1. Deny that the overall supply of goods exceeds demand. Mill reiterated that supply creates demand.

2. Inherit the argument of steady state. He believes that the growth of wealth is not infinite, but a stable state at the end of progress. The growth of wealth will only delay the arrival of a stable state. If production technology is not further improved or capital no longer flows from rich countries to underdeveloped countries, rich countries will soon reach a stable state due to the reduction of profit margins.

International value law

3. Law of international value: "A country's products are always exchanged with other countries' products according to the value necessary for all its exports to meet all its imports. This international law of value is just a more general law of value and an extension of what we call the equation of supply and demand. "Mill's international value theory is an important supplement and development to the classical international trade theory, especially Ricardo's relative cost theory, which has an important position and influence in the history of international trade theory.

4. Wage theory: He believes that wages are determined by the supply and demand of labor, the supply of labor is the number of workers, and the demand of labor is the capital to buy workers' labor. Classical economists call it wage fund, which is generally considered as a fixed amount, because it is always determined by the minimum living expenses required by workers. On this basis, he believes that in the long run, the amount of wages mainly depends on the number of workers, that is, the population. He believes that population control is the main way to improve workers' living standards. At the same time, Mill believes that the minimum wage or subsidy implemented by the government is invalid and cannot really improve the wage environment.

5. Emphasize the importance of fair distribution.

John Mill's Determinism of Mutual Needs

Reciprocal demand equation: also known as international demand equation, its basic meaning is: in international trade, the exchange ratio of two kinds of goods depends on the demand of both sides for each other's goods, that is, the export volume of each country is exactly equal to the import volume of the other side. The proportion of international exchange changes with the demand of the two countries, and its range of change is always between the domestic exchange ratio of the two countries. 1. The domestic exchange rate of the two countries determines the fluctuation range of the international exchange rate. 2. The export volume of one trading party is exactly equal to the import volume of the other party, which is the only definite condition of the international exchange rate. The price of international foreign exchange changes with the demand of both sides.

Mutual demand equation and distribution of trade benefits: according to the mutual demand equation, the conditions for the formation of trade depend on the principle of mutual demand of both sides, and the demand intensity of both sides also determines the distribution of trade benefits, that is, the greater the demand intensity of a country for imported goods, the more unfavorable the international exchange rate is to the country. On the contrary, the smaller the demand for imported goods, the more favorable the international exchange rate is to the country. In other words, the closer the national exchange rate is to the domestic exchange rate, the more unfavorable it is to the country.

Major achievements

In order to make up for the mechanical defects in his father's psychological mechanics, John Mill put forward the idea of "chemical psychology", thinking that the combination of some ideas is like hydrogen and oxidation to form water, and water has new properties, which are not found in hydrogen or oxygen, and are new properties formed by compounds of hydrogen and oxygen. He also believes that the new quality formed by the combination of ideas cannot be predicted by the nature of the original ideas, but can only be realized through practical experience. He changed from "psychological mixing" to "psychological combination" and replaced psychomechanics with psychochemistry. This view seems to be more in line with psychological facts. 1865, John Mill proposed four associative laws, namely, similarity law, proximity law, multiple law and inseparability law. The strength law he proposed in 1843 was deleted. John Mill and his father james mill are idealistic associationists, but he opposes psychomechanics, advocates psychochemistry and emphasizes the independence and initiative of psychology.

John stewart Mill is a famous economist. The textbook Principles of Political Economy-Some Applications in Social Philosophy, published by 1848, is the first textbook that has influenced western economics education for half a century.