On Monday we watch a video on Marx's, the film was about how Marx's was significant to capitalism. This is the link if you want to check it out. http://vikingvoyage.grandview.edu:2162/PortalViewVideo.aspx?xtid=51976
On Wednesday we talked about "neoclassical economics" which focuses on the determination of price, outputs and income in the market through supply and demand.
The neoclassical school of economics, and one of it most important branch is the Austrian school of economics; it shaped the way we debate economics and economic theories.
Jevons, Manger and Walras began their work independently but some how ended up with the same ideas. They all took a scientific approach to economics.
On Friday we watched a film on Andrew Carnegie. This is the link if you want to watch the video
http://vikingvoyage.grandview.edu:2162/PortalViewVideo.aspx?xtid=42467
We were asked to answers this question. In what ways did Andrew Carnegie embody the characteristics of late 19th century capitalism that we've read and discussed?
Last week we had a variety of things we covered as we went from Marx to the determination of prices. Honestly, I felt that when we did the free write on what was the importance in finding out, what determines prices, to be the most enlightening moment for me last week. Hearing the different reasons that everybody came up with helped me to better understand why what these different theorists, like Walrus, and Menger, added to this debate was important, and also why this was such an important part of capitalism that economists wanted to understand. But then it also makes it clear why economists made such a big deal about things that to us may seem unimportant. They however understood how the determination of prices affected so many other elements of capitalism and that's why they needed to know how prices were determined.
ReplyDeleteIt was interesting this week to see how supply and demand makes prices, surplus, and wages go up or down. In reading this week I found out a depression is caused by the imbalance of supply and demand. In the video on Marx, this is the crisies he is speaking about when he says capitalism will produce its own fate. The crisis comes also at the expense of the laborer because the way the boss of capitalism treats them as a part of production just like another machine. There is no treatment of them being human in regards to their emotional, mental, and physical state because they are treated as a commodity to bought and sold. Prices are an important part of production, and they need to be reasonable, and fair for the ordinary person to afford things they want, instead of only being able to buy what you need. The video also showed how capitalism can lead to its own demise such as the housing and banking crisis, and giving credit out when it cannot be paid back. I agree there needs to be a fairer way distributing the wealth amongst the people for a more balanced life for many more than there is now. Our society is too individualistic to see the problems of the whole.
ReplyDeleteLast week we saw a video on Andrew Carnegie that was really interesting to the fact that to me he was one of the first man of the new age of "Neoclassical Economic" and the new age of capitalism itself. The video showed how he grew up from a Irish immigrant into the riches and most powerful men in America during the time. It really showed that through all of his entire life he would not be the one to take no for an answer. He would always find a way to better himself and used the people he knew enabling him to build his empire built on steel. By building an empire such as his was hard work and expensive as well, Carnegie had his had in every aspect of his business. Where ever he could find a way to cut cost, he would do so. By having a entire machine rebuilt just to to increase production and cutting down the size of the machine meaning it would take less coal to fuel. He did this with the railways as well, Carnegie steel manufactured 90% of Americas steel, so it was a good chance that the railways were due to him. He would ship his steel by lower cost than other competitors. He also gave other people around the world hope, he was a poor Irish child that came to America in search a better life and he found and surpassed what was meant.
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