John Barton (11 February 1789 – 10 March 1852) was an English classical economist, best known for his insightful, though sometimes overlooked, contributions to the debates on the effects of machinery on labor, the causes of unemployment, and the nature of the Poor Laws during the early 19th century. He engaged critically with the ideas of prominent economists like David Ricardo and Thomas Malthus. While not as widely recognized as some of his contemporaries, Barton's work is valued for its empirical grounding, its concern for the welfare of the working classes, and its anticipation of some later economic concepts.

1. Early Life and Background
2. Economic Context and Influences
3. Major Economic Contributions and Ideas
   3.1. Observations on the Circumstances which Influence the Condition of the Labouring Classes of Society (1817)
   3.1.1. Demand for Labour and Population
   3.1.2. Effects of Machinery on Labour (The "Barton Effect")
   3.1.3. Critique of the Poor Laws
   3.2. An Inquiry into the Causes of the Progressive Depreciation of Agricultural Labour in Modern Times (1820) 3.3. Other Economic Writings
4. Relationship with Classical Economists
   4.1. Engagement with Ricardo
   4.2. Engagement with Malthus
5. Style and Method
6. Influence and Legacy
7. List of Major Works
8. See Also

John Barton was born in Southwark, London, into a Quaker family. His father was John Barton Sr., and his mother was Elizabeth Horne. The Quaker tradition, with its emphasis on social conscience, philanthropy, and empirical observation, likely influenced his approach to economic and social issues. Details about his formal education are somewhat scarce, but he was evidently well-read in political economy and possessed a keen analytical mind. He lived for a time in Stoughton, near Chichester, Sussex, and was involved in local affairs. He was not an academic economist in the modern sense but rather an independent scholar and commentator on economic conditions.

Barton wrote during a period of significant economic and social upheaval in Britain, marked by:

• The Napoleonic Wars and their aftermath, including economic dislocation and agricultural distress.
• The Industrial Revolution, with rapid technological change, the growth of factories, and the displacement of traditional forms of labor.
• Widespread poverty and unemployment, leading to intense debates about the Poor Laws and the condition of the working classes.
• The flourishing of classical political economy, dominated by figures like Adam Smith, Thomas Malthus, and David Ricardo.

Barton was deeply engaged with these issues and with the economic theories being propounded to explain them.

Barton's contributions are primarily found in a few key pamphlets and publications where he addressed pressing contemporary problems.

This is Barton's most significant and influential work. In it, he addressed several critical issues:

• Barton argued that the demand for labor was not simply a function of the total capital available in society, as some classical economists implied. Instead, he distinguished between fixed capital (machinery, buildings) and circulating capital (the portion of capital used to pay wages and purchase raw materials).
• He contended that an increase in total capital did not necessarily lead to a proportionate increase in the demand for labor if a larger share of that capital was invested in fixed capital (machinery) rather than circulating capital (the wages fund).
• This insight challenged the more optimistic views that capital accumulation would always benefit the laboring classes.
• Regarding population, Barton, like Malthus, was concerned about the tendency for population to press against the means of subsistence, but he placed greater emphasis on the demand side for labor.

Barton's most original contribution in this pamphlet was his analysis of the impact of machinery on employment.

• He argued that the introduction of labor-saving machinery could lead to a reduction in the demand for labor and thus to unemployment or lower wages for the working class, at least in the short to medium term.
• This occurred because investment in machinery (fixed capital) could divert funds that would otherwise have been used to employ labor (circulating capital).
• This argument, sometimes referred to as the "Barton Effect," directly challenged the prevailing view among many classical economists (including Ricardo, initially) that the introduction of machinery was always beneficial, or at least not harmful, to the laboring classes in the long run due to increased productivity and lower prices.
• Barton's analysis was notable for its focus on the composition of capital and its impact on the demand for labor.

Barton was critical of certain aspects of the existing Poor Law system, particularly the Speenhamland system of supplementing wages. He argued that such allowances could depress wages by reducing the incentive for employers to pay a living wage and could encourage population growth without a corresponding increase in the demand for labor. However, his critique was nuanced, and he was deeply concerned with alleviating poverty.

In this work, Barton focused on the specific issue of declining wages and conditions for agricultural laborers. He attributed this decline to factors such as:

• The enclosure movement and the loss of common rights.
• The impact of the Poor Laws on wage levels.
• Changes in agricultural techniques.
• The pressure of population on limited agricultural employment.

Barton also wrote on currency issues and other contemporary economic debates, often publishing pamphlets or letters to newspapers.

Barton's work was a direct engagement with the leading classical economists of his day.

• David Ricardo initially held the view that the introduction of machinery was generally beneficial to all classes. However, after reading Barton's Observations and further reflection, Ricardo famously revised his position in the third edition of his Principles of Political Economy and Taxation (1821).
• In a new chapter "On Machinery," Ricardo acknowledged that the introduction of machinery could indeed be injurious to the interests of the laboring class by reducing the gross produce available for wages, even if net produce increased. He explicitly credited Barton (though not by name in the first instance of the chapter, but the influence is clear and later acknowledged) for drawing his attention to this possibility.
• This "Ricardian conversion" on the machinery question, influenced by Barton, was a significant development in classical economic thought.

• Barton shared Malthus's concerns about population pressure but differed in his emphasis on the demand for labor as a key determinant of the condition of the working class.
• He corresponded with Malthus, and their exchanges reveal both areas of agreement and points of divergence, particularly concerning the effects of capital accumulation on labor.

Barton's economic writings were characterized by:

• Empirical Observation: He often drew on contemporary data and observations of social conditions to support his arguments.
• Clear and Direct Prose: His pamphlets were written in an accessible style, aimed at influencing public debate.
• Focus on Practical Problems: He was primarily concerned with addressing real-world economic and social problems, particularly poverty and unemployment.
• Analytical Acumen: Despite not being a systematic theorist in the mold of Ricardo, he demonstrated considerable analytical skill in dissecting economic arguments.

• John Barton's most significant and lasting influence was on David Ricardo's thinking about machinery, leading to a crucial modification in classical economic theory.
• His distinction between fixed and circulating capital and its implications for the demand for labor was an important analytical contribution.
• He was one of the early economists to seriously address the problem of technological unemployment from a theoretical perspective.
• While his name is not as widely known as the giants of classical economics, historians of economic thought recognize his work as insightful and important for its time, particularly for its focus on the welfare of the working class and its critical engagement with mainstream classical doctrines.
• His work is seen as part of a tradition of "underconsumptionist" or "dissenting" economic thought within the classical period that questioned the automatic benefits of industrial capitalism for all segments of society.

• "Observations on the Circumstances which Influence the Condition of the Labouring Classes of Society" (London: John and Arthur Arch, 1817)
• "An Inquiry into the Causes of the Progressive Depreciation of Agricultural Labour in Modern Times; with Suggestions for its Remedy" (London: John and Arthur Arch, 1820)
• A Statement of the Consequences Likely to Ensue from Our Growing Excess of Population, if Unchecked (1830)
• He also likely contributed anonymous articles or letters to contemporary periodicals.

• Classical economics
• David Ricardo (especially his chapter "On Machinery")
• Thomas Malthus
• Technological unemployment
• Poor Laws
• Wages fund doctrine (which Barton's work implicitly questioned)