A Swiss historian and economist, who after a period in exile in England began lecturing at Geneva Academy in 1809 on history and economics. Sismondi argued against the doctrine of laissez-faire in favour of state intervention. He recommended unemployment and sickness benefits, and pension schemes for workers. With Malthus , he attacked Ricardo for not recognizing the possibility of economic crisis developing from underconsumption. Increased output in one period, he argued, is faced with a level of income generated by a lower level of output in the previous period.
Total demand falls short of the available supply.
Lags in the economic system, therefore, could give rise to underconsumption. The Penguin Dictionary of Economics 3. Bloomsbury Biographical Dictionary of Quotations 4. Oxford Paperback Encyclopedia 5. All rights reserved.