Boseaquet Charles 1769 1850

Boseaquet Charles 1769 1850

Boseaquet, Charles (1769-1850), writer on economic problems. A member of a family of successful London merchants. Became Governor of the South Sea Company. He wrote many works, mainly concerning the Wt Indian sugar trade, but is best known for his Practical Observations on the Report of the Bullion Committee (181o), in which he took issue with the committee's recommendation that the Bank should resume cash payments, and with Ricardo's High Price of Bullion, condemning both as 'highly theoretical'. His contention that fluctuations in prices were caused by taxation and vagaries in the corn trade was generally thought to have been brilliantly refuted by Ricardo in A Reply to Mr Bosanquet's Observations.

Bottleneck, in economics an obstacle or difficulty which slows down the flow of output of a commodity or service below the desired level. A common bottleneck is caused by inadequate or inelastic supply of a factor of production so that the output of a commodity cannot be expanded rapidly. Such bottlenecks are frequently short-lived because the scarce factor can be diverted from other uses, new supplies (e.g. by training additional labour) can be arranged, or a close substitute may be devised or discovered,

Bottlenecks may arise in any economic situation, but they are most common and are felt most acutely when there is rapid expansion of demand for a product or range of products as in the early part of a war. In normal commercial conditions a bottleneck problem can be studied with the aid of the normal tools for price analysis (e.g. elasticity of supply and cross elasticities of supply and demand), and is removed in time if markets are free so that supply and demand can react to changes in each other. In emergencies, as in war, when the primary need is for swift action to provide essentials, and the freedom of consumers or producers is secondary, the difficulties are handled to some extent outside the price mechanism by means of state controls, direction or direct production. (3)

Bounty, subsidy given by the state to merchants or manufacturers to encourage particular branches of production. The historic example was the parliamentary bounty on the export of corn. Export-stimulating bounties on goods whose trade might otherwise have languished because of relatively inefficient production and high prices were given on a wide range of manufacturers during the era of Mercantilism. Such bounties were severely criticized by Adam Smith in The Wealth of Nations for, inter ali, forcing trade into less advantageous channels and raising home prices.

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