Pol S Notes

Van Belle, Chapter 4

Economics

Reason for Gov't?

Capitalism vs. Socialism

The Tragedy of the Commons

9 people can follow the rules, but if one person doesn’t, you’re screwed

Preventing the Tragedy

Enlightened Self-Interest

should prevent tragedy of the commons

Realists

Collective Action Through Gov't

we have to govern what we have

Karl Marx

The Means of Production

mechanisms for transforming labor into wealth

labor is a shared resource, economic resource

Economics is the Key Variable in Politics

Marx as a Humanist

Marx and Feudalism

feud between two groups, proletariat and bourgeoisie

Mutual Dependency

between proletariat and bourgeoisie, both sides needed each other

land owners (bourgeoisie) owned the land, peasants (proletariat) worked it

Land Owners gave parts of land to peasants, peasants would pay with the crops they grew

Impact of Capitalism

Factories and Assembly Lines

Competition

Efficiency

destroyed aspects of feudalism

Four Elements of Costs

Profit

Materials

Overhead

Wages

Little bit of flexibility, can cut wages especially if there's high unemployment

Labor as Tragedy