Fundamentals of economic theory
PROLOGUE
This work has multiple, 1) purposes the primary idea is to study the passage of value pricing, which supports the theory of value. The theory of value defined by the classics, and Adam Smith postulated by the example of the people of hunters and Beaver, working time as the value of a commodity, then more formalized by David Ricardo is collected. Marx combines otherwise working time, depriving it of its specific nature and taking only into account the character of human time. For the analysis of capitalism creates models simple and expanded reproduction supported the theory of value, supports his theory that the population is not a fact, is not given by nature, there is a process of reproduction material a given economy should ensure that the population subsists in capitalist economy the ownership of the means of production, land and other natural resources is in the hands of workers and their families; the profit motive encourages owners of capital to use it productively and get the return plus a plus; Given these conditions it is understood that each capitalist enterprise collects work time, and the sum of all micros capitalist processes as means of production or produce goods for final consumption; is the total gross domestic product, and the amount of time spent is what we know as the gross domestic product, called value added is equal (in closed economy without savings) to the sum of consumer goods. 2) The linear development of the model of reproduction, leads to the transfer of value from one branch to the other conclusion from the model is made via prices implicitly it raises a theory of inflation 3) In considering human labor as the only source of wealth and be the workforce capital in itself an economic policy thrifty in physical capital is deducted; since the downward trend of the profit rate law due to an increasing use of physical capital relative to variable capital or labor.
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PHILOSOPHICAL BASIS
· The existence of man been discussed by philosophers, Descartes wrote "I think therefore I am", ensuring the existence of the subject, the existence of the objective world been questioned, we can ensure the existence of the material world, as its denial leads to deny the relationship between human beings. Other positions refer to have doubts about the certainty of empirical knowledge; do not deny the empirical fact if not the possibility of knowing because of the imperfection of our senses, passes through indifference and agnosticism or denial of the possibility of certainty, the perfect question leads to indifference, while agnosticism accepts the positive fact, the theoretical explanation of the fact must comply with certain formalities, but does not point to a full explanation of the fact itself impossible. Marx's conception is called the philosophy of practice, as our senses pick up stimuli from the objective world, which was, and that permanently changes since everything is moving, but where these movements are sometimes cyclical as the passage of day night, or slow allowing us to study processes. Given the need to understand the essence of being, Marx poses the urgent need to transform in particular stop a fight of man against man will devour him. Hence it clear that the certainty of empirical fact is the most likely theories, and taking as true in the realm of probability. The senses inform us about the reality of the outside world, so we have an awareness that information processing in the brain by reasoning it reflects the outside world. Not be certain that data we would totally blind and deaf mute in a hostile world so we would not survive. The vision shows us an obstacle, if we move forward we will crash against the obstacle, trial and error, animate beings have members to move instinctively nourish us, to replenish energy we spend on move, identified by trial and error obstacles, foods, with experimentation identify elements to avoid cold, fierce and build shelters to protect us from the action of weather elements, rain, cold, floods. Today science studied this universe, he attributes certain age already formulated theories about their formation, the planet earth, a theory of life, a process of evolution of species to the appearance of homo sapiens, this universe evolves independently of the action of the subject. On each side there are several theories, science accepts that shows more empirical evidence. The process is sometimes we experience about something and gives us a result, how to heal a wound, choose the time of planting, then come a theory about the human body, or the seasons in the astronomical theory that will explain why and we can move beyond experiment. Sometimes we can confuse theory with empirical evidence as the theory of the human body by the amount of evidence that this theory throws us; but still theory, the certainty that we have to find certain organs to open the human body, can not be total.
· The steps required to formulate a theory in this case is to determine empirical economic evidence, difficult thing in economics already abstract. First make certain observations, formulate certain hypothesis, experiment, then formulate the theory.
Because of this we argue that the existence is not known limits, develops in space time, place and space is occupied by things that have certain properties; are unique therefore are identical to themselves, we can be classified into sets, formed by elements, where the unitary assembly is formed by a single element.
If we ensure the existence of the material world as the place where our existence, we can move on to the study of how we live and reproduce materially.
· So when asked if there is a material world, we will say that as we feel there is a material world and through the way we communicate with. What features does the objective world to which we feel? The man first had to survive before you ask; bestowing divine character to what he could to survive. As you learn by reasoning of the properties of nature, it appropriates this for their own purposes once you know its laws, it is capable of using the time productively to generate material goods, and pass collector and hunter producer.
Gives the impression that Marx uses a method, allow me this vision, like an intergalactic traveler who observes human behavior, or an anthropologist who studies how lives and breeds a kind, ensuring that there is no condescending analysis, which revels with our supposed virtues, focusing on how to how does provisioned, and how to distribute.
· Unlike other living beings man must produce their own material means of existence.
· After a long period where the man had a predatory activity, from agriculture, the man spent all his life in these activities. Their organization, family and tribes, nations, were developed around that activity.
· Then primitive societies became civilizations, where state laws, the division of labor appears. The emergence of non - economic activities as a super structure, it is because the division of labor will generate a surplus of material goods llaméense food, clothing, housing; result of increased productivity, called base material or the material structure on which the other structures sit ..
· Thus civilizations where human thought, art, literature develops arise; As an example of this is the Greek civilization, Egyptian, Roman. These companies expand into great empires, stop and fall. Its flowering is directly related to the production of means of existence. Work organization was based on independent agents as artisans and peasants and slave labor.
You can incorporate two concepts, advances in knowledge and innovation, inventions, impacts on increasing production, growing surplus as returns to work, the tools and the means of production in general, call development of productive forces, the appropriation of the surplus by a social class causes the class struggle, the overthrow of one class by another and a new vision of the world
HISTORICAL RATIONALE
To the extent that goods produced by man are traded are transformed into goods, or goods produced by man in order to exchange to exchange is essential to assess how much it cost to produce them if the goods are available, supply and act favoring demand prices of goods costing more time producing them .
Social structures are shaped in the material reality, appropriation of land, creating classes of producers such as farmers, direct or slaves; sciences are structured in the priestly caste societies are led by the dominant castes that make up the state, hosts, judges, Reyes. These taxes paid by owners. The most prosperous companies may conform better armed armies; this prosperity is determined by two factors are developed, what are the working conditions and class relations; and secondly as science can develop and become inventions and technological advances.
To the extent that man is going to depend on nature to depend 1 man himself and from a positive vision rely on human reason.
Social formations sometimes stagnate in its material base, implies that the process is exhausted because it can not sustain the superstructure, as happened to slavery in the Roman Empire; sometimes the development of the material base necessary to replace political legal superstructure as the reign of Louis XVI and the French Revolution.
Birth, maturation and decline of empires
· Let 's look at the beginnings of Greek society: there was a flowering of agriculture, trade, and cities, a large peasantry was formed, and craft; needs to expand and dominate both commercial rich regions of the Persian defend leads them to form large armies formed with peasants. As farmers are used in wars they are ruined and must be sold as slaves and lose their land in favor of the landowners who use slave labor. The slaves were ancient ruined peasants, who were sold as slaves or prisoners of hostile nations, or just neighbors.
· Slaves to be owned by landlords, they must take charge of their power, forcing forced labor, slaves therefore do not care tools, and the land is deteriorating. Alexander's empire is given in this context, form large armies to seek new lands and organized colonies. So society must arm, clothe and feed an army; this should seek colonies and slaves, generating taxes and work.
· During the Roman Empire this model of society is in crisis because of slave labor productivity is lower than the cost of maintenance, becoming a non - economic activity. As had disappeared farmers with land, the entire cost of the state apparatus and especially the great armies fell upon the colonies and landowners, so the Teutonic invasions were not repulsed, due to a dying empire.
· Military, religious and the king and his court or the nobility during the fall of the Roman Empire the feudal regime dominated by three orders arises. The king gave titles of nobility to the military, read land with bonded peasants, nobles were these armies (mesnadas) with his vassals (landowners junior) in exchange nobles were to be vassals of the king in the wars. During feudalism develop the Burgos or emerging cities, and an emerging cottage industry is transformed. On the other hand the national states are getting stronger against the feudal lords who become increasingly small closed states, coming into conflict with the kings. This fight will be triumphant national states supported by a commercial bourgeoisie enriched by the conquests of America in particular. This bourgeoisie keeps large armies, builds up great treasures of conquest, will invest these funds in industries that develop in the boroughs; in the cities masses of serfs fleeing the country in search of freedom and the goods market develops, banking focus.
· Finally they fall kingdoms and cuts the last feudal order in foot displaced by the republican, before this regime will occur in knowledge and technical agricultural revolution and the industrial revolution, socially peasant revolutions, creating the basis for capitalist development . Farmers produce cheap food in large quantities, industries employ huge masses of workers, who handle machines, throwing the market and trades all kinds of cheap goods. It is in this context where democratic ideas, and the universal rights of man are developed and realized in modern democratic republics, market laws demand freedom, employees do as free if concerns are not a property nor they are earthbound; however the need to force them to be used for starvation wages under inhumane conditions during long hours.
· The nations where the capitalist system initially developed, mainly England and Holland, achieved a great advantage in the economic sphere over other nations, this was expressed in the formation of large overseas empires, displacing the old colonial empire emerged Renaissance. These new empires formed a world capitalist system, based on international division of labor, industrial rich countries against poor countries which supply raw materials and cheap food, and hegemony in the context of trade relations. Then comes the takeoff or capitalist development - oriented state, United States, France, Germany, Italy begin takeoff then be adding more nations are characterized by development of state monopoly that will overcome the first since the British Empire developed a liberal economic policy of non-interference of the state.
· The entry of these countries to the industrial era breaks the international scheme, and accelerates an internal capitalist process: the emergence of trust in the industrial area and sign in banking, or the concentration of capital in few hands, these struggling after dominate the domestic market for dominance in the global context, the capitalist states form large armies with increasingly sophisticated weapons, and using the forced recruitment will incorporate all the people to wars and played by weapons which failed in the economic field . In the late 19th century a world imperialist system, the world divided into colonies and spheres of influence arises. The scenario of the First World War can be an example of this showdown.