Currently in 3rd year of B.Com under Calcutta University  specializing in accounting and finance. Petty originated many of the concepts that are still used in economics today. Petty was knighted Sir William Petty for his astounding and remarkable work, yet as an academician he was never truly appreciated. In times of a slump, public investment could help offset it. He further went on to study Medicine at the University of Oxford and later became a professor of both anatomy and music by the age of 27. In fact, Karl Marx claimed—rightly, I believe—that Petty was the founder of that school of thought (Marx 1867, p. 81). Nevertheless, Sir William Petty influenced all the greatest minds of Economics, including Adam Smith, Karl Marx and John Maynard Keynes. He was an able smith, craftsman and joiner by the age of 12. By developing and altering different mathematical models, William continued to come up with many great ideas. During this time he made several inventions- a patented “double-writing” instrument which put down an extra copy of whatever was written on a piece of paper, this was the very first version of a photocopier; a mechanical grain planter, to help diminish the usage of labour; and the process of attaching engines to boats. Subscribe to Qrius, Broaden your horizons as unpack fresh trends shaping our lives. Aspromourgos has also observed that Petty wrote A Treatise of Taxes and Contributions, as well as other works, in order to provide “an answer to the questions of how to maximize total employment and surplus labour, and how to best utilize surplus labour” (Aspromourgos 1996, p. 16, emphasis added). The Economic Thought of William Petty. At that time 4.5 pence a day was enough to meet all living expenses and a population of 6 million meant spending was 40 million pounds a year. Back in the 16 th century, landowners in England faced high taxes. To combat this problem, William developed the “quantity theory of money”- the core to modern economics. Therefore, of the 40 million to be spent, 15million were from assets. To do this, Petty argued that total income must equal total spending. Sadly, these models gave different results in the next century and his work slowly died. By developing and altering different mathematical models, William continued to come up with many great ideas. Aspromourgos has also observed that Petty wrote A Treatise of Taxes and Contributions, as well as other works, in order to provide “an answer to the questions of how to maximize total employment and surplus labour, and how to best utilize surplus labour” (Aspromourgos 1996, p. 16, emphasis added). In trying to prove his point, Petty had unknowingly created the concept of GDP. Journal of the History of Economic Thought, Check if you have access via personal or institutional login, COPYRIGHT: © The History of Economics Society 2004, Journal of the History of Economic Thought, Petty Contra Hobbes: A Previously Untranslated Manuscript, Economic Thought and Idealogy in Seventeenth-Century England, On the Origins of Classical Economics, Distribution and Value from William Petty to Adam Smith, https://doi.org/10.1080/1042771042000263867, An Early Attempt At Some Mathematical Economics: William Petty's 1687 Algebra Letter, Together With a Previously Undisclosed Fragment, The Role of Numeracy in the History of Economic Analysis, The Macroeconomic thought of Nicholas Barbon, WILLIAM PETTY, NICHOLAS BARBON, MULTIPLES, AND A NEW HYPOTHESIS OF INEVITABLE DISCOVERY, William Petty and the origins of political economy, McCulloch, Scrope, and Hodgskin: Nineteenth-Century Versions of Julian Simon. Email your librarian or administrator to recommend adding this journal to your organisation's collection. William noticed that high interest rates were holding back trade in Ireland. Finance & economics Dec 21st 2013 edition WILLIAM PETTY was an innovation machine. The remaining 25 million were wages and therefore the tax burden should be borne by these 25 million pounds. Petty found this practice unfair … Close this message to accept cookies or find out how to manage your cookie settings. * Views captured on Cambridge Core between . After being able to chalk out a model to value land effectively for the register, he went into insurance and became a forerunner of modern insurance business. William spent two years making a land register for the whole of Ireland. Get exclusive access to … Unemployment would reduce men’s facility to work and that deficient demand was a threat. for this article. This was centuries before John Maynard Keynes had proposed the same theory. Petty found this practice unfair and had to explain why such a tax regime is flawed. Stay updated with all the insights.Navigate news, 1 email day. William Petty (1623-1687), long recognised as a founding father of English political economy, was actively involved in the military-colonial administration of Ireland following its invasion by Oliver Cromwell, and to the end of his days continued … Start your mornings with the acclaimed 'Qrius Mornings' newsletter that gives you our best article of the day right in your inbox. William Petty was a man of many talents – A serial innovator, an accomplished doctor, a gifted craftsman and an unsung economist. Usage data cannot currently be displayed. Published online by Cambridge University Press: URL: /core/journals/journal-of-the-history-of-economic-thought.