Indronil Mukherjee
ECO 101 Economic and Political Views are Forever Intertwined In the crazy, complicated world on economics, we often need to hear the opinions of others more experienced in the field to reach a better understanding of current economic happenings. The people whose jobs is to make sense of the economy are economists. An economist is someone who is essentially an expert in the field of economics. Throughout history, there have been various influential economists whose ideas have changed America. Names such as Adam Smith, John Maynard Keynes and Karl Marx have been forever etched in history as the most influential economists of all time, however it is important to realize that these men’s economic …show more content…
“Like the classical economists, he focused on the dynamic evolution of capitalism as a system, and the turbulent relationships between different classes.”(Stanford p.54) During the Mid-nineteenth century, Marx opposed capitalism, believing “payment of profit on private investments did not reflect any particular economic function” (Stanford p.54). Marx is saying that the workers aren’t getting paid for the amount of work they put in. Capitalists were exploiting these workers and rather than sharing the wealth/profits, they were paying the workers a diminished amount (Labor Theory of Value). This is where Marx’s political beliefs ties into his economic beliefs. He criticized the exploitation of workers and described a socialist alternative to capitalism. (Stanford Table 4.1 chart.pg 60). Marx’s ideal solution is a socialist economy. Most Capitalist business owners are grossly overpaid in comparison to their workers who are actually doing the labor. Marx’s socialist plan is basically turning capitalism into communism. Instead of having a capitalistic society making wealthy people wealthier at the expense of hard working laborers, the socialist society will work towards making sure the poor gets paid equally with everyone else and to eliminate social classes. Karl Marx political and economic views …show more content…
During the Great Depression. Keynes economic ideologies include the theory of “Effective Demand”. “The economy can also be Demand-Constrained by the strength of aggregate purchasing power. If purchasing power is weak for some reason, then unemployment will exist”. (Stanford p.57) Keynes is saying that if “spending” is low then unemployment will continue to be low. And just like Marx, Keynes economic beliefs coincide with his political beliefs, which are that policies need to be in place to restore full employment (Stanford Table 4.1 pg.60). As a liberal, Keynes believes the government should intervene to encourage people to increase spending, as well as hiring people directly to dampen unemployment (Kramer, Three types of economists chart). To gain full employment, Keynes political views included having the government do massive spending to decrease unemployment which in the proved to be successful after World War II. It is nearly impossible to separate ones economic and political beliefs and in the case of Karl Marx and John Maynard Keynes it is clearly
ECO 101 Economic and Political Views are Forever Intertwined In the crazy, complicated world on economics, we often need to hear the opinions of others more experienced in the field to reach a better understanding of current economic happenings. The people whose jobs is to make sense of the economy are economists. An economist is someone who is essentially an expert in the field of economics. Throughout history, there have been various influential economists whose ideas have changed America. Names such as Adam Smith, John Maynard Keynes and Karl Marx have been forever etched in history as the most influential economists of all time, however it is important to realize that these men’s economic …show more content…
“Like the classical economists, he focused on the dynamic evolution of capitalism as a system, and the turbulent relationships between different classes.”(Stanford p.54) During the Mid-nineteenth century, Marx opposed capitalism, believing “payment of profit on private investments did not reflect any particular economic function” (Stanford p.54). Marx is saying that the workers aren’t getting paid for the amount of work they put in. Capitalists were exploiting these workers and rather than sharing the wealth/profits, they were paying the workers a diminished amount (Labor Theory of Value). This is where Marx’s political beliefs ties into his economic beliefs. He criticized the exploitation of workers and described a socialist alternative to capitalism. (Stanford Table 4.1 chart.pg 60). Marx’s ideal solution is a socialist economy. Most Capitalist business owners are grossly overpaid in comparison to their workers who are actually doing the labor. Marx’s socialist plan is basically turning capitalism into communism. Instead of having a capitalistic society making wealthy people wealthier at the expense of hard working laborers, the socialist society will work towards making sure the poor gets paid equally with everyone else and to eliminate social classes. Karl Marx political and economic views …show more content…
During the Great Depression. Keynes economic ideologies include the theory of “Effective Demand”. “The economy can also be Demand-Constrained by the strength of aggregate purchasing power. If purchasing power is weak for some reason, then unemployment will exist”. (Stanford p.57) Keynes is saying that if “spending” is low then unemployment will continue to be low. And just like Marx, Keynes economic beliefs coincide with his political beliefs, which are that policies need to be in place to restore full employment (Stanford Table 4.1 pg.60). As a liberal, Keynes believes the government should intervene to encourage people to increase spending, as well as hiring people directly to dampen unemployment (Kramer, Three types of economists chart). To gain full employment, Keynes political views included having the government do massive spending to decrease unemployment which in the proved to be successful after World War II. It is nearly impossible to separate ones economic and political beliefs and in the case of Karl Marx and John Maynard Keynes it is clearly