ECON 2233 Lecture Notes - John Stuart Mill, Joseph Schumpeter, Classical Liberalism
Document Summary
The following notes are on the assigned readings from mill"s principles with the exception of the material assigned in book iii, chapter xvii dealing with the matter of how values are determined in international trade. 335-337) mill describes the laws of production as physical laws. Output is a function of accumulation, energy, skill, technology, and labor. Unproductive labor will impoverish the community and productive labor will enrich it. But he regards distribution on the other hand as solely a matter of human institutions. Given the production we can consider the consequences of the institutions, i. e. , the laws and customs, governing distribution, and one of these institutions is that of individual property. Private property guarantees to each the fruits of his/her own labor and abstinence (saving), and what renders private property legitimate is if people realize its fruits. Two conditions are necessary for any system universal education and due limitation of numbers.
