SOCB42H3 Lecture Notes - Lecture 3: Statistical Hypothesis Testing, Cultural Policy, Free Education
SOCB42 – Classical Sociological Theory Part 1 Lecture 3
Adam Smith: Markets and Morals
Previously…
What makes some wages higher than others? (Factors that impacts wages)
1. Agreeableness
oEasier? Cleaner? Honourable?
If it’s easier… anyone can do it = lower wage
If it’s clean… people will want to do it = lower wage
If its dirty… example: cleaning up vomit… = higher wage
Honour is its own reward = If its more honourable = low wages
2. Education
oHow easy, difficult, or cheap is it to learn the job?
3. Constancy
oWill there be regular employment?
If its seasonal… = higher wage (Example: football, if they lose the season)
4. Trust
oAre people reputation, fortunes, and lives at stake?
5. Probability of Success
oWill people actually find gainful employment?
Example: lawyer
Counterbalances to wages and artificial inequalities
Counterbalances
oLong established jobs
oNormal conditions
oSecond jobs are not “hobbies”
Artificial Inequalities
oRestricting competition
oFree education
oRestrictions on mobility
find more resources at oneclass.com
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Document Summary
If it"s easier anyone can do it = lower wage. If it"s clean people will want to do it = lower wage. If its dirty example: cleaning up vomit = higher wage. Counterbalances: long established jobs, normal conditions, second jobs are not hobbies . Artificial inequalities: restricting competition, free education, restrictions on mobility. Two natural propensities: if these propensities were left to run unchecked (i. e. uninterrupted), we would have seen a particular progress of development: the natural progress of opulence would have emerged. Wealth is money, fetishize money (giving money is a symbolic value) Exports versus imports: exports are seen as good, and imports typically are not, want to export but don"t want to import because they don"t want to spend money. Doomed to fail (smith says: producers versus consumers. Consumers pay more for good since no goods are being imported (limited supply: talents and productive industries.
