Sunday, May 3, 2009

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The first type of theory, based on standard assumptions of neoclassical economic theory, Paul Samuelson "proved" mathematically that trade unfettered international will lead to a "leveling of the price factor," which essentially means that the prices paid to factors of production, capital and labor-tenderána be the same worldwide.


The second type of theory, based on the alternative tradition qfall outside the theory or abstract vanish in a search of means such as the "representative firm." In the theory based on the production, however, where financial and monetary variables are only the scaffolding needed to start the central engine, ie the country's productive capacity, it happens otherwise. But precisely because the factors mentioned above is ignored so the standard theory comes to the conclusion that globalization will equally benefit everyone, including countries from the point of view the necessary skills are still in theStone Age. The development, therefore, tends to be understood as capital accumulation rather than assimilation of knowledge emulacióny

.


The differences between you two types of economic theories are very deep, and derived from two opposite ideas of the most fundamental human traits and human activity ma ; s basic. Adam Smith and Abraham Lincoln clearly represent the two conflicting versions of human nature and the relevant economic theories.


theory fu barter exposed by Adam Smith and the beginning of Chapter 2 of

The Wealth of Nations : "

The division of labor is the result of human nature's propensity to barter, exchange and trade one thing for another. It is common to all men and not in other animal species, unaware of this and other kinds of compromises. No one has ever seen a dog make a fair and deliberate exchange with another dog a bone by another. "

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Lincoln presented his theory based on the productionand innovation in a speech in the election campaign of 1860:


" Beavers also build houses, but they do exactly the same way as five thousand years ago. Man is not the only animal that works, but is uniquely able to improve their work. These improvements effected by the discoveries and inventions. "


These two different visions of the fundamental economic characteristics of human beings have a significant economic theories and policies differ. While Adam Smith have in mind inventions, they come from somewhere outside the economic system (they are exogenous

) are not conditioned (


perfect information) and in principle arrive simultaneously to all communities and individuals. Similarly, innovations and new technologies are created automatically and free of charge by an invisible hand, ideology econ & oacutepotentially noble spirit with an active brain, which continuously records and classifies the world around him according to comprehensive plans, the economy is so focused on production rather than on the exchange, as well as production, asimilacióny dissemination of knowledge and innovations. The driving force for continental economic theory is not capital per se, but "the capital of wit and will" human who spoke Nietzsche. If you believe in the type A, then B is irrelevant, and vice versa. The first conception of humanity can build an economic theory andp; iacute; a.


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