Capitalism and Marxism Flashcards
Adam Smith, The Wealth of Nations
This author and his 1776 book are key to capitalist thought.
This author and his 1776 book are key to capitalist thought.
Adam Smith, The Wealth of Nations
Instead of relying on government organization of a nation’s resources, this economic system depends on individuals acting according to their own self-interest.
Capitalism
This system believes that individuals acting in their own self-interest can be the basis of a self-regulating economy. Therefore, there is no need for government interference in the economy.
Capitalism
What are three key classical (capitalist) economic beliefs
- ) economies can be self-regulated systems by relying on individuals to act in their own self-interest. There is no need for government interventions.
- ) Free-trade (without interference from governments) is best for all
- ) The value of commodities is based on the value of the labor that went into making them.
‘Use value’
The value one gets out of a product because it directly fulfills needs. Like the value you get from a dish you use to hold your food.
The value one gets out of a product because it directly fulfills needs. Like the value you get from a dish you use to hold your food.
‘Use value’
‘exchange value’
The value a commodity has because you can trade it to get other goods you may want.
The value a commodity has because you can trade it to get other goods you may want.
‘exchange value’
What is a key idea that Marxists borrowed from Hegel?
The idea of the ‘dialectic’ was borrowed by Marxists from Hegel.
What is the process of Hegel’s ‘dialectic’?
When people are alienated by practices in society, dissent will form and grow. Eventually, the system will be overthrown and a new system will take the old system’s place. People will eventually feel alienated by the new system and the cycle will start again. In the end, after several modifications, a stable state will be reached where no one feels alienated in society.
When people are alienated by practices in society, dissent will form and grow. Eventually, the system will be overthrown and a new system will take the old system’s place. People will eventually feel alienated by the new system and the cycle will start again. In the end, after several modifications, a stable state will be reached where no one feels alienated in society. What is this process called and who originated the idea?
Hegel originated the idea of the ‘dialectic’
What were Karl Marx’s and Friedrich Engel’s thoughts on capitalism?
These two philosophers were very critical of capitalism because it was an economic system that ended up creating a miserable working class.
These two philosophers were very critical of capitalism because it was an economic system that ended up creating a miserable working class.
Karl Marx and Friedrich Engels
What are three criticisms that Marx has against capitalism?
- ) Capitalism creates a miserable working class.
- ) Capitalism and its production line system alienates workers from the output they make. It also alienates them from their potential as human beings.
- ) Capitalism is a system in which ‘progress’ is defined as greater profits and an abundance of needless goods. This ‘progress’ only benefits a handful of rich, capital owners.
