From the French Revolution (1789) to Modern Times, various significant theories created by philosophers, scholars, social scientists, politicians, and economists. Rousseau to Kant, Adam Smith to John Stuart Mill, Proudhon to Comte, Marx to Bernstein, Ricardo to Mazzini, many approaches considered as milestones introduced to the environment’s of different studies. However, during the timeline which consists four (18th, 19th, 20th, 21st) centuries, societies evolved significantly while the fundamental assumptions of earlier communities are replaced. As the bases of political theories evolved from state centralism to individualism, the study of economy, consequently, evolved in the favor of individual based environment. As the concepts and theories are introduced, subsequently, new systems in both political and economical terms are emerged. After centuries of war and destruction, starting with the second half of the 20th century, the capitalist system started to adumbrate its dominancy. Efficiency of armed struggles and armament race among states is queried. Especially after the collapse of the Berlin Wall, the superiority of liberal ideals accepted more precisely. Within this context of conventional process, analysis of this evolutionary timeline will expose an answer to the question of “Why today we seem to focus “more” on distribution of income among households or individuals?” On the other hand, it will be unfair to say that individualist approaches emerged just recently.
When Adam Smith explained his thoughts on “private interests” and “public benefit” at late 18th century, no one can precisely argue that those ideas will change the flow of the social sciences. He told that annual revenue of society is always equal to exchange...
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...ficient welfare state. However, as we analyze individuals separately, the study will show that there are groups of peoples whose belong to different economic sections within the society. As the crucial issues like growth theory and many other requires the integration of sub-disciplines of economy including labor economics by using both macro and micro approaches on analysis.
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Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations, (London: 1776), 190-91, 235-37.
Adam Smith often called the “founder of modern economics,” utilizes his observational assumptions to construct his own rationale for society, economics, and human nature. His observations are based on sentiments regarding issues that are far ranging. Within the Wealth of Nations Smith makes claims regarding human nature, such as “self-love” is inherent, the faculties of reason and speech, and the nature of humans to “truck and barter.” Smith examines the notion of a free market economy that is based upon reason rather than belief. This poignant observation on human nature has its bias and facts, with regards to Smith’s examination of society.
Marx, Karl, Friedrich Engels, Jones Gareth. Stedman, and Karl Marx. The Communist Manifesto. New York: Penguin, 2006. Print.
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In the Humanistic Tradition the author, Gloria Fiero introduces Adam smith as a Scottish moral philosopher, pioneer of political economy, and a key figure in the Scottish Enlightenment. Smith also known as the Father of Political economy, is best known for one of his two classic works An Inquiry into the nature and causes of the Wealth of Nations. Fiero looks at Smith’s work because the division of labor is important. One thing Smith thinks is even more important for creating a wealthy nation, is to interact and have open trade with different countries. Fiero states,“It is necessary, though very slow and gradual, consequence of a certain propensity in human nature which has in view no such extensive utility; the propensity to truck, barter,
"Adam Smith." Adam Smith. Library of Economics and Liberty, 2008. Web. 4 Feb. 2011. .
Adam Smith was a Scottish economist and philosopher and became known by his book The Wealth of Nations. He started his studies at the University of Glasgow and later furthered his education at Oxford. He returned back home and became a lecturer and professor to express his work which represented a dominant economic policy and the philosophy mercantilism. Adam Smith’s work and the way he thought of thing had a great contribution to the Enlightenment.
Marx, Karl, and Friedrich Engels. The Communist Manifesto. Trans. Paul M. Sweeny. New York: Monthly Review Press, 1998.
Bender, Frederic L. Karl Marx: The Communist Manifesto. New York: W.W. Norton & Company. ed. 1988.
Economists Thomas Robert Malthus and David Ricardo. Although differences of opinion were numerous among the classical economists in the time span between Smith’s Wealth of Nations (1776) and Ricardo’s Principles of Political Economy and Taxation (1817), they all mainly agreed on major principles. All believed in private property, free markets, and, in Smith’s words, “ The individual pursuit of private gain to increase the public good.” They shared Smith’s strong suspicion of government and his enthusiastic confidence in the power of self-interest represented by his famous “invisible hand,” which reconciled public benefit with personal quest of private gain. From Ricardo, classicists derived the notion of diminishing returns, which held that as more labor and capital were applied to land yields after a certain and not very advanced stage in the progress of agriculture steadily diminished.
Marx, Karl, and Friedrich Engels. The Communist Manifesto. 1st Signic Classic print. ed. New York, NY: Signic Classic, 1998.
Marx, Karl and Friedrich Engels. "The Communist Manifesto." The Norton Anthology of Theory and Criticism. Ed. Vincent B. Leitch. New York: Norton, 2001. 769-773.
Capitalism is a very complex system that is discuss by many authors, scholars and economists. Robert Heilbroner is a famous American economist who creatively discusses the system of capitalism in Twenty First Century Capitalism. He reveals the abstruse capitalism system and its role in society. Heilbroner begins by comparing traditional society with modern capitalist society and differentiate capital with wealth, which facilitate the reader to understand the basic definition of capitalism. He then illustrates the most crucial aspect of capitalism, that is, the two realms of capitalism. According to Heilbroner, the two realms of capitalism are state and economy or government and business. The relation between these realms is interesting in its nature, because one aspect of their relationship make them beneficial for society and another aspect turn them into dysfunctional in society. Realm of the state and the economy are beneficial when they rely on each other, as they support each other they results in peaceful state and economy of a society. At the same time, they have power to proceed independently. As soon as they split, they are dysfunctional for society because state might block the path of the economy to grow freely and economy can independently survive without supporting the government resulting in weak society. Western societies are the living example of capitalism. They present very languish condition of moral and social values, however, they proudly presents their materialistic life. This unbalance situation is because of the contribution of capitalism in modern society. The insatiable feature of capitalism results into accumulation of capital, which diminish the value of the human being and enhance the value of money an...
Adam Smith’s The Wealth of Nations argues for a system of political economy that separates economy – the creation and distribution of wealth – from governmental interference. In Smith’s view, the economy of a nation grows as a direct consequence of private business ventures in the interest of each individual owner. Regulation by the government hurts the economy, and the progress of society is derived from the flow of the market. Things should be left in their natural states, thus maintaining a “natural order” of society. The basis of Smith’s thesis is that this natural order is driven by Man’s self-interest.
Marx, Karl and Friedrich Engels. "The Communist Manifesto." The Norton Anthology of Theory and Criticism. Ed. Vincent B. Leitch. New York: Norton, 2001. 769-773.