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A Balanced Economic State Essay Research Paper

A Balanced Economic State Essay, Research Paper


Adam Phillips


Angel Kegley


Dawn Nunn


Brian Brisson


SOCIALISM


In a socialist society the means of production are owned by the workers rather


than by a rich minority of capitalists or functionaries. Such a system of ownership is both


collective and individual in nature. It is collective because society can control


production unlike the economic anarchy of capitalism and because production is for the


common good rather than for individual profit.


At the same time it is individual because workers are no longer a ‘collective’ mob


of alienated non-owners employed by a minority of owners. Work becomes a free and


self-affirming activity for each worker and they receive the full fruits of their labor. The


capitalists and their servants no longer control production nor grow rich from other’s toil.


Everybody is an owner. Socialism is genuine free enterprise.


The personally empowering and cooperative nature of socialist ownership


underpins similar changes in other aspects of life. Socialism means far healthier


individuals and human relationships. It means full participation by each individual in the


intellectual, cultural and political life of society. Socialism requires a revolution with


three main stages: firstly the emergence of a workers’ movement committed to socialist


revolution, secondly the achievement of political power and the expropriation of the


capitalists and thirdly a period during which workers learn how to be owners and rulers


and cast off the psychological and ideological dross of the past.


Socialism will not be an utopia simply created in people’s minds. It will be the


product of economic and social development. In developed countries it is now possible


for everyone to live a reasonably affluent life and be free of long hours of routine toil.


This creates a better basis for cooperation and mutual regard. Historically, where equality


would have meant shared poverty, it was inevitable that a minority would plunder,


enslave and exploit the majority. At the same time rank and file workers are


progressively acquiring through their experiences, the abilities to do without an elite.


Their general level of education and training has advanced significantly over the last


couple of generations. The work they do, while still totally oppressive, has an


increasingly mental and conceptual content. And they now have extensive access to


cultural and intellectual resources and the diverse experiences of living in a modern


society. So while socialism was impossible in the past, these emerging conditions make it


inevitable in the future.


CAPITALISM


One will recall from the “Aquinas” document that Aquinas added some new


dimensions to such ideas as wealth, trade, and the taking of interest. Wealth was no


longer “unjust” if that wealth was used to maintain one’s station in life. Interest could be


taken if the lender could prove that he had suffered some loss, or if it could be shown that


the borrower was a higher then normal risk. This amendment to the idea of usury is how


many of us think of interest, it is a payment to a lender because there is a chance that the


borrower will not be pay off the loan. Trade was looked down upon by Aristotle and


Plato, but Aquinas recognized that trade was not “bad”, although he did say that it would


be easy for a trader to abuse the system to gain great amounts of wealth.(Gray 46)


One other point about Aquinas that I would like to comment on is the way in


which his thinking about the complimentarily of faith and reason is evidenced in his idea


about usury. Aquinas believed that faith informed people that the taking of interest was


“wrong”. The Bible claims that it is “wrong” to take interest, hence one should not take


interest. But Aquinas believed that faith claims could be further justified by reason.


Aquinas then takes up the Aristotlelian argument that the taking of interest is “wrong”


because money is only a store of value, that it is “unnatural” for money to be able to


create more money. So here we can see that Aquinas was able to justify faith by the use


of reason.


One last point about Aquinas interests me very much. Marco Polo and his father


left Venice to go to the Orient in 1271.(Boorstin 139) Aquinas died in 1274. How much


of what Aquinas wrote was an influence upon his times, or how much was it a statement


of what men were beginning to accomplish? In other words, did Aquinas state what was


occurring, or did his writting influence the times to such a degree that men would start to


act upon it even before his death? The Polo’s returned to Venice in 1295 bringing with


them a small portion of the many things that they had seen on their travels.


Another important point that would help to bring about the developments of


capitalism was the slow, but steady death of the power of the Catholic church.This had


two impacts. First, it reinforced the nationalistic sentiments that were beginning to


emerge at this time, and second it broke the Catholic church’s stronghold on religion in


Europe. As early as 1380 John Wycliffe had translated the Latin Vulgate into English.


Why do we see this desire to have the Bible presented in such a way as to allow


“regular” people to be able to read it, realizing that “regular people” would refer to those


rich enough to be able to afford the translation and those who would have the ability to


read? One possible explanation as to why we see the advance of nationalism is that


during the Crusades, which brought together a large number of different Europeans,


those people who spoke the same language, or came from the same regions would


naturally bing together. One cannot follow someone into battle if one has no idea what


they are saying. Hence, Englishmen became just that–Englishmen. When they returned


back to England it may have been harder for them to think of themselves as being tied to


a lord of the manor. Wycliffe’s translatation then would help to further the idea of


nationalism, it would help to further solidify a movement that had already began. When


men like Wycliffe began to translate the Bible into the language of the people we see a


beginning to the end of the Catholic church’s power over religion. Men began to read the


Bible and interpret what the read, and often times what they thought the Bible said was


often very different from the official Church position. Hence someone like Luther reads


the Bible and sees that salvation is accomplished by faith and not through penance or


other good works. The Church, it seems, realized that reading the Bible could have


important consequences. They told Luther to “…let the Bible alone; read the old


teachers…”. This new reading of the Bible was supported by rulers who either believed


that Luther was right, or who saw an opportunity to advance their own goals.


The birth of nationalism and the decline of the power of the Catholic Church help


to bring about the advent of monarchs. This is not to say that kings and queens did not


exist before this time, but it is to say that the “old” monarchs would do the biding of the


Church, while the “new” monarchs were not bound to do as the Pope said. This helps to


bring about a new economic system–Mercantilism.


An Introduction To Positive Economics. Fourth Edition


A Foundation Course for the Built Environment J.E. Manser



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