Transcript IR Philosophers

Why is economics called the
“dismal” science?
Lets consider its birthplace…
What is economics?
Economics is the study of how we use our
resources.
Philosophers
 Adam Smith; “Wealth of Nations”
 Promoted the idea of Laissez-Faire
economics
 Term means “government hands off
business”
 Believed that being selfish, and Supply
and Demand would regulate
behaviors.
Thomas Malthus: Economist
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Population rises faster than food productiontheory of Carrying Capacity.
Contended that poverty and distress are
unavoidable
Believed only war, famine, and disease
would check population. Later added “moral
restraint” as well.
The CYCLE OF MISERY- food rises>pop
rises> food decreases> pop decreases.
More workers = lower wages.
David Ricardo: Economist
IRON LAW OF WAGES- wages up=
more children = more workers =lower
wages = fewer children = fewer workers
= wages up
 To regulate the economy, keep people
poor.
 The value of anything is based on the
labor needed to make it.
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Was everyone this depressing?
No. Utopian socialists want to
reorganize industry so a new society
could emerge.
People are equals, get fair chance, no
hunger or poverty.
Philosophies:
Jeremy
Bentham developed philosophy of
Utilitarianism. Idea that
something is good if it
promotes the greatest
good for the greatest
amount of people
Bentham Today. Seriously.
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Stop pollution, which causes
CHOLERA (An acute
infectious disease of the
small intestine, caused by
the bacterium Vibrio
cholerae and characterized
by profuse watery diarrhea,
vomiting, muscle cramps,
severe dehydration, and
depletion of energy).
Bentham wanted to have
the government set up
research labs to inspect
mills- making him a
HUMANITARIAN!
Trolleyism: an exercise in
Utopian Socialism
Robert Owen formed an industrial
community in New Lanark, Scotland.
No child labor.
 Short hours, meals, high wages
 Good housing and schools
 Stores with low prices
 Inspect mills and factories for safety
 Owen was SUCCESSFUL in creating
his utopia
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Karl Marx:
 German
Philosopher
 1818-1883
 Founder of
Marxism
 Named one of
the three
greatest thinkers
in history by the
Wall Street
Journal
Marxism:
Wrote
The Communist
Manifesto
Saw all of history as a
struggle between classes.
The “Haves” (Bourgeoisie)
and the “Have-Nots” (the
Proletariat)
This resulted in conflict
Marxism:
Believed
Capitalism system (free
market) would destroy itself
Workers would unite and revolt
against rich, take control of the
means of production
Private property would cease to
exist, everything owned by
everyone
Problems with Marx
He wrongly believed that capitalism
would cause more and more poverty
until a rebellion happened
 Marx wanted a global uniting of
workers, who were way too
NATIONALISTIC (and
Romantic)!
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Or maybe not…
Using the prior philosophies, tell
me what you think your future is
going to look like?