• Jeff_Benzos [he/him]
    ·
    4 years ago

    Capitalism didnt exist until some guy wrote a book describing it. It wasnt a result about the historical and material forces of the world at the time, it actually started because Adam Smith personally had some ideas about the economy

  • LangdonAlger [any]
    ·
    4 years ago

    some nerd wrote about Adam Smith and slavery already

    Abstract:

    Adam Smith made two positive claims about slavery in the context of developing economies. First, Smith explains that slavery is in general highly inefficient. By his account, the net product under freedom is 12 times larger than under slavery. Second, he observes that, despite its inefficiencies, slavery persists in most of the world. Taken together, these claims create a fundamental puzzle: Why do elites – owning slaves and holding political control – fail to make themselves better off by freeing their slaves?

    Smith gives two very different answers to this puzzle. The first is psychological. Smith asserts that people have a fundamental desire to dominate others, and slavery provided that opportunity for slaveholding elites. The first explanation is the most commonly advanced in the literature. Yet no where else does Smith use the assumption of domination. This explanation therefore seems ad hoc.

    I favor instead Smith’s second explanation. This argument, far less known, involves commitment problems. Freeing the slaves would deprive slaveholders of their property. How would they be compensated? In principle, a long-term compensation scheme could solve this problem. But in the undeveloped societies Smith discusses, such as feudal Europe, long-term contracts were difficult to enforce. Indeed, I show that both parties to the long-term compensation scheme had incentives to dishonor it. In the presence of commitment problems, masters could not be assured they would, in fact, be better off freeing their slaves. Slaveholders therefore rationally avoided emancipation despite its inefficiency

    • invalidusernamelol [he/him]
      ·
      edit-2
      4 years ago

      I want to own this guy, just chain him up in my yard and constantly yell at him that he's inefficient, but I won't unchain him until he can promise me long term compensation. Occasionally releasing squirrels that he can eat raw if he catches them, otherwise he'll have to eat out of a trough of pig slop.

  • Hungover [he/him]
    ·
    4 years ago

    I wonder what he thinks Smith thought about landlords :thonk:

  • SoyViking [he/him]
    ·
    4 years ago

    What is capitalism?

    :geordi-no: A complex political-economic system that exists in the real world.

    :geordi-yes: The ideas of a dead Scottish guy

    • zifnab25 [he/him, any]
      ·
      4 years ago

      I believe Adam Smith is the one who famously declared "That's Not Real Capitalism, you're doing it wrong, that doesn't count!" in his famous thesis "Dats Krapitalism"

    • blobjim [he/him]
      ·
      4 years ago

      Adam Smith, the founder of Fascist America who killed 100 million poor people in internment camps!

  • GenXen [any, any]
    ·
    4 years ago

    I'm still trying to slog my way through reading Smith, but 1/4 of the way in I'm finding that it's a lot like the Bible. After you get through enough of it you really start to realize that the people who praise this work the loudest have obviously never read it,