9-4-09 - Economics 448 Class Notes Marxs purpose is to...

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Economics 448 – Class Notes – 9/4/09 Marx’s purpose is to analyze socialism and a socialistic government in context of a scientific system. he is trying to take a scientific approach to why he believes socialism is an economic system superior to capitalism o However, HIS LOGIC IS FLAWED. TRANSLATING MARX: PART 1 - Marx knows exactly what the classical economic systems are and he knows the outcomes of the other models, but he tries to fundamentally tear it down by setting up a perfect capitalist system and then explaining why the perfect capitalist system doesn’t work (in his view) 1. I am going to tell you a story about how they think the world works. a. What does he mean by Freedom, Equality, Property, and Bentham b. Freedom – only by free will the buyer and seller contract as free agents i. He is setting up a perfect capitalist system – then he is going to strike it down as a bad thing ii. Why is it a good thing that buyer and seller are able to freely contract into a contract? iii. He asserts that none of these things hold true in the labor market; he asserts that the laborers are in debt to the capitalist 1. He thinks that it would be great if labor markets worked perfectly, then people would be free. a. If labor markets worked perfectly, then freedom, equality, property, and bentham would exist in the labor market b. If you are not free, then the market is not going to work well iv. If we are going to setup a perfect capitalist market, then we need freedom between c. Equality – WE have to enter into contractual obligations as equals, not with one individual having significantly more market power over the other individual i. Example of disproportionate power: monopolist hiring an individual laborer – monopolist has more market power over laborer not equal ii. Marx says equality is necessary for perfect capitalist system
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PART 2 2.
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