All Flashcards
What is the wealths of nation by ________ all about?
- How is it possible for a community where each member pursues self-interest (bias: let individuals pursue self-interest) to remain together? (You allow themselves to go everywhere and remain together because it benefits everyone else.)
- What guides each individual’s private business so that it conforms to the needs of the group?
- How does society manage to get the task necessary for its survival done without central planning and age-old traditions (he doesn’t want government to be involved in the economy pero magagwa pa rin natin yung mga gusto natin)?
“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 ___________. We address ourselves not to their humanity but to their self-love, and never talk to them of our necessities but of their advantage.”
self-interest
Adam Smith
What are the two laws of the market
- Invisible hand (laws of supply and demand) whereby the private interests and passions of men are led in the direction which is most aggregable to the interests o the whole society therefore there is no need for central planning.
- Demand is there, supply will come in (in order for them to benefit as well)
It is possible that government will tell you this product should be just between this price range. Is that necessary? You let the _____________ determine the price and quantity of the product. Let people follow their _____________
invisible hand
self-interest.
Laws of the market are ____________ (no need the state to regulate the economy)
four things they do
self-regulating
- Control prices,
- Produce demanded goods,
- Reduce prices,
- Similar incomes
Individual self-interests of similarly motivated individuals will result in ___________–
competition
Division of labor:
- increase production, increases the dexterity of workmen, saves time, application of machinery (smith), separation of trade &
industry, and advancement of societies
Wealth of nations (smith)
- Employ capital as near as home
o Security
o Knows the market
o Knows who to trust
o Knows the law of the country - Support the domestic industry and direct it to produce more value.
Market failures (free market – walang role yung government) (smith)
- Pollution/negative externality – it negatively affects other people; hindi binabayaran yung cost na may plastic ka; putting a price in pollution (Not Adam Smith anymore)
David Ricardo Principles of political economy and taxation
Capitalists
Capitalists
- Invest to make profit
- Capital is their contribution to the society
David Ricardo Principles of political economy and taxation
Landlords
Landlords
- Own land (contribution to economy)
- Rent/ differential rent (what they get from the economy; their share in the economy)
- Their interests are inimical to society (problem in the economy would be landlord and their interest)
David Ricardo Principles of political economy and taxation
workers
Workers:
- Addicted to the domestic delights of society (spend to what they like; they’re not able to save and therefore do not have money to invest)
- Contribution to economy (own labor, bodies); their share/output in economy is wage
- Natural price and market price (actual wage received by workers)
- Natural price (kailangan ng laborer at ng family niya to survive) of labor is that price which is necessary to enable the laborers (family survival), one with another, to subsist and to perpetuate their race (price: cost of living now)
- If the market price of labor is more than the natural price of labor, then our laborers would be happy. Gagastusin lang nila sa bagay na hindi mahalaga. They would think about the future – having another member of familyIf opposite, hindi sila masaya.
explain differential rent
May rent na binabayaran sa land, nagincrease ang population and food, kinakailangan nilang gagamit ng ibang lupa. Yung lupa nay un babayaran ng rent. Yung lupa nay un hindi makakapagproduce as much as before. Ang tawag doon ay differential rent. It will go to our land lords. Hindi nagbebenefit ang workers. If tumataas yung supply dapat bumababa yung presyo ng pagkain but tumataas siya dahil ginagamit na lupa ay yung hindi productive as before (mas madami kang iiinvest nap era)
Capitalists are not happy since kailangan nilang pataasin yung market price of labor. If they increase it, less profits for them. Less capital to invest in the economy.
who’s idea is comparative advantage?
ricardo
- Alientation (World of ideas; Idea of ______: if you are __________, you are a free thinker. (We are alienated because We are no longer free thinker) There is a separation between man and nature because we don’t understand nature
Hegel
not alienated
Marx: We are ____________ because we are no longer __________; we have to ______________ to resolve the alienation
not ourselves, free creators, change the world
(Adam smith: isang task lang gagawin mo – cut wires the whole day; for _________, that results to ___________. We can create many things but because of industrialization, we only create one thing. )
marx, alienation
what is self-alienation
Self-alienation is understanding what is happening to you and you don’t do anything about it.
Communist manifesto: Most of it are _______________
________ is cure for alienation
problems of capitalism
Communism
Feurbach and marx: we are alienated because of __________
Feuerbach: to cure ourselves of this alienation, we should accept that __________
Marx: man should not have ________________
religion
god is a projection of ourselves, that god is a creation of man
no other god but himself. This is true humanity incarnated in the communist man