modified:: 2023-10-18, 2002
up:: Social Science
tags::
Political Economy
Overview
Political Economy is how the state's household resources should be managed. It concerns the governance of the economy & related policies (i.e., gov spending, welfare).
Extract content from 2 - Political Economy.
Quotes
Division of Labour Increases Standard of Living
"It is the great multiplication of the productions of all the different arts, in the consequence of the division of labour, which occasions, in a well-governed society, that universal opulence which extends itself to the lowest ranks of the people." (Smith, 1776, pg 115)
- Division of Labour -> Exponential Productivity in all fields -> Excess
- In a well-governed society, excess diffuses throughout society
- As excess diffuses, lowest ranks of people have better standard of living
- Excess is same as Surplus