When analyzing trade’s effect on state behavior, it is not the mere existence of trade between countries that should be central, rather, the nature of trade that is crucial. This distinction will be explored by studying the arguments of key economic and political thinkers of both the 18th and 20th centuries. The general nature of trade, the role of national government regarding trade and security, trade's capacity to befriend belligerent nations, and finally, the influence of international economic institutions will be explored. In an attempt to present a fairly broad range of sources, this study features the ideas of four influential authors from two time periods and continents: from the 18th Century, Adam Smith and Alexander Hamilton, and from the 20th Century, John Maynard Keynes and Secretary of State Cordell Hull.
My thesis is that the four authors examined actually agreed with one another on the connection between free trade and peace, despite the discordant resonance of their arguments. Due to the nature of trade in Hamilton and Smith's time, their assertions that trade had ambiguous, if not adverse effects on state behavior is equivalent to Hull's statement that trade under the auspices of international organizations ensured peace. Almost all trade, up until the foundation of post-W.W.II international economic bodies, was practiced in an opaque, unfair, and mercantilist manner. Both Keynes and Hull, who argue that trade is pacific, lived in a rapidly liberalizing environment where international organizations were gaining legitimacy and influence. Thus, the conclusion of all four authors can be modified to state that trade is pacific only when it is conducted in an open, fre...
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...The Memoirs of Cordell Hull. New York: Macmillan.
Keynes, John Maynard. 1919. The Economic Consequences of the Peace. London: Macmillan.
________. 1922. A Revision of the Treaty. New York: Harcourt, Brace and Company.
______. In: Moggridge, Donald. ed. 1980. The Collected Writings of John Maynard Keynes: Activities 1941-1946. London: Macmillan.
Moggridge, Donald. ed. 1980. The Collected Writings of John Maynard Keynes: Activities 1941-1946. London: Macmillan.
Raphael, D.D. 1985. Adam Smith. London: Oxford University Press.
Smith, Adam. 1766. "Lectures on Jurisprudence." Cited in: An Inquiry into the Nature and Causes of the Wealth of Nations.
________. 1981. An Inquiry into the Nature and Causes of the Wealth of Nations. Indianapolis: Liberty Fund. [1776]
In this essay, the author
Analyzes the nature of trade, the role of national government regarding trade and security, and the influence of international economic institutions.
Argues that the four authors examined agreed with one another on the connection between free trade and peace, despite the discordant resonance of their arguments.
Explains that due to the ambiguous and problematic nature of key terms such as "free trade," "war," and "peace," this study must be qualitative.
Argues that trade's function in promoting peace or inciting conflict exposes the fundamental antagonism between economic versus political thought.
Analyzes how adam smith argued in the wealth of nations that the mercantilist system was futile and destructive to society as a whole.
Explains that smith was born in 1723 in kirkcaldy, scotland, to a widowed lawyer. he enrolled in the university of glasgow for three years and attended oxford university for six years.
Analyzes smith's view that foreign trade brought two distinct benefits to its practitioners: it carries out surplus part of the produce and brings back in return for it something else for which there is a demand.
Analyzes how smith's struggles with this issue are apparent as he addresses the trade war of 1672 between france and holland.
Analyzes how hamilton formed a decidedly mercantilist opinion of international trade based on numerous examples, including the pelponnesian war and british imperialism.
Analyzes hamilton's argument that rivalships and competitions between commercial nations are one of innumerable "causes of hostility." smith limited proper government involvement in trade strictly to security-related industry.
Analyzes how hamilton supported smith's ideas by advocating the elimination of trade barriers between the states. hamilton argued that free trade would "extinguish that secret jealousy which disposes all states to aggrandize themselves at the expense of their neighbors."
Analyzes how cordell hull and john maynard keynes offered more insightful narration on the dual nature of trade.
Explains that cordell hull was born in 1871 to a poor farming family in tennessee. he was elected to the sixtieth congress in 1907 and served until 1933 when he was named roosevelt's secretary of state.
Argues that unhampered trade doesvetail[s] with peace; high tariffs, trade barriers, and unfair economic competition, with war. if we could get freer flow of trade, we might have a reasonable chance of lasting peace.
Analyzes how john maynard keynes' book, the economic consequences of the peace, catapulted his career almost overnight, making him one of very few economists in history to achieve such widespread fame and recognition.
Analyzes how theorists differed on their views of national governments' role in trade. smith believed government was superfluous to a properly functioning system of trade, while hamilton argued the opposite. keynes offered insight into the paradox of liberalism.
Analyzes how adam smith's disdain for government involvement in all but a few, distinct areas is expounded throughout his works. smith finds no place in private business for the intervention of government.
Describes the duties of protecting society from the violence and invasion of other independent societies, and the duty of erecting and maintaining public works and public institutions.
Analyzes smith's limitations, stating that hamilton included the protection of domestic industry into this category. smith states that navigation regulations are the wisest of all commercial regulations in england.
Analyzes smith's statement as a single concession to government involvement in trade. smith admitted that national security was the only area where he believed government regulation to be prudent and effective.
Analyzes how hamilton's report on manufactures was written in response to congress' request for information regarding the economic independence and security of the young united states.
Analyzes how hamilton modified smith's division of labor argument to fit his interpretation of trade in his time.
Analyzes how keynes' approach to the national government is similar to smiths' in that the current reality bore no resemblance to his ideals.
Analyzes how keynes criticizes the naiveté with which the president approached the treaty. wilson lacked the cunning quality of which smith spoke.
Analyzes keynes' portrayal of public opinion as a spoiled, irrational child, and states that dishonesty is necessary to maintain popularity while doing what is truly best for society.
Argues that if free trade is pacific, it must promote long-term peace between friendly nations and repair bad relations between states. keynes' economic consequences of the peace is one large argument in support of it.
Analyzes how smith refers to belligerent states in his discussion of standing armies.
Analyzes how cordell hull supported the idea of an international agency which could keep the peace among nations. he was not convinced that trade alone is expedient enough.
Analyzes how hull doubted the ability of trade to positively transform relations between states. he refers to unfair trading practices such as the smoot-hawley tariff act, as "economic warfare."
Analyzes how hamilton prescribes a commercial union between the states. hamilton's argument centers around the idea that states go to war due to mutual fear and weakness.
Opines that keynes' prescriptions for post-wwi germany follow this same line of thought. each suggestion aims to insure germany's long-term economic stability.
Analyzes how smith's writings advocate the utility of trade as a tool of instituting good government.
Explains that commerce and manufactures gradually introduced order and good government, and with them, the liberty and security of individuals, among the inhabitants of the country, who had before lived almost in a continual state of war with their neighbors and of servile dependency upon their superiors
Opines that trade, not military oppression, brought about real political and social change in this case.
Analyzes how smith rebuts his argument on the utility of force in cultivating belligerent states in his discussion of colonies.
Opines that nothing seems more likely to establish this equality of force than that mutual communication of knowledge and of all sorts of improvements which an extensive commerce from all countries naturally, or rather, carries along with it.
Explains that smith believed that trade is capable of establishing international justice in the long term.
Opines that the role of international institutions in the promotion of fair trade is an issue that necessarily dates our authors. the 18th century world of smith and hamilton did not provide the necessary environment for such organizations.
Explains that the league of nations, founded in 1918, was the first of many formalized bodies that would have astonished smith and his contemporaries.
Analyzes how keynes' sequel to consequences, a revision to the treaty places impressive confidence in the league's potential in his statement that "the wisdom of the world may yet transform [the treaty] into a powerful instrument of peace."
Analyzes how keynes' involvement in the transition to peace after w.w.ii, specifically through the bretton woods conference, demonstrates his conviction of the vital role of international economic organizations.
Explains cordell hull's belief in the potential of international institutions can be found in his "eight pillars of peace" address to a conference in 1936.
Opines that international law should be reestablished, revitalized, and strengthened. armies and navies are no permanent substitute for its great principles.
Analyzes how hull's speech expounds the importance of involvement in the international arena despite u.s. refusal of league membership.
Explains that trade, according to theorists, has two faces. it can be used against one's trading partner or as a mutually beneficial method toward society’s improvement.
Analyzes how adam smith and alexander hamilton reached seemingly opposite conclusions about the effects of trade on state behavior. smith focused first on the merits of free trade and then on mercantilist reality.
Explains that john maynard keynes and secretary of state cordell hull advocated free trade and the establishment of international organizations with the intent of stabilizing the global economy.
Opines that today's leaders cannot claim to lack evidence of the effectiveness of international institutions such as the wto.
Explains that smith's discussion of europe after the fall of the roman empire examines how the commerce of towns contributed to the improvement of a country. the result of trade between the two can tell us something about how smith viewed trade.
Argues that smith sees only benefit from their exchange due to their improved productivity. hamilton's writing is in direct contradiction to this claim.
Explains that the rtaa of 1934 gave negotiating authority to the president in bilateral agreements for reciprocal tariff reductions. the act allowed the united states to take part in the first five gatt rounds.
Opines that the debate is especially significant in the post-cold war world. military action was taken with the justification that iraq had broken international law by invading kuwait.
Describes cole's industrial and commercial correspondence of alexander hamilton anticipating his report on manufactures.
Explains earle, edward mead, adam smith, alexander hamilton, friedrich list: the economic foundations of military power.
Cites the industrial and commercial correspondence of alexander hamilton anticipating his report on manufactures.
Explains that moggridge, donald, ed. 1980, the collected writings of john maynard keynes: activities 1941-1946.
Explains that moggridge, donald, ed. 1980, the collected writings of john maynard keynes: activities 1941-1946.
Cites smith, adam, in an inquiry into the nature and causes of the wealth of nations.
Cites liberty fund's 1981 an inquiry into the nature and causes of the wealth of nations.
Trade liberalization in Great Britain signaled an era of intense change in the European economy. The document that triggered this change was the Cobden-Chevalier Treaty of 1860. Anglo-French trade antagonisms had reached an agonizing level for the two countries, beginning with the Congress of Vienna and climaxing with the introduction and eventual repeal of the Corn Laws. For more than 30 years, Great Britain engaged France in tariff wars that only served to limit both countries’ trade potential. Accominotti and Flandreau (2008) describe this as a “period of generalized protectionism” (p. 152).
In this essay, the author
Analyzes how the paper will explore the free trade beliefs of richard cobden and show that americans who rejected his ideas did so out of ignorance and fear.
Explains that trade liberalization in great britain signaled an era of intense change in the european economy.
Explains how richard cobden formed the anti-corn laws league in response to the corn laws. he advocated for free trade so that consumers could have access to corn at a fair price.
Explains that the 1860s were a period of great unrest in the united states. the antithesis to anglophobia was anglophilia.
Explains that the cobden club was founded in 1866 by british supporters of his free trade mantra. it appealed to many americans recovering from the shock of war.
Explains accominotti, flandreau, and palen's views on trade liberalization in the nineteenth century.
Explains that the cobden club held its inaugural meeting at the star.
Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations, (London: 1776), 190-91, 235-37.
In this essay, the author
Analyzes how the historical context of documents complicates the narrative of the united states' "colonial beginnings" because it shows that the original treatment of native americans shaped the us' beginning, much more than most are led to believe.
Explains that the timing of the events, shown through the documents, helps uncover some of what shaped america's beginnings. the european settlers saw that they could use the natives and treat them as they wanted because it was free or low-cost labor.
Explains that america was colonized because european countries were looking for an easier way to the indies. while some think that the beneficial far outweighed the harmful, the natives were being harmed.
Explains that many europeans helped end the slavery of the natives, though not throughout the americas. bartolomé de las casa wrote about what he saw and made laws that made it illegal to enslave them.
Analyzes how the documents complicate the historical narrative of america's beginnings because they show that there was more done that shaped the united states than what many were originally told.
Cites collard's "bartolomé de las casa" and smith’s an inquiry into the nature and causes of the wealth of nations.
Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. Ed. Edwin Cannan. 1904 ed. London: Methuen, 1776. Library of Economics and Liberty. Web. 4 May 2014. .
In this essay, the author
Explains that parliament passed laws regulating factories in the nineteenth century, especially towards laboring children. both groups were paid only out of consideration for necessities and experienced harsh discipline.
Analyzes how the introduction of working class women into the workforce transformed society. since the french revolution, people followed rousseau’s idea of separate spheres for men and women.
Explains childhood lost: child labor during the industrial revolution. eastern illinois university, n.d.
Explains that the industrial revolutions, spurred by technological innovation and the discoveries of new materials, created new industries.
Cites engels, friedrich, wischnewetzky, goldfinger, shara, oosthoek, and pomeranz.
Smith, Adam. 1976. An Inquiery into the Nature and Causes of the Wealth of Nations.
In this essay, the author
Explains that the north american free trade agreement (nafta) is a regional trade agreement between mexico, the united states, and canada.
Opines that trade agreements like nafta, where manufacturing jobs are shifted from the developed world to the developing world, are necessary.
Explains that mexico is becoming industrialized while the united states is entering a new era where the service business dominates. trade agreements like the north american free trade agreement facilitate this transition in economies.
Analyzes how adam smith's view on division of labor is proving itself with the north american free trade agreement. the united states and mexico are engaged in the type of industry that best suits each country.
Explains that the north american free trade agreement was designed to eliminate all trade barriers between the three countries and promote conditions of fair competition and increase investment opportunities.
Explains that the nafta was mostly designed to take advantage of mexico's maquiladora program. they explain that they can bring as many foreign workers as they want but hourly wage earners have to be mexican.
Explains that the north american free trade agreement was a highly controversial issue in all three countries before it came into effect.
Explains that there are many sides to the labor dispute that erupted because of nafta. canada and the united states are developed both industrially and technologically, while mexico is still considered a developing country.
Explains the impact of nafta on mexico and the united states. the u.s. government reports that 18 million jobs were created and 7 million lost in the us.
Explains that mexico's increase in employment is more linked to nafta than in the united states. rates have also risen dramatically since the north american free trade agreement went into effect.
Analyzes how adam smith tells us that the workmen want to get as much money as they can, while the masters seek to give as little money.
Opines that the trade agreement was beneficial to both countries, but several sectors of the economies of each nation benefited more than others.
Analyzes how the manufacturing sector has grown in mexico. it is mexico's largest economic activity second only to the commerce.
Explains that manufacturing in the united states has remained stagnant throughout much of this decade and a greater part of the 1980’s. the highest number of workers this year is the month of october with 18,202,000 workers.
Explains that the service occupation industry has seen a steady rise in employment over the past two decades. the service industry employment number now stands at its highest point in 1999.
Opines that trade agreements like the one that the united states has with mexico will be the norm in the coming decades.
Explains that mexican companies that export more than 80 percent of their production, pay 40 percent more. mexico is gaining not only with more jobs but higher paying jobs.
Opines that the north american free trade agreement was a movement for growth instead of restraining the inevitable development of these countries.
Cites globerman, steven, and alan rugman. foreign investment in nafta.
Explains smith's inquiry into the nature and causes of the wealth of nations.
Explains the secretaria de trabajo y prevision social. estadisticas laborales.
Explains the north american free trade agreement at five years: what it means for the u.s. and mexico.
Explains the north american free trade agreement: five years linking u.s. and mexican markets.
Smith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. 4th Edition. Edited by R.H. Campbell and A.S. Skinner. 1776. Reprint, Oxford: Clarendon Press, 1979.
In this essay, the author
Argues that as society evolves from agricultural to industrial and then to postindustrial modes of production, gender norms adapt to society's needs and wants to yield efficient divisions of labor.
Analyzes how gary becker's model of a division of labor relies on patriarchal gender norms and institutions from the agricultural and industrial era to allocate household duties efficiently.
Analyzes how modes of production alter gender power dynamics to conform to market demands for an efficient division of labor.
Analyzes how postindustrial modes of production impose different material constraints and favor different skills than previous modes.
Cites becker, gary, clayton-dye, and iversen, torben and frances rosenbluth. the political economy of gender inequality.
Campbell, R.H. and A.S. Skinner, eds. An Inquiry into the Nature and Causes of the Wealth of Nations. Glasgow edition of the works and correspondence of Adam Smith. Indianapolis: Liberty Classics, 1981.
In this essay, the author
Compares the economic and political motives of the american constitution vs. the article of confederation.
Analyzes how the american people know so little about the fundamental nature of their system of government. their knowledge extends only to its outward form and rarely includes a knowledge of the political philosophy.
Argues that a reworking of the articles of confederation would have been sufficient for the united states.
Opines that smith's writings on government are geared towards a monarchy, but his ideas are not necessarily monarchical in nature.
Argues that the articles of confederation were a trifling effort at self-government that needed to be thrown out and replaced by the constitution in 1787.
Argues that to approach the articles of confederation from the point of view of the difficulties and tribulations that followed the revolution, real as they were, is to miss largely their true significance.
Explains that the articles of confederation was not an instantaneous creation. it went through multiple drafts and took many heated arguments to be finally created.
Explains that dickinson presented the first draft of the articles of confederation for review, debate, and revision on july 12, 1776.
Argues that the articles of confederation violates smith's view that a colony could impose its own tariffs and duties on other nations.
Opines that the articles of confederation of november 15, 1777 have a few differences. it gets rid of tariffs that could be imposed between states, which was important according to the rules of free trade.
Analyzes how the economic situation during the creation of the articles of confederation played a part in the revolutionary war.
Explains that the aristocratic upper class managed to control more than their share of power during and after the revolutionary war.
Explains that when the concept of revolution came around, there were those on both sides who were either for or against revolution, and usually not for the reasons that are usually attributed.
Explains that americans who were opposed to britain's powerful armed forces were betting on its ability to quell a violent outbreak. they were wealthy gentlemen who had much to lose if they chose the wrong side.
Explains that americans who supported the movement for independence were mainly interested in economic benefits as well.
Explains that the articles of confederation spawned the idea of a group of small colonies, the states, working together as basically sovereign units that could work separately or together.
Analyzes how the british system of government was modified to fit the new colonies by relying on the continental congress for almost unopposed leadership.
Explains that the undemocratic property qualifications for suffrage were not disturbed by the revolutionary movement and were abolished only after the lapse of nearly half a century.
Explains that while the articles of confederation were radical for their time, they were not as far-reaching as they needed to be and not centralized enough to deal with the problems of taxation and defense.
Explains that if we leave out of account the foreign debt, it appears that some $60,000,000 worth of potential paper lay in the hands of american citizens in 1787.
Opines that having a centralized system wasn't the only solution, since states would still be able to govern themselves. the united states might be more like montesquieu's ideal republican government.
Opines that the solutions are obvious, although their actual application may prove more complex. however, the interests of the nation may not have been represented truly by its representatives.
Opines that the reworking of the articles of confederation would have meant more of a role for the federal government, but it would not need to make drastic changes.
Analyzes adam smith's view of a perfect form of government in the wealth of nations, stating that the mercantile system does not bring in the kind of wealth that nations want, the wealth of trade.
Opines that smith doesn't support a system based solely on agriculture, and states that for an ideal government to work properly, it must take care of simple things.
Explains that a nation must take care of its own defense. trade does make nations interdependent, but it does not necessarily make them peaceful towards one another.
Proposes that smith's judicial system should have a sovereign who is above his people both by birth and by wealth.
Explains that smith refers to the public works and institutions that must be maintained by the government because of the impossibility of having one group of citizens do it themselves.
Explains that even publick works which cannot afford any revenue for maintaining themselves, are always better maintained by a local or provincial revenue, under the management of the local and provincial administration.
Analyzes smith's opinion on how government should be structured, stating that the ideal form of government would have centralized defense, but everything else would be taken care of locally in a lockean system.
Explains the difference between the articles of confederation and the constitution of 1787. the first constitution was one of a federal organization, while the second was in essence that of the national government.
Explains that the constitution was created to correct laxity in the articles of confederation. the continental congress of 1787 created a new form of government for the united states.
Opines that the great fault of the existing confederacy is its inactivity. it has never been a complaint against congress that they have governed too much.
Opines that the constitution was not perfect for anyone. the federalists and anti-federalists viewed it as too lax and too strict. it was a compromise, but not an equal one.
Explains that the federalists believed in creating a strong centralized government to rule over the states. alexander hamilton's views were influential in the creation of our government.
Explains that hamilton was the secretary of the treasury for five years under washington. he believed that a national debt was healthy for the economy.
Explains that the anti-federalists have been given a bad name throughout history for losing the battle. they believed in keeping the governing bodies small and decentralized.
Explains that the second main argument against centralized taxation was against giving the central government the power of the purse.
Explains that article i, section viii of the constitution gives an incredible amount of leeway to the federal government to act as it sees fit.
Explains that article vi was their fourth point of contention. the constitution, and the laws of the united states, shall be the supreme law of land.
Analyzes how the federalists strategically inserted a clause into the constitution, article vii, which stated that only nine states were needed to ratify it.
Explains that five states were hopelessly unequipped to cope with their problems alone: delaware, new jersey, connecticut, georgia, and maryland. they could be counted on to ratify quickly and with little opposition.
Opines that the federalists were able to win over more than enough states to ratify the constitution, based mainly upon the economic backgrounds of the respective states.
Explains that the constitution of 1787 was a creation of the upper echelons of american society.
Explains that the articles of confederation did not create a new kind of government that gave power to the people, but it did have more power given to masses than does the constitution.
Opines that the constitution does its job, but the articles of confederation would have done an equally good job had they been modified to serve the interests of the nation.
Cites beard, charles, bourgin, frank, campbell, r.h., and skinner, eds.
Narrates jensen, merrill, kenyon, cecelia, mcdonald, forrest, smith, j. allen, the spirit of american government.
Smith, Adam, and Robert L. Heilbroner. "Wealth of Nations: Chapter II." The essential Adam Smith. New York: W.W. Norton, 1987. 169. Print.
In this essay, the author
Compares adam smith and alexis de tocquevile's statements of self-interest with rationality and competition. smith views the ignorant majority as the major actor who increases the self interest of all individuals belonging to the state.
Explains that smith views humans in whole as developed and not troglodytic beings. we form contracts in which both parties receive something of value.
Analyzes how smith views one's loyalty as an inherent trait (larger "self-interest"), a respect for its constitution, and the belief that other citizens should be well treated.
Analyzes how a certain darwiniain approach is discovered with the relationship between the individual and the happiness of other people.
Analyzes how the "invisible hand" metaphor assumes that an individual will act in their own self interest (doing tasks that will benefit themselves, in lieu of other).
Analyzes how tocqueville's premise of "self-interest" dates back to feudal times. it has become a universal doctrine among americans, and is woven into everything.
Analyzes how tocqueville views self-interest as an excuse to perform any action that is beneficial (without reason, or even just cause).
Opines that education remains a prime truth to tocqueville. men must be educated in the proper way so they do not abuse it.
Concludes that adam smith views man as a developed being, capable of living life on their own, and advanced with the ability to live in the world without regulation. tocqueville labels american's as truly ill-advised individuals.
...and credit, bank failures, and reduction in purchasing across the board. Few economists at the time could see little hope in this ever-despairing, ever-enduring economic downfall; however, John Maynard Keynes rose among the few to offer an answer to the world’s questions. Keynes’ theories are sound, they are legitimate, they are smart, and they were, and still are, most definitely viable answers to the Great Depression. Yet while John Maynard Keynes did well to propose specific solutions to these issues, these solutions are seemingly more effective in theory than in practice.
In this essay, the author
Explains that the great depression was a severe worldwide economic depression in the decade preceding world war ii.
Analyzes how the great depression affected the nation's gnp, industrial production, automobiles, and steel plants. the financial meltdown caused billions of dollars in assets to vanish.
Explains that the great depression was caused not by want but by material abundance. the setback with american capitalism in the 1930s was that there was too much of everything.
Argues that keynes was among the first to suggest that the great depression had been caused by an extensive failure of aggregate demand throughout the economy, which produced a new equilibrium at less than full employment.
Analyzes how the keynesian explanation for the great depression suggests that american capitalism broke down in the 1930s because of a divide between the needs of the economy and the seemingly rational economic actions of individuals.
Argues that american principles held that individual successes or failures were determined by the hard work, practicality, and productiveness of the individual.
Explains keynesianism as an economic theory of total spending in the economy and its effects on output and inflation.
Explains that keynes' assumptions of classical economies must be understood in order to understand his proposed solutions to the great depression.
Explains keynes assumed the power of the multiplier, which states that if an individual spends a single dollar in the economy, that dollar will expand and take on value.
Explains keynes' assumption that prices and wages do not necessarily adjust. during the great depression, prices were declining, but wages were not due to government policies.
Analyzes keynes' last assumption that investment will not habitually return to pre-depression levels, suggesting the government's need to intervene in order to stimulate investment in times of crisis.
Explains that the classical economists of the day could only reiterate old schemes, which did little to solve the issue of elongated depression.
Explains that keynesianism provided an answer to the question of how to produce growth via surplus despite rising wages. the solution necessitated functional intervention of the state to stimulate a growth in productivity and output.
Analyzes how keynes proposed government expansion of the money supply and redistribution of money from the rich to the poor.
Opines that keynesianism is an effective solution to the great depression, or any recession. however, historical experience has shown that keynesian fiscal policy is not as effective as predicted.
Opines that the effectiveness of keynesianism fiscal policy can only be measured when in place — influential political individuals decide to make keynesian theories a part of their fiscal policies.
Opines that keynes' suggestions to pull the american economy from the great depression rut were brilliant, but they may not be as effective. the 2008 economic collapse shocked the country, while proving nothing about the effectiveness of fiscal policy.
Explains that the great depression was an intensively trying time for the individual as well as the american economy.
Smith, Adam. The Wealth of Nations. Ed. Cannan, Edwin. Chicago, IL: U of Chicago Press, 1976.
In this essay, the author
Explains that adam smith's famous attempt to explain the nature and causes of the wealth of nations rests on several crucial assumptions about human nature which rely on false universalism and questionable dichotomies.
Analyzes how smith makes three claims about human nature: self-interest is inherent in all human beings, whereas animals rely on benevolence. reason and speech play a crucial role in his treatment of human behavior.
Analyzes how rousseau's dichotomy of "natural" and "cultured" humans treats the specific as universal — it is impossible to determine which human behavior is foundational and which is "merely" contrived.
Analyzes how smith's description of human nature is applicable to western european coastal trading humans, rather than to the supposed universal and original human specimen.
Cites smith, adam, cannan, and rousseau on the origin of inequality.
John Maynard Keynes, British economist, journalist, was born on June 5th 1883, in Cambridge, England. His father, Dr. John Neville Keynes, was an economist and a philosopher. Keynes attended Eton and then Cambridge University. At first he studied Mathematics but then turned his attention to Economics when he was offered the job at the British treasurer after the First World War when the British economy was at pressure. A man who gained a modicum amount of wealth during 1919 to 1938, married to Lydia Lopokova in 1926 and passed away in April 21st, 1946. Keynes believed that price level has to be stabled in order to have a stabled economy, and that is only possible if interest rates go down when prices rise. He also believed that the market forces alone will not deliver full employment but boosting government spending (main force of the economy in Keynes theory) will aim in his theory full employment or close to that. He believes by Governments intervening and spending will finally stop recession, unemployment and most importantly depression. For spending will increase the aggregate demand of the economy.
In this essay, the author
Explains that milton friedman, a supporter of free market, was born in 1912 in new york. he was interested in mathematics after graduation, but the horrible stare of the national income motivated him to take economics instead.
Describes f. a. hayek as a modern austrian economist born on may 8, 1899 in vienna, austria. he won the nobel prize in economics in 1974 and died in 1992 in freiburg, germany.
Explains that they are a keynesian thinker, but unemployment will still be high, which is one of the troublesome that governments face today.
Explains that john maynard keynes, an economist and journalist, was born on june 5th, 1883, in cambridge, england.