Economic Theory: Say's Response to Malthus
48 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

According to Louis Kelso, what is money not a part of?

  • A physical factor of production
  • The invisible sector of the economy
  • The visible sector of the economy (correct)
  • A method of measuring economic input

    • What determines who gets access to capital credit?

  • Social status
  • Credit score
  • Collateral (correct)
  • Income level

    • What is the main purpose of money according to Louis Kelso?

  • To create economic inequality
  • To measure economic input and outtake (correct)
  • To facilitate consumer credit
  • To accumulate wealth

    • What is the result of the current money creation and credit extension systems?

    <p>The rich getting richer, the poor getting poorer</p> Signup and view all the answers

    What is the primary requirement for accessing capital credit?

    <p>Collateral</p> Signup and view all the answers

    Who has access to the lowest-cost and least risky kind of credit?

    <p>The rich</p> Signup and view all the answers

    What is the primary purpose of the monetary system?

    <p>To measure economic activity</p> Signup and view all the answers

    What is the result of the poor and middle-class having access to risky and high-cost credit?

    <p>Perpetuation of economic inequality</p> Signup and view all the answers

    What is the primary concern of Jean-Baptiste Say when it comes to the economy?

    <p>The ability of individuals to produce more than they can consume</p> Signup and view all the answers

    What is the consequence of rising levels of consumer credit?

    <p>A reduction in future disposable income</p> Signup and view all the answers

    What is the underlying cause of the imbalance between the productive capacity of technology and the ability of people to purchase goods and services?

    <p>The unequal distribution of productive instruments in society</p> Signup and view all the answers

    What is the result of flawed economic paradigms, according to the text?

    <p>The creation of false dichotomies and conflicting values</p> Signup and view all the answers

    What is the primary consequence of the power to produce overwhelming the power to consume, according to Say's Law of Markets?

    <p>A surplus of goods and services</p> Signup and view all the answers

    What is the relationship between the ability to produce and the ability to purchase, according to Jean-Baptiste Say?

    <p>The ability to produce is directly related to the ability to purchase</p> Signup and view all the answers

    What is the impact of the current economic system on the environment, according to the text?

    <p>An increase in environmental degradation</p> Signup and view all the answers

    What is the role of the State in addressing the imbalance between productive capacity and purchasing power, according to the text?

    <p>To regulate markets and redistribute wealth</p> Signup and view all the answers

    What is the primary issue that contributes to the widening gap between the rich and poor?

    <p>Unequal ownership of the means of production</p> Signup and view all the answers

    According to the Chemical & Engineering News “Special Report” in 1972, what is one of the consequences of environmental degradation?

    <p>Pollution control costs being passed on to consumers</p> Signup and view all the answers

    What is the outcome of a system that forces a man to fight for a job on an environmentally destructive project?

    <p>Conflict between capital and labor</p> Signup and view all the answers

    What is the primary consequence of a consumer who cannot afford to pay for pollution control costs?

    <p>Increased environmental degradation</p> Signup and view all the answers

    What is the primary issue faced by citizens in the richest and most powerful nations?

    <p>Vulnerability to loss of jobs and income</p> Signup and view all the answers

    What is the primary consequence of the global economy treating workers as disposable assets?

    <p>Powerlessness and vulnerability of workers</p> Signup and view all the answers

    What is the primary goal of rethinking our paradigms, assumptions, and systems?

    <p>To bring about peace, prosperity, and a healthy environment for every person</p> Signup and view all the answers

    What is the primary defect of both capitalism and socialism, and their various permutations?

    <p>Most people owning no share in the world's productive capacity</p> Signup and view all the answers

    What is the primary consequence of the widening economic gap between the rich and poor within nations and between rich and poor nations?

    <p>Starvation, homelessness, and loss of hope for many</p> Signup and view all the answers

    What is the primary defect of both capitalism and socialism, and their various permutations?

    <p>Most people do not own a share in the world's productive capacity</p> Signup and view all the answers

    What is a consequence of consumerism and debt in the richest and most powerful nations?

    <p>Feeling trapped by consumer debt and loss of jobs and income</p> Signup and view all the answers

    What is a consequence of the current economic system's impact on the environment?

    <p>Environmental degradation and pollution</p> Signup and view all the answers

    What is a consequence of war and conflict in the global economy?

    <p>Increased poverty and inequality</p> Signup and view all the answers

    What is a consequence of the global economy treating workers as disposable assets?

    <p>Feeling trapped and powerless</p> Signup and view all the answers

    What is a consequence of the imbalance between productive capacity and purchasing power?

    <p>Starvation, homelessness, and loss of hope for many</p> Signup and view all the answers

    What is a consequence of the growing gap between the rich and poor?

    <p>Increased social unrest and conflict</p> Signup and view all the answers

    What is the primary function of money in the economy, according to Louis Kelso?

    <p>A means of measuring economic input, outtake, and relative values</p> Signup and view all the answers

    What is the result of the current money creation and credit extension systems in terms of wealth distribution?

    <p>The rich accumulate wealth and power, while the poor and middle-class are restricted</p> Signup and view all the answers

    What is the consequence of the poor and middle-class having access to risky and high-cost credit?

    <p>They are trapped in debt and unable to improve their economic situation</p> Signup and view all the answers

    What is a consequence of the current economic system's focus on growth and consumption?

    <p>Environmental degradation and resource depletion</p> Signup and view all the answers

    What is a primary driver of consumer debt and financial insecurity?

    <p>The widespread availability of consumer credit</p> Signup and view all the answers

    What is a consequence of the global economic system treating workers as disposable assets?

    <p>Increased economic inequality and social injustice</p> Signup and view all the answers

    What is a primary challenge in addressing global health crises?

    <p>The lack of access to affordable healthcare and medical resources</p> Signup and view all the answers

    What is a primary consequence of the widening gap between the rich and poor?

    <p>Increased economic inequality and social unrest</p> Signup and view all the answers

    What is the primary reason why most people on the planet are unable to purchase the goods and services produced by technology?

    <p>They do not have legitimate ownership claims to the productive instruments of society</p> Signup and view all the answers

    What is the consequence of rising levels of consumer credit, according to the text?

    <p>It creates a temporary burst of purchasing power, but increases the debt burden in the long run</p> Signup and view all the answers

    What is the underlying cause of the imbalance between the productive capacity of technology and the ability of people to purchase goods and services?

    <p>The unequal distribution of productive instruments of society</p> Signup and view all the answers

    What is the relationship between the ability to produce and the ability to purchase, according to Jean-Baptiste Say?

    <p>The ability to produce is directly proportional to the ability to purchase</p> Signup and view all the answers

    What is the consequence of flawed economic paradigms, according to the text?

    <p>They lead to environmental degradation and social unrest</p> Signup and view all the answers

    What is the primary consequence of the power to produce overwhelming the power to consume, according to Say's Law of Markets?

    <p>It leads to a surplus of goods and services that cannot be consumed</p> Signup and view all the answers

    What is the primary role of the State in addressing the imbalance between productive capacity and purchasing power, according to the text?

    <p>To redistribute wealth and resources through taxation and regulation</p> Signup and view all the answers

    What is the primary consequence of the global economy treating workers as disposable assets?

    <p>It leads to social unrest and environmental degradation</p> Signup and view all the answers

    Study Notes

    Critique of Economic Systems

    • Jean-Baptiste Say's conclusion: people can only buy with what they produce, and if commodities don't sell, it's because others aren't being produced.

    Inequality and Consumer Credit

    • Most people lack ownership and means to purchase what technology can produce.
    • The wealthy few produce more than they can consume, leading to an imbalance.
    • Consumer credit temporarily increases purchasing power but increases debt and reduces disposable income.

    Say's Law of Markets

    • The power to produce overwhelms the power to consume.

    Definition of Money

    • Money is not a physical factor of production, but a yardstick for measuring economic input, output, and relative values.
    • Money provides a method of measuring obligations, rights, powers, and privileges.

    Monetary System

    • The current system keeps the rich wealthy and the poor in their place.
    • Access to capital credit is restricted, and the poor get high-cost credit.
    • Lenders require collateral, making it difficult for the poor to access credit.

    Global Economic Issues

    • A gap in economic power and ownership widens between the rich and poor within and between nations.
    • Billions remain starving, homeless, and without hope, despite the potential for abundance.
    • Environmental degradation, conflict, and unresponsive institutions are symptoms of a flawed system.

    The Need for Change

    • It's time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for everyone.
    • Fundamental principles are needed to guide the restructuring of laws and institutions.

    System Failure

    • Most people lack ownership of the means of production, making it impossible for them to produce enough to purchase others' productions.
    • This common defect exists in both capitalist and socialist systems.

    Critique of Economic Systems

    • Jean-Baptiste Say's conclusion: people can only buy with what they produce, and if commodities don't sell, it's because others aren't being produced.

    Inequality and Consumer Credit

    • Most people lack ownership and means to purchase what technology can produce.
    • The wealthy few produce more than they can consume, leading to an imbalance.
    • Consumer credit temporarily increases purchasing power but increases debt and reduces disposable income.

    Say's Law of Markets

    • The power to produce overwhelms the power to consume.

    Definition of Money

    • Money is not a physical factor of production, but a yardstick for measuring economic input, output, and relative values.
    • Money provides a method of measuring obligations, rights, powers, and privileges.

    Monetary System

    • The current system keeps the rich wealthy and the poor in their place.
    • Access to capital credit is restricted, and the poor get high-cost credit.
    • Lenders require collateral, making it difficult for the poor to access credit.

    Global Economic Issues

    • A gap in economic power and ownership widens between the rich and poor within and between nations.
    • Billions remain starving, homeless, and without hope, despite the potential for abundance.
    • Environmental degradation, conflict, and unresponsive institutions are symptoms of a flawed system.

    The Need for Change

    • It's time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for everyone.
    • Fundamental principles are needed to guide the restructuring of laws and institutions.

    System Failure

    • Most people lack ownership of the means of production, making it impossible for them to produce enough to purchase others' productions.
    • This common defect exists in both capitalist and socialist systems.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Explore the ideas of Jean-Baptiste Say and his response to Thomas Malthus on economic principles, production, and purchasing power.

    More Like This

    Economic Theory and Significance Quiz
    10 questions

    Economic Theory and Significance Quiz

    PeacefulCesium avatar
    PeacefulCesium
    Economic Theory: Subtopics and Concepts
    20 questions

    Economic Theory: Subtopics and Concepts

    IngeniousMinneapolis avatar
    IngeniousMinneapolis
    Economic Theory: Key Concepts and Principles
    13 questions

    Economic Theory: Key Concepts and Principles

    ProdigiousDouglasFir avatar
    ProdigiousDouglasFir
    World Population Trends and Malthus' Theory
    9 questions

    World Population Trends and Malthus' Theory

    ExcitingAstatine avatar
    ExcitingAstatine
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser