PHI 2183 Lecture Notes - Lecture 12: Economic System, Barter, Human Nature
5 Apr 2016
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Industrial revolution era in europe and north america. An inquiry into the nature and causes of the wealth of nations (1776) Economic orientation (smith was a founding father of economics): Determined first what economics could do and what is left for government. = minimum role for government; maximum for market/private enterprise. Before asking which type of government a society should have, we figure out what economy that society has. Economic systems should run on its own, without governmental influence. Human nature and human relations: basic tendency: to truck, barter, and exchange (people are dealmakers) Humans as economic beings, seeking to maximize interests. We will always want to gain amap, spending alap: division of labour: efficiency via: The law of supply and demand; competition, natural, optimal rationality = Economic rationality: efficient use of resources and abilities. Choice and free contract: no limitations by traditional/fixed status (birth, etc) Leads us to strive for attaining our own goods.
