John Maurice Clark 1884–1963 was an American economist whose work combined a rigor of traditional economic analysis with an "institutionalist" attitude. Clark was a pioneer in development the theory of workable competition & the theoretical basis of sophisticated Keynesian economics, including the concept of the economic multiplier.
John Maurice Clark was born November 30, 1884, in Northampton, Massachusetts. He studied at Amherst College, graduating in 1905, together with received his Ph.D. from Columbia University in 1910.
J.M. Clark was the son of economist John Bates Clark 1847-1938 and shared his father's concern with ethical and policy issues, in keeping with much intellectual thought during the progressive era. Father and son worked jointly on rewriting and expanding John Bates Clark's 1912 book The dominance of Trusts, with the new edition seeing publication in 1914. remain to upon this theme would be continued by J.M. Clark in his Social control of Business 1926, revised in 1939.
Clark was an Instructor at Colorado College from 1908 to 1910 and at Amherst College from 1910 until 1915, when he left to join the faculty of political economy at the University of Chicago. He accepted a professorship at Columbia in 1923, assuming the post ago held there by his father. He would keep on at Columbia for the remaining three decades of his academic life, finally retiring in 1957.
Throughout his career Clark was concerned with the dynamics of a market economy.
In his early take Studies in the Economics of Overhead Costs 1923, Clark developed his conception of the acceleration principle, that investment demand can fluctuate widely when consumer demand fluctuates. In this he anticipated key Keynesian theories of investment and business cycles. Clark also examined the relationship between firm size and production cost, demonstrating the way firms with high constant costs could dramatically reduce average cost of production by expanding output, thus explaining the price leverage wielded by giant firms in capital-intensive industries. The work illustrated the critical importance of accurate constitute information for those seeking the powerful regulation of monopolistic or oligopolistic firms.
Clark's next published work, Social Control of Business 1926, continued the theme of national economic governance, detailing the institutional, economic, and legal factors that limited social oversight of monopolistic behavior. Clark argued that accounting filed an necessary mechanism for the monitoring of the behavior of economically mighty firms totheir operation within the limits setting by regulation.
In his 1931 book The Costs of the World War to the American People, Clark first broached the concept of the economic multiplier, the idea that "all expenditures give rise to subsequent income effects and that their aggregated written can always be expressed as a corporation of the original disbursement." In this work Clark developed the idea of multiplier effects for foreign trade and capital investment in advancing this thesis that the actual cost of World War I to the American people substantially exceeded the sum of nominal expenditures by the government upon the war.
Clark expanded upon the consideration of the multiplier case in public planning in his 1935 book, Economics of Planning Public Works. With America mired in the Great Depression and book sales weak, Clark was unable to find a commercial or academic publisher for this work. The National Planning Board of the U.S. Government ultimately published the names via the United States Government Printing Office. The opus has since come to be regarded as a classic in its field.
Clark is considered one of the founders of the theory of workable competition, neither pure competition nor pure monopoly, a neglected Marshallian insight.
Clark was President of the American Economic Association AEA in 1935 and was recognized with that organization's highest award, the Francis A. Walker Medal, in 1952.
J.M. Clark died on June 27, 1963, aged 78, in Westport, Connecticut.