div of labour
Post on 14-Apr-2018
214 Views
Preview:
TRANSCRIPT
-
7/30/2019 Div of Labour
1/2
Div of L:
Resp for universal Opulence
Industry more DOL
Due to propensity to barter not innate wisdom
Ltd opportunity to exchange less DOL (Limitedby the Extent of the Market)
Origin & use of moneyrisk "the grossest frauds and impositions."
The quantity of real metal in coins has diminished, due to the "avarice and
injustice of princes and sovereign states,"
Real and Nominal Priceof Commodities, or of theirPrice in Labour, and their
Price in Money
Smith's second definition pleases neoclassical economists, who determine value
by the utility that a commodity provides a person rather than cost of production
as do classical economists. Smith argues that the price of any product reflects
wages, rent of land and "...profit of stock," when demand exceeds supply, the
price goes up. When the supply exceeds demand, the price goes down.
different avenues that people can take to generate a larger profit than normal- high profit, secrets
Wages of Labour: Labourers and masters determine wages.. feedback mechanism.. labour wages
only rise as a result of greater revenue disposed to pay for labour. In England, there is more revenue
than in the colonies, but wages are lower, because more workers flock to new employment
opportunities caused by the large amount of revenue so workers eventually compete against each
other as much as they did before. as capital continues to flow to the colonial economies at least at
the same rate that population increases to "fill out" this excess capital, wages there stay higher than
in England. "Labour is the real exchange for commodities".
Stock:interest ratesas an indicator of the profits ofstock
Smith repeatedly attacks groups of politically aligned individuals who attempt to use their collective
influence to manipulate the government into doing their bidding. At the time, these were referred to
as "factions," but are now more commonly called "special interests," a term that can comprise
international bankers, corporate conglomerations, outright oligopolies, trade unions and other
groups.
Rent of the Land:
critique ofmercantilismand a synthesis of the emerging economic thinking of Smith's time. The idea
thatprotectionisttariffsserve the economic interests of a nation. large reserves ofgold bullionor
other precious metals are necessary for a country's economic success. This critique of mercantilism
http://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics)http://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics)http://en.wikipedia.org/wiki/Labour_theory_of_valuehttp://en.wikipedia.org/wiki/Labour_theory_of_valuehttp://en.wikipedia.org/wiki/Labour_theory_of_valuehttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Labour_theory_of_valuehttp://en.wikipedia.org/wiki/Real_versus_nominal_value_(economics) -
7/30/2019 Div of Labour
2/2
was later used byDavid Ricardowhen he laid out hisTheory of Comparative Advantage. free trade
eventually makes all actors better off. This argument is the modern 'Free Trade' argument.
Smith then goes on to say that even if money was set aside from future revenues to pay for the
debts of war, it seldom actually gets used to pay down the debt. Politicians are inclined to spend the
money on some other scheme that will win the favour of their constituents. Hence, interest
payments rise and war debts continue to grow larger, well beyond the end of the war.
http://en.wikipedia.org/wiki/David_Ricardohttp://en.wikipedia.org/wiki/David_Ricardohttp://en.wikipedia.org/wiki/David_Ricardohttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/David_Ricardo
top related