the impact of the enlightenment on politics and economics
TRANSCRIPT
Despots and DollarsThe Impact of the Enlightenment on Politics
and Economics
Politics and the EnlightenmentThe Enlightenment was
more about social criticism than actual social change
Many new political theories were thought of and intellectually explored in the works of the Philosophes
However, none wee implemented in the real world
But, one interesting political development did take place
The concept of the “Enlightened Despot”
Enlightened DespotismThis is a Monarch (King, Queen, Prince etc.) who
declared themselves “Enlightened.”They would read the ideas of the Philospohes and use
these ideas to improve the situation of their country and people
An enlightened despot would serve the people and be logical and practical in the creation and implementation of Policy
All these despots courted intellectuals, initiated reform and reduced the influence of religion
They thought of themselves as wise Philosopher-Kings that were advancing culture, protecting society and creating a better state.
Fredrick the GreatThere are 3 main examples of
Enlightened despots: - Catherine II of Russia (or Catherine the Great) - Joseph II and his mother Maria Theresa (Austria) - Fredrick II of Prussia (or Fredrick the Great)
Fredrick is the greatest exampleHe was a poet, author, philosopher
and musicianHe became close friends with VoltaireHe vastly increased the power and
influence of Prussia in Europe
The reality of Enlightened DespotsThey did some positive things (more religious toleration,
economic reform, agricultural advancements)However, these despots were unwilling to give any power to
the peopleThey were ultimately self-interested and most would
disregard enlightened thought when it did not suit themFredrick talked peace and reform but built an army 3 times
bigger than his predecessor, fought unnecessary wars and often disregarded his own treaties
Being enlightened was “Fashionable” and that is really what enlightened despotism was all about – the appearance of being enlightened
Voltaire eventually abandoned Fredrick as a friendAgain, as typical with the Enlightenment, it was all talk and
little action
Economic Theory Mercantilism became a vast burden
on the people who colonized the new world
They resented working only to improve the wealth and power of the mother country
Many sought economic freedom as badly as they sought personal freedom
The theory of Mercantilism was challenged economists Quesnay and Turgot – they worked to develop a science of Economics and Laws of Economic behavior
It was Turgot that coined the Phrase “Laissez-Farie, Laissez-Passer” - Allow them to do, Allow them to pass
The Wealth of NationsAdam Smith wrote the ‘Wealth of Nations,” the most influential
work on the development of modern economic theoryHe is considered the father of EconomicsHe claimed that wealth was not fixed.Rather, it was based on labour and tradeHe encouraged competitionHe stated that the economy was naturally self-regulating
according to the laws of supply and demand (The concept of free markets)
Mutual Self-Interest guided and preserved the system (The concept of the Invisible hand)
The entire system of capitalism is built on Adam Smith’s theories
The Impact of SmithThe western world is powered by Smith’s
ideas – his importance cannot be overstatedHe was also a major contributor to future
revolutions as people strived to control the economic lives as well as their personal lives
Money is power . . . If you can control your own wealth, then you are truly free.
Smith might be the most important philosophe of all
SummaryThe Enlightenment had effects on politics and
economicsEnlightened despots tried to model the
philosophies of the age – however, it was more for show, few real changes took place
New concepts of economics were developed and mercantilism was openly challenged
Adam Smith’s Wealth of Nations lay the foundations of modern Capitalism (free markets, open competition, mutual self interest & supply and demand)
THE INVISIBLE HAND!