Machinery Question

Meacci, Ferdinando (2008): Machinery Question. Published in: International Encyclopedia of the Social Sciences , Vol. 4, No. 2 (2008): pp. 536-538.

Abstract

The “machinery question” was developed by the economist David Ricardo (1772–1823) in the chapter “On Machinery” added to the third edition of his Principles of Political Economy and Taxation (1821). This question related, in his words, to the “influence of machinery on the interests of the different classes of society” and particularly to the “opinion entertained by the labouring class, that the employment of machinery is frequently detrimental to their interests”. Ricardo’s argument was presented as a recantation of his “previous opinion” on this question and marks the beginning of a debate that is still going on. The purpose of this entry is to simplify this debate by highlighting some weaknesses and strengths of Ricardo’s argument and in subsequent interpretations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Ricardo, machinery, capital, technological unemployment
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B31 - Individuals; B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith); O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

References

Barkai, Haim. 1986. "Ricardo’s Volte-Face on Machinery". Journal of Political Economy, 94 (June): 595–613

Berg, Maxine. 1980. The Machinery Question and the Making of Political Economy, 1815–1848. Cambridge, UK: Cambridge University Press

Hayek, Friedrich A. 1969. “Three Elucidations of the Ricardo Effect”, Journal of Political Economy, 77 (2): 274–285

Hicks, John R. 1969. A Theory of Economic History. Oxford: Clarendon

Hollander, Samuel. 1971. “The Development of Ricardo’s Position on Machinery.” History of Political Economy, 3 (1): 105–135

Maital, Shlomo, and Patricia Haswell. 1977. “Why Did Ricardo (Not) Change His Mind! On Money and Machinery.” Economica, 44 (176): 359–368

Meacci, Ferdinando. 1998. “Further Reflections on the Machinery Question.” Contributions to Political Economy. 17 (1): 21–37

Ricardo, David. 1821. On the Principles of Political Economy and Taxation. Cambridge, UK: Cambridge University Press, 1951

Samuelson, Paul A. 1988. “Mathematical Vindication of Ricardo on Machinery". Journal of Political Economy, 96 (2): 274–282

Samuelson, Paul A. 1989. “Ricardo Was Right!”, Scandinavian Journal of Economics, 91 (1): 47–62

Samuelson, Paul A. 1994. “The Classical Classical Fallacy”, Journal of Economic Literature,32 (2): 620–639

Schumpeter, J. A. 1954. History of Economic Analysis. London: Routledge 1994