ECON BC 3041x Lecture 1: Thoretical Foundations Class Notes
25 Aug 2016
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Document Summary
State of nature is an abstraction reference to hobbs. Because he is the foil to how the modern political economy is conceptualized. Humans are naturally political animals; humans will natural organize themselves in a civil society. Diamond water paradox: criticism of aristotle; when civil societies are organized as market societies the values are different. Smith: political economy is different from a household/domestic economy/management. Political economy: an economy in which independent entities interact. Aristotle: natural use of shoe is to wear it v. to exchange it. Smith: the natural use of the shoe it to exchange it. Aristotle: money is a corrupting force and the wrong way to use the market. Natural hierarchy of individuals (ie. masters v. slaves) Different roles individuals enter because somehow they are naturally suited to those roles. Economy is subordinate to the polity (civil government) Economy is just a means to sustain the true life of individual citizens.
