For in the end all inequalities can be reduced to

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For in the end, all inequalities can be reduced to rich and poorEven slavery is possible only because of that differenceThat is why there is only one way to root out slavery: no one may be so rich as to buy another and no one so poor as to be tempted to sell himself.That is the basic minimum of equality required for personal freedom.In order to achieve justice, another kind of equality is needed. “Moral and lawful equality” must replace the inequalities, both physical and intellectual “that nature may have imposed upon mankind.””Rousseau did not believe men were created equal or alike (page 15 Jean-Jaques Rousseau)Nevertheless the “force of things” is always against equalityEven though the general will tends towards society as a whole, equality cannot be accepted by the modern Europeans because of the consequences they have to accept such as 1. Little division of labor, 2. economy with no foreign trade, 3. Elimination of any surplus (perhaps through taxation)Adam Smith---supply and demandlaw of competitionThere are limited resources that everyone competes for Merchants compete to get the most affordable product to people, solidifying that people will always be getting the products for the least cost possibleLaw of natural pricingPrices gravitate towards natural pricing (the product’s actual value) provided there is no economic forceIndustry--increase profit, decrease equalityIndustrializationRicardoLabor saving machinery & Surplus value of laborFor Marx, capitalist profit derives primarily from the “surplus value of labor,” which refers to the extra hours of work that a typical worker has to put in ABOVEhis or her “true value” of labor--the actual hours for which he or she is paid. But Marx also points to the natural tendency of capitalists to shift to “labor-saving machinery”in order to circumvent higher wages that follows accumulation. The long-term problem of this “solution” aimed at resolving a “crisis”is that it createsanother crisis. The new crisis results from capitalists depriving themselves of the very source of profits—the “surplus value” of labor, since Marx suggests that a capitalist will always have to pay the exact worth or value of machines, which do not afford “surplus value.”True value vs. surplus value of laborTrue value--commoditiy
what it takes a worker to provide for himself and family (bread, coat, modest shelter) subsistenceSurplus value of labor---source of capital profit6 hrs to make commodity but contract makes work 12 hrsWorking too many hrs so the production value is exploited--basis of capital accumulationMore workers=less wagesLabor-saving machineryLaborers too expensivePay the true value of machines, lay off workers to save moneyThe “business cycle” of crisis and renewalCrisis- surplus labor leads constant population so that wages stay high and constant. then producers cut cost by producing labor-saving machinery which create a surplus

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