Adam Smith’s Glorious Vision Accumulation + Division of Labor = Cumulative Progress

Adam Smith Accumulation: Division of labor: “capitals are increased by parsimony and diminished by prodigality and misconduct.” Division of labor: “… natural propensity among men to truck, barter, and exchange one thing for another.”

Adam Smith: The division of labor is limited by the extent of the market. Free Trade  Extended Market

Adam Smith: Virtuous Circle of Growth Accumulation | Division of Labor Productivity Reduced Cost Extended Market Profit

Adam Smith: Limit to Growth Accumulation | Competition Up Profit Down Steady State: “that full complement of riches which the nature of [a nation’s] soil and climate, and its situation with respect to other countries, allow it to acquire.”

The Dismal World of David Ricardo and Thomas Robert Malthus Diminishing Returns to Land - Intensive Margin - Extensive Margin Land Rent = Productivity Premium over Marginal Land Constant Returns to Manufacturing Iron Law of Wages - Wage Fund - Malthusian Law of Population

The Dismal World of David Ricardo Accumulation | Increase Wage Fund Increased Workforce Increased Cultivation Increased Food Cost (Labor Theory of Value) Increased Rent Share Reduced Profit Share Reduced Accumulation

Ricardo’s Prescriptions Free Trade Import Food Repeal “Corn Law” Tariff Promote Colonies (J.S. Mill) Abolish Poor Laws Population Growth  Wage Below Subsistence Tax Rents and Luxuries Vs Malthus Landlords Consume “Glut”

Modern Malthusians: The Limits to Growth Lily – Pond S P R A W L Finite Resources Environmental Catastrophe But why not Tech – Fix ???

Karl Marx: Inherent Contradictions of Capitalist Development Accumulate, accumulate… That is Moses and the prophets.

Karl Marx: Inherent Contradictions of Capitalist Development Capitalists … own means of production Workers … paid subsistence wage Exploitation  Surplus Value (Profit) Accumulation of profit  Crisis  Monopoly + Immiseration of labor Revolution  Socialism The expropriators are expropriated

Karl Marx: Inherent Contradictions of Capitalist Development Flavors of Capitalist Crisis Falling Rate of Profit Profit Squeeze Disproportionality Uncertainty  Error  Overproduction Underconsumption Heightened accumulation  Increased Supply + Diminished Demand Crisis: Rush for Liquidity  Breakdown of Monetary Economy

Karl Marx: Inherent Contradictions of Capitalist Development Falling Rate of Profit Accumulation | Increased Demand for Labor Depletion of “Reserve Army” Rising Wage Profit Squeeze

Karl Marx: Inherent Contradictions of Capitalist Development Profit Squeeze | Concentration Monopoly Capitalism Profit Squeeze | Increased “Organic Composition” of Capital Reduced Long-Run Rate of Profit

Vlad Lenin Imperialism: The Highest Stage of Capitalism Viewed from the center, periphery offers Untapped Markets + Cheap Food Outlet for Investment (forestall stagnation)

Vlad Lenin Imperialism: The Highest Stage of Capitalism “Imperialism is capitalism in that stage of development in which the dominance of monopolies and finance capital has established itself; in which the division of the world among the international trusts has begun; in which the division of all territories among the great capitalist powers has been completed.”

Vlad Lenin Imperialism: The Highest Stage of Capitalism International Competition for Dependencies | Capitalist Wars