Famous Economists Research
Adam smith https://www.youtube.com/watch?v=ejJRhn53X2M
Our guide to the biggest dilemma of our time: how to make a capitalist society more
humane and meaningful. Born in Scotland in a small manufacturing town, 1723.
Became an academic philosopher, lectured on logic and aesthetics. His work is full of
ideas about how to reconcile businesses profits’ and social values. Main ideas:
1. Specialisation: Modern economy produces unprecedented amounts of wealth, and
many people find work meaningless. Predicted that national economies would
become hugely richer the more specialised their workforces became. However,
specialised workforces often struggle to find their work meaningful, especially lower
down the chain of command. He believed it was the boss’ job to remind them of
their purpose, role and ultimate dignity of labour.
2. Consumer Capitalism: Manufacturing of luxury goods began for a growing middle
class. Philosopher Jean-Jacques wanted to ban luxury. Smith argued that luxury
consumerism had an important role: it generated the surplus wealth needed to look
after their weakest members. Ie it did more good for the poor than societies devoted
to higher ideals. He did hope for it develop beyond this frivolous stage and help
people reach true fulfilment – the higher needs that went beyond capitalism.
3. How to treat the rich: How to get them to treat the rest of society well? Christian
answer: make them feel guilty. Radical left, then and now: raise taxes. Smith: high
taxation will lead them to flee the country, guilt will not affect their cold hearts. Said
that instead governments should aim to understand their motivations (they
accumulate money mainly in order to be liked and approved of), and instead reward
them by giving them the honour and high status they crave in exchange for doing the
moral things they should.
4. Educate Consumers: The reform of capitalism hinges on this. We need to be taught
to want better quality things, and pay the proper price for them, one that reflects the
true burden on workers and the environment. We need to elevate the quality of
consumer demand.
Hayek https://www.youtube.com/watch?v=SHsCkinrCPE
(includes brief differences with Keynes)
A major influence on how people in capitalist societies understand the concept of
liberty. He believed liberty was : “ a policy which deliberately adopts competition,
markets and prices as its ordering principles.”. It was the interference of states in
markets that started soicety down the road to serfdom. Born to a part of minor
Adam smith https://www.youtube.com/watch?v=ejJRhn53X2M
Our guide to the biggest dilemma of our time: how to make a capitalist society more
humane and meaningful. Born in Scotland in a small manufacturing town, 1723.
Became an academic philosopher, lectured on logic and aesthetics. His work is full of
ideas about how to reconcile businesses profits’ and social values. Main ideas:
1. Specialisation: Modern economy produces unprecedented amounts of wealth, and
many people find work meaningless. Predicted that national economies would
become hugely richer the more specialised their workforces became. However,
specialised workforces often struggle to find their work meaningful, especially lower
down the chain of command. He believed it was the boss’ job to remind them of
their purpose, role and ultimate dignity of labour.
2. Consumer Capitalism: Manufacturing of luxury goods began for a growing middle
class. Philosopher Jean-Jacques wanted to ban luxury. Smith argued that luxury
consumerism had an important role: it generated the surplus wealth needed to look
after their weakest members. Ie it did more good for the poor than societies devoted
to higher ideals. He did hope for it develop beyond this frivolous stage and help
people reach true fulfilment – the higher needs that went beyond capitalism.
3. How to treat the rich: How to get them to treat the rest of society well? Christian
answer: make them feel guilty. Radical left, then and now: raise taxes. Smith: high
taxation will lead them to flee the country, guilt will not affect their cold hearts. Said
that instead governments should aim to understand their motivations (they
accumulate money mainly in order to be liked and approved of), and instead reward
them by giving them the honour and high status they crave in exchange for doing the
moral things they should.
4. Educate Consumers: The reform of capitalism hinges on this. We need to be taught
to want better quality things, and pay the proper price for them, one that reflects the
true burden on workers and the environment. We need to elevate the quality of
consumer demand.
Hayek https://www.youtube.com/watch?v=SHsCkinrCPE
(includes brief differences with Keynes)
A major influence on how people in capitalist societies understand the concept of
liberty. He believed liberty was : “ a policy which deliberately adopts competition,
markets and prices as its ordering principles.”. It was the interference of states in
markets that started soicety down the road to serfdom. Born to a part of minor
