Intro to Philosophy: Economic Philosophy: Smith & Marx

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Reading Notes

Reading philosophical essays is more challenging in that you often have to scan once, read once, and review once before you can adequately explain the author's position. In order to be sure that you are receiving maximum benefit from your time spent studying, try to answer the guide questions posed below. If you cannot answer them, it is time to read or review to be sure you understand the main arguments presented. See more tips here.

Economic Philosophy: Adam Smith & Karl Marx

We end our course by exploring polar opposites in economic philosophy. Adam Smith was an 18th century philosopher who strongly believed that industrialization and the specialization of labor would lead to economic harmony, political stability and personal satisfaction. When Smith is covered in studies of capitalism and economics, his ethical precepts are often ignored though they are evident in the assigned reading.

Karl Marx tells us that our social existence, the struggle for resources and wealth, shapes history decidedly in favor of the classes in power. While Smith favors unrestricted economic activity, Marx proposes that all property and social wealth be held in common trust for the mutual benefit of all.  Both theories hold competing assumptions about the basic motives that drive individuals to act. Try to uncover these hidden assumptions as you read each selection.  

1. Resources
2. Guide Questions
3. Smartboard Notes

Adam Smith: The Wealth of Nations

• Adam Smith short bibliography and reading links: This page from the Akamac web site provides numerous reading links to Smith's body of work in economics.

• The Adam Smith Institute is an organization devoted to exploring various applications of Smith's economic theory. These are the modern descendants who promote the philosophy of laissez-faire and capitalism and their site is definitely worth checking out.

• Marx & Engels writings from the Carnegie Mellon University English server.

• Marxists.org: This site contains writings and background information plus the translations of Marx's writings into many languages.

• Ron Strickland on Historical Materialism
  

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Guide Questions:

The following questions are designed to fine tune your understanding of the reading. The subject matter and answers to these questions form the basis of what you will be required to know for exams.

Objectives for this week: To understand the basic components of Smith's theory of capitalism and Marx's historical materialism. After completing the assigned readings, reviewing the resources above and attempting the guide questions below, you should be able to:

1. explain how the specialization of labor fosters the development of complex economic organizations
2. describe Smith's theory of the "invisible hand" and explain how it works in a modern economy
3. explain Smith's position on charitable giving
4. summarize Marx's position on historical materialism
5. Briefly detail how the master-slave relationship is replicated and reversed in Marxist theory
6. describe Marx's theory of globalization

Smith & Marx:

Guide Questions:

The following questions are designed to fine tune your understanding of the reading. I will check to see if you've completed them; the subject matter and answers to these questions form the basis of what you will be required to know for exams.

1. Why is the pin maker a good example for exploring the specialization of labor?
2. What is Smith trying to illustrate?
3. What are the three critical circumstances that give rise to an increase in production? Why is each significant?
4. How are technological innovations discovered?
5. What is Smith's assumption concerning the economic benefit of a free-market economy?
6. How does self-interest create the conditions for trade?
7. Smith asserts that we choose an occupation that is to the benefit of society. How does this "free choice" benefit the community?
8. What is the "invisible hand" and how does it work?

1. What is a class struggle?
2. Define what Marx means when he uses the terms "bourgeoisie" and "proletariat."
3. Why must the bourgeoisie necessarily expand?
4. There are strains of economic isolationism and nationalism in this selection. Identify the passages where these remarks occur.
5. How does the market continue to expand when it colonizes new territory?

Smartboard Notes from Week 14 Lectures:

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