theory of population. Being of rigorous Catholic decent, his spiritual upbringing greatly influenced his mentality refering the theory. Carey viewed the rapid growing of North American population from the same as Bastait, instead than that of Malthus. He opposed Malthus on several evidences. The first was because the Malthus theory was in contrast to God & # 8217 ; s purposes. Carey goes on to explicate this by stating,

& # 8216 ; Be fruitful and multiply, & # 8217 ; said the Lord, & # 8216 ; and refill the Earth and repress it & # 8217 ; , and Carey adds & # 8220 ; Can such things be? Can it be. That the Godhead has been inconsistent with himself? Can it be, that after holding instituted throughout the material universe a system, the harmoniousness of whose parts is perfectly perfect. He has of design, subjected adult male, and the maestro of all, to Torahs, which must bring forth cosmopolitan strife? Can it be, that after holding given to adult male all the modules required for presuming the command of nature, it has been a portion of his design to subject him to Torahs in virtuousness of which he must go nature & # 8217 ; s slave & # 8221 ; ( Heimann, 127 )

The 2nd statement against Malthus stems from his harmonious Torahs of nature. Harmonizing to Carey this jurisprudence suggests that as animate beings die the supply of C dioxide, needed by workss, would decrease. Therefore it will be necessary that an addition in the human race should happen. In this manner, the more worlds there are on Earth, the more C dioxide will be expelled and the more flora will turn. However, many economic experts had disagreed with this facet merely because of the uncertainness of the degree of C dioxide that would be produced by worlds and animate beings.

In his 3rd statement against Malthus, Carey proposes the impression that an addition in the population would take to an addition in wealth. In Carey & # 8217 ; s sentiment, the more hands the more manufacturers of wealth. The greater the figure of dwellers, the greater the combinations of divisions of labor. Although this may be true to some grade, it should be stated that the labor is merely one of the three elements of production. The other two elements: land, and capital can besides hold a damaging consequence on production.

In his 4th statement, Carey contradicts the beliefs of how Malthus presumed that the population would increase in a geometric ratio entirely. He based his understanding on the illustrations of a grain of maize and that of a brace of coneies. In each instance, both will multiply and bring forth literally 1000s and 1000s over a period of clip. This so would be geometric besides. However, harmonizing to Malthus merely mankind will increase geometrically and other lower life signifiers will merely bring forth in arithmetic Numberss merely. Simply by the usage of the coney illustration we can see that the Malthus theory could non be wholly right.

Last, Carey argued the fact that of relationships between rational and reproducing maps of worlds. He farther looks at this by saying that the population growing tends to diminish as the rate of intelligence of human & # 8217 ; s additions. Unfortunately, Carey was unable to send on any cogent evidence of this statement but he may hold good predicted the hereafter as the promotion in human intelligence has lead to population anti-growth devices such as birth control.

The chief theory implies that low-income states are caught in a trap, which condemns the excessively ageless poorness. It bases this premise on per-capita income and on population growing rate. When per-capita income additions, population growing will follow, decelerating the economic system one time once more, merely for the rhythm to reiterate itself perpetually. Two points can sum up all the statements. The first being that Carey was a spiritual and rational adult male who viewed population tendencies in an optimistic manner and the 2nd being that he believed that human population would make a balance environment with the supply of nature.

Henry Charles Carey had for the most portion of his life good conflicts against several of the highest regarded persons in the field of economic sciences. He had undertaken great trade of survey during his times of unfavorable judgments against viz. that of Ricardo, Malthus, and Smith. The erroneous nature of his resistance lead to the inquiring of the worthiness of Carey=s parts to economic idea. As to the overall parts to economic analysis made by Carey, much dissension exists. To most economic experts, nevertheless, Carey=s service was rendered through his onslaughts on economic theory, particularly the four antecedently mentioned 1s. Nobly, he had succeeded in doing new theories and turn outing them at most times. The terminal consequences of Carey & # 8217 ; s parts were a deeper apprehension of some of the basic theories in economic sciences. Carey defined the significance of an American through his beliefs in protectionism on a universe degree along with his belief of laisser faire system within the state along with his optimistic positions that established Carey as one of the most extremely regarded individual of his times, something merely that today & # 8217 ; s fellow American could even woolgather approximately, In his clip he exercised great influence, though less so in his state than in America and on the Continent ; for us, at least, he has now faded into comparative, insignificance, cursed by his ain fullness and repetitiousness, and, it must be added by a instead na ve folly ( Gray, 249 ) . Henry Carey had thoughts that were non entirely unfair ; he is, above all, the supreme illustration of the truth that the economic expert reflects his environment.


Blaug, Mark. Great Economists before Keynes, New Jersey,

Humanities Press International Inc, 1986

Carey, Henry C. Principles of Social Science. Philadelphia, 1888

Gray, Alexander. The Development of Economic Doctrine,

Longmans, 1959.

Heimann, Eduard. History of Economic Doctrines, London,

Oxford University imperativeness, 1956

Newman, Philip C. The Development of Economic Thought.

New York, Prentice-Hall Inc, 1952

Oser, Jacob. The Development of Economic Thought, New York,

Harcourt, Brace and World Inc. , 1963

Scott, William A. The Development of Economics, New York,

Century Company Inc. , 1933

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