SOC236H5 Lecture Notes - Lecture 2: Herd Behavior, Real Wages, Classical Liberalism
26 Jan 2018
School
Department
Course
Professor
Document Summary
A liberal is not someone whose political views are left at center. It must be reasonable to assume people will live up to their promises. Side effects on third parties must be curtailed. To trade one needs to know about the current and projected future prices for good in order to know how to invest. In finance one needs to know about the projected future of the global economy and it"s various regions, One has to believe that contracts, laws, regulations, etc. , will be honored in order to engage in any kind of economic activity. However, monopolies are more exploitative, less innovative, and can engage in price fixing, or other illegal behavior. Property rights are one of the most fundamental precursors to economic growth. Ownership means that people have a right to income based on assets. It incentivizes them to use that asset productively. When people make economic transactions sometimes there are negative consequences.
