Capitalism against the Welfare State: Classical Political Economy
Some thought the welfare state is incompatible with capitalism. This conviction can be retraced to Adam Smith. He understood welfare as being secured primarily through the market. More clear reason for incompatibility is that without the compulsion to work an efficient market could no longer function because there would remain no
1. The comparison and contrast of ‘statecapitalism’ and ‘market capitalism’
There are about two capitalistic means in keeping monopolistic capitalism. One is 'state planning like monopoly, cartel'. Another is 'collective relations like Soviet union'.
The reason that statecapitalism is associated with the Great Depression is statecapitalism happened because of the Great Depression.
Under capitalism, man exploits man; under communism, it is opposite.
☞ The key goal of the communist movement
The abolition of private ownership of the ‘means of production’ such as factories and machines.
☞ Why?
They believed that it was the reason for the ‘wasteful’ anarchy of the market.
However…..
The planned economy based on state ownership of enterpris
Classical Capitalism - Definition
Background
French Physiocrats in 18 Centry
Revolution of bourgeois
Economical basis
Optimal distribution of resources
Maximum benefit
Political basis
Suggestion of new ideology
Ideal
Night-watch state
Smallest state theory
Limitation
Alienation of proletariat in economical
& political side.
Ideal
Free economic activity by the "
capital.)
위험과 수익률의 상충관계 (Trade Off) : Potential of losing invested capital as well
as making high return from an investment.
측정: 미래수익률의 분산 (Measured by ‘Variance’ of the future return.)
Investor’s view of risk
위험 회피 형(R