Presentation on the topic “Classical school of political economy. Presentation on the topic: Classical political economy. General characteristics and stages of development. A. Smith and D. Ricardo Classical school of political economy presentation
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Classical school of economics (political economy) Third stage of development David Ricardo (1772-1823) A successful businessman. Banker. Thanks to successful speculation in funds and grain in City of London, David already had a capital of several million by the age of 25. Work “Principles of Political Economy and Taxation” (1817)
Most Interest showed concern for questions of: - cost, - distribution, profit - comparative utility in foreign trade. Basic postulates: the value and price of a product are determined by different factors, the value of a product is not formed by all labor, but only by socially necessary labor, which was labor under the worst conditions of production. Ricardo’s money also has a value, which he defines in two ways: - the amount of labor spent on their production; - derivative of their quantity in circulation; Ricardo's profit was proportional to the expenditure of capital on the purchase of labor, which created the surplus product - the basis of profit. Ricardo also considered labor to be a commodity, and its value was determined by wages. The “natural” cost of labor was determined by the minimum means for the reproduction of labor, and the market value consisted of the relationship between supply and demand in the labor market.
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Classical school of economics (political economy) Third stage of development David Ricardo (1772-1823)
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Classical school of economics (political economy) Further development classical schoolSocialization of economic thought
The further development of capitalism complicated the social structure of capitalist society. Economic thought immediately responded to this, incorporating representatives of all social strata who carefully worked through the economic heritage and found in it what best suited their interests and needs. Classical political economy contained so many of the latest theoretical research and so many contradictions that it gave birth to several directions economic theory XIX century, contradictory in content and united in origin.
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Classical school of economics (political economy)Further development of the classical school
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Defenders of the “unimpeachable” development of capitalism: J.B. Sey, T.R. Malthus, N.U. Senior, F. Bastia, G.C. Carey They have developed an effective method of defense against attacks from opposing factions. Any accusation of capitalism for socio-economic sins was completely rejected by theories appropriate to the case, or was explained by the still insufficient development of capitalism itself, or was explained by the guarantee of economic well-being in the future. Classical school of economics (political economy)Further development of the classical school
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Classical school of economics (political economy) Defenders of the free development of capitalism Jean Baptiste Sey (1767-1832) a major French manufacturer who for a long time commented on and expounded the teachings of A. Smith Labor “ Full course practical political economy" (1829) "The Law of Markets" is central to the teachings of J.B. Sow. Its essence: 1) the exchange of product for product automatically leads to equilibrium between purchase and sale. 2) aggregate demand and aggregate supply are always equalized: the cost of created goods = income, which is used to buy goods at cost. Conclusion: crises of overproduction in a market economy are impossible. The first one is true. Demand creates supply The second is wrong! The development of commodity exchange strengthens the contradiction between value and use value, leads to the allocation of money as a special kind of commodity, and not just an instrument of exchange, therefore, in a market monetary economy, overproduction is possible - an excess of supply over monetary demand
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Classical school of economics (political economy) Defenders of the free development of capitalism Jean Baptiste Sey (1767-1832) Law of value: -the sale of some goods has a positive impact on the sale of others. Successful trading in one industry provides funds for the purchase of other industries; -the more producers there are, the more extensive the sales of products; -with the support of consumers (regulation of wage levels), production develops, as effective demand increases.
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Classical school of economics (political economy) Defenders of the free development of capitalism Jean Baptiste Sey (1767-1832) Equal factors of value creation: land labor capital. Accordingly, three main sources are divided into three types of income: wages (for labor) and rent (payment for land). interest (payment for capital) Money is just an instrument of exchange, since people do not need money, but what they buy with it. Thus, the cost depends on: the utility of the product, the costs of producing the product, demand (direct relationship) supply (inverse relationship). Conclusion: Zh.B. Seay abandoned A. Smith's labor theory of value.
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Classical school of economics (political economy) Defenders of the free development of capitalism Thomas Robert Malthus (1766-1834) English priest and professor of political economy explained all the troubles of the human race: the actions of “natural laws and human passions”, the stinginess of nature, the excessively rapid reproduction of the human tribe Objects of existence grow in arithmetic progression, and the population - geometrically. A surplus population is of necessity doomed to poverty, hunger and extinction. No reforms, no property revolutions will change this harsh natural pattern. Malthus denied the exclusive role of labor as a source of value, since the other main element was profit, which was passed off as a surplus over and above the labor spent on the production of goods.
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political economy”, originated in the second half of the 17th century. and existed until the end of the 19th century. The time of its existence can be divided into three stages.
The first stage lasted from the end of the 17th to the end of the 18th century. It can be called the period of origin, and its representatives - the predecessors of classical political economy. Their work was not widely known because mercantilism continued to be the dominant economic concept. Only in the second half of the 18th century. The French school of physiocrats became quite famous, but it had unconditional dominance only within its own country. The second stage, from the end of the 18th to the middle of the 19th century, represents the complete dominance of classical political economy. The starting point here can be considered the work of the English economist A. Smith, “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776). WITH early XIX V. Economic science, represented by classical political economy, was recognized as an independent science and began to be taught at universities as a separate course. At the same time, during the second period it continued creative development classical political economy - new theoretical positions were put forward; within the framework of classical political economy, separate trends appeared, differing both in class sympathies and in theoretical features and discussing with each other. The last major theorists of the second stage were J.S. Mill, final work whose “Principles of Political Economy” was published in 1848, and K. Marx, whose draft “Capital” was written in the late 1850s. The third, final stage of classical political economy, which lasted from the middle to the end of the 19th century, can, like the first, be called transitional. On the one hand, the dominance of classical political economy remained, relevant courses were taught at universities, but almost no new theoretical ideas were put forward. Abroad of the 19th century Only Marxism stepped over, which, based on the methodological principles of classical political economy, began to analyze new phenomena that arose in the capitalist economy in late XIX- early 20th century
Topic 8 Transformation of political economy into a science 1. Classical English political economy (A. Smith, D. Ricardo, D.S. Mill); 2. Economic views of J.-B. Seya. 3. Socio-economic ideas of T.R. Malthus; 4. Economic ideas of utopian socialists. 5. Economic teachings of K. Marx.
Classical school Classical political economy is a direction of economic thought that reflects the essence of free competition capitalism. The main provisions of the classical school: 1. The wealth of society is not money, but simple products necessary for people’s lives (necessities, convenience and pleasure, as A. Smith puts it) 2. These products are provided only by material production, therefore labor in material production and will be a source of wealth, the basis of the value of goods (labor theory of value) 3. Labor is considered in different aspects: Labor is the source of wealth, value and all income in society; Labor as a commodity exchanged for other goods; Labor as an experience (the burden of labor); Labor as the cost of producing goods. 4. The main factor in increasing labor productivity is the division of labor, or specialization 5. In order for production and labor to be effective, economic freedom with its principle of laissez faire is required 6. At the center of the study is the economic man, who is endowed with selfishness and strives for personal gain , wants to constantly improve his financial situation. This selfish interest of each person forces people to unwittingly serve each other, which is a powerful incentive for economic activity and, as a consequence, leads to an increase in social wealth. (A. Smith: “It is not because of the benevolence of the butcher, the brewer, or the baker that we expect to receive dinner from them, but because of their concern for their own welfare.)
Adam Smith (1723–1790) Main work: An Inquiry into the Nature and Causes of the Wealth of Nations (1776) It consists of five books: 1. The causes of increased productivity of labor and the order in according to which its product is naturally distributed among the different classes of the people. 2. On the nature of capital, its accumulation and application. 3. On the development of well-being different nations. 4. On systems of political economy (essay on the history of economic doctrines). 5. On the income of the sovereign or the state (the doctrine of finance). The starting point of A. Smith's economic doctrine is the idea that the wealth of a nation is created by labor in material production, and the most important factors of economic progress are the division of labor (specialization) and the growth of labor productivity. (He illustrates the progressiveness of specialization using the example of a pin factory). Money in Smith's teaching is a fleeting intermediary that facilitates the exchange of goods, a universal means of exchange. To minimize circulation costs, he called for preference for paper money Adam Smith
Adam Smith (1723–1790) A. Smith shared the labor theory of value, but was not entirely consistent on this issue, since he determined the value of a product not only by labor costs, but also by purchased labor and income. He considered the main incomes in a capitalist society to be wages, profits and rent, which are received respectively by the main classes of bourgeois society - workers, capitalists and landowners. The source of all income is labor. In this case, profit and rent are created by the unpaid labor of workers. Capital is the part of the stock on which the capitalist expects to make a profit, and the main factor in the accumulation of capital is thrift. The division of capital into fixed and circulating capital applies to all sectors of the economy. A. Smith was the first to introduce the concepts of gross and net income into economics. Gross income is the total social product. Net income is the newly created value or national income. Created the theory of absolute advantage in foreign trade. The foundation of the doctrine is the idea of economic liberalism. (principle of plaissez faire): the state is the night watchman of capitalism; economic regulators (free prices that develop depending on supply and demand during competition) are the invisible hand of the market. Light taxes are the basis of the nation's well-being.
David Ricardo (1772–1823) The main work of the Principles of Political Economy and Taxation (1817) The preface states the main task political economy: determine the laws that govern the distribution of product between the classes of landowners, capitalists and workers. The main research method was the abstract, model method. D. Ricardo consciously and consistently professed the labor theory of value. In his opinion, only labor is the only creator of the value of freely reproduced goods. Cost is determined not by average labor costs, but by labor costs under worst-case conditions. if they are needed to satisfy society's need for a given product. Money is a technical means of exchange. He derived the value of money (gold and silver) from the amount of labor spent on their production. At the same time, he professed the quantitative theory of money, that is, he determined the value of money by its quantity in circulation. The best base money circulation considered gold and advocated the free exchange of banknotes for gold.
David Ricardo (1772–1823) D. Ricardo considered labor to be the source of all income in society. Wages are payment for labor. It is regulated by demographic factors, depends on the supply and demand for labor and is reduced to the cost of the worker’s means of subsistence (the subsistence minimum) due to the natural law of population (the iron law of wages). Profit is the difference between the price of goods and the price of labor (wages). It is the product of a worker's unpaid labor. One way to increase profits is to increase labor productivity. Profit is subject to the law of falling rates of profit. Rent (considered only differential rent) is the excess of value over average profit, which is formed due to differences in fertility and location land plots. He considered land ownership to be the only basis for receiving rent. Recognized the law of diminishing soil fertility. Created the theory of comparative advantage in the international division of labor. Advocated for freedom of foreign trade and the removal of all restrictions on the export of any goods and money (the idea of free trade)
Jean-Baptiste Say (1767–1832) Jean-Baptiste Say Main works: Treatise of Political Economy (1803) and Complete Course of Political Economy (). J.-B. Say presented the problems of political economy in the traditional order that has become today: production, distribution, exchange, consumption. J.-B. Say owns the theory of three factors of production: labor, land and capital participate equally in production (value creation) and generate corresponding income during distribution: wages, rent and profit. Profit, in turn, is divided into interest and business income. J.-B. Say introduced the concept of entrepreneur into economic science, considering its functions to attract idle capital at the risk of receiving large capital in the future
Jean-Baptiste Say (1767–1832) Jean-Baptiste Say Most of all J.-B. Say is known as the author of the law of markets, which later received his name. There are several formulations of this law, the most popular are the following: production itself ensures sales and supply itself generates demand. From Say’s law it follows that there are no reasons for crises of overproduction under capitalism. Only temporary disruptions in the course of social production are possible as a result of partial overproduction in certain industries.
Thomas Robert Malthus (1766–1834) The most famous work: An Essay on the Law of Population (1798), Basic ideas: Subsistence, by virtue of the law of diminishing returns of the soil, cannot grow faster than in arithmetic progression. The population is growing exponentially and could double every 25 years if left unchecked. This desire of the population to reproduce, exceeding the growth of means of subsistence, is the law of population, dooming part of the population to poverty and extinction. Thus, Malthus was the first to point out a non-healing ulcer on the body of humanity - the discrepancy between population growth and the increase in the amount of food. Therefore, there is a need to morally curb the reproductive instinct of the lower strata of society. Hunger, disease and war are to a certain extent useful, since they reduce the population of the Earth More people, and the means of food will be found, they said before Malthus; more food, and people will come, says Malthus. This leads to different attitudes towards state policy: let the state encourage population, they demanded in the 18th century; All incentives of this kind are useless and even harmful, Malthus believed and opposed state support for the unemployed and the poor: “It is necessary to openly refuse to recognize the imaginary right of the poor to be supported at public expense.” You have to completely not understand my teaching in order to consider me an enemy of population reproduction. The enemies I fight are vice and poverty. “A person who has come to an already busy world, if his parents cannot feed him, which he can reasonably demand, and if society does not need his work, has no right to any food; in essence, he is superfluous on earth. Nature commands he should leave and will not hesitate to carry out his sentence herself.” It is especially necessary to insist on the dissemination of the truth that the duty of man is not to propagate the breed, but to spread by all possible means happiness and virtue, and that if a man has no reasonable hope of achieving this goal, then nature does not at all prescribe him to leave behind descendants." T.R. Malthus was a foreign honorary member of the St. Petersburg Academy of Sciences (1826) Population globe at the turn of the eighteenth and nineteenth centuries. did not exceed 800 million people
Thomas Robert Malthus T. Malthus is responsible for the discovery of the so-called iron law of wages, according to which the amount of workers' wages is determined by the cost of living. In his work Principles of Political Economy (1820), T. Malthus expressed interesting thoughts about the realization of the total social product and crises of overproduction. In his opinion, crises are temporary, as they are caused by underconsumption of workers and capitalists, their inability to absorb the entire volume of production. This gives rise to the problem of implementation, which is solved through the involvement of third parties in consumption. To these T. Malthus included the landed aristocracy, military, government officials, priests, judges, doctors and teachers. This class, although unproductive, maintains demand in society. D.M. really liked this idea. Keynes, he used it in his theory of effective demand Quotes “It is necessary to openly refuse to recognize the imaginary right of the poor to be supported at public expense.” It is especially necessary to insist on the dissemination of the truth that the duty of man is not to propagate the breed, but to spread by all possible means happiness and virtue, and that if a man has no reasonable hope of achieving this goal, then nature does not at all prescribe him to leave behind descendants." "A person who comes into an already occupied world, if his parents cannot feed him, which he can reasonably demand, and if society does not need his labor, has no right to any food; in essence, he is superfluous on earth. Nature commands him to leave and will not hesitate to carry out her sentence herself." Finding everywhere a reason for his complaints and accusations, he does not think to look at the real cause of his disasters. He blames himself almost after everyone else, and yet in reality he alone deserves blame. His only excuse can be that he is misled by the opinions disseminated by the upper classes of society. Perhaps, feeling the gravity of his position, he regrets that he got married, but it does not even occur to him that , by entering into marriage, he committed an act worthy of condemnation. On the contrary, he was always assured that by giving his sovereign and country new subjects, he was committing a commendable act; he was guided by this rule and at the same time suffers, it is not surprising that in his mind one gets the idea that he is suffering for a just cause, that it is unfair and cruel on the part of the sovereign and the fatherland to leave him in a miserable position in gratitude for the benefit rendered to him at their own invitation and as a result of their repeated statements that such services from his sides are necessary. Let us leave the guilty person to the punishment awarded by nature itself. He acted contrary to the voice of reason, and therefore cannot blame anyone and must complain about himself if his action is accompanied by regrettable consequences for him. Access to parish trustees should be closed to him, and if private charity provides him with any assistance, then the interest of philanthropy insistently demands that it not be overly generous. By abandoning their children, parents commit a crime for which responsibility falls on themselves; Society suffers a relatively small loss in this case, because for it one child is easily replaced by another. If children are dear to us, it is because of the sweet passion inherent in us, called parental love. When there are people who refuse the gift sent to them by heaven itself, then society is not at all obliged to take their place. ...
Mill John Stuart () John Stuart Mill Five-volume work by D.S. Mill's Fundamentals of Political Economy with Some Applications to social philosophy(1848) was considered the best textbook on political economy for at least half a century after its publication. D.S. Mill tried to combine the theory of A. Smith, Say's law of markets, T. Malthus's law of population, the doctrine of rent and the theory of foreign trade of D. Ricardo. Interesting are ideas about the historicity of the laws of distribution, about the reverse influence of prices on supply and demand, about market failures, for example, in the field of education, about the important role of the state in the development of science and technology, about the need for social peace and equalization of incomes of members of society “Only in backward countries around the world, production growth is still an important goal: what is economically necessary in the most developed countries so this is the best distribution” People don’t want to be rich; people want to be richer than others
Utopian socialism A special direction of economic thought of the 19th century. became utopian socialism, the outstanding representatives of which were the French thinkers Henri de Saint-Simon (1760–1825) and Charles Fourier (1772–1837), as well as the Englishman Robert Owen (1771–1858). They criticized the existing capitalist system as unjust and exploitative and put forward projects for a society of the future. In their social ideal, private property should be replaced by public or collective property, and everyone would be rewarded according to their work. In such a society, planning of economic activities will be applied and the opposition between mental and physical labor will disappear. A. de Saint-Simon called this system socialism, R. Owen - communism. It was R. Owen who tried to put his ideas into practice, creating several communes in England and the USA (New Lemark, 1816)
Karl Heinrich MARX (1818–1883) Born in Trier, Germany Studied at the universities of Bonn and Berlin - editor of the Rhenish Gazette 1844 - beginning of friendship with F. Engels 1848 - co-author of the "Communist Manifesto" 1859 - publication of the work "Toward Political Criticism" economy" - leadership of the First International 1867 - publication of "Capital" (1st volume)
Friedrich Engels (1820–1895) Friedrich Engels, friend and closest ally of Karl Marx, one of the most outstanding scientists and revolutionaries in the history of mankind... F. Engels was born into the family of a textile manufacturer in the city of Barmen. In 1842 he moved to Manchester (Great Britain), where he worked in the office of his father’s factory; collaborated with the Rheinische Gazeta. A meeting with Marx in Paris in 1844 marked the beginning of their friendship. Engels actively participated in the organization (1847) and activities of the “Union of Communists”, together with Marx he wrote the program of the Union “Manifesto” Communist Party"(1848). In June 1848 and May 1849, together with Marx, he published the New Rhine Newspaper in Cologne. In November 1849, Engels moved to London, and in November 1850 to Manchester, where he worked in his father's trading office for another 20 years. From 1870 he lived in London, next to Marx. F. Engels provided constant financial assistance Marx. Together with Marx, he led the activities of the First International. After the death of a friend, he was an adviser and leader of the European socialists. The main works of F. Engels: “The situation of the working class in England” (1845); The Holy Family (1845), The German Ideology (), both with Karl Marx; "The Peasant War in Germany" (1850); "Anti-Dühring" (1878); "The Origin of the Family, Private Property and the State" (1884); "Ludwig Feuerbach and the End of Classical German Philosophy" (1886); "Dialectics of Nature" (published 1925); Photo from 1840
Karl Marx (1818–1883) The main work of K. Marx is Capital (Critique of Political Economy), consisting of four volumes. The first volume is devoted to the process of production of capital, the second - to the process of its circulation, in the third - the process of production and circulation of capital is considered as a single whole, the fourth volume (Theories of Surplus Value) contains criticism of various economic theories. During K. Marx's lifetime, only the first volume was published (1867). “Dr. Marx - that is the name of my idol - is still a very young man (he is hardly more than 24 years old), who will deal the final blow to medieval religion and politics; the deepest philosophical seriousness is combined in him with the subtlest wit; imagine Rousseau, Voltaire, Holbach, Lessing and Hegel united in one person, I say united, not mixed, this will be Doctor Marx” (1841, from a letter from M. Hess, a philosopher who taught at the University of Berlin)
Marxism The main thing in Marxism is its openly class, revolutionary character. K. Marx consciously sided with the proletariat as an oppressed and exploited class and, with his economic theory, wanted to give the workers an ideological weapon in the fight against the capitalists. Marx supported his theory with organizational and practical actions, initiating the creation of such associations of advanced workers as the Union of Communists and the First International.
Marxism K. Marx developed the labor theory of value, creating the doctrine of the dual nature of labor that creates goods. He proved that the capitalist buys from the worker not labor, but labor power. The process of consumption of labor power by a capitalist is at the same time a process of simultaneous production of goods and surplus value. K. Marx studied in detail the essence and functions of money (in Volume I). This analysis of his is still considered one of the best in history. economic science The disclosure of the process of capital accumulation (in the seventh section of Volume I) is the culmination of the teachings of K. Marx. Here he formulates the general law of capitalist accumulation: the accumulation of wealth at one pole, in the hands of the capitalists, is the accumulation of poverty and the intensification of the torment of labor at the other pole, on the side of the proletariat. Thus, the accumulation of capital itself leads to an exacerbation of the antagonistic contradictions of capitalism, they explode, the hour of capitalist private property strikes, and bourgeois society is replaced by the society of the victorious proletariat.
Marxism Studying in Volume II the course of the circulation and turnover of capital, as well as the processes of simple and expanded reproduction (in diagrams), K. Marx came to the conclusion about the cyclical nature of the development of capitalist production and the inevitability of crises of overproduction. In Volume III of Capital, K. Marx proved that all incomes of the non-proletarian classes (profit, rent, interest) are only transformed forms of surplus value, that is, they are of an exploitative nature..
Friedrich Engels (1820–1895) The second (1885) and third (1894) volumes of Capital existed only in manuscripts and sketches at the time of the author’s death. They were prepared for printing and published by F. Engels. Marx, Engels and Marx's daughters Jenny, Eleanor and Laura. Monument to Marx and Engels in Berlin
Classical
school
political
savings
Speaker
Leonova Anastasia Vitalievna
Faculty student
international relations, group
174702
England: late 17th century
Developmentmanufactories
Fast
industrial
climb
Banks,
joint stock
society,
exchanges
The era of the greats
inventions
New
sources
arrived
Industrial
capital
The class has grown
hired
workers
New Economic School
1) What constitutes the wealth of the people?↓
2) Study of the production sector
↓
3) analysis of the sphere of circulation, but starting from new
positions, proposing new principles
pricing
↓
4) a new explanation of the nature of money
The main differences between the classical school of economic theory and mercantilism:
The main differences between the classical schooleconomic theory from
mercantilism:
Subject of economic analysis
becomes not the sphere of circulation, but the sphere
production
The difference between intrinsic value and
price of the goods
The basis of the classical school is labor
theory of value
The main position of the classical school
The wealth of society is not created incirculation, and in all spheres of material
production. Merchants do not produce anything
product, but only deliver it to
various directions
William Petty
Basics of the labor theory of value:
The cost of the goods is “equal to the costamount of silver or gold that
at the same time another person can get,
transport it, mint it into a coin"
The source of value is specific labor
silver mining, the value of the product of labor
determined as a result of its exchange for
precious metals
Adam Smith
Division of laborMoney and its functions
Theory of value
The principle of the "invisible hand"
Basic Rules
taxation
Adam Smith
Division of labor
Specialization↓
Multiple magnification
labor productivity
"The Great Wheel of Circulation"
Money is a special commodity, spontaneouslystanding out from the crowd of goods
Money is a tool that can
measure the value of goods
Theory of value
Labor costs for the production of goodsprovide a basis for comparing them
cost.
The value of the goods is determined
not at the cost of individual labor
commodity producer, and average
costs for a given level of development
production.
The principle of the "invisible hand"
Minimal intervention in the economyand market self-regulation
Economic liberalism
“...let everything go by itself,
naturally, without
coercion"
Basic tax rules:
ProportionalityMinimality
Certainty
Convenience for the payer
Basic principles of political economy
Research of the sphere of production (spheretreatment-secondary)
Cost basis of prices
Cost category is the only one
original category of economic
analysis
Improving the well-being of the population
The role of money as a medium of exchange
Bibliography
World economic thought. Through the prismcenturies. In 5 volumes / ed. G.G. Fetisova, A.G.
Khudokormova. – M.: Mysl, 2005
Logacheva E. Economic theory. M, 2014
Economic theory course. Ed. 5 / ed.
M.N. Chepurina, E.A. Kiseleva – Kirov: 2005
Smith A. An Inquiry into Nature and Causes
wealth of nations. M., 2009
Electronic library of economics
literature: www.libertarium.ru.
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2.4.3. The law of markets and the theory of “three factors of production” by J.B. Say. 2.4.1. Methodological principles and basic provisions of the theory of K. Marx. 2.4.2. Theories of T. Malthus. 2.4.4. Historical school in Germany - as an alternative to the classics.
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K. Marx (1818-1883) K. Marx Lawyer by training, journalist and professional revolutionary “Marxism is too valuable to be left to Marxists alone” P. Samuelson
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Historical conditions for the emergence of Marxism Victory of capitalism in Europe (40s of the 19th century) Spontaneous workers' revolts Changes in the class structure of society Main classes: bourgeoisie proletariat 1831 - revolt of Lyon weavers in France, 30-40s. - Chartist movement in England, 1840 - uprising of Silesian weavers in Germany.
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Three sources of Marxism
Utopian socialism (Saint-Simon, Fourier, Owen) Classical bourgeois political economy (Smith and Ricardo) German philosophy (Hegel and Feuerbach)
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Dialectical materialism Subject and method of Marxism Subject Method Analysis of the sphere of production, production relations Identification of the law of movement and death of capitalism. The study of relationships between people and the property relations that determine them.
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“Sketches for a Critique of Political Economy” (1843) “The Holy Family, or Critique of Critical Criticism” (1844) “The Poverty of Philosophy” (1847) The main works of K. Marx and F. Engels “Towards a Critique of Political Economy” (1859) “Capital” (1867-1905) "Critique of the Gotha Program" (1875)
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Analysis of the process of capital production Subject "The best thing in my book: the dual nature of labor, the study of surplus value regardless of its special forms." K. Marx Characteristics of “Capital” Volume I (1867)
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Characteristics of “Capital” (Volume I)
The foundations of the labor theory of value are outlined. The process of production of surplus value is analyzed. The essence and basic forms of wages are characterized. The process of accumulation of capital is analyzed. The operation of the law of value is shown. The historical process of development of exchange and forms of value is analyzed. The basic economic law of capitalism, the law of surplus value, is formulated. K. Marx showed how the “dazzling” monetary form appeared and the “secret” of money was revealed. “The economic system of K. Marx is distinguished by iron logic; if you accept the starting point, then you are forced to agree with the conceptual conclusions.” Böhm-Bawerk
Slide 10
Analysis of the process of circulation of capital Subject Characteristics of “Capital” Volume II (1885)
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Characteristics of “Capital” (Volume II)
The reproduction of individual capital is analyzed; the conditions for the unimpeded realization of social capital are formulated; the problem of reproduction and circulation of all social capital is analyzed; the doctrine of fixed and working capital is being developed; the stages of capital movement are shown: monetary productive commodity; the speed of capital turnover; Schemes of expanded reproduction - the first model of economic growth
Slide 12
Analysis of production and circulation taken as a whole Subject Characteristics of “Capital” Volume III (1894) “... in the influence of different capitals on each other, in competition and in the everyday consciousness of the agents of production themselves.” K. Marx
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Characteristics of “Capital” (Volume III)
The problem of combining the action of the law of value with obtaining an equal rate of profit on capital is solved. A critique of the “triune formula” is given. The doctrine of absolute rent is created and the source of differential rent is clarified. The distribution of profit between groups of capitalists and the forms of its manifestation are examined. The concept of inter-industry competition is considered: entrepreneurial income, interest, rent. Profit is a creation of capital. Rent - land Wages are determined by labor
Slide 14
Characteristics of “Capital” Volume IV (1905) Provides a complete picture of the development of bourgeois political economy from its inception to its transformation into petty-bourgeois
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Thomas Robert Malthus (1766-1834) T. Malthus Student of A. Smith, friend of D. Ricardo Defender of the interests of the agricultural aristocracy Priest, professor of the department modern history and political economy of the East India Company College Born in England, into the family of a landowner 2.4.2. Theories of T. Malthus.
Slide 16
The main works of T. Malthus
“An Essay on the Law of Population in Connection with the Future Improvement of Society” (1798) “A Study on the Nature and Increase of Rent” (1815) “Principles of Political Economy” (1820)
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Theoretical provisions of T. Malthus
Cost and distribution of income Implementation of the Law of Population Denied the equality of supply and demand, pointed to ways to increase demand Proponent of the theory of production costs The population is surplus compared to the goods of life it needs Productive labor Labor in the sphere of material production
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J. Say Author of theories: subjective utility, three factors of production and sales. Economist and entrepreneur Born in Lyon, in the family of a merchant 2.4.3. The law of markets and the theory of “three factors of production” by J.B. Say. Commentator and systematizer of A. Smith's ideas Representative of the French bourgeoisie Member of the St. Petersburg Academy of Sciences Jean Baptiste Say (1767-1832)
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Works by J.B. Say
“A Treatise of Political Economy, or a Simple Statement of the Way in which Wealth is Generated, Distributed, and Consumed” (1803) “Catechism of Political Economy” (1815) “Course of Political Economy” (6 volumes) (1828-1830)
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2.4.3. The law of markets and the theory of “three factors of production” by J.B. Say. “Say’s Law” served as the basis for the neoclassical direction in political economy: Any sale of a product is at the same time a purchase, so the sales process must be carried out uninterrupted. “The theory of three factors”: Value (utility) is created - by labor, capital, land. Conclusions: There cannot be general overproduction, so it is necessary to expand production. The prosperity of one industry is favorable for the prosperity of others. He advocated free trade and condemned protectionism. He demanded a “cheap state” and its minimal intervention in the economy. Labor creates wages Capital creates profit Land creates rent
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