Capitalism vs Socialism Flashcards
What are the causes of wealth of a nation by Adam Smith?
- Self-love/interests, market-driven exchange 2. free trade 3. Specialization.
he also recognized that free market can create inequality and monopoly and government should step in to regulate business’ anti-competition and make market broader and bigger to make it work.
What is the full name of the book written by Adam Smith? what is the nature of the wealth of a nation by his definition?
An inquiry into the nature and causes of the wealth of a nation. his definition of the wealth of a nation is not the gold owned by the king but the products that can improve ordinary lives.
what did Adam Smith teach at university of Edinburah back in 18th century?
moral philosophy which later evolved to be economics, political science, sociology. Since back to his time, the word economist didn’t exist yet (it was later created by university of Paris, meaning household manager). but the words economics already existed back in Greek time, from the word “Oikonomia”, meaning household expenses. it first time appeared in Aristotle’s work in 4th century BC.
What is capitalism by Karl Marx?
economic system centered on private property, markets and profits.
what are the key 4 ideas of Marx?
- class society. when market
- development of capitalist industry
- rise of the working class or proletariat
- inevitability of socialism
How did Karl Marx envision for the capitalist society?
rich capitalist / poor people –> giant plants and population -> profits goes to the owner of the plants -> mass production -> industrialization can benefit people by raising standard of living -> workers’ salary will go down and compete with each other for fewer jobs -> trade union can protect workers’ power -> socialist parties will overthrow the capitalist and establish socialist society and distribute profits among people
What is John Maynard Keynes’ contribution to economics?
John Maynard Keynes (1883-1946) Bloomsbury group’s biggest contribution was after 1930s great depression. Macroeconomics: scientific analysis of the overall economic performance of national economy. influence from Keynes: government manipulate tax, spending level to influence economic performance.
What is Milton Friedman (1912 - 2006)’s contribution to economics?
Free market advocate at University of chicago. be believed that government created more problems than they solved. he derived his idea from Adam Smith that if the market is left to itself, it will create benefits to the society. Too much government intervention will damage demand and supply and create inefficiency. Reagon and Margaret put Friedman’s ideas to practice.
