by admin on December 30, 2009
This study by one of the founding fathers of scoiology, 
Max Weber, is clearly written in opposition to Karl Marx (even thought Weber does not do Marx the honor of refering to him) and the Marxist concept of dialectical materialism, with its insistence that social change takes place through the conflict of opposites. Instead, Weber relates the rise of a capitalist economy to the Puritan determination to work out anxiety over salvation or damnation by performing good deeds — an effort that ultimately encouraged capitalism.
Weber discovered that in Germany, Protestants tended to be wealthier and better educated than Catholics because Protestants showed a special tendency to develop “economic rationalism”; that is, a particular approach to creating wealth that was less focused on the gain of comfort than on the pursuit of profit itself. The general outlook on life and work that the early protestants sects drew from their belief made them singularly well adapted to modern capitalism, according to Weber.
by admin on December 26, 2009
Adam Smith uses historical examples and analytical thinking 
in this wonderful book which more than any laid the foundations of modern economics.
He viewed labor as the source of value, explored the need for specialization of labor and the emergence of markets for labor. He introduced the assumption underlying modern rational theorizing that each individual pursues their best interests.
The concepts of marginal utility and scarcity are foreshadowed in his work. Hw showed how, under ideal circumstances, supply and demand meet to clear markets. He discussed that macro consequences of competition where each actor was motivated by his own best interests, and showed that it could lead to better conditions for all, as if by an “invisible hand.”.
He also emphasized the importance of government in providing international and domestic security as well as providing public works and institutions such as education (the minimalist state).
This is still a great and important introduction to modern economics.
The Bantam paperback version contains Smith’s complete and unabridged final version of the Wealth of Nations. It also provides footnotes on Smith’s wording, the historical context, and the differences between Smith’s 5th edition and previous editions.
PS: Theory of Moral Sentiments
is the work which Smith himself considered his most important work.
“Adam Smith’s enormous authority resides, in the end, in the same property that we discover in Marx: not in any ideology, but in an effort to see to the bottom of things” –Robert L. Heilbroner
by admin on December 11, 2009
David Ricardo (1772 – 1823)
was an English political economist. He wrote his principles as a reaction to Adam Smith’s The Wealth of Nations, and after having been encourages by James Mill and his son John. At several points he was fairly critical of Adam Smith.
Ricardo has often been credited with systematizing economics, and surely has been one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. His writings also influenced Karl Marx.
Ricardo was also a member of Parliament, businessman, financier and speculator, who amassed a considerable personal fortune.
Ricardo is perhaps most remembered for his contribution to the theory of comparative advantage. This theory, which he partly borrowed (from Robert Torrens), provides a fundamental argument in favor of free trade among countries and of specialization among individuals. Ricardo showed that, under a given set of assumptions, there is mutual benefit from exchange even if one party is more productive in every possible area than its trading counterpart as long as each concentrates on the activities where it has a relative productivity advantage.
by admin on December 10, 2009
Emile Durkheim, one of the founding fathers of sociology, published The Division of Labor in Society in 1892. It was his doctoral dissertation, and it contains fundamental and far ranging statements about the nature of human society, it’s development, and what binds individuals to one another and to society. For Durkheim, the social division of labor is not only an economic arrangement, reflecting the level of technological and societal advancement, but also something which gives rise to forms of morality and solidarity.
Emile Durkheim developed the social theory of Auguste Comte further towards an academic field. He was a structural functionalist.
This is a very important contribution to classic social theory and to sociology. It is also an early conceptualization of structural functionalist theorizing.
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