Classical economists
The classics. �Interest in their analysis
The Classics. �Issues in Their Time
Optional. Background.
Adam Smith (1723-1790)
Optional. Adam Smith. �Two Theories of Value (Price)
Adam Smith: the invisible hand; �in capitalism, the pursuit of self-interest leads to a large pie.
“Insofar as every individual endeavors to invest his capital in national activity and to direct that activity so as to produce the maximum value, every individual necessarily works to make the annual income of society as high as possible. It is true that as a rule he neither intends to promote the general interest nor knows to what extent he is promoting it. By preferring to engage in national rather than foreign activity, he is only pursuing his own security; and by directing that activity so as to produce maximum value, he is only seeking his own gain. But in this case, as in others, an invisible hand leads him to promote an objective which was not part of his intention. That this is so is not necessarily bad for society. By pursuing his own interest, he frequently promotes that of society much more effectually than if he actually intended to promote it. I have never seen many good things done by those who pretend to act for the good of the people.”
The Wealth of Nations (selection) , Alianza, 1994, page 554, https://archive.org/details/smith-adam.-la-riqueza-de-las-naciones-ocr-1994
Adam Smith: the invisible hand; �in capitalism the rich consume little of the pie
“The produce of the land sustains at all times practically the number of inhabitants it is capable of supporting. The rich select from the whole only what is most precious and pleasing. They consume scarcely more than the poor, and despite their natural selfishness and avarice, although they seek only their own convenience, although the sole aim they propose is the satisfaction of their own vain and insatiable desires, they share with the poor the fruit of all their possessions. An invisible hand leads them to make almost the same distribution of the necessities of life that would have taken place if the earth had been divided equally among all its inhabitants, and thus, unintentionally, unknowingly, they promote the interests of society and provide the means for the multiplication of the species. When Providence distributed the land among a few powerful landowners, it neither forgot nor abandoned those who seemed to have been excluded from the distribution. These, too, enjoy a share of all that it produces. In what constitutes genuine happiness in human life, they are in no way inferior to those who would seem to be so superior to them. In the relief of Body and peace of mind—all the various ranks of life are found almost on the same level, and the beggar who basks in the sun by the roadside treasures the security that kings strive to attain.”
The Theory of Moral Sentiments , Alianza, 1997, page 333, https://archive.org/details/smith-adam.-la-teoria-de-los-sentimientos-morales-ocr-1759-1997
David Ricardo (1772-1823)
Optional. David Ricardo. �Theory of Value
David Ricardo. �Evolution of the economy and distribution
Marx on Ricardo
Theories on surplus value II, FCE, 1980, pages 100-102.
Sismondi 's critique of Ricardo. �Automatic economics
Jean Charles Leonard Simonde �by Sismondi (1773-1842)
New principles of economics politics II , 1824, page 263 �https://digibug.ugr.es/handle/10481/18582
Ricardo's rectification
Principles of Political Economy and Taxation , 3rd edition, https://archive.org/details/ricardo-economia-libro
Thomas Malthus �(1766-1834)
Cambridge University, The man we love to hate: it's time to reappraise Thomas Robert Malthus , https://www.youtube.com/watch?v=DJhGH1xYMqc
Malthus. �Principle of Population
"When there are no obstacles preventing it, the population doubles every twenty-five years, growing from period to period, in a geometric progression."
"Under the most favorable circumstances, the means of subsistence increase only in an arithmetic progression."
When wages exceeded the minimum living wage, the population grew; when wages fell below the minimum living wage, the population fell into poverty and declined. The result was that wages tended to settle at the minimum living wage.
John Stuart Mill �(1806-1873)
John Stuart Mill. �On the Steady State.
Comments on the Classics �: Just because the pie is big in capitalism and the rich consume little of it doesn't mean that workers necessarily get a big slice. We shouldn't take our big slice of the pie for granted.
Comments on the Classics �: Just because the pie is big in capitalism and the rich consume little of it doesn't mean that workers necessarily get a big slice. We shouldn't take our big slice of the pie for granted.