The Macroeconomic Perspectives of David Ricardo, Karl Marx, and John Stuart Mill
ECON 350 19 November 2012
Abstract
The author surveys three influential economists of the Classical era—Ricardo, Marx, and John Stuart Mill—and introduces the reader to their Macroeconomic perspectives based on some of their more prominent Macroeconomic theories.
David Ricardo
David Ricardo was a Classical Economist who lived from 1772 to 1823. In his professional life he wore many hats: he was a businessman, a financer, a speculator, and a member of Parliament. But what he is most remembered for is the role that he played in the evolution of economic theory, alongside of such other greats as John Stuart Mill and
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This was actually quite a big deal during Ricardo’s since Protectionist policies were hindering free trade, which Ricardo was a proponent of as can be seen from his Law of Comparative Advantage. One of Ricardo’s first interactions in the economic dialogue of his time was based around the Quantity Theory of Money. At the time there was something going on in Britain that would come to be known as the “Bullion Controversy”. Basically, as a result of a potential war the British government temporarily suspended the obligation of the Bank of England to convert its notes into gold. During this time agricultural prices rose (which some people attributes to poor harvests) and gold prices went up. It is on this second point that Ricardo chimed in. Ricardo argued that the rise in gold prices was actually the result of inflation. According to him, since the bank wasn’t obligated to exchange their notes for gold they were printing more notes than they had gold to back them. This flood of currency, Ricardo said, was creating an excess supply which was devaluing the currency and thus causing inflation (Laidler, p. 12).
Karl Marx
Karl Marx is probably best known for the work that he co-authored with Fredrick Engels entitled “The Communist Manifesto” and also for his work entitled “Capital.” He is also arguably one of the most well-known of the Classical Economists, or of any
David Ricardo agreed with both the ideas of Malthus and Smith. Ricardo strongly argued for free trade. The idea of “cooperative advantage” emerged. The simply says that a nation should produce only the goods it best produces, rather than it producing every necessity. Then the nation will be able to buy the good that it needs for cheaper and
Modern economic society can be described as a combination of certain points from several theories combined into one. Changing dynamics and economic needs of nations has spawned a development of various, and contrasting, economic systems throughout the world. Perhaps the two most contrasting philosophies seen in existence today are that of capitalism and communism. The two philosophers most notably recognized for their views on these economic systems are Adam Smith and Karl Marx. This paper will identify several fundamental aspects of economic philosophy as described by Smith and Marx, and will compare and contrast the views of these
Karl Marx is most well kown for writing the Communist Manifesto which became known as one the “world’s most influential political
John Maynard Keynes was born in 5th of June 1883 and died at the age of 62 on the 21st of April 1946. His work in economics and his ideas fundamentally changed the practice and theory of modern macroeconomics as well as the economic policies of governments. Keynes is very well known for his exceptional work on the implications and causes of the business cycles and is also regarded as the founder of modern macroeconomics. The school of thought also known as ‘Keynesian economics’ as well as the various offshoots have his ideas as foundation.
Karl Marx is one of the most influential and revolutionary philosopher, economist and sociologist of the 19th century. His thoughts not only shaped our understandings of the capitalistic world but also created a new system of social organization, communism. His ideology also defined the key political figures of the cold war period such as Stalin, Mao and Castro. Without Marx, the modern history would have been completely different. Despite his rather bourgeoisie family background, he was able to closely observe the struggle of proletariat and identified the injustices in the capitalist system.
Since the early days of the United States, the Founding Fathers and other brilliant minds sought ways to understand and make sense of the inner workings of society and the economic market. Out of the many thinkers and developers of that time period, perhaps none made so great an impact on American society as the Scottish contemporary philosopher and political economist, Adam Smith—who is most known for his influential work, An Inquiry into the Nature and Causes of the Wealth of Nations, By the early nineteenth century, other streams of economic theory emerged from various individuals who were also influenced by the ideas of Smith. Some of these individuals included David Ricardo, Karl Marx and later John Maynard Keynes and Milton Friedman—each of whom contributed their own ideas on economic activity. However, it was Smith’s ideas on capitalism and his laissez-faire approach to free markets that have transcended other economic theories and continue to impact American economic thought to this day.
As far back as man has been on earth, he has been driven towards building a community among his peers. Whether that is a community of hunters and gatherers who share whatever the day has brought to them within their tribe, or a larger community which within its structure lie the inner dwellings of division of labor and societal classes. Adam Smith (18th Century), John Stuart Mill (19th Century), and Karl Marx (19th Century) are of the same cloth, but in modern terms their community is referenced as a government, and they each have their own distinct opinions on the 'drive' instilled within human nature that shape their personal economic theories. I will be dissecting the views of each of these economists, in regards to the role of
Milton Friedman’s ideas where thought to be radical, but he was the most authoritative figure in the economics field in the 20th century, (Placeholder2) and was known most for his thoughts on free enterprise, classical liberalism and limited government. (Placeholder3) His views shaped modern capitalism. (Placeholder2) He was against government intervention and favored free markets (Placeholder6).
There is perhaps not a more famous ongoing dialectic argument in the field of political economy than the one between Adam Smith and Karl Marx in regards to capitalism. The two thinkers, although coming to radically different conclusions about the outcomes of the capitalist system for all parties involved, agree on a surprising number of ideas such as labor being the source of commodities’ value, as well as the fact that the division of labor increases productivity. However, their different conceptions of what determines the price of a commodity, the driving force behind and the effects of the division of labor, and the purpose of the capitalist system have widespread implications that cause their holistic arguments to diverge considerably.
Karl Marx is often called the father of communism, but his life entailed so much more. He was a political economist, philosopher, and idea revolutionist. He was a scholar that believed that capitalism was going to undercut itself as he stated in the Communist Manifesto. While he was relatively ambiguous in his lifetime, his works had tremendous influence after his death. Some of the world’s most powerful and most populace countries follow his ideas to this day. Many of history’s most eventful times were persuaded by his thoughts. Karl Marx was one of the most influential persons in the history of the world, and a brief history of his life will show how he was able to attain many of his attitudes.
Carl Marx has been criticized and slandered due to his views on economy and how it should be approached. The disdain towards his beliefs are understandable with all the corrupt political systems that have risen in the name of Marxism. Marx’s views, however, are not as terrible as society makes them out to be. Marx thoughts on economy are a dream that even he did not know how to achieve. Marx saw how the world worked based on historical patterns and only wished to propose a way to make the world he lived in a better place. Although Marx had the best intentions, his dreams can never be realized with the presence of the current systems based on profit.
David Ricardo was one of those rare people who achieved both tremendous success and lasting fame. After his family disinherited him for marrying outside his Jewish faith, Ricardo made a fortune as a stockbroker and loan broker. When he died, his estate was worth more than $100 million in today’s dollars. At age twenty-seven, after reading Adam Smith’s The Wealth of Nations, Ricardo got excited about economics. He wrote his first economics article at age thirty-seven and then spent the following fourteen years—his last ones—as a professional economist.
David Ricardo, a British political economist was born on April 18, 1772 in London, England. He was the third child of seventeen in a Sephardic Jewish family who originated from Portugal and had recently emigrated from the Dutch Republic. At the age of fourteen, Ricardo began to work with his father, Abraham Ricardo, who was a famous stockbroker. When Ricardo was twenty-one years of age, he ran off and got married with Priscilla Anne Wilkinson, a Quaker, and became a Christian Unitarian despite his fathers wishes. Ricardo’s religious difference from his family resulted in his disownment by his father, and his mother’s refusal to speak to him again, which prompted him to become independent. After Ricardo’s separation from his family, he began his own successful business as a broker with the reinforcement of Lubbock 's and Forster, a renowned banking house of it’s time. A large portion of Ricardo’s fortune was made as a result of his conjecture on the result of the Battle of Waterloo. It wasn’t until Ricardo was at the age of 37 that he wrote his first economics article. His article was widely accepted in England, and became the basis of orthodox economic ideals in the modern western world, where the government is perceived to have an established role in the outcome of a nation’s economy. Ricardo was an abolitionist. He spoke at the meeting of the Court of the East India Company in March of 1823. Ricardo also adamantly opposed
David Ricardo was born in 1772 and was submerged into politics and government at a very young age. After he finished his schooling, Ricardo’s father placed him at the London Stock Exchange, where David had a full time job at the early age of fourteen. In 1819, by the advice of James Mill, a close friend, Ricardo joined the British Parliament. This opportunity, introduced Ricardo to the world of economics.
Adam Smith, who is considered a pioneer of the great economists, was a Scottish born moral Philosopher, political economist and thought of as a key figure in the Scottish enlightenment. He was