The Origins of our Economic View Bernardo Aguilar-González

Questions on Who’s Counting What main problems does this movie identify in the traditional economic paradigm? Why can we say that, according to this movie, the “science” of economics is a social construction? Why is that realization important?

How did we get here?

Evolution of “Power Laden” Western Thought Kelsen’s Pyramid

Economists-Moral Philosopers Adam Smith-The Wealth of Nations Karl Marx-Das Kapital Frederich Engels-The Origins of Family, Private Property and the State

Evolution of “Power Laden” Western Thought

The Classics Adam Smith David Ricardo Thomas Malthus John Stuart Mill Karl Marx

Adam Smith Economy as a Closed System

Adam Smith Invisible Hand

Adam Smith Invisible Hand – Assumptions: –Our preferences are consistent –We act based on self-interest –Individual Good adds up to Social Good

Adam Smith Invisible Hand – Assumptions: –Enough buyers and sellers as for there not to be a monopoly

Invisible Hand – Assumptions: –Perfect Information that backs up our economic decisions

Invisible Hand – Assumptions: –No Externalities

Thomas Malthus Population Growth vs. Available Resources

Table 1- Relation Between Production, Labor and Land. Relative Point (Fig. 3) Acres of Land (1) Human- Days of Work (2) Food Productio n (GNP) (3) Salary in Food per Day (4) Rent of Land in Food per Acre (6) A A' B E Z

David Ricardo F

John Stuart Mill-also states the steady state as desireable The Classics-Ethical Justification of the Industrial Revolution and Early Capitalism Adam Smith Societal welfare is the sum of individual welfares. The free market solves this problem through the invisible hand. Continuous growth is necessary. Robert Malthus Population control is necessary. David Ricardo Law of decreasing Returns. Technological change will enable overcoming a no growth situation. John Stuart Mill A steady state is desirable. Freedom of markets should extend to all dimensions, including gender. Human freedom blossoms in free markets.

"how many conservative economists does it take to change a light bulb?" Answer: "If the light bulb needed changing, market forces would have changed it." How did we get to…?

But first… So…how is it that, as you are saying Mr. Smith, if value is originating in labor (therefore we need more workers and division of labor-population growth and economic growth), all of the profit is kept by factory owners?