HCJ Seminar Paper (1.11.12)

Economics

Economics, in this sense is scientific and subjective. Based on fact and according to Karl Popper (1902-1994) cannot be falsified. In his view, policies should be judged as experimental leaving maximum room for self-correction, as stated in his work “The Open Society and its Enemies” (1962). Empiricist John Stuart Mill (1806-1873) claims that it is through falsifying that human nature progresses.

Classical Economist Adam Smith (1723-1790) views people as “calculating machines” designed for maximising pleasure and minimising pain. Otherwise known as Utilitarianism, this moral philosophy is hindered by the State, which is viewed as an obstacle to progress. In “The Wealth of Nations” (1776) he states that richer countries come down to too much state intervention. “The hidden hand of the market” in which all value is derived from trade, when in actuality; people should be allowed to be free.

This is the crisis of Capitalism, claimed by Karl Marx (1818-1883) with which the “Iron Law of Wages” will inevitably lead to the fall of Western Civilisation. There is a constant struggle to survive (Charles Darwin, 1809-1882) as humans use up resources to their maximum limit. A prime example being the Golden Age of the 50’s, 60’s and 70’s, whereby the economic boom lead to high levels of inflation, causing mass unemployment. The rise in monetary value reduced the right of human freedom in the modern world.

Utilitarianism

Philosophical Radical Jeremy Bentham (1748-1832) in “An Introduction to the Principles of Morals and Legislation” (1789) believed utility should be evenly distributed and therefore, was based on the happiness of the majority; “The greatest happiness of the greatest number” (2) According to him, Utility was the measure of all virtue and the origin of Justice. He called for the reconstruction of the British Legal System in “Of Laws in General” (1782), whereby he protested that workhouses be set up for the 'burdensome poor'.

John Stuart Mill (1806-1873) and his political economy “lest the habit of work should be broken, and a taste for idleness acquired” (5) spoke of the state intervention on individual freedom. His piece “On Liberty” (1859) claimed that without Freedom of Opinion and Freedom of Expression, humans are “mere machines” conforming to state control. Instead, individuals should be Psychologically Hedonistic – seeking their own happiness. He believed that Private Property and the Market should be organised for the good of the community under Ethical Hedonism, whereby everyone seeks general happiness, and called for a reform of the landholding system.

Communism

According to Karl Marx (1818-1883), individuals are constantly competing with one another due to economic production. Money became the state intervention of man’s “true” nature, forcing him to become alienated. He is merely a spectator of a process that he should control. This is otherwise known as “False Consciousness”. In “Capital” (1867) he described two elements that lead to the exploitation of the working class; Forces (raw materials, technology, labour) and Relations of Production (ownership). Like David Ricardo (1772-1823) he believed a products value was dependent on the amount of labour power invested in it. “a things value is the rate at which it can be exchanged for other commodities” (282). As the value increases, the workers wage decreases. He called for the abolition of the financial system for fair labour and stated that a Proletarian Revolution was inevitable in order to achieve a Communist State.

PAST --à “Primitive Communism” (Slavery, Feudalism)

PRESENT --à Capitalism

FUTURE --à Socialism (Temporary)/Communism (Permanent)

He adopted the Hegelian theory of “dialectical materialism” – History as a continuous process. In the past, slavery dominated and divided society into classes, derived from the ancients of Greece and Rome, with its “ideological superstructure” built on relations of production. In the future, property will be temporarily passed onto the State until it withers away. We are then left with Communism, where there is no Private Property and all land in common.

Like Arthur Schopenhauer (1788-1860) in “The World as Will and Idea” (1814-1818) the purpose for action arises from unsatisfied want and suffering. He believed in Liberty, whereby we should leave behind Wickedness (delighting in suffering of others), Badness (using others as a means to an end), Justice (treating others equally) and Goodness (sacrificing for others). We must enter a state of “Asceticism”, for the good of the community rather than the individual.

“Let the ruling classes tremble at a Communistic Revolution. The proletarians have nothing to lose but their chains. The have a world to win. Working men of all countries, unite!” – “The Communist Manifesto” (1848)

Sources:

•  Kenny, Anthony “Philosophy in the Modern World” (2007)