W 4 :
Capitalist revolution
· Economics individuals and firms ,
interactions and decisions
Economists focusses :
today
job & labour market
inequality
creation
inflation
standards
easuring living
Gross Domestic Product market value of output of of
GDP measures an
economy
in
given period time
GDP per capita standards
living income
·
average
measures
average
GDP
GDP per capita
=
population
Until world India
1800's half the
manufacturing output of came from and China
Great
ockey stick
divergence
no economic
growth
took
place
ndustrial revolution 17th
in
century
economic
growth
Reversal of fortune
sustained standards
growth
:
living
no in
Hockey stick sustained rapid growth in
=
curves
GDP world wide
per capita experienced by countries
Sustained
growth began different places
at times &
·
Some substantial standards
economies
improvements in
living
=
did independence
not occur until
gained from colonial rule
interference
by EU nations
Countries and sustained
growth
1st :
Britain -> 1650
2nd : Italy
- 1780
3rd : Japan + 1870
,African
hockey
stick Botswana
Hockey stick
Years of and colonial
slavery
rule of
one the
highest per capita economic
growth rates over
pastso years
Lack of data economic
growth of Botswana
·
to formed
measure
good capitalist policies basis
·
economy
of
institutions
private property
Yeasuring economic
growth
GDPcurrentyear
GDP
· Growth rate =
previousas 100
GDP capita of
measure
wellbeing
as
per
take health, education
doesn't into account
happiness
· :
,
GDP a "better" measure than
disposable income
disposable income =
wages profit
, , rent
,
interest and transfer
payments from
government or other
Disposable income
ignores
[included GBP3
social and
physical environment public goods government provided
,
in
free time home production
GDP
per capita is more informative to show how positions changed over time
ndustrial revolution
technology
=
process that uses set of
inputs to
produce output
less labour to
produce same
output
Capitalism
an economic
system
of
economic
system way organising production and distribution of
goods and services in entire
economy
·
Built around combination of institutions
firms
private property
markets
·
capitalist economies
rely on
non-capitalist institutions
capitalism-state undertakes & commercial and what of nationalised
State business economic
activity means
production are
welfare
capitalism = includes social welfare policies and
practice of businesses
providing welfare services to
employees
social capitalism = values all forms of
capital ; social human
,
, capital and natural capital
finance capitalism predominance of accumulation of
profits financial
system
= in a
urbo
Capitalism Edward Lattwak : financial and for
deregulation privatisation tax cuts
wealthy
=
,
, Capitalism democracy
individual freedom of
Democracy political where
rights include speech and fair elections
:
system
·
Capitalism distincts from
democracy
· :
is
capitalism coexist with
many political systems
before
democracy
Britain
capitalism emerged in and other countries
Capitalism improved living
standards
Specialisation growth firms and of markets allowed for unprecedented division of labour
· =
of expansion
technology-firms competing with 1 another had
strong
incentives to
adopt and
develop new and more productive technologies
Ideas of Adam Smith
Capitalism =
Gains from specialisation
focus limited of
they
productive when activities due to :
more on
range
difference in
ability economies of scale
Learning by doing
·
People specialise if
acquire other
goods they need
·
Specialisation division of labour raises
question of how
goods are distributed
among people
2 Distinctions to determine who is better at
production
Absolute
advantage able fewer production of
good than another
·
is in
person to
inputs person
=
use a
higher value
Comparative advantage =
cost to a
person of
producing another
good is lower than cost to another
person
to
produce the same2
goods
lower value
production distribution of different
Institutions different sets of laws
regulating
and
goods in
ways
distribution of
Economic
system- way
of
organising production
and
goods and services in
economy
·
Authoritarian political
democracy and
plurality
liberties
government-political system
that rejects civil
·
,
Capitalist revolution
· Economics individuals and firms ,
interactions and decisions
Economists focusses :
today
job & labour market
inequality
creation
inflation
standards
easuring living
Gross Domestic Product market value of output of of
GDP measures an
economy
in
given period time
GDP per capita standards
living income
·
average
measures
average
GDP
GDP per capita
=
population
Until world India
1800's half the
manufacturing output of came from and China
Great
ockey stick
divergence
no economic
growth
took
place
ndustrial revolution 17th
in
century
economic
growth
Reversal of fortune
sustained standards
growth
:
living
no in
Hockey stick sustained rapid growth in
=
curves
GDP world wide
per capita experienced by countries
Sustained
growth began different places
at times &
·
Some substantial standards
economies
improvements in
living
=
did independence
not occur until
gained from colonial rule
interference
by EU nations
Countries and sustained
growth
1st :
Britain -> 1650
2nd : Italy
- 1780
3rd : Japan + 1870
,African
hockey
stick Botswana
Hockey stick
Years of and colonial
slavery
rule of
one the
highest per capita economic
growth rates over
pastso years
Lack of data economic
growth of Botswana
·
to formed
measure
good capitalist policies basis
·
economy
of
institutions
private property
Yeasuring economic
growth
GDPcurrentyear
GDP
· Growth rate =
previousas 100
GDP capita of
measure
wellbeing
as
per
take health, education
doesn't into account
happiness
· :
,
GDP a "better" measure than
disposable income
disposable income =
wages profit
, , rent
,
interest and transfer
payments from
government or other
Disposable income
ignores
[included GBP3
social and
physical environment public goods government provided
,
in
free time home production
GDP
per capita is more informative to show how positions changed over time
ndustrial revolution
technology
=
process that uses set of
inputs to
produce output
less labour to
produce same
output
Capitalism
an economic
system
of
economic
system way organising production and distribution of
goods and services in entire
economy
·
Built around combination of institutions
firms
private property
markets
·
capitalist economies
rely on
non-capitalist institutions
capitalism-state undertakes & commercial and what of nationalised
State business economic
activity means
production are
welfare
capitalism = includes social welfare policies and
practice of businesses
providing welfare services to
employees
social capitalism = values all forms of
capital ; social human
,
, capital and natural capital
finance capitalism predominance of accumulation of
profits financial
system
= in a
urbo
Capitalism Edward Lattwak : financial and for
deregulation privatisation tax cuts
wealthy
=
,
, Capitalism democracy
individual freedom of
Democracy political where
rights include speech and fair elections
:
system
·
Capitalism distincts from
democracy
· :
is
capitalism coexist with
many political systems
before
democracy
Britain
capitalism emerged in and other countries
Capitalism improved living
standards
Specialisation growth firms and of markets allowed for unprecedented division of labour
· =
of expansion
technology-firms competing with 1 another had
strong
incentives to
adopt and
develop new and more productive technologies
Ideas of Adam Smith
Capitalism =
Gains from specialisation
focus limited of
they
productive when activities due to :
more on
range
difference in
ability economies of scale
Learning by doing
·
People specialise if
acquire other
goods they need
·
Specialisation division of labour raises
question of how
goods are distributed
among people
2 Distinctions to determine who is better at
production
Absolute
advantage able fewer production of
good than another
·
is in
person to
inputs person
=
use a
higher value
Comparative advantage =
cost to a
person of
producing another
good is lower than cost to another
person
to
produce the same2
goods
lower value
production distribution of different
Institutions different sets of laws
regulating
and
goods in
ways
distribution of
Economic
system- way
of
organising production
and
goods and services in
economy
·
Authoritarian political
democracy and
plurality
liberties
government-political system
that rejects civil
·
,
