
LECTURE ONE: ECONOMICS
I must admit I am not a fan of Economics and probably never will, but this lecture was very interesting and gave me some interesting facts I did not know before. I enjoyed the idea around the I.O.Y which was used as an example and other theories we covered. I stil have no interest in it, but here is what I gathered from the lecture.
(Money can’t buy poverty) thinking back to Adam Smith people respond positive to pleasure and Smith believed that people were easy to read. Utility is something that everyone has and it goes up and down throughout the day. People have the power to maximise their utility. Link back to JL Mills he thought that it was like a temperature you could measure. We can measure it by price. Looking at how much people are willing to spend. Utilitarianism is a reaction against the Kant system (the difference between the right and wrong). There is an ethical reaction to this theory. ‘The runaway train’ all people are going to die- there is a lever- if you pull it, the train will go another way and the people won’t die. However there is deaf track worker on the line, therefore he would die. Save lots of people or save the deaf Track worker. NHS- how much money you are worth to live- How expensive depends on the situation.
J.N.K get rid of pointless things
Population grows children rates and the increasing number of people. Doubling food resources will increase number of babies which will eventually cause a economic crises ‘rapidly grow’.
Marx thinks that when wages go up there will be bigger families which is the effect of the free market. In the 19th century they predicted that there would be overconsumption therefore would not be able to absorb profit.
Marx ‘eliminate profit’ he diagnosed but did not discover the solution for the problem.
1848- Gold rush in California and the mass migration,
Money- what is the function of money and the means of exchange.
Gold is universally accepted. It was though that gold would last forever and that there was a unlimited amount. People used to be able to swap a £10 note and get £1 of gold from the bank.
World currency in other words gold coins clarified in 1928
Credit creation ratio: the bank creates the money from the money we have and then creates artificial money. For example the I.O.Y theory.