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Poor Laws (13, N4)<br />The succession of English statutes beginning with those of 1597 and 1601 which aimed to relieve poverty by providing welfare benefits or work within workhouses. This welfare programme was financed by levying a 'poor rate' on the landowners of each parish. The poor were confined to the parish of birth and separated into the able-bodied and 'impotent', i.e. infants, elderly persons, invalids and lunatics. Under an Act of 1722, the first 200 workhouses were erected for the aged and infirm; the able-bodied were given outdoor relief.<br /> Growing rural poverty in the late eighteenth century prompted many economists of the day, including MALTHus, to argue that the Poor Laws encouraged population growth and a magnification of the problem of poverty. SMITH was opposed to arrangements restricting GEOGRAPHICAL MOBILITY by keeping the poor in the parishes of birth. A Royal Commission, which included Nassau SENIOR, was set up to investigate the administration of the Poor Laws. In its report of 1834, it recommended that relief should be confined to the 'indigent', i.e. the able-bodied pauper, the aged and the sick, and available only within workhouses. Poor Laws, the Royal Commission argued, should not be available for the poor in general as that would include help to low-paid workers. Other proposals in the period of CLASSICAL ECONOM!CS included BENTHAM'S idea of profitmaking industry houses into which the poor would be confined (Pauper Management Improved, 1798) and G. Poulett Scrope's insurance scheme financed by employers' contributions (Principles of Political Economy, 1832, ch. 12).<br /><em>See also:</em> poverty; subsistence <br /><em>Reference</em><br />Boyer, G.R. (1990) An Economic History of the English Poor Law, Cambridge: Cambridge University Press.<br /> Himmelfarb, G. (1984) The Idea of Poverty: England in the Early Industrial Age, New York: Alfred A. Knopf., London: Faber & Faber.
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volume of investment and the multiplier. Value of the multiplier determined by the propensity to save.' Admirers of Keynes have seen a development of the theory of the rate of interest and the crucial use of expectations in this grand theory, but critics, including LUCAs, have disliked the tone of the book and the decision of Keynes to work in units of money and labour alone to discuss economic aggregates; also, it has often been stated that the theory is not as 'general' as Keynes declared, that it is crippled by the USe of the COMPARATIVE STATICS method and that it needed later growth theory to complement it.<br /><em>Reference</em><br />Clarke, P. (1988) The Keynesian Revolution in the Making, 1924-36, Oxford: Clarendon Press.<br /> Keynes, J.M. (1936) The General Theory of Employment, Interest and Money, London: Macmillan.<br /> Vicarelli, F. (ed.) (1985) Keynes's Relevance Today, London: Macmillan.

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