CRITICAL QUESTION

• WHERE DOES OWNERSHIP OF PROPERTY START?

The Justification of Private PropertyJohn Locke

• Base World View– A Cartesian Thinker (Search for Rationality)– Man is Superior and Earth is There to Support

Man– Man has an Obligation to Subdue the Earth

PROPERTY RIGHTS

• Man has property in his person

• Man uses his body to remove from the state of nature

• Once his body is jointed with land it becomes his

• Value of land is in its improvement

ROBBERY

• If taken with permission of all commoners not robbery

• Take only what is needed

• Take advantage before it spoils

• Nothing was made by God for man to spoil or destroy

COMMERCE

• Trade before goods spoil

• Trade for something of permanence (gold, silver, diamonds)

• Currency provides permanence and ability to accumulate wealth

ALENATED LABOURKarl Marx

• Written in 1844 when he was 26• BASIC ECONOMIC FACT: The worker

becomes poorer the more wealth he produces because the value of his production become less.

• VIEW OF HUMAN KIND: Humans have a life activity which is higher than just maintenance of physical existence

WORKER AND PRODUCT

• Worker no longer connect with work on intellectual or feeling level

• The more produced the less connection

• Systems cause loss of connection to self

• See self in terms of what produced

• Functions only to drink, eat and procreate

ALIENATION

• Moved from Activity to Suffering, Strength to Powerlessness and Creation to Emasculation

• Contrary to man who combines will and consciousness

• We see ourselves as objects we possess. We identify only in the sense (seeing, touching, hearing, smelling, tasting) of what we own

• Our disconnection with self causes disconnection with others

• Private property takes way means, end and quality of life

CRITICAL QUESTIONS

Is there a price to pay for the division of labor?

Does the invisible hand really direct behavior in the market place?

Benefits of the Profit MotiveAdam Smith 1776

• Human Nature – Interested in Exchange– Dependent on Others– Best Interests served

when help is given because it benefits giver

• Division of Labor Central to Efficient Market– Dexterity– Time Saving– Proper Use of

Technology

• Microeconomic Decision– Based individual gain through

specialization• Hidden Hand of Market

– Causes different people to be employed in different tasks to yield greatest possible gain for self and society

CRITICAL QUESTIONS

Do the Wealthy have an obligation to the poor?If so how much should be given? How Should it be given?

WEALTHAndrew Carnegie

• In Past Rich and Poor Lived Close Together

• Social Darwinism– Competition has

changed this creating winners and losers.

– Creates unknown workers and employers

– Society cannot support incompetent and lazy

– Highest result achieved through individualism

• Highest result of human experience: Individualism, Law of Accumulated Wealth, and Law of Competition. These are natural laws.

• Administration of Wealth– Setting aside enough for comfort is not

wealth– One half of estate to dependents. One

half given to away during life. Oversight of distribution is responsible of wealthy.

– Criteria of Distribution• Give only to those who will help themselves• Rich have an obligation to help society