A soppy person might say 'money cant buy love' or 'money cant buy me', a more obvious 'reverse the situation around' example is poverty. You can pay to have a poverty simulator and go sit dehydrated in a desert but unless you are poor, with regards to culture, demographic and state of being, even money cannot buy you poverty.
We have previously learnt about Adam Smith the mechanistic thinker. Mechanistic thinkers avoid paid and seek pleasure, which in short seems very logical. This logic is expanded to form careful calculations as to how every individual's utility goes up or down depending on circumstances. There is also the long and short term utility, a precise measure of human behaviour.
The term utility is also used in economics, an example of price: there are those prepared to pay £500 for a laptop and £50 for a hoody. In economics this quite simply means that the laptop produces ten times more utility than the hoody. This is utility without morality; sheer facts and the price system with which our society works.
Using the term utility within human existence, everyone must be free to maximise their utility - hence utilitarianism (the moral worth of an action).
Aggregation is an important economic concept. Individual economic units come together to determine market price and service as contributors to the whole. However these individual units cannot be considered separate to the context 'one cannot hope to isolate individual economic units from their context, study them experimentally, and establish what could be called elementary laws of economic behavior' (http://www.encyclopedia.com/topic/Aggregation.aspx).
Classical Liberalism is associated with political philosophy; freedom and democracy. The first liberalists were called Whigs and came into being just after the Corn Laws ceased (laws which had restricted trade). They focused on Free Trade and small government. 'Under a system of completely free trade, capital and labor would be employed wherever conditions are most favorable for production' (http://mises.org/LIBERAL/CH3SEC7.ASP).
The Kantian system is much more concerned with morals. There are categorical imperatives that cannot under any circumstance be broken, else the whole universe shall just fall apart. These include not lying or stealing for example. Classical Liberalism in some ways decentralises the church and goes against all such Kantian morals in a sort of rebel.
Deontological ethics is morals purely based on action rather than intent. If I did the washing up, I did a good and moral action; its all about the action and the action has been done. Never mind that I might have done it with a very bad attitude as liong as I act from a sense of duty; as Kant believed. Deontological theories are often contrasted with teleological ones.
Moral questions of killing one person to save one hundred come into play and determine whether you are a utilitarian or not. Should the NHS spend money on new born babies as apposed to pensioners for example?
The Labour Theory of Value by Ricardo:
Labour just as anything that can be sold, can be increased or decreased in supply. The natural price of labour is in accordance with human necessity of survival, so if cost of food rises so shall cost of labour. The market aspect to labour is quite simply that labour is expensive when it is scarce and it is cheap when it is available. If times are good labourers can have large happy families, but this increases the population and in the future wages will then be lowered. It is sad when the worker cannot even afford to buy the thing he himself made when it goes on market. See this link: http://www.wwnorton.com/college/history/ralph/workbook/ralprs27c.htm.
Contrary to John Swift's satire of 'eat your own babies so you dont starve' Keynes boosted the economy by getting society to keep busy with unnecessary things. Keynes lived and worked through the world wars and the great depression and was of much assistance with his theories.
Theories such as Adam Smith's hidden hand of the market and free trade suggest, as now reffered to as classical economics, that people MUST be free with a political constitution in order to trade.
With regards to population there is the Iron Law of Wages by Malthus:
He believed that population grows geometrically. If every couple has two children the population will remain the same, for when the parents die the children shall replace them. Land and provision can merely double, but if a couple has four children these children become eight children, then, sixteen and then thirty two. This growth cannot be supported by natural rescources.
Products have the danger of overproduction and under consumption. If someone is paid a £5 wage for a £10 product he cannot affors his own product.
Marx was influences by both Ricardo and Malthus, and his findings are catagorically diagnosis rather than solution.
Money is transparent and really doesnt do anything for itself. Your precious £20 note is really just a scrap of germ infested paper. But the representation of what it could do for you is what is precious. It maximises your utility and it enables trade.
The Credit Creation Ratio means that your £1,000 in the bank enables the back to have £10,000 of lending money for anyone who has an account with them too. This is back by gold, since gold is money, but it is not instantaneously transferable.
Bond Auctions:
The government will have a bond, a security debt. The issuer agrees to pay the bond with or without interest at a later date. The issuer is the borrower and the holder is the lender. Bonds regulate the economy, and there should be enough tax brought in to pay debts.
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