Chapter 17 : SISMONDI (1773-1842)

SISMONDI (1773-1842)

Life and Works

• Sismondi was a Swiss economist and historian, and a leading critic of the classical school. Sometimes, he is also described as a socialist.
• Born in Geneva, Switzerland, in 1773. His father was a protestant clergyman.
• During the revolutionary Disturbance (1793-94), he and his family took refuge in England.
• Upon returning to Switzerland, they sold most of their property and left for Italy, where they bought a small farm and Sismondi became a small farmer. Later, he returned to Geneva.
• He was primarily a historian.
• In his early years, Sismondi was a follower of Adam Smith and an ardent admirer of classical doctrines. It was only during his later years that he launched a direct attack on classical economics.
• His reputation as an economist rests on his book "New Principles of Political Economy", which appeared in 1819.
• He lived until 1842.

Key Terms

📌 Exam Tidbits

• Sismondi (1819): Published "New Principles of Political Economy", marking his shift from a classical admirer to a leading critic.
• 1773–1842: Sismondi's lifespan.
• 1793-94: Years Sismondi took refuge in England during the revolutionary Disturbance.
• 16 vs 29: Wrote 16 volumes on the Italian Republic and 29 volumes on the French.

Background

• Sismondi was a contemporary of great economists like Malthus, Ricardo, J. B. Say, and List.
• He witnessed major historical events: the French Revolution, the Napoleonic wars, the Industrial Revolution, and the factory system.
• He noted the evils of wage-slavery and the factory-system.
• Since 1815, economic crises (business fluctuations) became a common feature in the English market.
• Poverty and economic crises became two important new facts.
• Critics started questioning the assumption of classical economists regarding the harmony of interests.
• The doctrine of laissez-faire was found to be useless in dealing with new developments.
• Sismondi…