BUS 1050 1st Edition Lecture 7 Outline of Last Lecture I Plato from The Republic A Efficiency B Retailer C Ideal State II Aristotle from The Politics A Money used for household management B Money used to make money C Proper use of things D Improper use of things III Marx Capitalist Production from Das Kapital A Use Values B Exchange Values Outline of Current Lecture IV Mandeville from The Fable of the Bees A Prosperity and corruption V Rand from Atlas Shrugged A Prosperity and morals Current Lecture Mandeville Mandeville was a Dutch man who spent the majority of his life in England and it was in this country that he was the most successful He establishes a relationship between prosperity and corruption Capitalists must take risks while workers put in units of human labor In the Fable of Bees there is a society of bees with a king circumscribed by law This society has a prosperous economy that is founded off corruption and cheating Everyone is in it for himself or herself If one looks at the surface of the society one sees prosperity But the more corrupt the society is the more prosperous it is These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Eventually the God Jove intervenes and makes the entire society honest As a result the economy collapses The bees learn how to live rather than how to spend One must have corruption cheating and dishonesty and everything should be based off selfinterest in order to have prosperity If one removes this prosperity will disappear Rand According to Rand prosperity comes from moral virtuous honest and fair dealings People who take advantage of other bring the economy down and those who produce wealth help build the economy He tells a story about two men at a party Francisco and James Tager Francisco is a creator of wealth and James manages wealth for others According to Rand James falls under the category of looters and moochers because looters and moochers are those who take money without creating anything James Tager says that money is the root of all evil But Francisco refutes this by arguing that wealth makes the world a better place Money is merely a representation of wealth and it s worthless without virtue and morality Economic prosperity is built of fair and honest business dealings Francisco even states The man who damns money made it dishonestly while the man who honors it made it honestly In other words he is accusing James Tagar of making his money dishonestly If economic prosperity is based on no regulation then why do we have a government This is because capitalists do not behave virtuously and consequently the government sets up regulations A country of money is a country of reason and justice Rand praises America because she is from Russia where the government controls all but in the U S this does not happen She praises the fact that America came up with the phrase to make money because before men used to think money was a static quantity that could only be acquired The concept of making money holds the essence of human morality If there is no growth then there is equal amount of supply and demand If there is more consumption than there is production we will eventually run out of resources This would result in a wealth of zero If we want economic prosperity production must always be greater than consumption