Richard Cantillon (Cantillon Richard)( Irish economist.)
Comments for Richard Cantillon (Cantillon Richard)
Biography Richard Cantillon (Cantillon Richard)
Born in County Kerry (Ireland). For information about the early years of his life are scarce. It is known that he got rich, being a merchant in London, and later a banker in Paris. By the end of life lived in London. Cantillon became known through work Essay on the nature of trade in general (Essai sur la nature du commerce en gnral), issued in French in London in 1755. Ok. 1880 this work drew the attention of English economist William Stanley Jevons, who called it 'the cradle of political economy'. In the first part of the book was given to the definition of wealth, which highlighted elements such as land and labor. Cantillon argued, . that differences in pay relate to the time expended, . costs, . degree of difficulty of mastering this type of work, . associated risk, . as well as the required from the employee in carrying out its powers and assigns responsibility,
. Of these ideas subsequently increased wages theory of Adam Smith. Cantillon contrasted the real value, which arises from the costs of production - the market value, depending on supply and demand. Money, whether paper or metal, he argued, are not the true measure of wealth of the nation, the true source of wealth - land.
Earth brings three types of income. First she reimburse the cost of the farmer, then makes a profit to someone who actually owns it, and finally makes a profit to the owner. Cantillon argued that companies that do not belong to the agricultural sector, not in a position to offer the equivalent of a third type of income. In the work Cantillon addresses issues such as barter, market prices, the money circulation in the parameters of mass and velocity, credit, interest, and its foundation, raising and lowering interest rates, foreign trade, banking. His treatment of some subjects clearly anticipates the idea of a much later time, such as the theory of Malthus. Cantillon first used the term 'real or intrinsic value' (today it is called 'normal value'), and showed us the real value of market.
Died Cantillon in London on 14 May 1734.