I. Classical Liberalism: Adam Smith

I. Classical Liberalism: Adam Smith • A. Sympathy • B. Self-interest • C. Source of progress: • D. invisible hand doctrine • E. vision of the futurerole of government

II. Classical Liberalism: Malthus and Ricardo • A. Malthus' Theory of population • B. Ricardo’s theory of distribution and growth • C. Malthus theory of Gluts

III. The Socialist Critique: The Utopian Socialists • A. Utopia--nowhere place • B. Term coined by Marx

IV. Historical Backdrop: • A. French Rev was the source of modern socialist movement. • The problem raised by the French Revolution: the rational reorganization of society. • There was nothing in the history of either England or Germany to suggest such an approach. As late as 1848, there was no real socialist movement outside of France

B. Industrial Revolution and the creation of a free market • Sense of cultural dissolution of society resulting from appalling social conditions • These conditions were either denied or dismissed by Classical Liberalism as the inevitable price of progress

C. Both socialism and conservatism shared something in common: events were atomizing society, traditions and traditional morality were being shattered.

V. Characteristics of utopian socialists • A. Effort to construct a new theory of human nature • B. Focus on the moral-ideological sphere as determining all other aspects of human behavior • Mostly reformers

Robert Owen-- • A. theory was based on a continuation of themes beginning with the enlightenment. • 1. Established New Lenark • 2. Solution to poverty: make the poor productive through benevolence • 3. Education for children • 4. The perfectibility of human nature through the application of reason.

B. Man is the product of his circumstances; change his circumstances and you change the man. • C. Existing moral, political, and religious theories (not class or state policies) are the principal obstacles to social reorganization.

VI. Henri St. Simon • A. Society could do without its upper crust: its politicians, judges, and so on and be no worse off • B. Lose the artisans, craftsmen, and workers and society would come to a halt

VII. Charles Fourier-- • Everyone should work, but only for a few hours each day • Let children do the dirty work

VIII. J.S. Mill (1806-1873) • A. Sought to synthesize classical economics and the socialist critique into a coherent concept of society. • B. Early education

IX. Two major influences: • A. Utilitarianism of Jeremy Bentham • 1. Mankind is guided by 2 sovereign masters • 2. Greatest good for the greatest number

B. Romantic movement (which inspired the Utopian Socialists): • 1. Harriet Taylor • 2. Mill's sympathies for the poor, and for women

X. Reconciling utilitarian and romantic influences • A. Laws of production--natural laws • B. Laws of distribution--social laws • C. Independence of production from distribution

XI. Vision of the future: • A. Stationary state and Socialism • B. Anticipates the mixed economy (Corporate-welfare state) where government is a major player in the market system

XII. Marx's critique of the early socialists: • A. Their endeavors were essentially Utopian. • B. They had views of what the good society would entail, but they did not have a plan for achieving it.

C. They sought to totally transform society, abolish private property, competition, and individualism without recognizing the necessity of class struggle and the revolutionary role of the proletariat.

I. Classical Liberalism: Adam Smith