Pol econ

eshapeesha's version from 2015-04-15 05:10


Question Answer
pol econ vs econpolitical economy is how politics influences the economy, while economics is the relationship between the supply and demand of a good and the fluxuation of the economy.
3 systems by which human societies have survivedtradition, command (absolute rule), market system
market systembuyers and sellers, motivated by gain, freely conduct business with goal of profit.
3 developments responsible for econ revolutionrenaissance, sci revo, age of exploration and discovery
renaissance sigera which saw decay of restrictive religious spirit in favor of skepticism and inquiry
sci revo sigsci experimentation and discovery
age of exploration and discoverynatural wealth from colonies, providing raw material
factors of productionland, labor, capital
landnatural resources
laborhuman effort
capitalphysical necessities for produciton
adam smiths context was in a pre industrial economyhis laws of accumulation and population were upset by sociological developments. he writes about an economy that will not develop or change. his grows but stays the same.
mercantilismamt of wealth is static, wealth an be best judged by amt of gold or silver it has
physiocratsinc smith, oppose mercantalism bc they believe that land and ag are true sources of wealth, support laissez faire
law of accumulationsmith, people will accumulate profits and put them back into production
laws of marketprofit motive, competition. these ensure competitive price and quantity, regulating the incomes of producers.
smith believed government shouldprotect nation from other countries, ensure people have liberty and justice, gov institutions that will help the people. no gov in market system
industrial societybased on machines to produce goods. creates bureaucratic organization
england during ricardo and malthussufferring under evils of factory system w child labor and unsafe conditions
malthusian doctrinpopulation grows at a rate greater than the means to feed it,
ricardopeople create low wags by having kids, capitalists reduce profits through competition,
iron law of wageslabor's wags must remain at the subsistence level, or natural price bc worker's tendency to produce more children. ricardo.
shakersmother anne lee creates niskeyuna based on celebacy, communal living, confessing sins, labor.
owencreates new lanark where he treats workers very well. shows that industry can sponsor humanitarian projects and make money
st simonfounder of french socialism. workers deserve society's greatest rewards, rewards allotted in proportion to each persons social constribution.
scientific socialismbased on scientific method, opposed utopian socialism which does not tell why socialism began in society and does not account for human flaws. felt socialism was backed by darwinism and natural selection.
hegelian dialectschange occurs bc synthesis of opposing forces
how does marx think things changehistory is one class exploiting another, next step in revolt of workers who will overthrow proletariat and create a communally owned, classless society
dialectical materialismhistyr is classes exploiting each other
economic interpretation of historyeconomic factors influence society
surplus valuehuman labor is the source of economic value. a workers compensation is less than the value they add to the good, the rest is surplus labor that makes surplus value
main alteration of marxism by leninmade it more political with a government strictly controlling the people. government owns not all people.
marxist leninismadaptation of marxism by lenin, develop into a socialist state through the leadership of a revolutionary group composed of revolutionary proffessionals called vanguard
how come depression can remain indefinitely according to keynesif people dont invest, production wont expand, so people will save their money, which creates a deppression. once in the depression people wont spend so it can cont indefinitely (the see saw theory of savings and investment)
macroeconomicsfocused on the movement and trends in the economy as a whole.

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