Once and for all I may here state, that by classical
Political Economy, I understand that economy which, since the time of W. Petty,
has investigated the real relations of production in bourgeois society, in
contradistinction to vulgar economy, which deals with appearances only,
ruminates without ceasing on the materials long since provided by scientific
economy, and there seeks plausible explanations.
You may be familiar with Marx's approach to the real
relations of production and vulgar appearances. Marx wants to emphasise
material and existing relations of production rather than relations that are
purely theorised and are described as 'vulgar'. While they promoted capitalism
both Adam Smith and David Ricardo were interested in exploring 'real relations
of production'. For Smith
the whole annual produce of the land and
labour...constitutes a revenue to three different orders of people; to those who
live by rent, to those who live by wages, and to those who live by profit.
These are the three great, original and constituent orders of every civilized
societyThe WEalth of Nations, p. 356.
Adam Smith in particular was writing at an early
stage in the development of capitalism when a central issue was that of
overthrowing the yoke of fedudalism which had been (a) unproductive, (b) central
in promoting a contemplative approach to human activity. Marx recognised
Smith's historical position and directs us to the centrality of real relations
of production.
You need to think about the following as you learn more
about markets:
what are the real relations of production in the UK today and
what variations and contrasts are there?
Are these relations of
production for the UK today different from those found in (a) the pre-1939-45
war period, (b) in the 1960s and 1970s? If so, in what ways, and why are there
such differences?
How did 'vulgar ideas' arise and are they still
found?
What forms of relations of production are found in selected LDCs
and NICs of your choice?
You will need to consider these ideas when we
approach the topic of production early in the course.
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to discussion of markets
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