He also asserted that history has been a series of struggles between economic classes. For example, in Ancient Rome the landed aristocracy struggled for power with small farmers and city workers. In medieval times, guild masters and journeymen, nobles and serfs struggled with one another for economic supremacy. Similarly, the French Revolution could be explained in terms of a struggle between merchant classes and the agrarian (agricultural) aristocracy.

The exploitation of labour. According to Marx, goods and services had value because of the efforts of labourers. But according to the economic theory of the day, workers were only paid enough to enable them to stay alive. Whatever was left over (profits) was pocketed by the factory owner — the capitalist. Profits, therefore, represented surplus value which should belong to those who created it: the workers.

The inevitability of capitalism's collapse. Under this system, the rich would get richer and the poor, poorer. Because workers were underpaid, Marx went on, they would be unable to buy the goods and services they produced. Eventually, the system's excesses would lead to the final class struggle. In this, workers would overthrow the capitalists who had been exploiting them. In the new order that would follow, Marx concluded, class struggle would no longer be necessary, and the state could simply «wither away. » Each worker would perform «according to his ability» and be rewarded «according to his needs».

Text 9

Classical liberalism

In the seventeenth century, liberalism emerged as the radical philosophy that attacked authoritarianism and paternalism in the political sphere by defending the rights of the individual against the commands of monarchs and other rulers. The seventeenth-century philosopher John Locke questioned claims to political authority based on birth, social status, privilege, and divine right. Political authority either derived from the consent of the governed or else was illegitimate.

Later in the eighteenth century, liberals added the notion of the «rule of law», the idea that government in its legislative capacity had to enact general rules that apply to all citizens equally. The substitution of the rule of people for the rule of law created a capricious, uncertain, and sometimes cruel community life. This early variety of liberalism - often termed «classical liberalism» - stimulated the development of the social sciences by insisting that what holds society together and promotes an orderly commercial economy is the mutual interplay of the passions and interests of ordinary citizens in the market.

A basic principle of liberal thought is that individuals are the best and most accurate judges of their own interests and can be relied upon to pursue those interests with great dedication and creativity. The mighty arm of the state with its web of regulations and bureaucratic agents often does more harm than good when trying to substitute administrative methods of organization for impersonal market processes that spring out of self-interested individual action.

The philosopher and American revolutionary, Thomas Paine, wrote that «society is created by our wants, government by our wickedness. »

Classical liberals are not anarchists and at the very least recommend a minimal state: a state that protects lives, defines property rights, and enforces private contracts. A great many classical liberals (such as Adam Smith and the later classical school of economists) went somewhat further and requested that the state build and maintain certain public works (bridges, canals, highways, harbors, recreational parks, and so on), maintain standing armies, provide basic education, promote invention and innovation, and intervene in the market on a limited scale for specific humane purposes such as the enactment and enforcement of child labour laws.

Generally, the classical liberal believes in the general rule of laissez-faire and wants to preserve self-regulating market processes as much as possible. The classical liberal is confident that with the enactment of strict constitutional safeguards and the elimination of monopoly and the never-ending varieties of special-interest legislation, peace and material progress are within the reach of all societies and all social classes.

The leading works of classical liberalism include Adam Smith's “Wealth of Nations” (1776), Herbert Spencer's “The Man Versus the State” (1892), Friedrich A. Hayek's “Constitution of Liberty” (1960), Ludwig von Mises's “Liberalism a Socio-Economic Exposition” and Milton Friedman’s “Capitalism and Freedom(1962)”.

Vocabulary

remarkable feature – отличительная черта

to suggest – предполагать, предлагать

to be firmly grounded – твердо основываться на чем-либо

to revolve – вращаться

to acknowledge – подтверждать, признавать

to attach – прилагать, прикреплять

struggling to survive – борьба за выживание (существование)

controversial – противоречивый

beyond – сверх, дальше, больше

simultaneously – последующий

subsequent –

to disaggregate economic phenomena – расчленять экономические явления

Оглавление

Экономика англоязычных стран и россии

Методическая разработка

по развитию навыков чтения и устной речи

для студентов 2-го курса специальности

«Экономика предприятия и организаций», «Менеджмент», «Бухгалтерский учет, анализ и аудит»

Составитель: доц. Людмила Владимировна Лукина

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