Phil- - Phil 205 10-6 The Ethics of Wealth Creation Adam...

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Phil 205 10-6 The Ethics of Wealth Creation Adam Smith Famous parable of the beaver and the deer o The exchange in its primitive condition o Something that is worth two hours of labor should be the same price as something worth two hours of labor o Two hours of labor is worth more than one hour o However it will take more time to kill a beaver than a deer Quality of labor can complicate things o If the only thing that differs between the two commodities and the rate of exchange is the amount of labor o It takes twice as long to get a beaver than a deer In a primitive market two deers would equal one deer Marx and Smith both find this to be true However Smith does believe that in a modern economy this can work o When capital is created the primitive view doesn’t function o Capital gives rise to entrepreneurs that would lend money to producers o So Smith here says that not only is the price of goods the labor, but also the cost of the people that advanced them money to produce Farmers would need this loan to produce But those farmers would also want a little return on his goods The loaners want more than they gave though There is no reason for them to give up their savings if they don’t have an
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This note was uploaded on 02/08/2010 for the course PHIL 201 taught by Professor Carey during the Spring '10 term at VCU.

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Phil- - Phil 205 10-6 The Ethics of Wealth Creation Adam...

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