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1、Principle of Reciprocal Demand,By: John Stuart Mill,Brief Biography of John Stuart Mill,John Stuart Mill, the eldest son of James Mill, was born in London on 20th May, 1806. Educated a home by his father, Mill had studied the works of Aristotle, Hobbes, Plato, Jeremy Bentham, Ricardo and Adam Smith
2、by the time he had reached the age of twelve. At the age of seventeen formed a discussion group called the Utilitarian Society. Mill also began having articles published in the Westminster Review, a journal founded by Jeremy Bentham and James Mill to propagate Radical views. He also wrote for other
3、newspapers and journals. Mill took an active role in the campaign for parliamentary reform, and was one of the first to suggest that women should have the same political rights as men.,(1806-1873),In 1834 Mill founded the Radical journal, the London Review. Two years later, he purchased the Westmins
4、ter Review and merged the two journals.,In 1833 Mill became a close friend of Harriet Taylor. The two worked closely together but Harriet was married and her husband, John Taylor, was unwilling to give her a divorce. After the death of John Taylor in 1849, Harriet married John Stuart Mill. In the 18
5、65 General Election John Stuart Mill was invited to stand as the Radical candidate for the Westminster seat in Parliament and was defeated in 1868 General Election. After leaving the House of Commons, Mill was now able to finish off the book he had been writing for some time, The Subjection of Women
6、 (1869). Harriet Taylor had died in 1854 but her daughter, Helen Taylor, worked closely with him on the book. John Stuart Mill died on 8th May, 1873.,Principles of Political Economy,John Stuart Mills Principles of Political Economy was published in the revolutionary year 1848 when the great French R
7、evolution took place and also the year of the publication of The Communist Manifesto written by Karl Marx and Friedrich Engels. In some sense the publication of Principles of Political Economy met with the requirement of the ruling class to offset the influences of Marxism. Given this background and
8、 theoretical research Mill had made in his book Principles of Political Economy had become the supreme statement of classical economics and, for nearly half of a century, the standard textbook of the students of department of economics in almost all universities in Europe and North America.,From Smi
9、th the shoemakers would remove themselves and their capitals to the north bank, or would have established themselves there originally. The shoemakers could increase their profits by simply crossing a river.,Profit Differentiation among Countries,Between distant places, and especially between differe
10、nt countries, profits may continue different because persons do not usually remove themselves or their capitals to a distant place without a very strong motive. It needs but a small motive to transplant capital, or even persons, from Warwickshire to Yorkshire; but a much greater to make them remove
11、to India, the colonies, or Ireland. To France, Germany, Switzerland, capital moves perhaps as readily as to the colonies; the differences of language and government being scarcely so great a hindrance as climate and distance. To countries still barbarous, or, like Russia and Turkey, only beginning t
12、o be civilized, capital will not migrate, unless under the inducement of a very great extra profit.,Profit Inequalities among Countries Cause Trade,Between all distant places therefore in some degree, but especially between different countries, there may exist great inequalities in return to labor a
13、nd capital, without causing them to move from one place to the other in such quantity as to level those inequalities. The capital belonging to a country will, to a great extent, remain in the country, even if there be no mode of employing it in which it would not be more productive elsewhere. Yet ev
14、en a country thus circumstanced might, and probable would, carry on trade with other countries.,What is Commerce?,Commerce is virtually a mode of cheapening production; and in all such cases the consumer is the person ultimately benefited; the dealer, in the end, is sure to get his profit, whether t
15、he buyer obtains much or little for his money. （所谓商业贸易实质上只是使生产成本更为便宜的一种手段。不论在什么情况下，消费者都是最终的受益者。商人当然也可以从贸易中获得利益，但这必须以消费者愿意花多少钱购买他们的商品为前提。）,Trade Benefit,Concretely speaking, in Mills ideas international trade will at least bring the traders with two sorts of benefit: First of all it would be possible
16、 for a country to acquire some products which could consumed by its people, but can not be produced by the country with the existing production circumstances; Secondly, it is possible for all the participants of trade to bring their productivity into a much fuller play. That will necessarily raise the overall productivity of the whole world up to a high level and consequently increase the universal welfare of the people. The higher world productivity derived from the comparative advantages enjo
