In the context of a series of non-academic lectures about "The History of Economic Thought", the following text is meant to be a concise introduction to David Ricardo in relation to the beginning of capitalism. Evaluate and rate the text:
After the decline of mercantilism, the belief that by exporting more than you import, you make the economy of a nation grow, a new wave of economic thought emerged.
In fact it boils down to the quintessential question: What creates a continuous and stable source of value.
The answer was: Labour and productivity. Keep an eye on the context here. Definitely in England we are in the middle of a transition from an agricultural society into an industrial society.
Although I already introduced John Stuart Mill in a previous lecture I actually overlooked one important person on whose shoulders John Stuart Mill stood probably.
It is David Ricardo (1772 – 1823). He was a British economist and politician. He is recognized as one of the most influential classical economists,
alongside figures such as Adam Smith and his friend James Mill (1773 - 1836), the father of John Stuart Mill.
His main work is “On the Principles of Political Economy, and Taxation”, published in 1817. His book illustrates the deductive method.
Although Ricardo did not make use of mathematics himself, in a certain sense he laid down the foundations of the modern approach in economics, in particular the introduction of models in economic analysis.
In Ricardo’s hands economics is less a subject with absolute statements and becomes more relativistic. With a change in assumptions, the conclusions also change.
Ricardo’s method has the advantage of bringing into the open his assumptions and of making explicit the relationship between starting points and conclusions. This is the basis for the continuing improvement of the theory.
Think of Ricardo as the system's brilliant, ruthless diagnostician. His England was transitioning from a landed, agrarian society to an industrial, capitalist one.
His theories provided the intellectual blueprint for this new system, explaining its logic, championing its key players (the industrial capitalists), and exposing its internal tensions.
Let me give you one example of his theories: The Labour Theory of Value. Ricardo argued that the relative value of a good, for instance, why a coat trades for X amount of cloth,
is determined primarily by the relative quantity of labour required to produce it. This includes the labour to make the tools and raw materials. It's an "objective" cost-of-production theory.
This theory provided a seemingly scientific basis for the system's output. It shifted focus from the whims of merchants (mercantilism) or the fertility of land (physiocrats) to productivity.
For industrialists, the message was clear: the key to profit and growth is to reduce the labour time needed to produce goods.
This justified the relentless drive for efficiency, machinery, and scale that defined the Industrial Revolution.
Ricardo also prepared the way for Karl Marx in some respect. While in the 1817 and 1819 editions of his Principles ,
Ricardo did not expect serious consequences, for the labourers of introducing machinery, he changed his mind on this issue in the third edition of this book in 1821.
He added a new chapter “On Machinery”, in which he explained that labourers may suffer from the introduction of machinery.
Marx quoted with approval Ricardo’s famous phrase:
“Machinery and labour are in constant competition”. The essence of this is that technical change may cause a conflict between the proletariat and the capitalists.
On the one hand, the introduction of machinery raises the level of consumer goods, on the other hand ,its labour-saving character raises the level of unemployment.
Again, in Marx’s hands, a more or less incidental observation by Ricardo became the corner stone of his theory on the breakdown of capitalism.
Ricardo wrote about a lot of quite complex economical issues, which go beyond the intentions of this project. We aren't economists,
what is most interesting for us is to learn how capitalism developed in those days and how from thinkers like Ricardo there emerged two mainstreams:
the liberalism of free markets and the socialism born from the conflicts his own analysis revealed.
Main Sources:
MacMillan The Encyclopedia of Philosophy, 2nd edition
of Economic Thought (2012)
TABLE OF CONTENT -----------------------------------------------------------------
1 - 100 Philosophers 9 May 2009 Start of
2 - 25+ Women Philosophers 10 May 2009 this blog
3 - 25 Adventures in Thinking 10 May 2009
4 - Modern Theories of Ethics 29 Oct 2009
5 - The Ideal State 24 Febr 2010 / 234
6 - The Mystery of the Brain 3 Sept 2010 / 266
7 - The Utopia of the Free Market 16 Febr 2012 / 383
8. - The Aftermath of Neo-liberalism 5 Sept 2012 / 413
9. - The Art Not to Be an Egoist 6 Nov 2012 / 426
10 - Non-Western Philosophy 29 May 2013 / 477
11 - Why Science is Right 2 Sept 2014 / 534
12 - A Philosopher looks at Atheism 1 Jan 2015 / 557
13 - EVIL, a philosophical investigation 17 Apr 2015 / 580
14 - Existentialism and Free Will 2 Sept 2015 / 586
15 - Spinoza 2 Sept 2016 / 615
16 - The Meaning of Life 13 Febr 2017 / 637
17 - In Search of my Self 6 Sept 2017 / 670
18 - The 20th Century Revisited 3 Apr 2018 / 706
19 - The Pessimist 11 Jan 2020 / 819
20 - The Optimist 9 Febr 2020 / 824
21 - Awakening from a Neoliberal Dream 8 Oct 2020 / 872
22 - A World Full of Patterns 1 Apr 2021 / 912
23 - The Concept of Freedom 8 Jan 2022 / 965
24 - Materialism 7 Sept 2022 / 1011
25 - Historical Materialism 5 Oct 2023 / 1088
26 - The Bonobo and the Atheist 9 Jan 2024 / 1102
27 - Artificial Intelligence 9 Feb 2024 / 1108
28 - Why Am I Here 6 Sept 2024 / 1139
The Discussion
13:16] herman Bergson: Do you see the parallels with our time?
[13:17] Max Chatnoir: yes
[13:17] herman Bergson: Introduction of computers in the 1980s, these days introduction of AI...all threats for employees and workers.
[13:17] herman Bergson: 3D printing....they can "print" complete houses now....
[13:18] Particle Physicist Bejiita (bejiita.imako): yes thats cool
[13:18] bergfrau Apfelbaum: yes
[13:18] Max Chatnoir: Really? How big are the printers?
[13:18] herman Bergson: This process seems inherent to capitalism....new developments become a threat for employment
[13:18] Particle Physicist Bejiita (bejiita.imako): basically it is a concrete pump attached to an XY frame the size of the entire house
[13:19] herman Bergson: Big machines that drop concrete, Max
[13:19] Max Chatnoir: Yikes!
[13:19] Particle Physicist Bejiita (bejiita.imako): and i have seen some other design also but in general its a CNC controlled concrete pump
[13:19] herman Bergson: I have seen it...two or three men can build a real house in days
[13:20] Max Chatnoir: Isn't a one-piece house sort of susceptible to cracking over time?
[13:20] herman Bergson: They insert iron reinforments in the concrete
[13:20] Max Chatnoir: A multipiece house has some flexibility.
[13:21] herman Bergson: But here we are...stuck with liberalism and socialism....both affiliated with capitalism
[13:22] Particle Physicist Bejiita (bejiita.imako): what I like most is the enless freedm u have regarding shapes of the house, just like I can draw and program my machine with CAD/CAM and get it in physical form although smaller , recently i made some devices for prevting my bowling balls from rolling away while waiting for the next round
[13:22] Particle Physicist Bejiita (bejiita.imako): hmm all these go together i guess
[13:22] Particle Physicist Bejiita (bejiita.imako): the concepts
[13:22] herman Bergson: Bejiita, we are discussin economic thought not architecture :-)
[13:23] Max Chatnoir: Gotcha!
[13:23] Particle Physicist Bejiita (bejiita.imako): but architecture is cool too, i made a funky looking place in Blender just before now
[13:23] Particle Physicist Bejiita (bejiita.imako): ㋡
[13:24] Particle Physicist Bejiita (bejiita.imako): but yes
[13:24] herman Bergson: According to my son the whole of Europe is in fact socialist
[13:24] herman Bergson: We'll see if he is right later :-)
[13:24] Particle Physicist Bejiita (bejiita.imako): aah
[13:24] Particle Physicist Bejiita (bejiita.imako): oki
[13:25] herman Bergson: Last discussion there was a remark about libertarianis and liberalism...
[13:25] herman Bergson: What is the difference between the two....?
[13:26] herman Bergson: In the first place libertarianism isn't used as a term in European politics, as far as I know...
[13:26] Max Chatnoir: Libertarians are very individualist.
[13:27] herman Bergson: But it was used in 1789 in a debate about free will and determinism during the French revolution...then it had a philosophical connotation
[13:28] herman Bergson: The in 1850 it was used by the anrchist-communist side of the spectrum to hide the ugly word anarchist :-)
[13:28] Max Chatnoir: I'm thinking about the principle of mass production. It's an efficient way of producing something quickly. But it devalues the work of individual workers.
[13:29] herman Bergson: and Finally in 1857 it was used in New York by Joseph Déjacque, a French anarchist communist, who titled his periodical "Le Libertaire, Journal du Mouvement Social"
[13:29] herman Bergson: But that is not all...:-)
[13:30] herman Bergson: In 1950 the word was captured by right wing thinkers in the US where it stood for absolute belief in free markets....
[13:31] herman Bergson: Modern Liberalism believes liberty is threatened by both state power and unchecked private power (like corporate monopolies or extreme poverty).
[13:31] herman Bergson: Therefore, a democratically controlled state is a necessary tool to enable true freedom by leveling the playing field.
[13:31] Max Chatnoir: Modern liberalism needs to include a principle of equality of opportunity.
[13:31] herman Bergson: Libertarianism believes liberty is threatened primarily (or exclusively) by the state and its coercive power (taxation, regulation).
[13:32] herman Bergson: It sees the voluntary transactions of the free market as the purest expression of liberty and views most state action as illegitimate coercion.
[13:32] herman Bergson: As you said Max, it is super individualistic
[13:32] herman Bergson: And as history shows...the word moved from left to right :-)
[13:34] herman Bergson: I think the Republican PArty in the US is mainly libertarian, not liberal
[13:34] herman Bergson: In fact, the Democrats seem to be the real liberals :-)
[13:34] Particle Physicist Bejiita (bejiita.imako): I would say so acording to that defiition of yours
[13:35] Particle Physicist Bejiita (bejiita.imako): ad Im a liberal too i say, i strive for balance, while libertanians strive for unhinged uncontrolled capitalism
[13:35] herman Bergson: Like Reagan said: The government is the problem
[13:35] Particle Physicist Bejiita (bejiita.imako): if i get it all right
[13:36] herman Bergson: There is a serious debate going on regarding the introduction and use of AI.....
[13:37] Particle Physicist Bejiita (bejiita.imako): indeed
[13:37] herman Bergson: Should the big tech companies have all freedom to do as they like, or should the government have some control over this proces that has a huge influence on society
[13:38] Max Chatnoir: The function of the government is to defend life, liberty, and pursuit of happiness. Life could include health and food access. Liberty includes the freedom to pursue happiness by doing something that you can be good at.
[13:38] Particle Physicist Bejiita (bejiita.imako): regarding how these companies now behave i say there nneed to be a break, the AI hype show their true nature, unhiged greed
[13:39] Particle Physicist Bejiita (bejiita.imako): its gotten out of hand
[13:39] Particle Physicist Bejiita (bejiita.imako): i say
[13:39] herman Bergson: To defend life, Max....
[13:39] herman Bergson: Let me give you an example....
[13:40] herman Bergson: I notics on Youtube presentations of news by respected and trustworthy anchors, which are AI generated and telling fake stories...
[13:40] herman Bergson: SOme one/groep is endanger the life of others by producing lies in public outlets
[13:41] herman Bergson: A government could act here
[13:42] bergfrau Apfelbaum: that would be good!
[13:42] Particle Physicist Bejiita (bejiita.imako): indeed,
[13:42] Max Chatnoir: Well, telling lies should not be legal, including in advertising.
[13:43] Particle Physicist Bejiita (bejiita.imako): AI is used for too many bad things
[13:43] Particle Physicist Bejiita (bejiita.imako): thats a big issue
[13:43] herman Bergson: I have seen Rachel Maddow and Laurence O'Donnel tell totally fake stories....
[13:43] Max Chatnoir: So how to control the misuse of AI?
[13:43] herman Bergson: But they didn't fool me...
[13:43] Particle Physicist Bejiita (bejiita.imako): fake facts, deepfakes, revenge porn, slop in general
[13:43] Max Chatnoir: .. and Heather Cox Richardson...
[13:44] Particle Physicist Bejiita (bejiita.imako): used right AI is impressive but....
[13:44] herman Bergson: O'Donnel held a pen in his right hsnd...but when he lifted the hand the pen was gone
[13:44] herman Bergson: and it keep switching all the time
[13:44] herman Bergson: kept
[13:45] herman Bergson: I find such developments very troubling and worrisom
[13:45] herman Bergson: if not dangerous
[13:46] Particle Physicist Bejiita (bejiita.imako): its as usual, AI dont understand concepts and connetions, it is just a machine calculating likleyness in patternns without understanding them
[13:46] Particle Physicist Bejiita (bejiita.imako): because o machine can understand what it is actually doing an never will because only living beings ca do that
[13:46] Particle Physicist Bejiita (bejiita.imako): can
[13:47] herman Bergson: I am glad we are still discussing the 1870s .....
[13:47] Particle Physicist Bejiita (bejiita.imako): also all a computer does is based on raw math, thats all it does
[13:47] herman Bergson: So let's get ready for the next lecture :-)
[13:48] herman Bergson: Thank you all agian..... :-)
[13:48] Particle Physicist Bejiita (bejiita.imako): oki
[13:48] Max Chatnoir: Where did this one end?
[13:48] Particle Physicist Bejiita (bejiita.imako): it floated out into the AI void
[13:48] herman Bergson: It ends now, Max :-)
[13:48] herman Bergson: Class dismissed :-)
[13:48] Particle Physicist Bejiita (bejiita.imako): well it was a good one
[13:48] .: Beertje :. (beertje.beaumont): Thank you Herman
[13:48] herman Bergson: an XXL lecture :-)))
[13:48] Päivi (nicolesteel): Thank you Herman
[13:49] bergfrau Apfelbaum: great!! ty Herman and class
[13:49] Particle Physicist Bejiita (bejiita.imako): ill try compare these two concepts, libertarianism and liberalism, further and see what i find
[13:49] herman Bergson: My brain kept simply on running today...
[13:49] Particle Physicist Bejiita (bejiita.imako): as it should be
[13:49] herman Bergson: ㋡
[13:49] .: Beertje :. (beertje.beaumont): shh
[13:49] bergfrau Apfelbaum: we too
[13:49] Particle Physicist Bejiita (bejiita.imako): ㋡
[13:50] bergfrau Apfelbaum: lol
[13:50] Max Chatnoir: Very interesting! And I had never heard of David Ricardo.
[13:50] Particle Physicist Bejiita (bejiita.imako): nope
[13:50] herman Bergson: Very specific economist....Good for textbooks on economy...
[13:51] herman Bergson: Stuart Mill for instance was also a moral philosopher
[13:51] herman Bergson: So he made it to other textbooks too :-)
[13:52] Particle Physicist Bejiita (bejiita.imako): ok
[13:53] herman Bergson: I run into another obscure name all the time in this context... Malthus....have to check him out too
