RS121 Lecture Notes - Lecture 9: Karl Polanyi, Capital Accumulation, Interest Rate
2 Nov 2017
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De nition of liberalism: liberty: society is served when we maximize freedom; we need to constrain. Economic liberalism and reason: utilitarianism - utilities = pleasure minus pain, rede nition of happiness in material terms, assumption of humans as in nitely desirous maximizers of their utilities, homo oeconomicus. Goals of liberalism: liberalism + common good, the greatest good for the largest amount of people possible, socioeconomic life has an unlimited self-regulatory ability, adam smith: the invisible hand of the market. Economic liberalism today: new de nition of human nature homo oeconomicus , in nitely desirous maximizers of utilities, new social crucial: economic growth ( greatest amount of good for the greatest number, happiness measured by productivity and total domestic product. Is it all real??? tf?: national accounts: international system of measuring economic growth, measures value that passes through the economy, however much productive activity is invisible to this system.
