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Liberalism and the Classical EconomistsWith the Classical ec

    Liberalism and the Classical EconomistsWith the Classical economists, economic behavior was again seen as a naturalprocess, this time as one that performs best when left alone. Belief that thegains of one must come at the expense of others gave way to the view thatnatural cooperation would enhance the wellbeing of all parties. While Smithrecognized that economic processes could be corrupted, Others proclaimed his“invisible hand” to be a doctrine of greed.SPIEGEL: Chapters 10, 11, 12, 14 (All)QUESTIONS: 1) What does Smith mean by “self interest”? Is this consistent with his previousargument that “sympathy” is the foundation of a moral society?2) In the first week I argued that there were three points made in the “Garden ofEden” story that were a metaphors for nature and humankind’s relationship to it.Does Smith’s “Invisible Hand” fit that model?3) Acording to Smith, What is the down side of the division of labor? How doeshe propose to fix it?4) What problems does Spiegel have with Say’s Law? Under what conditions isit valid and under what conditions might it not be?

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