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101+lecture+13 - Marx readings Marx readings Communist...

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Unformatted text preview: Marx readings Marx readings Communist Manifesto, sections I and II Selections from The German Ideology (on section Sakai sites). FINAL EXAM: Dec 22, 2010: 12:00 PM ­ 3:00 PM Smith, The Wealth of Nations (recap Smith, from last time) “Political economy” Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects: first, to provide a plentiful revenue or subsistence for the people, or more properly to enable them to provide such a revenue or subsistence for themselves; and secondly, to supply the state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign. (Book IV, Introduction) Division of labor The disposition to truck, barter, and exchange The nature of market exchanges The nature of market exchanges It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self­love, and never talk to them of our own necessities but of their advantages (15). Smith’s view of human society Smith’s view of human society We rely on each other to provide our necessities (and luxuries) We act out of self interest in ways that we think will work to our advantage These tendencies promote a process of specialization and division of labor, which results in a higher standard of living for all The invisible hand The invisible hand [Each individual]…neither intends to promote the public interest, nor knows how much he is promoting it….[H]e 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. Nor is it always the worse for the society that it was no part of it… The invisible hand The invisible hand …By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good (166). Two competing interests: “masters” Two competing interests: “masters” and “workmen” What are the common wages of labour, depends every where upon the contract usually made between those two parties, whose interests are by no means the same. The workmen desire to get as much, the masters to give as little as possible. The former are disposed to combine in order to raise, the latter in order to lower the wages of labour (65). Two competing interests: “masters” Two competing interests: “masters” and “workmen” We rarely hear…of the combinations of masters, though frequently of those of workmen. But whoever imagines… that masters rarely combine, is as ignorant of the world as of the subject. Masters are always and every where in a sort of tacit, but constant and uniform combination, not to raise the wages of labour above their actual rate…. Two competing interests: Two competing interests: “masters” and “workmen” …We seldom, indeed, hear of this combination, because it is the usual, and one may say, the natural state of things which nobody ever hears of (66). Why is it easier for owners to Why is it easier for owners to organize? Fewer of them (easier to get agreement) Fewer of them (easier to keep secrets) They are more secure economically. They have the government on their side (especially so in Smith’s time). Restrictions on the importation of Restrictions on the importation of goods (protectionism, tariffs) That this monopoly of the home­market frequently gives great encouragement to that particular species of industry which enjoys it…cannot be doubted. But whether it tends either to increase the general industry of the society, or to give it the most advantageous direction, is not, perhaps, altogether so evident (163). Restrictions on the importation Restrictions on the importation of goods (protectionism, tariffs) If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry employed in a way in which we have some advantage (167­ 168). Smith’s broader vision Smith’s broader vision Moral virtues and market society “Trickle­down” The houses, the furniture, the clothing of the rich, in a little time, become useful to the inferior and middling ranks of people (131). The role of government and the danger of government debt Integrating country and city Government debt and war Government debt and war The progress of the enormous debts which at present oppress, and will in the long­run probably ruin, all the great nations of Europe has been pretty uniform. Nations, like private men, have generally begun to borrow upon what may be called personal credit, without assigning or mortgaging any particular fund for the payment of the debt; and when this resource has failed them, they have gone on to borrow upon assignments or mortgages of particular funds (274). Government debt and war Government debt and war [Governments] are unwilling, for fear of offending the people, who by so great and so sudden an increase of taxes would soon be disgusted with the war….By means of borrowing they are enabled, with a very moderate increase of taxes, to raise…money sufficient for carrying on the war…In great empires the people…feel, many of them, scarcely any inconvenience from the war, but enjoy, at their ease, the amusement of reading in the newspapers the exploits of their own…armies (277). ...
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