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Lecture 4

SOCB42 - LECTURE 4 - SEPT 26.docx

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Dan Silver

SOCB42 – LECTURE SEPTEMBER 26, 2013 Outline:  Historical Causes of Wealth o Natural Progress of Opulence o Inhibitors  Feudalism  Mercantilism  Government and its Duties: Defense, Justice, Education, Religion Historical Causes of Wealth  Theoretical logic: natural tendency for a commercial society to occur because of the propensities that we have o How would historical societies develop if things were going the way they should naturally develop  Natural Progress of Opulence (wealth) o Agriculture (Farmers)  Manufacturing (Manufacturers) Foreign Commerce (Merchants)  Country  Cities  International o Page 482: Subsistence comes first o Page 483: Moral Claim (farming)  You are in charge of your own life because you don’t rely on customers. Everyone would rather be a farmer for this reason  This implies that if everyone wants to be a farmer, you have to wait until agricultural space is taken up for manufacturing to develop o Country-city Reciprocity  Without the country side, those in the city would not be able to survive. Once there is an agricultural surplus, farmers have the ability to sell to those in the city  Once the town has enough surpluses, you have international trade and foreign commerce developing. It is also limited by the growth of cities, which is limited by the growth of country o In Europe everything happened backwards, started with international development and ended with agricultural development History of Europe: 1. Fall of Rome 2. Warlord Land grab 3. Hurts Agriculture 4. Towns Rise 5. Foreign Trade Rises 6. Manufacturing Develops 7. Baron’s Weaken 8. Agriculture Develops 9. Commercial Society SOCB42 – LECTURE SEPTEMBER 26, 2013  Fall of Rome o Final defeat of Roman Empire, Smith’s story starts here – the dark ages o Trade stopped, development stopped, cities were disconnected , everyone felt unsafe and forgot how to do things such as build and public works  Warlord Land Grab o Warlords acquired vast amounts of land, and in this highly dangerous situation where everyone was constantly under attack, land was not considered economic development; land was there for defense, power and protection from other warlords o The Baron’s were petty princes in their own area and highly dependent on this person in a personal way  i.e., they decided who gets your property, if you are a peasant, if you could get married to the person of your choice  created a hierarchal society (patronage society)  Hurts Agriculture o Social situation would often select for and produce certain personalities (Baron’s Personality)  These people are warriors, they struck fear in people’s hearts and all they care about is glory, honour and their reputation  The last thing they want to do is bookkeeping and accounting, in this situation where they think agriculture is a waste of time, there will be no large-scale development o Peasants are highly unproductive  Because they are basically slaves, they don’t really own their own land or keep the things they produce  Produce enough to make regular payments to the warlord so they don’t work harder than they have too  Farming wasn
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