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He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. (Smith, 1869, p. 28)
The above quote, taken from book four of Adam Smith's seminal work The Wealth of Nations, introduced the world to one of the most important concepts in modern economics, namely, the notion of an invisible hand guiding the market. Though the term "invisible hand" is mentioned only this one time in the entirety of Smith's work, it has become…… [Read More]
His lectures were a success as many eminent people of Edinburgh attended them and earned him a decent income.
During the course of his lectures on English literature, Smith perhaps realized that his real vocation was economics. Hence, addition to English literature, he started to deliver lectures in economics in 1750-51 in which he advocated the doctrines of commercial liberty, based largely on the ideas of Hutcheson. It was also during this period that Smith renewed his acquaintance with the philosopher, David Hume, sharing a close intellectual alliance and friendship that led to the emergence of the so-called "Scottish Enlightenment."
As a result of the success of his Edinburgh public lectures Smith was elected to the chair of logic at the University of Glasgow in 1751, which was lying vacant since the death of its previous occupant, John Loudoun, on November 1, 1750. Smith spent the next 13 years at…… [Read More]
Adam Smith's Economic Philosophy:
Just as Smith's moral point-of-view was ahead of his time with respect to ideas that others would popularize later, Smith presented matter-of-fact observations on the nature of work and the relationship between working people and society at large. More than one hundred years before Henry Ford revolutionized modern industry with his production line, Smith had explained the mechanism that accounted for its success.
Using the example of manufacturing nails, Smith illustrated that dedication to a specific task -and, in general, the divvying up of component tasks within any larger endeavor enabled one individual to produce more than 2.300 units per day, compared with a competent, but less specialized worker, who could produce only 800 per day, at best.
Smith eschewed the value of acquisitive success, or the accumulation of material wealth for its own sake, or for its value as a measure of self-worth, or as…… [Read More]
The roadways and other such necessities which are constructed by the government at the government's expense, and of which the private individuals are unable to finance, ultimately are predicted by Smith to come at higher and higher costs to the society.
SUMMARY & CONCLUSION
Smith, in his work, demonstrates how it is that self-interest is held at bay to an extent by rivalry of economy results in a prosperity that is widespread or that which is referred to by Smith a 'universal opulence' and is a situation in which the desire to produce more is driven by a desire for more consumption. Smith's view is that when restrictions on domestic trade decline that the society is able then to grow richer. Smith supports free trade to the extent that it is to the society's advantage as in the case where it can import goods at a lower cost than those…… [Read More]
ADAM SMITH'S FEE MAKET CAPITALISM
Adam Smith's upheld the concept of free market capitalism at a time when the world did not trade in such complex environment. Each state was economically independent of the other. In saying that market capitalism could remain unregulated stem from the fact that at the time governments were too keen on taxing its nations. During the Gold system, a nation depended on the free flow of coinage to be able to trade. A stoppage in the free flow would mean there is hindrance to trade and hence a slump in the economy. On the adverse side if government provides free flow of the coinage system even to "foreigner" then it would mean to cut down barriers to trade and allow foreigners to trade freely with the local market thereby increasing competition to the level that local market would become suffocated. His rationale for this was…… [Read More]
Adam Smith's Inquiry
Address to the First omen's Rights Convention" was a speech given by Elizabeth Cady Stanton in order to raise voice against male chauvinism and religious bigotry and how it had been used to suppress women throughout history.
omen Rights in Eighteenth Century America
"Address to the First omen's Rights Convention" was a speech given by Elizabeth Cady Stanton in order to raise voice against male chauvinism and religious bigotry and how it had been used to suppress women throughout history. The goal of this paper is to analyze the address given by Elizabeth Cady Stanton in the lights of broad and diverse academic resources.
Elizabeth Cady Stanton had made the commitment to improve the condition of women and elevate their status in American society. Her intellectual thinking and her ability to move out from the role of a house wife allowed her to be part of a…… [Read More]
To Smith, the natural world from which human beings emerged was not only insignificant and worthless, it was positively odious. He saw nothing to save, foster, or conserve about it. He thought people who lived in subsistence cultures were "so miserably poor they are frequently reduced to the necessity sometimes of directly destroying, and sometimes of abandoning their infants, their old people, and those afflicted with lingering diseases, to perish with hunger, or to be devoured by wild beasts" (p. 93). Nature was a resource to be used to create wealth. Consumption was the ideal -- everybody able to buy whatever goods were needed and wanted. And civilized Europeans were the "ideal of humanity" (p. 96).
In America and other Western nations today, we have seen the world Smith envisioned come to pass with everything he pictured a reality. People from developing countries are amazed, for example, when they visit…… [Read More]
Give me that which I want, and you shall have this which you want, is the meaning of every such offer" (Smith, 1776, p. 118-119).
The unintentional consequence is thee same as it was before: an increasingly respectable and thriving nation, one so much so that it is as if shaped by what Smith deems the "invisible hand," from which Smith thus concludes that "it is the necessary, certain propensity in human nature . . . To truck, barter, and exchange one thing for another" (Smith, 1776).
Also of significance is the interplay and conflict between self-love and benevolence by way of "sympathy" that would serve as the template on which all of subsequent economic theory would be founded. Consider the fact that most of economic theory is essentially a debate between the virtues of individualism and benevolent altruism by way of the state as intermediary. In short, economic theory…… [Read More]
Adam quotes that small republics have derived considerable revenue from profits of mercantile projects. Adam lists Republic of Hamburg, Venice and Amsterdam that had made profits from profits of a public wine cellar and apothecary's shop. Even Great Britain has said to make profit this way. Adam quotes "Postal Office as a perfect mercantile system"; the government advances the expense of establishing the different offices, and of buying or hiring the vehicles, and is repaid with a large profit by the duties upon what is carried. Adam believes that Postal system is perhaps the most successful example of mercantile system for the government. According to him the system involves no mystery in the business, the returns are not only certain, but immediate.
ADAM'S CONCEPT of FREE MARKET
The concept of free market raised by Adam is being thoroughly reviewed by all the leading economies of the world. He suggests, "The…… [Read More]
Smith on Labor
The importance of the labor skills and the method of production of which the factor labor contributed the major share was the theme of the ideas of Smith. In the Wealth of Nations Smith argued that it was labor which created wealth and supplied the necessities - "The annual labor of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always either in the immediate produce of that labor, or in what is purchased with that produce from other nations." (Smith, 1904) the fundamental factor being labor, it is the dexterity and the skill with which labor is employed that ultimately created the surplus called wealth. This surplus must be regulated by the market process and forces. "But this proportion must in every nation be regulated by two different circumstances;…… [Read More]
. . . The gains of both are mutual and reciprocal, and the division of labour is in this, as in all other cases, advantageous to all the different persons employed in the various occupations into which it is subdivided."
Therefore, the division of labor and human nature combine to produce a natural growth of the market, and the more people that are involved, the more opportunities for growth there will be as a result. In this regard, Smith adds that, "The greater the number and revenue of the inhabitants of the town, the more extensive is the market which it affords to those of the country; and the more extensive that market, it is always the more advantageous to a great number" (Book III, chapter 1).
This point is also made by McLean (2006) who reports, "After discussing the division of labour, Smith moves on to point out that…… [Read More]
Wealth of Nations, According to Adam Smith
Adam Smith's seminal text The Wealth of Nations stands a tribute to the value of capitalism. Fundamentally its author espouses an optimistic faith in the essential rationalism of human society and human desires. He believes in the ability of human economic impulses to balance one another in a state of equilibrium of supply, costs, and consumer demand, if not interfered with by outside forces. Smith suggests that there is a famously invisible hand that guides market forces in a harmonious way that the state should not interfere with. The state should only enforce laws so conflict between human beings is kept at a minimum, and so the economy can function. The reason for the existence of this invisible hand is not purely generated by the economy, but by the nature of modern, human social life that Smith believes is, at is essence, rational…… [Read More]
discovery of the New World and attendant new trade routes can certainly be described as momentous and significant, but the benefits of conquest and contact have been eclipsed by the inhumane, unjust, and hypocritical consequences thereof.
Three major aspects demonstrating Old and New World exchanges.
Discovery of new raw materials creating market demand and shifting patterns of trade, eg. Tobacco, cotton, corn.
Global trans-Atlantic slave trade creating free labor for the owners of the means of production and generating massive humanitarian disasters.
Decimation of indigenous populations throughout the Americas, representing genocide on unprecedented levels, justified by newfound sense of European superiority.
Five (5) specific groups that were affected by this event and two (2) examples for each cohort describing how they were affected.
A. Native Americans
Forced migration and stripping of access to wealth.
Slave labor, brutality
2. Lack of access to wealth, resources, power, fruits of…… [Read More]
One of the most interesting ethical dilemmas that continues to plague ethicists and policymakers is the struggle to reconcile the need for free enterprise with the need for social justice. Another ongoing ethical issue is related to organizational culture, shifting social norms, and whether individual actors in organizations define the tenor of the organization as a whole. Neither of these genuine ethical dilemmas can be resolved simply. The first bears itself out in what often appear to be glaring violations of every ethical principle and logical construct. Free enterprise has helped to bolster economic growth and development, as well as to empower individuals to innovate and contribute to society. Yet free enterprise has not been truly free, with access to power and resources constrained by factors like race (Kerr & Walsh, 2014), gender (Tufarolo, 2015), and class (Shin, 2014). Of these variables, race and gender remain salient barriers to achieving…… [Read More]
Adam Smith (Biographies, N.d.)
The Wealth of Nations
Book I: Of the Causes of Improvement in the productive Powers of Labor
Book II: Of the Nature, Accumulation, and Employment of Stock
Book III -- IV
Adam Smith was one of the most influential thinkers of the modern era. Smith's work laid the foundation for our modern economic system of capitalism -- he is sometimes referred to as the "father of capitalism." This analysis will cover his life and a brief biographical section, followed by his theoretical contribution to capitalism. Smith was far ahead of his time relative to political economy and argued that markets were an ideal form of resources allocation. However, in Smith's day, markets actually looked like small markets composed of buyers and sellers. Today, the concept of markets has become far more abstract and markets seldom resemble the form that Smith himself was familiar with.…… [Read More]
Adam Smith's "The Invisible Hand" in today's Global economy
The Global Economy and the Impact of Adam Smith's
Theory of "The Invisible Hand"
Adam Smith's theory of "The Invisible Hand" is not new by far, but it may have more of an application today than it had in the past, based on the fact that today's economy has become so globally oriented. This new global economy presents new and different challenges than those that were seen before and therefore some may argue that the theory created by Smith is too old to have any real value for the modern world and modern America. However, there are others that see the intrinsic value of this particular theory, and it is these individuals that have an interest in taking Smith's theory and applying it to the global economy that is seen today. This will be discussed here and looked at specifically will…… [Read More]
Kant; Adam Smith
Locke: primary qualities, secondary qualities, substance Kant: Judgment of perceptions, judgment of experience, categories of the understanding Explain all six terms above. Does Kant's position (relevant to those terms) different from Locke's? Is Kant (on these terms) able to deal with some of the problems Locke encountered (when using these terms)?
According to John Locke, "the primary qualities of objects are their real qualities," such as "solidity, extension, figure, motion, rest, and number, all of which excite or produce similar ideas in your mind," which may be contrasted to secondary qualities, which are subjective in nature "like color, sound, smell, and taste" (Shoulder 2012). When apprehending both primary and secondary qualities, the mind does not apprehend the thing itself directly, but merely creates an impression of it. What gives primary qualities' an objective existence is something known as substance, or literally a "substratum underlying and supporting the…… [Read More]
Modern capitalist philosophy has been advanced in a way that has little to do with what Smith really thought and taught. Smith believed that the invisible hand operated in a societal context. The reason Smith had such a positive philosophy of freedom was that he believed that human beings, would behave best if not compelled to merely serve the personal interests of a sovereign. Humans had a right to self-determination and to serve their own interests. However, when competition was threatened -- for example, when individuals by fair means or foul gained too much market power and created monopolies -- then it was appropriate for the government to step in. Smith believed that self-interest could prove to be beneficial to others but he did not believe that selfishness was an end in and of itself.
Justice and democracy are necessary for capitalism to function, but the rampant selfishness and lack…… [Read More]
Kant and David on Causality; Rousseau and Adam Smith on Social Order
Compare and contrast Rousseau and Adam Smith, on the importance of economic or political mark in their account of social order.
Rousseau saw the development of organized political life as synonymous with generating social inequality. As "individuals have more contact with one another and small groupings begin to form, the human mind develops language, which in turn contributes to the development of reason" (Discourse on inequality, Spark Notes, 2012). This development of reason, although it seems like a positive advancement for the species, also enables human beings to compare their lot with others. As institutions are drawn up to govern the new society, persons with greater political and economic strength (generated through holding political or leadership positions or private property) come to dominate over other citizens. The more complex societies become, the more they necessitate divisions of labor,…… [Read More]
One of David Ricardo's theories is the theory of Ricardian equivalence. Under the theory of Ricardian equivalence, government budget deficits do not change the level of consumption among consumers. The theory behind this is that, no matter when the government chooses to pay for its expenditures, citizens are ultimately responsible for paying those deficits. Therefore, people will change their spending based on government expenditures, regardless of whether the government is borrowing to pay for those expenditures.
Another of David Ricardo's economic theories is the theory of comparative advantage. Under the theory of comparative advantage, a country should focus its production efforts on those items it produces best. In order to obtain items that a country finds difficult to produce, it should trade with other nations, who are, in turn, focusing their production efforts on those items they produce best. Furthermore, under the theory of comparative advantage, it may…… [Read More]
Ever since Adam Smith demonstrated in The Wealth of Nations (1776) that individuals would be better off if they specialize, instead of trying to be economically self-sufficient, countries across the world have tried to apply the same principle to international trade. It is argued that all countries would be better off if they exchange the products and services that they are relatively good at producing for those things that other countries are relatively better at producing. David icardo (1772-1823), British economist and businessman, through his theory of Comparative Advantage went on to "prove" that it can be beneficial for two countries to trade, even if one of them is able to produce each item more cheaply than the other.
The colonialist powers, particularly Britain, had realized the benefits of international trade after its industrial revolution although it is highly debatable whether such trade was beneficial for the colonies…… [Read More]
Classical economists succeeded in developing basic concepts of political economy, which defined the laws of production and consumption development; economic relations, which are resulted by such activities. The founders of modern political economy Smith, Ricardo and Marx defined the processes and conditions of long cycles in development of economies, especially the issue of surplus distribution. Principles of free and comparative consumption, which were developed by Smith, Ricardo and later supplemented by works of Say and Marshall, laid into the fundamentals of modern political economy and modern international market regulations.
The main tenets of classical economics thought are the following:
According to Say's law, surplus also creates demand. Prices on goods behave the following way: value of produced commodities is always equal to the whole expenditures spent on commodities. Say developed a theory outlining three major production factors: land, labor and capital. On the base of natural order, under conditions of…… [Read More]
The reference to Montesquieu (as well as to Smith) in that part of the 'Dissertation' which deals with the 'Progress of Philosophy during the Seventeenth Century' was made just as a digression, and the further development of Jurisprudence by writers on Political Economy as well as 'the mighty influence which his [Montesquieu's] writings have had on the subsequent history of Scottish literature' (Stewart, 1854) were to be explained in the third Part of the 'Dissertation', which was never to be published.
A major task of the state is thus to ensure that the conditions of economic freedom are in fact satisfied, so far as possible, by sweeping away all legal and institutional impediments to it. Generally speaking, these obstructions can be condensed to four main groups. First, there is the problem that, in all societies subject to a course of evolution, 'Laws frequently continue in force long after the…… [Read More]
d.). They moved among several homes before settling on a large farm they named "Peacefield." With Adam's absences, Abigail not only helped maintain the farm but managed it and handled the finances along with raising their three sons and two daughters -- three of which she would outlive.
After his election, Abigail Adams, despite her "activist" roles, was quite aware of her position as the President's wife and First Lady of the land. She served as hostess to the public. She greeted guest seated formally, a technique she learned at uckingham Palace. It was not that she considered herself royalty, but Abigail was a short lady at 5'1" and she felt more comfortable seated. Like all first ladies, she influenced fashions of the day, believing that the mode of dress in that day was too revealing (The National First Ladies Library, n.d.).
She was the first Lady to reside in…… [Read More]
The manner in which she coped with the travails of traveling overseas in a time far before airplanes underscores the strength of character of this remarkable woman. The trip also marked the first time she had been away from her children for any length of time, solidifying her independence and contributing to her overall psychological development. Furthermore, Akers notes how Abigail was able to analyze, criticize, and incorporate ideas, concepts, trends, styles, and material objects from the Old orld. "Her confidence in herself as a person had been bolstered by the many opportunities to test her mind and values in the intellectual and social capital of Europe," (91). Furthermore, based on her letters, Akers infers that her trip abroad strengthened her already deep affection for America, the new nation she watched being born and growing with the help of her husband. Her travel abroad also indicated to Abigail how the…… [Read More]
On June 27, 1844, hundreds swarmed the jail and brutally murdered the Smith brothers, leading their followers to conclude that they were martyred (Sisk).
At Joseph's death, righam Young was president of the Twelve Apostles of their church and became the leader of the largest faction within (Sisk 1992). Some who separated from Young's group formed their own, called the Reorganized Church of Jesus Christ of Latter Day Saints, under the leadership of one of the brothers of Joseph Smith. In 1846, Young's group declared that the "saints" would leave Nauvoo and they settled in Utah the following year and, for the next 20 or so years, many moved to Salt Lake Valley to join those "saints (Sisk)." The growth was so tremendous that many ascribe greater magnetism to Young than to Joseph himself in attracting followers. It is noted that the current-day Mormon Church has millions of such followers…… [Read More]
The offering of financial incentives, in the form of salary increases, premiums and bonuses, is often the most popular means of employee motivation. Non-financial means, such as flexible working schedules or promotion opportunities, also constitute a powerful source of stimulated employees (Bruce, 2002).
The realization of the important role played by the staff members within the Smith & Falmouth Company would lead to several beneficial effects. At an individual level, the employees would feel better valued and they would as such increase their loyalty to the organization, their commitment to supporting the entity achieve its goals and their performances. At the group level, the teams would be more united and better prepared to deal with organizational chores. In terms of the entity, it will be better able to pursue its interests.
The ability to communicate effectively and efficiently is the pillar of any successful organizational outcome. Communication in…… [Read More]
Lynne ithey prefaces her biography of Abigail Adams by noting that the first Lady was "a tiny woman ... with ... A forceful personality that belied her size," (ix). Abigail Adams was, as ithey describes her, a "maddeningly contradictory" individual who defied conventional gender norms during her time, waged fierce rhetorical political battles against what she viewed to be British oppression of the colonies, and was unmistakably at the heart of the changing social and political realities of revolutionary America. One of the proto-feminists in the United States, Abigail Adams also championed similar civil rights causes such as the emancipation of slavery, but like most in her time, often seemed to straddle the fence on both of these contentious issues. ith one foot in one world and one in another, Abigail Adams did defy definitions and deserves to be remembered as ithey portrays her: as a quintessential American…… [Read More]
Smith believed this would lead to inefficiency.
However, unlike Plato, Smith did not believe that the ideal republic should decide from birth what occupation an individual should follow, rather that the individual must freely choose by his or her own will, how to direct his or her energies and labor in the most efficient and self-interested fashion, which would ultimately result in the advancement of the nation as a whole. Plato's social structure, although not based upon birth, was still based upon a monopoly of philosophers dictating the lives of others according to their state-generated power, unlike Smith's more democratic ideals. Smith's analysis more perfectly echoes that of illiam Petty, who stressed how breaking down tasks, like Smith's pin-manufacturing plant, could generate higher levels of efficiency in economic production. Petty also placed a strong emphasis, as did Smith, upon the vital need of a nation to practice free trade.
Question…… [Read More]
It offers a good theory as it emphasizes on the production and export of those items for which a country possesses a comparative advantage. Furthermore, through its focus on the reduction of taxes and tariffs in international trade and the adherent practices, the theory of comparative costs has set the basis for the contemporaneous processes of market liberalization and globalization.
But the theory has not been spared from criticism. Oumar Bouare states that "the market price of a commodity does not converge toward its natural price. (Then) the outcome of complete specialization in icardo's framework locks third world and developing countries out of industrialization; and free trade could destroy the industrial base of a country, which in the long run could generate more wealth for the country than an imported product. This might also lock the country out of industrialization." b) in 1848, utilitarian economist John Stuart Mill wrote the…… [Read More]
Therefore, a country which is able to produce one good with a lower opportunity cost than another country, should specialize in producing that good which will turn into a competitive advantage.
However, when assessing this theory at the level of international trade, it is harder to depict the competitive advantages. The model may seem to be unrealistic. The resources employed in real world are not restrained to labor and the markets in which the goods are supplied are not perfectly competitive. Moreover, there may be countries able to specialize in the production of one or several goods and other countries unable to find any competitive advantage. Other disadvantages are the ones assembled when trying to form a general framework of the labor costs. Due to the fact that these costs are similar within the boundaries of a certain country and vary from one country to another, it is problematical to…… [Read More]
Another well-known economic analyst Milton Friedman, believed that everything wrong in the world could be righted with free market trade. He promoted such ideas of private utilities and removing government involvement from society and business in every conceivable area (the Great Experiment: The Facts About Globalization (http://www.americanassembler.com/issues/globalization/index.html).
ecent studies indicate that such ideas, while looking good in theory are not conducive to successful society. California is a classic example of what can happen if free market utilities are allowed to roam unfettered by government standards of any type.
Friedman believes that complete free growth opportunities without boundaries, such has been the case in some areas of globalization actually harm the worldwide economy and in turn society in general (the Great Experiment: The Facts About Globalization (http://www.americanassembler.com/issues/globalization/index.html).
While globalization has been occurring since the beginning of time the recent expansion of electronic communication has caused the concept to explode with…… [Read More]
George Magnus is a leading Economic Advisor at the UBS Investment Bank and has been a rebel around different systems in the world. George was employed in the UBS investment bank from 2004 till 2012. Along with being the senior economic advisor, he also played the highest level economist from 1997 till 2004. Prior to working for the UBS, he was working as a chief economist in SG Warburg from 1987 till 1995. Magnus is known for his work and cooperation with famous banks of both America and United Kingdom. The economist has authored many books and uploaded regular reviews which can be found at his website. George Magnus did his Masters in economics from the School of Oriental and African Studies from the University of London. He is also known for teaching the subject at the University of Illinois and University of Westminster.
The way he put out his…… [Read More]
In addition, he argued that human behavior is mainly based on the pursuit of material profits.
According to Smith the society could develop only in case of existence of freedom and equality. These rational principles according to Smith could stimulate objective development of society and development of economical relations. His philosophical and moral ideas of course influenced his political economy. Smith's political economy based on freedom of competition and Smith principles of political economy based on the natural needs of developing capitalist society of Great Britain in many respects defined the economical policies of the major 19th century capitalist states.
3. Provide a sense of the historical context and the nature of the main debates in political economy during the first quarter of the 19th Century in Britain and how these debates shaped the complexation of early classical economic thought.
At the beginning of the nineteenth century there still existed…… [Read More]
Indeed, businesses today pride themselves upon their charitable, humanitarian and environmental efforts. Indeed, the very concept of "social" and "corporate responsibility" is built around this. Businesses today are recognizing the importance not only of functioning at an optimal profit margin, but also of doing so in a way that recognizes themselves as part of a larger and integrated whole in terms of human beings and the environment.
Kenneth Lux adds a further dimension to these ideas. Rather than directly disagreeing with Smith, as was my first instinct to do, Lux analyzes the specific elements in what Smith says and identifies a specific oversight. Firstly, Lux notes that Smith does not give due consideration to the paradigm of cheating. Cheating is self-serving, but does not serve the public good and is certainly not beneficial for the economy. Indeed, if Smith's assertions about self-servitude were to be believed, not cheating would be…… [Read More]
During the long development of economic science, many doctrines appeared which very often explained economic processes and connections in different ways. This created basis for development of different economic systems. Crisis of one economic system demands the thorough study of its' qualitative and quantitative parameters to effectively implement this experience in the future. That is why time-proven theories and models of economic development are looked from different angles at different points of times. In this essay I shall try to discuss the relevance of the views of major economics thinkers and criticism that might occur.
Adam Smith himself would be probably surprised, if in his time he would be called an economist: in the era of Enlightenment intellectuals, as it is known, always had very wide scientific interests and encyclopaedical knowledge with philosophy as the base for it. His research was possible only thanks to the sociological-political and…… [Read More]
Business Ethics in Precapitalist America
The American evolution was kindled by a growing dissatisfaction with the way colonial merchants were being treated by the English ruling class (Collins, 2011). In response to the Ottoman Empire's capture of Constantinople and the levying of onerous tariffs on trade goods coming from Western Europe, the Spanish Monarchy funded an exploratory venture that took Christopher Columbus west to map out a new trade route to Asia. The goal was gold at any cost, even at the expense of human life. One of the new markets that Columbus helped to establish was the Atlantic slave trade, with 'goods' moving east instead of west.
Over the next several centuries many of the Europeans arriving on the eastern shores of North America were indentured servants (Collins, 2011). When the number of European servants became insufficient to meet the demands of colonial merchants and farmers, more…… [Read More]
For most of the time since the subject of economics was first studied, the idea of resource constraints has been irrelevant. The world was simply not viewed as a finite place. The concept of resource constraints was limited, more or less, to the consideration of constraints on an individual economy. Adam Smith recognized that all economies would face resource constraints of one type or another. As Snowdon (2003) points out, "to Smith, it was obvious that all economies were faced with resource constraints and that free trade was a policy that would allow any nation to achieve the most efficient allocation of its scarce resources." This notion was built into the Ricardian trade theory and classical economics. It has not been until recent times, however, that the concept of worldwide scarcity has become relevant. The idea of peak oil and a world with seven billion people (or more) has…… [Read More]
history of human civilization, the Scientific evolution emerged during the 17th century, which happened right after the enaissance Period. The Scientific evolution is the period in history wherein scientific methods and results where arrived at using experimentation and the use of scientific instruments such as the telescope, microscope, and thermometer (Microsoft Encarta 2002). The Scientific evolution is attributed to Galileo Galilei, who proposed that the universe and its elements can be explained mathematically, while subsisting to the fact the Sun is the center of the solar system. During the enaissance Period, Nicolaus Copernicus had declared that the Sun is the center of the solar system, but his declaration is only descriptive, while Galileo's declaration is verified through experimentation and the scientific method. This important distinction is the main reason why Galileo's time was considered the Scientific evolution, primarily because it uses the scientific method of research and experimentation.
Studies and…… [Read More]
This is designed to help support individuals who are dealing with financial challenges. The problem is that select amounts of recipients will use as a way to live off of the government. (Wolf, 2005)
How might a socialist and a capitalist government differ in its treatment of the problem of unemployment?
Socialists want to see massive amounts of government spending to create new jobs, training programs and provide unemployment benefits. A capitalist is opposed to these kinds of programs and believes that charities / private enterprises can address these issues.
In your opinion, should the government have the responsibility of providing health care for every citizen? Why or why not?
Yes, the government should provide health care. The reason why is because prices are increasing exponentially and the number of uninsured is rising. These factors are a sign that there is very little competition inside the sector. To address these…… [Read More]
Entrepreneurs Should Know bout Federal Taxes for Corporations
ll corporations are subject to the corporate income tax on their net income. Taxable income is the gross income of the corporation, less the deductions allowed. Major sources of corporate income include: gross profits from sales; dividends received; interest; rents; royalties; and gains and losses. Still, there can be other factors that must also be considered in determining the corporation's income. There include: receipts that are actually contributions to capital; property distributions received by the corporation; rentals paid to shareholders of a leasing corporation; and income from a sinking fund.
Each business's tax liability is based on a graduated tax rate scale. Depending on individual factors, a corporation may also be subject to penalty taxes in addition to their regular income tax. The form of business that is operated determines what taxes must be paid. The four general kinds of business taxes…… [Read More]
Globalization and Social/Human Injustices
Human slavery/sex trafficking
The menace of slavery and trafficking for purpose of sexual exploitation is a menace that greatly neglected or not talked about by the high and mighty yet it is a problem that ravages families on a daily basis. Across the globe, there are people who benefit from the modern day slavery and there are countries that act as source, most of them being the underdeveloped nations where poverty is high and unemployment is also significantly high. These two factors when combined, often push affected families to willingly or otherwise let go of their daughters into the forced labor or sex slavery in more developed nations. The women and children are the most affected groups in the slavery business since they are the most vulnerable in the society. Against the common belief that slavery is obsolete, the opening up of more borders and easy…… [Read More]
The primary advantage of trade, he argued, was that it opened up new markets for surplus goods and also provided some commodities at less cost from abroad than at home.
Mass perception of free trade in the United States is rarely positive. Immediately, people think of lost jobs and our growing trade deficit instead of the free trade promises of a higher standard of living brought about by the theory of comparative advantage and economies of scale. Therefore, many feel that free trade makes this country worse off.
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19 Feb. 2005).
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
http://en.wikipedia.org/wiki/Mercantilist (Accessed 19 Feb. 2005)
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19…… [Read More]
S. consumers. Although the government should not support protectionism and protect inefficient American industries simply because they are American, it should require that companies selling products in the U.S. Or even partially based in the U.S. meet certain basic human rights standards (no slave labor, for example) and safety standards. This is necessary to protect U.S. consumers and also to ensure that America's reputation for freedom as well as economic growth is sustained.
Some unintentionally redistributive effects, such retaining a progressive income tax system to help poorer families survive while still remaining part of the workforce seem to be beneficial and necessary. Making charitable contributions tax-deductible is also an excellent idea to encourage redistributive effects, but no government can or should engineer a system where everyone is the same economically, without taking away the incentive to work.
However, government production would be acceptable when private marginal…… [Read More]
. . ' Their authority may only be of the order and breadth determined by the Idea of the whole; they may only 'originate from its might'. That things should be so lies in the Idea of the organism. But in that case it would be necessary to show how all this might be achieved. For conscious reality must hold sway within the state." (Marx, 77)
This suggests that independence is a pathway to authoritarian tyranny, whereas the 'might' of the state is accorded only by a collective population supporting this right. this resonates most closely with my own personal perspective, denoting something of a universal order in which central authority is necessary to retain civility but in which collectivism is elevated over materialism as a way of empowering such leadership.
The spread of capitalism as both a chief ideology and an aggressive response to the mores of socialism…… [Read More]
The other 48 have their own standards and only 2/3 of them require, according to the 2010 report of the National Association for Sport and Physical Education. This report said that almost 2/3 of high school students do not get enough exercise and more than a third watch TV for at least 3 hours a day. The report recommends students to perform PE or at least an hour each day, 150 minutes a week for elementary-age students, and 225 minutes for middle and high school students. Washington State schools are required 100 minutes of PE per week in the first to 8th grades. However, they are not required daily recess or a report card for each school. It also recommends that PE classes be handled by certified and licensed PE teachers. ut this is not always complied with. In 2010, parents sued the school board for allowing non-certified specialists to…… [Read More]
Monopolies and Trusts:
Appropriate Areas for Government Intervention?
Capitalism is the economic system that has dominated the United States virtually since the day of its independence. A social and economic system based on the recognition of individual rights; capitalism demands that owners' rights to control, enjoy, and dispose of their own property must be respected. In a capitalist system, the purpose of government is to protect individual economic rights, and to make sure that no one individual, or group may employ physical or coercive force upon any other group or individual. The success of capitalism is well evident. The surpluses that this system produces have enabled individuals to experiment; to create new products, and market new ideas. These private surpluses are traded in a free market in direct competition with other buyers and sellers. Such competition is best represented by the efforts of two or more parties acting independently to…… [Read More]
Marx on Labor
Heilbroner's honesty at the onset of his writing on Karl Marx reveals the flaws and distortion contained within the often complex, if not mystical tone of Marx's philosophy. The admitted sheer immensity of work produced by Marx and his partner Engels cannot be completely understood. The author confessed " the collected works compromise forty volumes, each 700-1000 pages in length. I have no room for many documents of great historical importance." This dismissal is proof of the limited value of Marx and his theory. Cherry picking this and that from any collection suggests an inconsistency, if not cloaking, of the true essence of Marx's art.
Regardless of the irrationality behind the author's analysis, there are still worthwhile ideas contained within the writing. The alignment of Marx and Adam Smith's appreciation for the value of labor and the corresponding explanations of each demonstrated a quality of humanity in…… [Read More]
- these actions are not punished by the law because, while immoral according to many, they do not cause injury to the rights of others.
Adam Smith further emphasizes the centrality of property rights. For Smith, the ownership and acquisition of private property is an essential right that contributes to and maintains individual well-being. Individuals who do not own property are individuals with no real say in their own affairs, and no voice in their government. Smith cites the case of the plebeians in the Roman Empire as an example of a class of people who were purposely kept from ownership of the land as a means of keeping power in the hands of the patricians.
He also makes reference to the slaves of his own day, and to residents of nations where a king may, at his own discretion, dispose of his subjects' property, as examples of conditions under…… [Read More]
Hamilton's Arguments in Favor of the Debt and the Bank
Jefferson would have no position against witch to argue had not Hamilton made the argument for the national debt so eloquently and so forcefully. Essentially, Hamilton and Jefferson entirely disagreed on the proper course to put the nation on a prosperous track. The greatest issue was whether the multitudinous colonial debts piled up by the individual colonies during and since the war with England should, in the spirit of e pluribus unum, be taken on by the federal government.
Hamilton postulated that the assumption of these colonies' - now states' - debts was essential to make the nation a credible, operating reality, deserving of trust in seeking credit from other countries. Also, Hamilton felt that "monied men" - those wealthy Americans who had made the loans to the state governments and how had in many instances not been paid yet…… [Read More]
A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for a 'new order' of civilization to be governed by a small group of 'all-powerful rulers.' The most important of these societies, and the one to which all subsequent conspiracies could be traced, is the Illuminati founded in Bavaria on May 1, 1776 by Adam Weishaupt" (p. 424). According to Atkins, it was Weishaupt's fundamental and overriding goal to form a secret organization of elite members of Europe's leading citizens who could then strive to achieve the Enlightenment version of revolutionary social…… [Read More]
Human societies within the context of civilization most always are organized into deference periods. The Constitution is a product of worldviews developed within such a limited paradigm, as paradigms tend to be, whether individuals -- including the Founders -- were and are aware of it. This condition, in part, touches on what Heilbroner frames as "The Unresolved Problem of Economic Power." He accepts that the wonderful free market system of Adam Smith is tainted by "giant oligopoly." The logic positing the market economy "as the servant of the consumer," therefore, might as well be null-and-void, but, still, "the emergence of these new attributes," Heilbroner argues, "can be seen as new functional mechanisms for the support of that system." (Heilbroner 18)
To make natural the influence of "giant oligopolies" to the free-market economy, Heilbroner borrows examples from the world of advertising and the manipulation of consumer wants. He admits…… [Read More]
eber and Marx on Labor
In the 19th century, leading social theorists such as Karl Marx and Max eber believed that because its many inherent contradictions, the capitalist system would inevitably fall into a decline.
More than a century later, however, the capitalist system is far from dead. Rather, it appears to be further entrenched, encircling the world in the stranglehold of globalization.
Despite the continued growth of capitalism, however, this paper argues that both Marx and eber's writings remain relevant to explaining many aspects of advanced industrial capitalism. In this paper, the Marx and eber's writings on estranged labor are explored in detail, to examine if the labor theories both men used to analyze capitalism and the plight of workers in the 19th century can also be applied to 21st century capitalism.
The first part of this paper discusses Marx's theory of estranged labor, as written in The Economic…… [Read More]
Future of Capitalism
Current Economic Crisis according to Schumpeter and Keynes
A justification of the economic crisis can be precisely explained by shedding light on the perspectives of famous economists. The information gained through this method will not only be informative but will also motivate further research. The two economic theorists chosen are Joseph Schumpeter and John Maynard Keynes (Blankenburg & Palma, 2009). Their thoughts appear to be most pertinent to this crisis. Keynes presents a very keen insight into the crisis through his rationalization of market psychology and concentration on cumulative demand. On the other hand, Schumpeter's thought on improvement and business cycle offers a different informative justification.
The existing economic crisis has its origin rooted in the assumption about the real estate sector. The review of the incidents that have happened, began with the permission of quite low interest rates to financial institutions for borrowing. By a small…… [Read More]
By not offering an artificial incentive to stay in business (the subsidy), product would not have been over-produced and wasted (perhaps an environmental impact), new and in-demand skills would have been acquired, real demands would have been met, and the price for those demands would have fallen (helping the consumer). Thus, by removing the artificial barrier to real and free trade (perhaps influenced by political pressure), economic well-being is ensured for all parties.
Now, consider labor, itself to be a similar commodity as the milk. Perhaps a certain software company employed 5000 employees to write code for a popular program. However, due to better education, increased drive, and longer work days in another country, the company could instead employ 1000 employees abroad (i.e. through "outsourcing"). Given the right political and legal conditions, the company could either allow fewer foreign employees to do the same work, or allow more employees to…… [Read More]
socialist economic thought and that of Marx
Socialist Economic Theories
In order to develop the different theories of socialist economic thought and that of Marx, we look at a description of the contributions by different socialists in the field of economics. These socialists include Sismondi, Proudhon, Godwin, Owen, and Ricard. We also look further into Marx's economic thoughts and his contributions to the history of economic thought.
Sismondi and Proudhon
The socialists made significant contributions to shaping the history of economic thought in the former half of the 19th century. They developed a set of fairly similar doctrines, despite a diversity of cultural backgrounds and approaches to economics. The element that unified these authors was the Ricardian economic thought that was felt, at diverse levels and in diverse ways, by all of the socialist economists belonging to the age, from Sismondi, Owen, and Rodbertus to Proudhon and the economists labeled…… [Read More]
The industrialist 19th-century Europeans frequently put this to the difference between private and state-sponsored religion. In 1837, an Austrian visitor to the United States observed:
In America, every clergyman may be said to do business on his own account, and under his own firm. He alone is responsible for any deficiency in the discharge of his office, as he is alone entitled to all the credit due to his exertions. He always acts as principal, and is therefore more anxious, and will make greater efforts to obtain popularity, than one who serves for wages (Powell 1967).
This should be no surprise to those who have seen populations stick to their religions despite sanctions from the state, such as in Poland. At the time of the fall of the erlin Wall, Polish participation in Catholic ceremonies was quite high; after independence and the establishment of an official relationship with the state,…… [Read More]
These methods are then examined with respect to future events using empirical observations and statistical tools. (History of Economics Society, 25)
It has to be accepted that such a method has been used to arrive at various conclusions. A lot of dedication is required by thinkers to derive the facts out of the information available. This concept of economics is not drawn out of nothing, but it has been derived from facts, and scientists have toiled to put together the casual details into formal approaches. Formal methods reduce the details in a systematic manner and so this is preferred than the informal method. However those is favor of the scientific method were against the formal method and argued that formal methods were not reliable since it was not sure whether the important aspects of the fact would be retained while reducing the information available. (History of Economics Society, 25)
History…… [Read More]
oth Phillip obbit and Richard Robison offer accounts of what a market-state is. obbit contends that the core features of the market-state are a crisis of the nation-state, a transformation of core state functions, relations of national states to transnational markets, and cosmopolitan culture. Finance is at the center of the culture, the money economy. Governments are more centralized but weaker because power is allocated by the money men, the banks, the managers of finance and capital, and governments are merely their footstools. According to Robison, on the other hand, market-states are neo-liberal, techno-managerial and instrumental, and citizens are clients and consumers. oth describe the materialistic, consumerist society, yet each has its own theoretical approach and unique conceptualization. This paper will compare obbit's and Robison's accounts of market-states and use the writings of Smith, Keynes, Marx and others to help illustrate the nature of the two.
Differences of What…… [Read More]
An important contribution to the market ideology is that the authors recognized the existence of a relationship between employment and the market. This relationship was based on that the employment, the division of labor and the "human material progress had proceed in parallel with the growth of the market." Otherwise put, there existed a direct relationship between the market and the employment, with the market being the feature which set the tone. An increase of the market would generate an increase in employment and vice versa. However, an increase or decrease in employment would not affect the market as the relationship between the two is unilateral.
Engels, Moore and Jones believed that the future successful implementation of the communist policies would see no major use of the market; "in the society of the future, there would be no mediation through the market. Wealth would satisfy needs directly. It would be…… [Read More]