1. Applying Ethics to Human Action An overview of HAT, Marxism and Capitalism

2. Human Action Theory [Ludwig von Mises] Human action is purposeful behviour Actions- Unconscious, sub-conscious or conscious Action as preferring or choosing Action: employment of labour to meet ends

3. Human Action Theory Praxeology: happiness as outcome of actions Man’s state of life demands change, thus action is inevitable Means and ends as cause and effect There is no absolute end, there are ends

4. HAT and Social Action Idea of social action: Human behavior in group, axiomatic to various schools of thought in economics HAT, Smith: Man’s rational choices applied to economics HAT states that human mind has logical structure, thus economic calculation is same for all

5. Concepts Regarding Social Action Laissez faire: freedom from state inervention Positivism: o Comte- 3 stages: theological, metaphysical and positive o Durkheim: Main goal of human behavoir is rationality; social anomie Antipositivism: Predicts social engineering; disregarding sociology as a science

6. Theory of Marxism Historical Materialism Man and forces of production, corresponding changes in the two Infrastructure and superstructure Contradiction between forces of production and relationships in production factors give new forces of production Concept of class consciousness and class solidarity

7. Theory of Marxism Dialectical Materialism Building on Hegel: thesis-antithesis-synthesis; workers in production, conflict between workers and capitalists, workers overthrowing capitalists Ideas and ideals aren’t important, material world keeps impressions of a society Idea of material productive forces [handmill runs a society]

8. Theory of Marxism Theory of Alienation Entfremdung [estrangement]: means of production separating producer form the produce Product of labour is alienation Capitalistic society doesn’t allow man to reach his full potential

9. Capitalism A Free Market Natural forces of demand and supply Equilibrium prices Spontaneous order and Invisible hand Economic liberalism

10. Capitalism Max Weber ‘The Protestant Ethic and Spirit of Capitalism’: realtion between development of religion and rise in capitalism Hinduism, Taoism, Roman Catholicism impede development Protestantism- emphasis on hard work, religion as ethical system, accumulate capital for social investment

11. Conflict Theory Game Theory: set of players, their set of strategies and payoffs Normal Game- Players act simultaneously without knowledge of others’ actions Cooperative game: Players enforce cooperative behavior; players form coalitions Nash Equilibrium: Each player knows equilibrium strategy of other players; take best decisions taking into account other’s decisions

12. Conflict Theory Prisoner’s Dilemma: Two men arrested-both need to testify for police to have enough evidence- o One betrays other- Betrayer free, other gets 1 year sentence o Both confess- Both get 3 months sentence o Both silent- Both get 1 month sentence The two prisoners unaware of all this

13. Conflict Theory Prisoner’s Dilemma in Real life  Countries curbing CO2 emissions  Addiction- relapse today and tomorrow is worst outcome, no relapse ideal but relapse today constitutes an addiction free tomorrow. Prisoner’s dilemma occurs due to lack of Social capital i.e. trust