(L4) Principles of Political Economy Mill Flashcards
What is the goal of economic progress according to Mill?
The goal is to understand the ultimate point society is reaching with its industrial progress, leading to a stationary state where wealth increase ceases.
What is the concept of the ‘Stationary State’ in Mill’s work?
It’s the inevitable end of economic progress where wealth increase stops and is seen as a stagnant but necessary phase of industry.
How did earlier economists view the stationary state?
Earlier economists generally viewed it negatively, equating prosperity solely with continuous economic growth.
Why is population control important in a progressive state of capital?
To prevent the deterioration of the poorest class’s condition by ensuring that population growth doesn’t outstrip capital increase.
What is Mill’s perspective on the stationary state?
Mill sees it more positively, envisioning a society focused on overall well-being rather than just economic growth and competition.
What should be the focus of industrial improvements?
They should aim to reduce labor and distribute benefits more equitably, not just increase wealth.
What role do co-operative societies play in Mill’s economic theory?
Co-operatives increase productivity, better distribute wealth, and involve workers in profit-sharing, leading to societal harmony.
How does Mill view competition in relation to socialism?
Mill criticizes Socialists’ negative view of competition, seeing it as necessary for progress and preventing greater issues.
Why is competition important according to Mill?
Competition is crucial for industrial and societal progress, preventing idleness and lack of innovation.
What are the general themes in Mill’s discussion of economic growth and limitations?
Economic growth has limitations; a stationary state is inevitable. Balance between population growth and capital is crucial for avoiding poverty.
