The History of Economic Thought (Lecture 3: The Pre-Austrians) Murray N. Rothbard

I guess modern economics is a scientific doctrine but news with channel on Richard Cantillon who who’s a very interesting character – and really a catalog has hardly talked about but to put in a plug for myself the gel with the Terrence study of the current issue now out as an old Catalan issue but the best of the most ever been written on camel on this it came out of a conference on Catalan met several years ago Ken hua has essentially with praxeological methodology he’s got the methodology of abstract reasoning he’s got he starts off with a royal of one landlord with landed one layer on to the whole country not so far off because the French situation was you have landlords and had farmers so my lord absentee landlords have got another plan for conquest and they would let lease the land of farmers and then you had other people so you solve with one way of what happens with him they bring in more people so like who so economics sir it’s a excellent methodological presentation miss theory you’d surely evaluate essentially beat early theory he’s also the first person will probably entrepreneur intrapreneurs uncertainty bearing uncertainty things an entrepreneur and economic thought theory of money was magnificent he has a whole human fear accept as a process analysis like an evil word and it was not equilibrium other words Lika Librium as a process poet equilibrium so you have in British classic genomics course you have different equilibrium state to this state of that state you leap somehow to magically from wonder the other it’s hope only about equilibrium state where Cameron you talk about the the process total equilibrium for example some when Cameron talks about what happens in the money supply increases in a country he tells me how it’s very means Sen sort of speak preemies St and its first people get it they get the new money they spend more prices go up as they spend it and there.good would they buy then it’s quickly to other people you have sort of rippling out effect in each group gets until finally you have a say if you double the money supply finally you wind up with prices more or less double but not completely because you have a different equilibrium there you have different less effects etcetera and it’s a very sophisticated excellent analysis of inter so called human species flow analysis of camel is much better than you even was writing about the same time a little bit later actually now this is say 1730’s and you wrote on something touch these human might probably heretic and all these guys know each other the British knew the French stuff McCann de la you have a pre Austrian analysis that question about of the process thing with individuals started with a micro individuals they get new money they spend it and see why not for the knee for the sale em bring a prices are not automatic doubling you have difference it’s a difference in price lower prices all right I mean other hand Hume was Scotsman part of the British tradition was a brilliant writer I’m have to concede with Hume is one of the few people history of thought the great writer or confused thinker usually a confusion and good writing I mean good writing a cloudy at fort comes similar come together confusion and bad writing come together in case of you is running with better than those theories so to speak anyway we’re hearing you have a purist pre Freedman like pre moderates analysis and there were thirty Librium states but might as a matter fact of the famous example which means users there’s a good a good first approximation what happens of money but I call the angel Gabriel model in other words they’re sleeping overnight overnight the angel Gabriel the sentence a man they hear the mankind’s always fellow units we have enough money the angel Gabriel benevolent but confuses that allows the economists so don’t chaos fix these guys up I’ll double their money supply then they’ll shut up those I’ll satisfy that complaint so overnight everybody’s nice like a stumble magically your bank account your wallet your purse and sucker I gets double and human talks about that he doesn’t say that here the Worthington Ibrahim model that’s basically one of this is and then what happen run everybody rushes out spends it but then according human prices overall double and that’s it in other words we leak quickly from the twenty Columbia state to the other equipments they were not talking about the process but can’t along it’s very different you have a different people benefit on different people lose out I mean in this model for example the guys who know what’s going on rushed out at 6:00 in the morning or eight in the morning to spend everything immediately the other guys inside the save it of course we’re shafted because they they find the prices of gumbo before they got around to spending it so there are differences in it sort of benefit their burdens so we’re hearing the phrase that analysis is a first approximation of how the money supply increases prices but you’re writing you brought out the essential pre Austrian process and the difference is in micro level just called about the macro this is the beginning of our Whelan the disastrous split between micro and macro which begins with you and a little card out with the final final final classic example our ends for the record on Atkins ever since in the pre Austrian analysis Catalan tours only people are no split between micro and

macro everything is an individual process which has different social results it’s only with I say the British you have as microwave there’s no things going on micro world supplying a man that’s suddenly the micro world you have quantity and velocity and will have totally difference of them no relationship seen the two of them and candle I should say something about candle on the man Richard Cantillon he’s a fascinating figure one of the reasons why so good about money and he was a great monetary practitioner he was an Irish Catholic banker who moved to the Jacobite Court in France with a sewer pretender located and he was became a bank as cousins rose very confusing with cousins Rowling’s richer in an uncle of the neighbors about richard catalogs and easy to get confused one great catalan expert Antoine murphy University of Dublin was legally expert on the catalogues family worked the whole thing out tinea logical map anyway camera I guess he becomes the banker to steward for haneda and it has a big shot back in general and John Laura who starts off in this period is the famous spending money inflation of first thing paper money inflation in history see there wasn’t I take my money before the first paper government take the money ever was 1690 in Massachusetts before I go with money the only way the government could do anything with couple of coins he base the point when paper money comes in the great new invention for the government means you could just print money ad lib especially John Ward a Scottish adventurer just get the whole of Royal Government Paris and convinced that he should be the central banker and put money and to unlimited inflation you can have your might divert public bed your bring prosperity in all over all the rest of it so candle on the legend is a moralistic and losses look you’re the only person here can challenge me the either jointly buddy says no I’ll give you 24 hours to get out and show you the best deal calluses no no it’s better posed to join forces I’m becoming a law I’m a lawyer so he becomes here law some other guy named burgage from the three-man triad running this whole system so the camera knew the whole system was gonna collapse and what Cameron did was he bar he he he made a lot of money to these guys are very high interest rates cash to then so with the collateral and then skip town skip becoming just before a collapse of the law jonald mississippi bendeth i came back had cleaned up multi-millions to the rate the stress and resentment of his follow allah what their pipes so anyway he made he make millions out of us yeah there’s been a sort of a reflective response to this experience the book was very influential even when they say one was thrown publishing and when the early thirties and became published printed in 1755 after he died and was read by every money at france always a fair people only intellectuals central senators extremely influential one of the things about Ken LAN well he had mansions in every city in Europe they probably the only economist history with four was murdered I can’t think of anybody else’s something else on victim or something like that he was murdered presumably by his disappointed servant skip town with the jewels or something in anyway he went on Murphy told me privately we fuses a publisher he said they haven’t got enough date on it yet that’s a marvelous story claims McKenna I really didn’t die there he’s heavily you bet he skipped town I’m stuffing with the Borneo was papers are one of the remaining died 20 years later but anyway yes read character more look doctor now the thing is about Kelly wasn’t exactly trader but he was really and matters of that what he said was he said well if we bring treasure and of a kingdom so increased when we spend the money will increase prices so he advised the King not to spend the money great advice and was going to get money coming and don’t spend it sooner on it so that liberals I mean won’t have inflation he won’t have this problem of deficits amounts of trade deficits that’s separate okay after came along we had a little associate crass and mid 18th century the who are who a laser affair people revert quite meta in many ways and have various deviations the interesting thing about 50 craft over the first probably wheel sect of school of thought you know the data which the school for was found it was a date one moment of July 1757 when doctored can a the founder of the grill of this thing was met Mirabeau camp mere about was the those days in the Catalonian the Camelot asylum Ely shifted a cane a and it became a two-man school of thought I mean you have to have a school if I have at least two people and this was that now the thing is that very highly placed cane a was a position distinguished position he became the position of the court first of the cook to the king’s pop mistress there was a ballet a thing it was a woman way that influenced the king and Prada convert amylase a favored with the king’s pop mistress isn’t done by archbishop depending on the wall in the early 18th century late seven late 17th and kane a are looking a physician to madame de pompadour was the keys tom mistress and then becomes this virtual court i’m we’re about as influential personally just written a massive book called a friendly man the multi-part

work which is incomprehensible but the thing that was very popular but it was written in the 17th century style here in here doesn’t mid 18th century sky running in mid 17th centuries thought was sort of charmed everybody and it was a bestseller so little Barn catalog Marquita Miravalle and organize the movement I mean remember exiting in cane a they set up their own school of thought among journals their own not going to reviewed each other’s books favorably and so forth and so on those are the became sort of a cult of personality only guy thought the King Ray was the top guy of all time for example his father’s play MacKinnon look like Socrates kind of the follow up figure out we don’t really know what’s happening lip line and those are for them of the Confucius of Europe way so you’ve Europe we’re about once are faster proclaimed of the three greatest invention of the history of mankind I’m writing money and cane a is crazy diagram that’s how blow economy for the beginning then put output analysis similar arrows so an a like they’re always if there are natural rights people are a very fair people unfortunately little deviation s very much in favor of higher cultural prices when we even I think cane a was a former any own forms and they were I think there would have been a favor form price supports of this anybody proposes he knows a little farm price towards the other direction home prices were kept below of course there were mature post of that the price can maximum price patrols on farm products I think they would have been a very minimum price control that come up anyway there was definitely there is a few people according to their lights and the strategic objective the question is if you’re a lazy a fair person this came up and late somebody late seventeenth-century – how do you do you doing that well obviously the thing do you have absolutely monarchy but it’s not in France please convert the king is he can whip the king he establish those I hear from the top where ever we shouldnt from the top so to speak and I would be it and so the strategic perspective of been alone and cooked and Tyrell to him the physique lat convert the king he’ll establish lays a fair and that’s it bonny convert the King laid well firstly convert the mistress moon woman Ruth honey convert the King where he had to convince the king it’s really in his interest to have a lady fair system so they tended to become utilitarian in that sense no word even though Disney plants of natural rights people it tend to stress that let’s feel better had to sires like if the kingdom is prosperous now things I’m actually sure they’re like received me the king can make a good case for saying the King’s self-interest crushes inhabitant sleuth every penny and so on so on I think I have a problem right there in strategic perspective I’m what happen indeed when Toro who was a friend of the physiocrats politically although not economically well a very fair person politically the truth I was a top bureaucrat finally gets in it that’s finance minister something to me for this is that better oh this is this is the key when went out and as soon as he’s thought this is doing like they’re fairies he’s kicked out of course all the vested interests and so war at that time I left point physiography sort of disappears hey so can a was losing interest and he cannot hit and he was not interested in economic control in his 60s and then he got interested in a former cult by his 80s or whatever he was and he probably died they’re just aghast in mathematics he kind of square the circle which of course is impossible anyway kind of solve upon the squaring the circle firing of children I think really live them in truth a lie I refer you to the Magnificent person like I’ve written a handful on this thing which is available here I thank you Mises Institute sure is magnificent great well I my really favorite character and history of thought considering also the fact that he was personally spend very little time in economics he was busy popular patent on turned on governor and most of his time intellectually was spent on other things history linguistics it’s an all-round type wrote and read a lot of us topping he can I make topic he’s only sort of good fourth hand they just press them to it when he had to tell somebody something for example is reflections on wealth Royalists workers about fifty pages was written under severe time pressure he’s trying to putting questions they asked to Chinese students and France about Chinese economy or preparing them they asked about French economy I and so he wrote this a sort of outline to himself as a memorandum self and what – preparing questions that this was a great work on wealth and capital Theory etc so he wrote a little bit stuff in a severe time pressure so – it often absolutely magnificent he has the whole Austrian stuff in there not only lays a farik completely the affair without any of smith’s evasions qualification etc but also he’s got the Austrian time preference theories also in Calamba Verity and capital theory he’s got money in processing hours you got the whole business and done but brilliance just sort of in passing almost a few clauses and I would strongly recommend an emu they’re worth two of those economic writings have been translated in english like Preeti growler vagin the Dutch rebellion expert and the zoo on this thank you and it’s colleague and I’ll mix of a RJ tours oh I think it’s one of these things a paperback costing about sixty dollars I think my guys insanely

expensive but it’s worthless we’ve got regular notes and introduction is an annotation is like Ronald Reagan you know makes a tour job and you know just remark my shrimp adder is very good on to go mm that was really the originator of save law lithium capital the whole thing about you know this quite since the man is that said all these things went or go just fantastic it’s the propeller overestimate his importance and his brilliance in this area those without the entrepreneur and there is math excessive little a better link an alarm but he he stresses a capitalist mentor pillars being a particularly important he’s got the whole circle sniffing and capital theory and investment all that savings investment theory he says while the important a the capitalist entrepreneur what the person commits with horses and capital to two hundred to uncertain world Tula and at the her ship he just phenomenal and again extremely influential and saved up that expectations got the whole plan in there he also got my boy one of the mission returns a beautifully presented shrim Peter says it was not no presentation of war the mission he returns to equal until about nineteen twenty he’s written about seventeen sixteen seventeen seventy three versus four guns whole to go the corpus wraps out of knowledge again talking about last paradigm probably lasts until right now become recently from 1916 alright Wyatt’s was an interesting story well I by the way along with two ago we have Condillac the brother and I believe the utility theorist and philosopher points out very clearly even more clear than tour garlic but change comes from double inequality of wealth everyone call utility another was the reverse inequality of exchange I mentioned that’s not valid absolute priority there’s others like Kalyani who’s heard a great book on money and he’s your 23 in 1751 yeah baby going on another great character who was Neapolitan the love Francis spent most of his time in France as a diplomat his book on money as super hasn’t nothing only parts of his been translated unfortunately yet highway Galleani was interesting counted ironic witty and erudite is four and a half feet tall became a social line on the palace along and says he got the palace he gonna be going to sell out in other words who we gotta get witty in and the kind of social lion needs to become anti laissez-faire gives up the utility theorem comes the favor of protection effective caliphs anyway his great work with Retton with the before is Parisian reading experience also I should say the family of mathematical economics comes in about 1720 person misfortune on the road American home ex-wife Bernoulli that hey Stan ulam earn a whole bunch of Bernoulli’s old whom were French mathematicians are voting theorists and letters of a calculus things like that Bernoulli arrives with mathematical theory of the mission utility of money truly out of left field when with his web address in economics or either before or since it arrived at this as part of his probability calculations and he’s got whole series of fallacies of course wrapped up on this the missioning marching tune money already been arrived at by a couple of spanish scholastics the sixteenth century what he does of course immediately says well as of the udx was the supply of money as a excellent utility of you as soon as you do that you have about two at least two major fallacies right there one of the life is not like the calculus there’s no infinitesimal actions in life everything is discrete in the word everything is qualitatively different and therefore there’s no infinitely small steps that we can take it really pluses that out course without calculus right right there and the ux thing is a ratio and since utilities we know it’s ordinal or not cardinal there’s no such thing as a ratio can’t also I don’t know what me time a ratio of utility there some money anyway doesn’t make much sense but since utility is not as ordinal and therefore not karna we can’t put into it and Horatio it can’t equal it anything either so the whole thing the whole series about fallacy pile on fallacy also thinks there’s a said they no proof or no evidence whatsoever that the utility of money is an inverse proportion the Kleins inverse proportion of the quantity of money what does it mean inverse reports second world no evidence whatsoever some other mathematician said no it’s not inverse proportion upon my portion of the square root of the quantity money even more silly but what is this mean what are you ready talking him back well that’s what a much less what’s the evidence for it you just sort of hot air he’s me the only way to describe this all he knows about you touring money is at the clients in other words you have a stock of money right does this have a flying the man curve so to speak phone utility and it declines as you get as each unit utility of each you another client as you add more that’s it don’t know about this there’s no ratio with nor nothing and of course a photo with measurable between people even more fallacious than somehow you can even compare everybody’s utility money and sum it up and add it up and divide it all these things of precursors are mathematical economics which we know we know and love today so like the beginning this stuff let me say about it ok on speculation here why does the knowledge of Catalan tour go

drop out a whole French utility the affair of time preference whatever tradition and the preneur ship and why do people then think that Adam Smith found in economics he always preceded Adam Smith well these guys wrote before welcome nations kind of like whether the same year Palmerston government unfortunately push was forgotten on the great Smith Ian wage why does Smith’s cutter aside make waste and rubbish of 2,000 years of economics thought I’m why is he allowed to get away with it why don’t nobody even say it’s been doing this for one thing CJD say who can succeed Torgo in the French tradition never referred to any of these people he knows I mean he’s a disciple basically act or go and come alike on these people he was a classical liberal lazily a fair person carrying on the battle through the French Revolution and after it he’s not just an economist he’s also a political thinker and activist and the question is why does say say the Smith founded economics say there’s one when a few people responsible for the myth why me taught about the French tradition he really disagreed with Smith almost everything really read the book nor with nothing smithy and it matters no of course the production theories gonna Lube a theory and so utility in productivity and hardcore laissez-faire I think there’s only the source relations I puzzled over this for quite some time I had a Smith myth originated widens guys the knowledge of the French theorist got lost they were discredited in friendship France itself rather for two reasons one because Twitter I was locked in with physique rant even though he really wasn’t it was political allies physique rats he’s not an economic I mean way beyond the physiocrats was both an agriculture was the only productive factor of production crazy tabloid gonna meet state as per rhythm leave any of this stuff that he was linked to the physiocrats politically and politically clash were linked up an absolute monarchy because their their strategic perspective was they’ve tackler failure absolute mind because it’s simple you can rip the king on that said you get lays a fair one mess around democracy and mass movement convert the king and exactly try convert a whole bunch of Kings the great story about Catherine the Great her greatest an idea at Western ideas when she call these people to Russia other Mercier dollar riviera the wait french please you can’t political theorist natural rights theorists explain to me Monsieur Olivia about what this physiography role about he says well madam essentially the the laws of nature of govern natural rights in northern I think she said what room is there for the king well the Kings as far as it was in nature she says thank you Monsieur of Imran white name oh I didn’t want to hear this there’s no role for the king whatsoever as a matter of fact was one wonderful guy finish up a list of called a Margrave of Baden who’s a fizzy crack convert he speaks I think through not Mercier but some other girl or somebody he says gee is he’s merely no role role for government at all on your system he could all be they say fair so I’m an anarchistic a guy driven no no sign we need a government for the plain words and blah blah blah sufferin and of course so he was Margaret was perfectly correct the implications of is if there are natural rights you don’t either the government all but anyway they were favor absolute monarchy of physiocrats and so that after absolute money he disappeared after the French Revolution they were politically discredit but nobody wanted to listen to any guy who’s in favor of absolute monarchy and also opposed the physique rest never really believed by this time agriculture the only productive factory but there’s a lot of industry growing at the time so for those two reasons I think the city Crafton Toro got the spreader that unfortunately in France and nobody would refer to them in the knowledge drops out the lost paradigms lost the whole thing whole thing jobs has a real tragedy for economic growth men with stuff first century struggle the British essentially Scotch alignments begins were gracious the same guy mentioned there’s a policin skull on metropolitan scholastic we’re natural will hold Protestants the natural law people bushes were heavily of course by the Spanish scholastic by Suarez and etc what happens that is a proof endorsed the Lutheran motion this is early 17th century I guess poof another isn’t mid delicious is early 17th century and proven or the middle or late poop it over several popularizer rose ships of people who saw reading proofing Norv and not grocers those just mentioned the Spanish scholastics haolam as being his predecessors proof of northpia hardcore Lutheran hated like many Catholics it was though the knowledge of Scotty can I make stops out so I think political theory drops out almost forever who forgot to mention it and poof ago was read by the Scottish enlightenment people one leading by yoi Scott knowledge is quite the economics drops our Lenten drops out come on through the court usually wrote on Latin not too many Latin lesser enough and the fact that the river and Schumpeter of these people actually read a Latin is one of the reasons why they were able to bring them back so poufy dress brings the natural law doctrine and semi well I wouldn’t say lazy Affairs sort of semi free-market three it’s very vague at least it’s something the first Scottish enlightenment person the first professor I forget what Edinburgh our last guy was one of the hunter well this room calm Michael really professor of about two years before he dies but he’s a professor and they began the professorial before that there were leaders or whatever they were and he translates poof into often like the commentary he’s the founder of the

Scottish political economic wing in the Scottish enlightenment and so you got prove it off Carmichael and Carmichael was a teacher at Francis Hutcheson when turning the teacher Adam Smith we have a car Michael Smith Hutchins a connection by the way Smith the famous phrase talks about the number of forgotten teacher of Francis Hutcheson praises him however he only praise him in a private letter to the University and then he never talks about hydrogen and wealth a nation I myself be part of Smith’s Columbus complex originated on with the race night anyway Levi’s really natural or what people call michael hutchison etc more less free market and natural rights more or less I mean that’s not hard core but so soft core class the Liberals outside Hutchinson by the way it has a very good direct attack one of the places where I differ a little Hayek strongly on the history of scores the status of Mandeville for an hour manacles a Dutch physician who lived among the most of the life who were the figure of the bees and other such fables which high acclaim the original originally of the idea of spontaneous order and the free market how free market works in someone’s online I just read that totally I take the minor position which is the Hutchison’s position which was a essentially Mandeville was not only established but also favored the bees really a plea for sort of pre Keynesian plea for glory consumption saving is really bad because you benefit the market benefit society by consuming a lot Hutchinson had a good point I think basically pointed out Hutchinson matters only gets consumption and favor libertine ism a little big penis rather than batarians so to speak I think it’s a correct interpretation of what minor points as a man it was a follow-up book called letters from being on or something like that comes explicit I mean more explicit than the favor of these we have now and all these both Carmichael and Hutchison was actually utility theorists so the utility scarcity theorists value economic values brought about by the language Brandon Lana supply and Manus cord light Turbie and diminishing utility and scarcity and there was essentially the Scholastic position if they were policy the Scholastic’s has this is true weight over there by your theory man you come then of course the orion labor here the route has become it’s very strange how does it come in and these not much as sony and it’s not calling Michael come by killing or whatever and not only that but Smith himself as lectures gives the correct version in other words the the basic you know the famous paradox of value which says place that on economics for paradox of value which is quite famous is that how come if diamonds red or water whichever you want to do this necessary to light but it’s good the staff of light for water is good how come it’s very cheap on the market where it’s diamonds are sure of cookery in the luxury how come they’re so expensive in other words you have a famous flipper than you value and when you get the news value farmers are table mothers great but he cannot make value of somehow violates that Smith allegedly couldn’t solve this for car tokens and solvents I don’t call my consumption something that’s trust just drops out you have a disastrous flippity use the value when you get all my value which was votes and marks and web and all the whole thing is a connection for use versus production for profit really stems from this idea some of the market values slippery’s over port and stuff like bread and we’re in real armor and real terms are probably much more valuable so the usual story that smith you know through this paradox of value and then the registry and finally saw this not really true that smith such as good solvent Scholastica saw there’s no problem only i realize what the problem was if diamonds are very scarce has lots of bread around very simple you have Rome is not a venomous amount of water each unit of water of radically worth much less than diamonds which are you know philosophically weaker arm and much more scarce to solve relative scarcity and you thoroughly if the whole bit not only touches himself but Smith himself had solved in his lectures his unpublished lectures of the time Smith realize that exactly the rest of Nations he totally changes it imposes places the power society was something rulings constantly going on like some men on and you might say why for all the lectures were xx for maybe he’s assuming everybody knows the lectures and then it goes on to list that’s not sure the butcher’s were never publishing his wife’s not only published fairly recently 20th century the thing is quite bizarre we haven’t Smith not only a decline a list of economics forth from the French but also nitrogen or even himself as previous persona twenty years before this is true not only paradox if I go securely human the human or national money flow suffer he doesn’t even have rat that drops out whole idea of money international money equilibrium and also drops out it’s very strange listen motivations the weird book we have embodies that what not only is not truly he’s not create economics but he lost a lot of economic even from his own previous twenty years ago don’t cream it’s being where you’re caught when you know four sisters growing up was for the young man of 1750s Jonathan Lightman hits Scott one so that University doesn’t know Edinburgh and Glasgow became becomes the shining lights and electrolytes in Europe sourcing in Britain for this point Oxford and Cambridge a degenerated

it’s a sort of rich man’s place thing with whatever they’re not intellectually important I regretted a useful at that time and so as a result Edinburgh and Glasgow become key cetera the people have more over Europe to study there Smith Missouri started off as a Clubman clubs are very important eighteenth-century social life intellectual life living hila matter about eight different clubs each of which had weekly meetings like that was one club out of Lane when David Hume is friend David you must present the two were very different they never spoke than are the smartest for their or on my disagreements with him they’re certainly the brightest people in the club lady right so there’s a big club life and in lecture life developing plus the fact we have a titanic struggle between and within the church of Scotland which was the established Church in several British compromise the Anglicanism with the established Church in England Presbyterian an established Church in Scotland angular the Anglicans and Scot law of course tremendously grow room it was a Jacobite camp for the life and of course the pure Calvinists or whatever they this is a fraction broke off an established we cook of Scotland many right and the established Scottish Presbyterian Church the titanic struggle between the moderates as they were calling him and the evangelicals the moderates consisted of all the bright people and murphy types in scotland and Glasgow and Edinburgh I’m Angelica everybody else it’ll press rural masses as a result of fantastic maneuvering even though the models from the minority of ever control the church until about 1800 approximately fifty years or so headed by principal Robertson when you’ve Robertson how much of other people whom Smithers was a member and they all knew each other and there were friends and compact and Patriots even though the the moderates were not his hardcore Calvinists obviously the image Allah coals there was they’re pretty Calvinist especially Smith humors got the least human I guess was tending toward deism or 80s and whatever he couldn’t find an academic post and Scotland mother why are the interesting cometh area academia I couldn’t find University post because of his religious views he was not impoverished her lover since aristocrat independently wealthy was the crack remember the King family which I think emerged now and SS you know that’s all the same group so Smith’s the start often in this in this environment however it was also deeply Calvinist even though moderate his might have one of them will come an Anglican minister and sent him to Oxford I believe even or the part of Anglican fellowship he spoke to me graduate he’s performing work administrating so Hector Ronnie’s we became a Glasgow professor he had a sign of Westminster Confession which was one of the requisites that he had no difficulty friendly signing it I think this accounts well not only for induction Labour theory of value late-game and discarding the authority Theory also for other things one of his deviations from lays a fair one of many deviation down to a minute well he’s a favor of usually laws and other in favor of maximum interest rate laws restricting his client credit now Eddie West was a friend of mine was a barber for Smith and worships Smith at Wendy West couldn’t understand this he said we haven’t way no discussion of a candle on conference with Smith of course came in at the general object attention West our GE Smith VV Eric should have understood that if you have a maximum as it worked maximum price control you have a maximum interest rate or restrict the supply of credit and so forth he didn’t seem to realize that sort of a hole in his doctrine roger garrison would give a commenter than that the austrian pointed out quite the contrary said understood all too well with the concept of one thing he wanted to restrict the supply of credit that’s the whole point he understood that usury laws would restrict Mike Ranney he loved it he wanted to lie because he wanted he hated consumption he neither he wanted credit to be channel into the prime borrowers will take plum interest rates the low interest rate boy he wanted to exclude from Craig water ration credit so that speculators and high consumer types and with non Calvinist types would not get credit he wanted the channel credit away from the solute types okay and was quite conscious on his par and I think it’s absolutely correct even when he gets to the diamond whatever diamond red paradox the way he talks about a kind of interest he doesn’t say that diamonds are a luxury and therefore lesser value so diamonds are of no value no value and he’s a constant saying with some ever the attack on consumption an attack on a material cousin why the reason I think we got the idea that some laborious productive labor at which which is in gate which embodies in material objects and other labor which is unproductive noblest services he wasn’t so much interest in material I’m Jason Kathleen wanna capital investment in other words he disagreed with it with a little time pressure the sabia consumption preferences of the market he wanted more saving less consumption basically and while the way they usually lured in one way to channel consumption of the prime borrowers and in general he disliked consumption flipper eat more the tax consumption where all sorts of ways by which he would as they restructure the preferences of the market and it all fits in with what I watch Eliza the

Calvinist approach to all of us where luxury becomes evil anything be honest on moderate consumption becomes wicked so that was one of his mother the idea of productive labor fits right into that and building up capital investment so the opposite da ssin from the physiocratic member bill one where only consumptions gonna saving is evil this is the opposite nettle on free market economists by the way still homeless you know it’s not having to read any economic literature financial literature it’s a surprise cider for example will say we have to lower marginal tax rates we want people to save and invest more saving investment good but if savings less good than the consumption must being some way bad that’s what people are addressing the room for portions and so I read a lot of this you get the same sort of even now the same should avoid with a saving good and of course the assumption bad is not gonna really explicitly stated of course it is part of the ornament Karen I’m gonna let Molly a few people are running it will allow the market the individual and market as a side I’m only saving investment preferences the an edition of the fact that leaves a buck of Labor stuff creates a lot of problems Celia value is totally cos he’s very confused writer theory value is about three or four independent coexisting theories of valuing their on one hand a puts too much emphasis on division of labor and neglect of that’s not a capital you know handy and his later books totally another but he attacks the division of labor courting alienation or so the stock analyses and sort of pre Marxian anti-alienation one of the things by the way one of the reasons why he worries about the division of labor is it it weakens the martial spirit of the people if you’re if you’re there I’m you’re making parts of a pin or pint ID tightening bolts off somehow lose the spur going out in the conquering and he’s very good and that’s not very poor or something is currently overlooked his theory of money leaves out even the human stuff much less the catalogs stuck on money in them and prices he’s got a lot of stuff he’s got a lot of stuff that we had at either he had or Utterson had previously I have a list of a compilation of deviations from lays a fair method be wrong I’ll tell you that this is a navigation acts of National Defense which include pack away everything the martial spirit decay he favored government-run education in order to inculcate obedience to the state among the populace scarcely a lazy affair a doctrine yeah I quit a from Smith and instructing an intelligent people besides are always more decent and orderly ignorant stupid one a few nurse I was more respectable I’m more likely to obtain the respect of their local Superior says Smith and therefore motor supposed to respect those superiors that listen have to be miss lannen any wanton are unnecessary opposition to the measures of government that’s why he’s in favor of government-run education time to stay this let’s face it my father man I’m being lazy a third person he’s a failure regulating bank paper allowing fraction was there a banking which most of the predecessors were against by the way including Hume Hume was a hardcore hundred percent bold person before the old banking factory were banking his fraud most of most of his friends and possessors did and when he Smitha start bringing in bank bank credit he say the public works including highly vigilant harbors on the rationale of private enterprise would not have the incentive uncle to maintain them properly allow the odd position to take and a particularly lengthy list of taxes which he advocated each of which in the field in free market for example you’re sort of pre georgous as the karl is definitely pretty gorgeous see where these guys including smith believe of the landlord have no function and the farmers that i funk to the landlord’s just only sure the land was functionless and therefore can be taxed if the attacks on unearned tax on the rent the whole smearing of rent only the whole vicious smear met which starts with really starts with Smith and Ricardo maximizes it but we didn’t understand for example the landlord’s perform very important function namely allocating scarce land extremely important functions they did not there didn’t in terms of allocation we also pay the taxes on import of foreign manufacturers moderate taxes taxes the export of raw world a lot of even even when the free trade thing he had a lot of deviations on that and heavy taxes a luxurious consumption as I mentioned taxes on love luxury carriages so simply the cold pack the endorsement vanity of a rich encore once again the Calvinist thrust is also as a again a puritanical hostility of liquor which which even though it’s not pushed millennialist but the liquor the anti-liquor thing was already there a call for heavy attacks on the stories in order the crackdown on hard liquor and leash people who drink instead of the cold wholesome and invigorating liquor beer and ale somehow that was okay hard liquor was evil send them even are they over there were high retail Paxman retail sale the more liquor to the Scourge ale houses now perceive our favorite soup the rich policy progressive income taxation let it never be forgotten with smith the hope i mean who would wear a smith pie after this right almost I say usually what was I already gone into even though true draw and candle already blast that usually rolled off the face of the map even even Benson was against usury law hasn’t even been to my least favorite

people or so now interest they say about Somali most interesting to charming things as an honor to my Anderson Gary Anderson I think Collison was a lawless them right a marvelous all around us on the custom-house the what are you saying about said he was late free trail is a fair person how come he spent the last 12 years of the wife of the customs official much of the cousins developed a number of customs Commission airing commissioners running the whole custom system you know extracting power-ups and all that cracking down on smugglers how does how do you have how do you square this and use your a whitewash of Smith as well he just uses a cynic cures call a no-show job I can along some we have pothole inspectors great thousand dollars a year you find a pothole the report up you call in there’s a pothole would be five yards it’s very easy to do this so but it turns out whoever is the break it was another no-show job he he worked hard out there three days a week and was full-time you know and he loved it not only that had no qualms that he loved he was writing letters to people saying boy oh boy we got another smuggler today and we own for cracking down these people so like Reagan claiming against income taxes and maximizing IRS funds and power and you actually said well who which is he really in forever well you look at his actions speak louder than the words here some people playing while he was too bad and Smith didn’t do any more academic work and then lecture what the world the nation but he didn’t he said no he loved us he could have commanded he could have gotten a top academic post with almost as much money he looked he liked this stuff he was great somebody with the Scotland I was Anderson it sounded good found with minutes of a custom house actually found out what he was saying and what he was doing cracking them just one quote from Smith he writes their fellow customs official December 1785 he says may perhaps give the gentleman pleasure I mean the guys writing to the informer in that revenue from the customers and scotland’s at least four times greater than what seven or eight years ago he took over there’s been increasing rapidly these four or five years passed and the revenue of this year over a week by least one half the revenue array this former year I find myself I could increase though further Olga blossom I think however champion lays a share on free trade so this said he gets the Sun is a reputation of being with a pop of the founder of economics and the other guy’s arrest and we cumbersome smithy ins now I think there’s a liberal thyroid for example with Smith’s descendant and University of Glasgow study very few people study on those specimens up but or everybody can think I’m studying under Stewart for about ten or fifteen years he was a big shot professor politically economy at the Glasgow nearly studied James no study under a whole bunch of other people McCulloch and the whole whole group Scottish group when they get to the labor theory of value is pretty clear that the the propellers are over theory of I not only Smith but also his directed centers blames Mellon with Scottish originally a Scottish Calvinist was trying to studying for Presbyterian ministry and as somebody said when James mellon went on one than he he lost his commoners faith he became an atheist he continued the same zero one the world salvation and crushing the enemy whatever they had before here cadre four hundred doctrines continued a pace as a matter of fact there’s a great quote about James Miller that he when he was a cork or Calvin if he hated Hume for skepticism and we 180 if you also hated you and for the same reason or Hume was two men were headed and skeptical in some it wasn’t a hardcore enough kind of charming doctrine yeah well Bentham was a smithy and start off life of the smithy and devoted Smithee and he wrote a very good there’s only a good book I think it’s offensive usury which he attacked Smith for selling out on the usury question he wrote that in 1792 any Rizzo who that’s Smith Ian nothing for us was not the founder but probably the big systematize of utilitarianism a better opponent natural rights natural law whatever we have to cut through the Benthamite movement whole bunch of Benthamite surround you cut through you find the real core of Bentham ISM which is paying monstrous he was nothing really is the founder of modern economics a sense of warfare economics cost-benefit analysis all comes in the guns of these people James Mellon and John Stuart Mill or essentially met them I can bring in the death of Mike replacing whatever international law doctrine there was and I think it’s all fallacious I mean the personal you throw hammers are fallacious and social certainly social utilitarianism we try to add up personally utilities and personal benefits and figure out what the maximum general greatest good for the greatest number is it’s obvious to me obvious nonsense you can’t have them up that’s all utility a subjective and ordinal nothing’s saying that’s phrase the greatest good for the greatest number which is sort of a cornerstone of the doctrine one of the problems that of course one of the many problems is what I’m supposing you’re the lesser number and what what happens when you’re apparently justify almost everything I think I think that’s a might want admitted us in other words because there’s no justice this is things natural rights justice or anything else rule manipulate everything for alleged cost-benefit arguments example take the idea say your punishment theory which is an arcane part of libertarian doctrine the men from eyes before pure deterrence theorists I believe don’t believe in justice soul deterrence well the accountant doesn’t have for example to be Turner take for example is so situation most people don’t want to commit murder for

whatever reason they don’t like get their against that they were reluctant to commit murder you know how a lot of people are willing to steal an apple from the push Carter from the food store they have for courting a period of time Siri punishments for murder should be very light and punishment for Apple stealing should be capital punishment preferably in public to make an example the stealer I most of us think that’s something wrong with us is what the cross was counterintuitive there was not so most of that most of us have a beauty just aceton we haven’t don’t have a lock pick Euler theory of it nothing flows out all out that’s a my it’s also in a favored example of punishing the innocent executes the innocent provided the public doesn’t know they’re innocent the public thinks they’re guilty it’s good enough no moral principle whatever my talk about what Bethan is the past calm the keyless thought which Bentham ice don’t like to talk about this is Bethenny great project a project there he wrote millions of words much as much of which fortunately not been published yet there we had a fleet of secretaries very wealthy aristocratic so we had employees secretaries to take them down copy it on there was no of course Xerox machine or typewriter that ed park he was suing a living or a doctor absurd on his pouncing I live a productive episode on the phone for you torrei Natori aristocrat he converted to democracy actually converted by James mill they’re the Tories wouldn’t adopt his doctrine his panopticon’s figured nothing to be worse than that maybe a democrasy was not my pan up pecan that’s the current rule of theory which Benthamite apologists claim only applied to prisons it did not apply only to prisons is an excellent grace amusing article like there’s a lot of the stuff overflowing as a book or Benson the Liberty Bridge that scholarly work virtue of him or problem usually I’m on my favorite people me a neoconservative the excellent critique of Bentham called a horrid half of Jeremy Bentham in her book on Victorian Minds turn off the Congress scheme not just for the preserver unless everybody for the poor for children for vagrants and everybody everybody being rounded up his but it’s been estimated my betterment substance from from a third of two thirds of population being incarcerated in panopticon’s but you’re essentially compulsory concentration camps all right with lives with scientific those machines justice or privacy it will cost benefit right you maximize surveillance and so you have one guy sitting in the certain the center of a circle and all the prisoners and kids and lover you want peppers or lined up so you can see into them and I mean this is before the age of television will lap bring in bring in prophecy of the oil early in the future even though you couldn’t see everybody every time nobody would know when you’ve seen this everybody would feel he’s under surveillance he doesn’t follow the utilitarian that’s very important everybody feel at all times he’s under surveillance by Big Brother okay by the panopticon leadership and so this would keep him not only keep them on the straight and narrow keep them working them actually want to get maximum production out of them let’s see 12 and a half hours a day at forced labor and so on and so on and he everything beautifully worked out the idea of course that have maximum production by these ready slave labor which is essentially what it was cannot become our ways week for all seeing that’s the controller who sees everything it’s not likely you know the big brother also inspection the house was another I’m gonna put it this is a big reform Himmler fought puts a very neatly said nothing last time was an atheist he said she says mental did not believe in God but he didn’t believe in the quality that populist sized like in Iran the panopticon’s was a realization of the divine ideal spying out the ways of the transgressor a potential crowned by means of ingenious chill scheme turn a night of the day where artificial lighting reflectors holding men camp with my introduces and inspection the pan off the comic-con is omniscient omnipotent I’m new presence of the inspector this is what makes things more than most efficient for the feelings of the inspectors they are at one point Bentham so there might be some drawing back to adopt my scheme because it might be suddenly people become robots instead of people it might be cause he said but doctor of an imbecility for the thermally free man with no more than decency fully human and he asked himself whether the result of the thyroid contrivance might not be constructing a set of machines out of the similar food of men and to this critical question he says you’re the utilitarian replied Brittles Bruskin you told her anyway who cares ok so they’re just machines the only real question is what happiness to be most likely to be increased or diminished by this discipline was he being a scientist that happen it cafes can answer the question is a neatly namely as he said there be happy almost by definition call them soldiers called among colon machines he says so there so they’re about happy ones I should not care as it all past in the core of humanitarian with a guillotine of the slave pen so economy and productivity were what he was trying to maximize as he put a industry as a blessing seven and a half hours a day was enough for sleep an hour and a half total for meals last time i working forced labor regime howdy the the punchline us wholesale pineapple accounts game is that he would run at him was it would be a private property privately-owned panopticon’s giant panopticon slave labor would be owned by him he meant them yet extract the profits in the slave laborers and this way we have a unity of private

and public institutions and so he tried to robin palmer lobbying a court and never get it through pushing her life her right but Bentham has a group of secretaries the most interesting secretary was James Mel and when out of turn when a sense was the founder of the Ricardian system I really think more and more we find out by no I think the fascinating character not John stirring up a limbo but James Miller her father James like I call him the radicals Lenin and wheel cadre tight real book civic type every cent personally ideologically whatever although he was sent me another caring and he basically had this kind mindset I say he was originally a Scottish Presbyterian minister comes to London that makes a precarious living as a freelance writer which is always precarious and Blanche is on the Bentham that’s not gone money and writing all the time he becomes a second any kind of system Khanna he always try to organize everybody the cadre Pike person organizing is kid John story everybody’s friends white everybody being organized and a cadre Manas he’s not only offensive Bennett was really unsystematic would scribble all night or whatever and keep saying Bentham once your work on this complete this book and then we get you the next book Bevin was riding with friends this young whippersnapper or China organizing me so the sort of culture compliment cash of temperament it was it was meh or talk better than to be a Democrat there are only this for being favorite Universal stop democracy universal suffrage you adopted method of utilitarianism and believe in lays a fair much more of a method at this point betsie he felt that he was a true Benthamite James Nasir a creator thinker one of the most creative thinkers this whole modern period but always pretended a contract to Smith and a lot of other people he originated he claimed known on just a number to mount a faithful method my my paperwork ardian I’m just a mouthpiece of a great month on the great Ricardo that’s actually he was contributing much for the doctrine that was one of the few people history for under the plate his own role and I was talking in my old friend when Olivia about this and one line one Bosley but does be it’s about a strange he said well make my might be any cannot make explanations of us which I I’m usually I’m quick those of us anything quite I wasn’t quick enough I’m a mark you can how many exploration being a mill is impoverished fianc freelance writer who as Benton was quite very wealthy in the corner was very wealthy and so this puts attention to me and then well ember two men might have an economic personal economic financial motives yes master as a source of a lot of patriot Frank not them kept no going for many years until no welders history British India Shrieve India anyway he does the same thing with Ricardo he finds Ricardo’s of the pious stockbroker really bond dealer when it was recorded horn missions the retirement um a country squire forget it and young with hired person and more keeps nagging them no no you got to be the great economist they keep cold forcing unquote a card over like this book and keeps correcting every chapter in every chapter in car view no correct an add stuff to it courting thing rewrites it and gets them to publish and then he said okay now you got to be our Condrey leader in Parliament of the photographical radicals they organized the philosophic radical cadre and Palmer had about 20 or 30 MPs of 1830s which was head of balance of power position quite powerful and it turns out more and more that mill originated much of the chorion system for example one of the few good things in recording systems a royal comparative advantage you know the the international trade you don’t have to have you can have even if one country or one person of course is terrible and everything’s unproductive almost everything it’s still the advantage of trade weather because if the advisor everybody’s the country in the least unproductive area and trade with somebody else’s country is the most productive area so you don’t have to be an absolute advantage in anything if you just have a comparative advantage mikono turns out that not acknowledging the originator James mill originator that enforced Ricardo that put an end because the car wasn’t interested in it or karahi only one interest in light Finlay crush the landlord landlord unproductive landlord class since he believed the landlords were unproductive wait and rent will inexorably increase and messing everything up he trying to postpone the inevitable by lowering rents and the way to lower rents is import week a corner the colon the import week at least for a few years you will keep down a rental value and lower the price of wheat and keep the economy going totally until the whole thing cracks so so Ricardo’s only interest the free tires the women with the lower part was the free trade an importation week and because of this rent Theory metal had much grosser accordion that since they also has a general free-trade Arab position plus a comparative advantage which he apparently he wrote he put into the Ricardo’s book which stands out like a sore thumb like a page or two pages but record never referred to anyplace else Ricardo’s real interest as a monetary theory of course money Manglish I don’t got time to go into and the rest of that might rob them we don’t know really how much Mills contributes motive had endless correspondence endless walks Ricardo giving him the line and we don’t really know how much she must stop with James not and Ricardo summer gains no changed my life Oh less earthen angel is a fantastic very charismatic figure change everybody’s life was around him and so forth so on and so much of it might be the millionth system

an interesting thing about mill looks like is the fact he was even better one of the inventors are with a parent class analysis complex theory before the Saints ammonia n–‘s about the same time as Compton Benway I’m not sure it was first and I’m sure it was independent on most part where they learned it from say Charles compass JB say son-in-law and libertarian analyst they were much more sophisticated and there had a historical approach which milder than a sour presumably probably got up from them basically libertarian class complan alysus says cut faster marks which were we’re capitalists and workers are inexorable class humph like the only class come play comes from the state in other words the state exists and does something it’s already there’s a ruling class and rule class right away taxation tax consumers and taxpayers that people get benefits in the state that people lose another state that creates class conflict now everything else in the free market is harmony con accomplice state so Condon why I have this and they said well industrialism acquires motorization requires free markets or free trade as its fate with us away class company will be eliminated society not in the sense of a communist assignments that’s a free market that was the company way approach well mental add something similar said was more was more than narrower basically no said there were two classes in society the rule the ruling few and the rule many there is a ruling class blueing class is exploiting the public through taxes and control discipline cetera and I just eliminated have pure free will a further reason why was a favor democracy these felt that if you have pure democracy universal suffrage a public can’t exploit themselves as though as a minority therefore the public will guard against the mergers and ruling classes we now know was a incorrect theory made a certain amount of sense in that period before democracy was tried but any rate that was his objective he convinces Bentham you know long closed because this is nothing the best idea which it really wasn’t and then he starts cadre activity in that direction for pure democracy and like they fear he thought the monkey more importantly cited fair because long he’s the key thing to have universal suffrage then later here would flow from inexorably he then arranged his followers in a cadre basis using example organized deception Joseph hamburger regular books on James mill one is called John Stewart mill and the intellectual it’s really about James mill mostly that is called the art of James known the art of revolution when he shows was James McGee’s notebooks and Gerlach with all the tiny what books I’m practically everything it would book on logic book on psychology book on utilitarianism and economics books on everything plus journal articles organizing its friends kid and life and plus all right here a cadre in Parliament I mean I don’t know how the hell he did it unbelievable he also organized member friend campaign of 1832 Reform Bill pushed open suffrage to the middle class in England which to him was a way station on the road of universal suffrage he really pushed it through by an organized campaign of cadre deceit nor was he got control of the most of the press by various means of the most of top newspapers he got them to lie about the idea of the revolution out there you don’t pass to reform those masses of a vote with pure fiction no no revolution or nothing he got the rig government he steer the Whig government of the thinking is gonna be a revolution they didn’t pass the bill he see awesomeeee worked out a theory about why lying is good first of all some people deserve the truth and secondly that person politically they’re not necessarily deserve the truth and this is lying in a higher utilitarian good anyway he did this and there was successful only discover really about ten years later was his aides accomplice chief a John robic order history of a reform bill and I was put through and the whole kind of a with the vote of the Mellon I figured he’s the guy and they take orders from the whole time etcetera etcetera and the reason why he brainwashes kid and something very famous thing with John Stuart Mill gets brainwashed learning Latin of the age of two days or whatever it was the reason he didn’t do it just for hire but he didn’t do it whether they try out his theories or education on his kid he did it because the kid was opposed to you his successors cadre leader the kid had a little estoppel responsibility to carry for leadership Alejandra Wright was just an ordinary kid that was the basis of course he flopped I mean he actually John Stewart was a cadre leader until the old man died toss to a mental lived them deception gamez not only metal headed John Stewart also engaging in total the seated all homeless at all times for example he he wrote early run an article praising Bentham this is one the father’s still alive I’m ensign light praising met them ready and publicly in the same time running an anonymous article attacking Benson might I mean it’s as I said these he’s messed up I really didn’t the skills of hanging with no more cadre leader until his father died I was about eight years later or something anyway what happens were Ricardian isn’t my thing again it’s a very difficult first of all understand what Ricardo is talking about Ricardo as understand what Ricardo was talking back both Ricardo and JB say we’re trying understand Smith’s this was very confusing as I said about three or four different theories of value at the same time using words in obscure manner and so forth and so on but Connacht it said

well this is a great we know that’s a great but we know what the hell he’s saying so they’re trying to systematize Smith say does it as a realtor go to the sideboard really not a smithy and then say his whole book I recommend by life’s a treatise on plural times a marvelous book it’s still in the early 1860s or something right for the translation of 1821 or something and it’s a marvelous book it’s straight towards Alexandra preneur key marginal productivity not marginal productivity explanation of factors prices is there Chile theories that entrepreneurs are there very heavily a whole thing is at or golian book it’s not a smithing you know he says Smither the greatest the only thing smithy and is what’s picked up from Toro namely saving in the same auction essentially the old toward their thing of saving and saving is okay the results an investment no problem at overproduction and all that it’s really tore very well which Smith gets and it’s a gets from Smith or two ago and Smither those are the classical liberal libertarian leader of a movement on edition of being a economist of note addition that say was very hard corn banking 100% banking guru theorists and all the people Compton in Hawaiian bass they are all these people essentially say in the same movement they’re all disciples the Simmons JB say the more and more awesome almost brought great stuff the only great Dorian bad about he thinks a Smith originally says uh Smith originator I can’t believe we really meant it I mean I’m Ricardo is writing Mike and only score global mathematics the only thing worse the mathematics is rebel mathematics and with a little style you’re writing mathematical equations in linguistic form so the whole thing becomes it’s an equilibrium analysis which is where you’re trying to set something the cuts and other things variable and putting it in words and which make one thing comprehensible squares a theory of rent not only says that landlords are unproductive it also says that rent is not really the part of course because rent is differential I mean the differential rent that the poorest land is a zero zero rent and therefore any rent is really just the differential it’s not really earned so to speak so she could say the same thing about wages wages are not part of course because over anything above unskilled labor and I become the differential should be taxed away wherever Ricardo leads directly not himself at his followers Henry Jordans a statement corny Marx is recording a Labour theory of value which which Ricardo lifted from Smith it was required systematize Smith by taking the worst stuff and some method making a system out of it and say so sometimes I’m taking the best stuff and so that’s I think the difference the only agreed Santa Carla say is law ok again Ricardo’s enlisted Saint Charles Smith tradition the thing that happens to a Cardo whole system labor theory of value theory of rent etc again as a mist which you probably all inscrutable read namely the Ricardian ism dominated English economics and told reven coal 1873 even 1880s and Marshall it’s not true we now know Africana ISM died out by about 1830 and what he died of 1822 in six or seven years recording them have been smashed by all sorts of people my utility theorists like Samuel delayed by an time when people like Thompson and I are near Earth theory and so by 1830 pearl powers we were blessing the political economy Clara so nobody’s recording anymore hominy here the recording system of this is finished and so we had a whole bunch of things going on very interesting stuff the Irish theorists the Trinity College Dublin a whole bunch of utilities theorists objectively Toby Ferris or excellent put a my Archbishop Wheatley River interesting character and this is the English and gets a was a professor at Oxford a master oriel college fighting the fight against the high churchmen a Knoxville hi Tory he was looking with a latitudinarian type and when he gets think it becomes Archbishop of Dublin immediately sets off a weight lead chair of political economy and puts in the rest of his life selects the whole is above everyone on the utility theorist until he until he dies it carries on long feel and button all these people Chris that sort of outside English mainstream these Englishmen don’t care what’s going on in Ireland so it’s not that fluent sure but Cornwall adding the whole thing up Maskull a senior having some excellent stuff so seniors very anti recording said without explicitly especially saying it and of course again something should go on I’ve got the times the Malthusian thing which comes from Smith Malthus gets his anti population stuff for some Smith the iron law of wages and or ladders really it’s really variety from the core of course is a big mouth Uzi in it on population on other things and senior essentially smashes that without saying so and then essentially demolishes it’s strange about Malthus violent here’s the guy growing up after 50 years of Industrial Revolution explosion of fantastic food standard of living and worrying about population increased from a much more apropos one hundred years before when nobody was a Malthusian variety weight so to speak the Malthusian problem was over and set out for the real problem on the popular a big problem population pressure so my handle is basically Matthews Riccardi ISM was finished until John Stuart Mill resurrects a monstrous work of 1848 and then was making 23 1848

with no accordian nomination English economic a little free flow of volatility theorists that were anti Hakone rent theorists etc there’s one very interesting character must I’m I can’t home it on this thing well fascinating Caravan John Ray was a Scotsman and one-person bomb bother does acknowledge as being pre bomb over Qian pre time preference pre capital Austrian capital theorists and is very strange duck he’s a Scottish physician who sort of unemployed and doesn’t do well he has a marital problem and he leaves Scotland for Canada and you’re a contentious character anyway he gets involved with Canadian Calvinist politics for clean up again now which faction II was then anyway he’s in the losing faction heather games especially kicked out of Canada and leaves for I fear was Hawaii I think probably Hawaii when some minor Hawaiian ion I say there’s Russell’s libelous was a village physician and when he writes this thing he was a passionate life was geography look the senator working I can ad Canadian geography geology in a lot and he might he’s a big protection of super protection effective care of me hates Adam Smith she writes a book in the 1840s designed to attack Adam Smith and free trade and he says Wow boy talk about free protection I have to deal with capital fear he works out a whole Austrian capital theory and they learn well relationship with free trade whatsoever a protection works out offense a fantastic thing what’s this whole thing out he publishes the publisher was a new wing on protectionist publishers in one of their good firm anti Jacksonian fi free trade but he publishes was broke nobody understand what he’s talking about and so she just has nothing else there’s nothing about protection relays worthless and so nobody reads it and the guy disappeared goes to Hawaii or something and anyway jumps through it no reddit because he well almost everything anyway and and somebody showed it to him he was a good book and he praises the raids all right but for the wrong reason he doesn’t understand this to a while it doesn’t get the pre boom barbaric stuff at all the appraisal and poor poor ray gets a clipping I think from mill you know this is many years after the book was written so gene so thank you mr mill and Kristen the only person ever talk about my booking and like it kind of aesthetic poor guys are writing in the Hawaii Village position that was that nobody referred to it until about 1900 when mixer see director discovered it and then Bob Wallace say you’re writing I’m Laura Hurley either and then praised it so anyway he’s a very very interesting character so real this was going on and they book comes in and reestablishes Ricardo McCartney isn’t a middle had such tremendous prestige by this time as a philosopher and logician intellectual and separate cetera everybody just fell for it so tumble over and adapter this and the whole utility stuff drops out any non McCrory men Theory drops now the whole thing is sort of caves in and there becomes gamma J s from 1848 or an 1880s let’s say so that’s that’s really the dominant since the we surgence of recording has over so in addition to that mill establishes positivism as a self-conscious methodology for the first time the previous classical economists say was explicitly if we call our price neurologists deductive install that self-evident axioms induce economic theory senior was definitely a self-conscious proxy ologist and record I mimosas no no no thought to the idea of false assumption the Friedman night pretreatment I view it you have to have false assumptions which you then reduce and test and wants are thought it really begins with with and not having a great prestige which the others worth didn’t have essentially wins out and then of course without Alfred Marshall that’s sort of the same thing with marketing utility Theory margin utility Theory comes in 1877 in England and while rocks whistle and and Megara in Austria marshals function in life was a very very margin utility theory with faint praise you know with the reestablishment ricardo and mill it was a whole goal in life unfortunately succeeded and Brett I was wrong I went to college I read marshals principles of economics straight through that was our summer we had a seminar we did we marched it was great much better than reading you know Keynes or something that was that was what we did first of all we read Marshall you see every evangelicalism you see the pietism shining through custody making – moral arguments throughout and the midst of talking about the representative firm and all that but more important here is that when he’s doing he takes marching toward him and he trivializes it with confined it to consumption okay it’s true about consumption and yet the margin of diminishing marginal mean that’s it true they saw the value paradox then and from then on he talks about production equals not cost of course is the key thing and so the real essence of utility Theory drops out since when I was going to graduate school or college in the forties the general view was that Marshall had integrated anything of value on the Austrians that was lit for unwashed any good stuff as a Martian illicit stuff doesn’t have to be read the view here is that as Marshall famous phrase value is to determine by scissors scissors of supplying a man you have the demand scissors point America you have the rising supply curve which is the course determined by cost allegedly and these two so to determine market price

however this really starts with Smith finally of course Ricardo emphasizes key thing is not market play who cares about mark like markup are key things going on normal pricing and with equilibrium prices you’ve never get in any way that’s more much more important and more than normal Marshall claimed the supply blow at a cross played this triumphant the man sort of drops out and the really important part of the scissors the important blade is cost objective course determined by labor disability and whatever so so what he does is he brings back on sophisticated version of Ricardian is a we don’t worry about market price you worry about long-run cost and of course one of the two basic problems one is the only one course never arrived so it can’t be really the key central key thing you want explaining the market and we will mark it and not more wrong whichever shows up and secondly is that what do you do about goods that have no cost Rembrandt’s for example Rembrandt painted a thing and then corked off then the place of Rembrandt’s fluctuates where the supply cost where’s the supply wild light ain’t there of course there’s only demand the Headroom it wasn’t work for non reproduce herbal products while apple open all of this was important that’s part of pricing – isn’t it better to have a price theory we have a general explanation world prices and one which only explained what producible goods and so that of course it’s not discussing the non-repetition of course good was just tossed and then wastebasket along with consumption with Ricardo well this is rug back as I say a very sophisticated manner and Marshall have a tremendous prestige of the Cambridge professor nominates all of English economics from 1880 to 1920 s and Jevons were sort of a maverick semi Austrian for the speak maverick doesn’t get any any hearing and guys young to that pulled against his influence so which adds a reestablishment record ian ism then with mill and and marshall means potentially and more sophisticated form that’s there that was really effect that really ushers in the 20th century