BUS 1050 Guide

"The invisible hand" is the same thing as fundamental market forces like supply and demand and competition.

True

According to Maslow, few ever self-actualize. Thoreau thinks everyone is capable of moving to actualization—that higher incomes are not so crucial to do this.

True

Aristotle's "art of acquisition" criticizes the financing of purchases. He directs his criticism at the "banker" more than at the "consumer."

True

Aristotle's shoe analogy works with most products so long as consumers realize that the first rule is this: we generally do not need more than one unit of anything.

True

Aristotle, an intellectual aristocrat, thinks an intellectual aristocracy is better persuasion than a regulated state.

True

Columbus imposes this rule: exchange is the only means by which the crew will engage the Taino Indians. If the crew wants something, they must offer something in exchange.

True

Comte and Fourier were French socialists who believed that technology was the key to ending scarcity and creating abundance.

True

Confucius seeks universal equality, universal opportunity, and economic freedom.

True

Conscious capitalism places emphasis on purpose, and not on shareholder value.

True

Faust concedes that achievement is all that is left him, but he concludes that serious achievement does not need to have spiritual ends-- though it must be of a higher order and lift us beyond the goal of profit alone.

True

For Goethe, "old world" values are "spiritual" values.

True

Hegel's dialectic supports the idea that history has an economic purpose and Fukuyama says that purpose has been resolved in global capitalism.

True

In Plato's distribution system, the manufacturer is the most necessary and the most honored.

True

Mannheim tells us that freedom was, for late 18th business practitioners, a utopic desire--an antithesis to British economic regulation of America.

True

Mephisto believes that a business is designed to generate wealth and that Faust's business has done this--thus, Faust should be very pleased.

True

Personal Utility capitalism is not concerned with shareholder issues.

True

Smith actually tells readers that the GDP really can't grow if it is dependent only on homegrown capital--that it needs capital from other countries to sponsor growth.

True

Smith says that self-interest suggests that no matter where a person is from and no matter where he trades, he will always trade for his own benefit first.

True

Smith's argument for free trade is clear on this point—he did not favor British and European mercantilism.

True

Socrates tell us that war is the natural consequence emphasizing discretionary goods.

True

The "Great Principle" would increase employment, income, demand, and consumption by emphasizing production.

True

The art of acquisition is proper if it deals in things that are necessary for the running of a household.

True

The logic of Berger and Luckman suggests that socialism was a serious enough construction of reality to compel institutions in some countries to change in order to conform to Marxian principles—even where there were no examples of successful socialism.

True

The story of Faust suggests that employees and stockholders will support the vision of the CEO so long as revenue and profit come first.

True

Thoreau is anti-consumerist, but he is not anti-business.

True

Thoreau might agree that Maslow's first two "need stages" are the same as his own, but he thinks self-actualization should follow these two stages.

True

Thoreau's business is a "human-scale" business--this means "small and easily managed."

True

When Columbus reports back to the monarchy by way of his journal, he suggests that extraction of gold should be accompanied by investments in agriculture and cattle to the Taino Indians.

True

Describe the two "earth" cosmologies and Tawney's "cosmology."

Two Earth Cosmologies: Heliocentric (sun-centered), Geocentric (earth-centered). Tawney-solipsistic (self-centered)

Maimonides - rule for partnerships

Two people in business, pay and give by percentages invested in the business.

Aquinas on Usury--Finance - attitude toward religion as it impacts faith

Usury isn't a sin; it is just unjust.

Maimonides - what is the difference between usury and interest

Usury: using money to make more money Interest rate: is merely just a fee before services. More Honest.

Carnegie - how labor has progressed

labor is no longer afraid of managers. They are educated and know what they want.

(Fill in the blanks) The late Middle Ages Church fathers concluded that material interests were co-equal to spiritual interest but that this was nothing to fear because "the way of religion is to lead the things which are ____to the things which are_____through the things which are______thus spiritualizing the world of commerce and material interests.

low, high, intermediate

Aquinus Place

manufacturer, wholesaler, retailers, consumer

Aquinus Price

only sin in charging not the correct price--the just price. The materials that went into and the cost (the time).

Aquinus Product

selling a product is not a sin. However, it is a sin to lie about these three things: substance, quantity, and quality.

(Fill in the blanks) Acquisitive societies can be described as ________ cosmologies which are _________centered.

solipsistic, self

(Fill in the blanks) Friedman claims that corporate executives work singularly for _______ to make as much money as possible for them in accordance with the law and _________________.

stockholders, ethical customs

What easy mathematical formulation represents Emerson's advice about accounting and his argument for "income" against "outgo"?

(Revenue) - (Cost Of Goods) - (Expenses) = (Net Profit)

Adam Smith "wealth of nations"

*Invisible hand-force that results from everyone pursuing their own self-interest it acts in the best way for society *Advocates for an entirely free trade*Humans will act rationally *His idea that people will have business close to home is in conflcit with his view on everyone pursuing their own self-interest *value added=when product changes form *empathy tempers self interest in commerce *Imports/tarrifs are bad because they don't promote growth and shut out competition

Pacioli - three things necessary to carry on a business

1) Cash/ Capita l2) Bookkeeping 3) Arrange transactions in systematic way (Debit, Credit)

Darwin/Spencer Uncontrollable External Variables

1) Competitive 2) Economic 3) Social/ Cultural 4) Regulatory 5) Technological 6) Physical

What are the two reasons that the Catholic Church failed to spiritualize commerce? How did it the Church give rise to capitalism?

1) Hypocrisy, Not will to stop loaning money at a high interest rate. 2) Indulgence, Buying loved ones.

Defoe - what three things make up a merchant's books

1) Inventory-Goods in Shop 2) Capital-Cash 3) Debts (Abroad)

Carnegie - attitude toward unions

Believed that it was the right of workers to be able to enter into trade unions

Describe Smith's "added value" argument.

Businesses offer greatest value by exchanging for greatest quantity of money or other goods. By creating things that are the most value, we are looking for our biggest gain.

Defoe - relationship of accounting to faith

KEYWORD--Tradesmen Christian conscience=Defoe widow and children

What is so Emersonian about Conwell's argument?

Making money honestly, and also the idea of reinvesting your money where it will do the most good.

Carnegie - sliding scale

Making money plus commission. Make no sale, it is taken out of you

Defoe - how do the illiterate keep their books

Making notches on these sticks that he kept in drawers. Also he counted with spoons in 6's.

Who says: "his vilest and most hateful qualities are the most necessary accomplishments to fit him for the largest, and according to the world, the happiest and most flourishing societies." Attribute this to:

Mandeville

Who says: "for that there is far more profit for him personally in injustice than in justice is what every man believes."? Why does he say it?

Plato; he thinks that constraints on man are necessary, otherwise all men would do as they please.

According to Emerson, how does poverty affect us?

Poverty demoralizes. It is hard for those who have fallen on hard times to maintain their integrity. (More inclined to do unethical things).

What is Marxian "exchange value

Price is decided by demand, not the labor that went into it. For example, water is more expensive in the desert, because water isn't abundant there.

Franklin - attitude toward finance as it intersects with faith

Protestant Making a lot of money is okay = Salvation. The more you have made, the more you have done for society.

Describe the Protestant objection to money.

Protestants work hard to acquire money, but couldn't spend the money on any luxury items

Why are shareholders bad for companies—if you use Faust as a reference?

They can restrict a companies vision and hurt the business. The shareholders are too concerned with ROI (return on investment) and nothing else.

Defoe - what is the purpose of accounting

To protect your family. "He that does not keep his books exactly..., had better keep no books at all..."

(Fill in the blanks) Conwell says that god wants us to be rich and that those Christians who see business and wealth-getting as antithetical to biblical doctrine simply misunderstand the phrase_________which he says does not mean the pursuit of money but rather the _____ of money.

"money is the root of evil" , "love"

Andrew Carnegie "Gospel of Wealth"

*Make money through industry and then give it all away *celebrates competition while acknowledging it's drawbacks *Administer wealth *Social Darwinism- best/strongest lead *capital and labor don't know eachother

Artistotle "The Politics"

*Monopolies are ok if they are for the management of the state *Retail commerce/trade is unnatural and used to take advantage of others *Making money is bad because it is limitless *Monopolies are ok if they are to management of the state *2 arts of acquisition; 1. management of household. 2. Art of making money *shoe is natural if one pair to be worn, the second pair is unnatural, to sell *His philosophy is community-based *communitarian approach to life *more focused on human needs than Plato *oil press Thales story- making money connected to intelligence

Weber

*Protestant acesticism= deny yourself luxiers *tradition view of work- wealth was not the goal. work was a calling from god *modern-labor necessary for the betterment of self and society *contemporary-pursing wealth is the goal *iron cage- too focused on external goods *cloake can be cast off whenever. *wealth has a seqularizing influence *Socialist

Francis Bacon "Of Studies"

*We read; ornament, past time, Judgement. *perfect yourself through studies *to also speak authoriatatively about a subject

Emerson "Wealth"

*a man in debt is a slave *administer wealth *matter pays her debt= poverty takes away your moral compass *Non-interference from state *Animate your wealth-prolifigate spending *animate means to use them to improve yourself *wealth is an outward sign of someones success/virtue *Impera parendo-law of stopping mismanagment *tension between creating wealth and nature *we are born destined to be wealthy *Forest analogy- many trees in the forest not just one *Invest and reinvest is best for the people *Nature refuses to be mismanaged*noninterference!

Chang "Laissez-faire"

*all about a free market with little regulation *Great principle= production must be greater than consumption *Wants to create a business mind *laissez-faire=minimally regulated market

Milton Friedman

*don't ask businesses to provide for the common good. Businesses are PRIVATE *Unaminity is a common thread in a free market *corporations shouldn't act in society's needs *A virtue of private enterprise: it forces people to be responsible for their own actions so that they cannot exploit other

John Locke "On Property"

*get property by mixing it with our labor *Land is wasted when it isn't cultivated *hunter-gatherer limited possession *Never have more than you can cultivate *land is an extension of our labor *manifest destiny-rage against the machine adresses negative.

Rockefeller Jr.

*industrial creed focuses on social responsibility *Have employees in mind but also making profits *golden rule applies to labor and capital and it would be no conflict. *Studied Marx in college.

Ayan Rand "Atlas Shrugged"

*money is society's barometer for virtue *Altruism and state force is negative. Altruism is evil *Money is related to virtue *Greed is good *Robber barons are those who use the state as their weapon to establish monopoly *Celebrates unfettered free market *dispises collectivism *America's proudest distinction is the phrase "making money" *Looters are goverment officials who make money off of regulation *"wealth is a man's capacity to think"

Plato "The Republic"

*mouthpiece is Socrates *Division of Labor=good social organization *tight state control on everything except market *Healthy city needs; Interdependence, division of labor, money a primary exchange, self interest *Wants make you swell so bad you have to go to war to get more *if society focuses too much on luxuries no one will want to do the necessities *Gyges story-if people left to their own desires will act only if self-interest which Plato views as Bad *wants and needs are the backbone to business

Conwell "Acres"

*preach the gospel by making money *Love of money is root of all evil not money *people are poor because of their own shortcomings

Henry Thoreau "Economy" "a written word"

*tied to the mass/Ulysses-can't pay attention, only focused on one thing *necessities of life are; Food, Clothing, Shelter, Fuel *next to necessary: Knife, ax, books, lamplight *overly wealthy individuals are Overcooked*advocates efficiency *infinity was to draw a line from one radii *be your own Columbus *men live quiet lives of desperation *written word outlasts spoken word *written word has a greater claim to truth *written word is the choicest of relics *Read not to agree or disagree but to weigh and consider *reading is connected to upward social mobility

John Ruskin "veins of wealth"

*veins are purple because people. We are making people into machines *zero-sum view of capitalism *getting wealthy is taking from others *Wealth depends on the moral aquisition of it

Karl Marx "Das Capital"

*you are not commodifying your labor if you want to subsistience live *value of labor should be something agreed upon *Capital and labor will continue to clash *Rockefeller helped smooth over these relations *labor would be a commodity *Marxian exchange value-Price is decided by the market, ie- water is more expensive in the desert.

Mill - three things return must account for

1) Abstinence 2) Risk 3) Exertion

Mill - three final facts which account for profitability differences in companies

1) Barrier to entry 2) Level of education of employees 3) Risk of investment

What limits on commerce best describes the warnings of the medieval Church?

1) Make no more money than necessary to run your household 2) Just price- you may not make more money than the cost of material and labor 3) You can have your own private property but better if we're communists. Share goods, jobs, lands, etc. but you have your own bed, toothbrush, clothes. Etc.

Mill - all things analysts look for to account for variability of profitability

1) Material costs: things that go into something 2) Labor costs: what does it take to pay a person to assemble

Franklin - 4 principles for increasing wealth

1) Productive 2) Good Management-People and Money 3) Frugal 4) Charitable

Tawney -motivators in the 19th century

1) Training 2) Reward 3) Pride

Maimonides - rules on borrowing and lending Double Standard Borrowing

1) a Jewish person should never borrow from another Jewish person 2) only accept money from the common wealth DO NOT BORROW OR LEND BETWEEN JEWS

Aquinas on Usury--Finance - conclusions for articles 1,2,4

1) usury is not a sin. A sin of injustice. 2) tips given for requests before a loan is okay. However, if you ask for money after you pay the loan, that is no okay. The person was not asking for an interest rate. Paying a fee is okay. 4) The borrowers are not liable for the sin. It is the lenders fault to charge the interest rate. Lenders are at fault.

Carnegie points out that capitalism,despite its benefits, presents some serious problems. He calls them the prices we have to pay. What are they?

1. Cost cutting 2. Rigid caste form; must be this way to control large amount of people 3. Separation of capital and labor

What are the five excellent things according to Confucius?

1. Follow the economic activities of man 2. Lead them Profitably 3. Teach the people 4. Minimal regulation 5. Don't fight with them

What are the ten components of Rockefeller's industrial creed?

1. Labor and capital are partners 2. Community is essential to industry 3. The purpose of industry is as much about social advancement as it is about making money. 4. Every man is entitled to a decent life. 5. Good behavior should be rewarded, bad behavior should be punished. 6. Solving grievances is essential. 7. Success comes best if every party is equally represented. 8. Bottom-up organization 9. Golden rule. Not just for religion 10. Get the largest amount of people the best opportunity possible.

Which of these is not one of the five excellent things? 1. don't fight with the guys in business 2. educate everyone 3. don't regulate 4. lead everyone on profitably 5. All of the above are excellent things

3. Don't Regulate

Which of the following is not a part of the "ideal city" created by Glaucon and Adeimantus? 1. division of labor 2. money 3. interdependence 4. low taxes 5. foreign trade

4. Low Taxes

What are Emerson's measures for business?

5 Measures: 1. Finance (borrow money to make business work) 2. Accounting (have a system to know what has happened) 3. Marketing (once you realize a loss move on--marketing will teach you can't manage nature) 4. Management (hire people you know with whom you can work, match the hire to the corporate culture) 5. Production (this is where the spirit is found--literal and figurative ascension)

Explain the Rockefeller, Jr. position on social responsibility.

A business needs to serve its community (Carnegie, Rockefeller and Smith believed this)

Tawney -what is "esprit de corps" and why is it important

A feeling of fellowship and common loyalty. It is an excellent motivator ex. Working with people we like.

What are all the benefits the crown and Church will get from the Columbus mission?

A place for cheap labor, resources, great exchange rate for materials. They get to use the cheaply acquired gold at home, they will get more land when they conquer the Indians, they will have international support, and the Church will have more followers. Money for Military and to fund wars.

Who says: "of everything which we possess there are two uses, both belonging to the thing as such, but not in the same manner, for one is proper, and the other improper..."

Aristotle

Describe Aristotle's "Art of Acquisition."

Aristotle believes in needs-based theory because it is natural vs. wants-based, which is unnatural 1. NATURAL (needs based) 2. UNNATURAL (wants) -household economics -retailing/finance lending -proper/primary needs -improper (secondary) -needing one pair of shoes -selling the shoe -art of household mngmt -art of making money

Tawney says that the Church was opposed to a commercial environment in which finance and trade, legitimate social functions, were transformed into an appetite for more moneymaking. In this, to who's thought is Church sentiment similar to?

Aristotle, legitimate trade functions are good.

The business mindset of Columbus causes him to say of the Indians that "they are fit to be ordered about and made to work, plant, and do everything else." Tied to his intent to make Christians out of all of them, how did he view Indians?

As the labor aspect of Capitalism

Mill - attitude toward religion as it impacts finance

Atheist

Defoe - what is casting up the books

Balancing the books & making available to see

Columbus expresses no remorse about his business project. It is likely that he can justify it by thinking that Spain is doing what "good" thing?

Baptizing the Indians and making them Christians.

According to Tawney, what are the reasons we have acquisitive societies and do not have functional societies?

Because Acquisitive Societies are based on individuals trying do the best for themselves and this limits how functional and team-oriented a society can become.

Why does Faust finally allow Mephisto to manage affairs with Baucis and Philemon (hint—it has something to do with productivity)?

Because he wanted to continue with his project, but despite all his attempts and strategies with Philemon and Baucis, they were unsuccessful.

Explain Calvin's relationship to the new Protestant calculus of the 17th century America. Is it an important relationship? If so, why?

Calvin believed that you need a lot of money, if you get saved. If you are saved you can give that money back to god.

Veblen - canons of reputability and expenditure

Canon of reputability: you buy something based on its reputation. Canon of expenditure: how much something costs

(Fill in the blank) Mannheim says that ________ was the utopic "antithesis" of the founding fathers of the United States.

Capitalism

Can you think of, at least, one author from our text who you would call a synthesis thinker—meaning he or she has brought together good components from the antithesis and thesis worlds?

Carnegie and Rockefeller

Pacioli - explain his religious ideas

Catholic monk

Cicero - conclusions on grain affair

Cicero believes you should come in and sell your grain at any price, but if anyone asks if more grain is coming you must be honest about it.

Who says: "they want to have and take everything...and even though many things were of little value...it was ordered that nothing should be received from them without giving them something in payment."?

Columbus

Who are the thesis thinkers you have read so far?

Columbus, Confucius, Smith, Manderville, Conwell, Freidman, Rand. (Weber is neither, Tawney the historian is neither, Carnegie and Rockefeller are synthesis)

What economic system would have been the preference of the Medieval Church according to Tawney?

Communism

Who says: "It is simply that everyone respectively employs his own ability, and exhausts his own energy to get what he wants. Therefore, when the commodity is cheap, it calls for the demand, and raises its price; and when it is dear, it calls forth its supply."

Confucious

Universal equality, universal opportunity, and economic freedom - whose expressed doctrinal beliefs are these?

Confucius while Emerson, Smith and Marx all agree.

What does Thoreau believe about consumption, especially of luxuries?

Consume only what you need. Luxuries are only distractions.

Who says: "money printed your Bible, money builds your churches, money sends your missionaries, and money pays your preachers..."?

Conwell

Why does Plato's Republic promote division of labor—what can it do for people?

Division of Labor- Each person does something that they are especially good at.More jobs are created, costs fall due to efficiency, quality increases, profit margin increases over time, usually keep the price up for profit, but in socialist society prices would fall for betterment overall.

Veblen - how conspicuous consumption affects social classes

Division of social classes. Breaks up social classes. Buying things breaks up society.

(Fill in the blanks) Tawney argues that acquisitive societies advance but do not improve because they value ___________ more than the obligation to perform _______________.

Economic rights, economic functions

Who says: "he is thoroughly related; and is tempted out by this appetites and fancies to the conquest of this and that piece of nature, until he finds his well-being in the use of his planet, and of more planets than his own" The emphasis here is nature.

Emerson

How does Emerson view self-advancement in contrast to self-improvement?

Emerson wants us to be able to use our self-advancement to self-improve ourselves and vica-versa.

Explain Emerson's position on production and reinvestment.

Emerson's focus was on spiritualizing your business, any profit that you can put back into your business is spiritualizing your business and yourself

Confucian laissez-faire is similar to the laissez-faire of which thinker, who said that "the basis of political economy is non-interference" because wealth brings with its own check and balances where "property rushes from the idle and imbecile to the industrious brave and persevering."? How does it compare to Smith's laissez-faire?

Emerson; Smith believes God shouldn't be involved but should be watching over things.

Who says: "spend after your genius and by system. Nature goes by rule, not by sallies and salutations."? What does this mean?

Emerson; borrow money and invest in your dreams if you have a good idea. Track your spending, understanding and using accounting. Nature has its own rule, must go into business following that and making sure to have a higher aim.

Who says: "the forces and the resistance are nature's, but the mind acts in bringing things from they abound to where they are wanted."? What does this mean as "economic theory?

Emerson; comparative advantage - concord grapes come only from Concord, Mass. Bananas then only came from Brazil. You had the advantage if you lived where the "things" abounded.

Who are the parties to industry according to Rockefeller, Jr.

Employees, stockholders, community

Veblen motive that lies at the root of ownership

Emulation: You want what others have. You are going to do it even if you go in debt.

According to Tawney, how did the Catholic Church behave regarding the charging of interest?

Encouraged it. They encouraged you to save money to gain interest on it by loaning it to the bank, the bank gives loans to other people, then gives interest to themselves and to the people who originally saved.

Maimonides - rule for capitalization

Equity capital.. not loan. Ex/ If parents give money to start business, if you profit money, your parents profit. Until you pay off, parents will equally benefit.

Describe Smith's "invisible hand" theory.

Even though people are self-interested, the "invisible hand" makes everything turn out better in the end and inadvertently help people and their communities. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it Thus, the invisible hand is essentially a natural phenomenon that guides free markets and capitalism through competition for scarce resources.

Pacioli - explain his system and how it works

Everything in God's name. If he did things in God's Name nothing would be wrong.

Aristotle's character, Thales, prove that one doesn't need to be a genius to in order to get rich. His monopolization of olive presses in Miletus is, according to Aristotle, a very clever and fine way to get rich quickly, thus demonstrating that anyone can get rich.

False

Columbus concludes, at the end of his stay on Hispaniola, that he made a mistake in choosing a partner--that the Caniba, despite their cannibalism, would have been better partners.

False

Columbus' first voyage is more about market development than penetration.

False

Columbus, as a visionary, is the CEO of what we might call THE NEW WORLD COMPANY--it is clear, however, that he is not attempting to be the manager, as well.

False

Confucian economic thinking emphasizes regulation over "laissez-faire."

False

Confucius is a "laissez-faire" thinker--this implies an absolute--that government must never regulate any element of business.

False

Confucius, like Plato, supports production—but only for disposable goods.

False

GDP equals total dollar value of goods sold minus a country's debt.

False

Plato supports unregulated business and the sale of discretionary goods

False

Self-interest, says Smith causes business practitioners to cut corners, decreasing value, in order to lower their costs and increase profits.

False

Smith is in favor of tariffs and duties because he thinks they add to a country's GDP.

False

Smith's "Theory of Moral Sentiments" suggests that our morality is tied more to our delight in being good than what others may think of us.

False

Smith's value theory suggests that value is a perception only and need not be a reality---that its value is subjective and only in the consumer's mind.

False

The Columbus mission produces a partnership agreement between Columbus (Spain) and the Taino Indians. Creating business partnerships becomes the norm of Spanish conquest in the 15th and 16th

False

The Nintendo "Gameboy production" story relates to this theory of history: dialectic theory.

False

The second most important value in the USA--the one that supports achievement and success (therefore, the second most important value), is efficiency, or productivity.

False

The story of Gyges proves, for Glaucon (Plato), that educated and wise people would not do what Gyges did to secure success and power.

False

Thoreau opposes technology and says that while we may get use out of technologies, like the railroad, they generally are not useful enough to justify the work we put into creating them.

False

Thoreau prefers big business to small business; the former, due to size and economies of scale, is more likely to allow you the freedom to work less.

False

Thoreau thinks we should have meaningful jobs, not just jobs that pay.

False

Explain the "feudal order" as Weber describes it.

Fighting to protect people from class climbing

What are Emerson's five measures?

Finance, Accounting, Marketing, Management, Production

According to Thoreau, what is important for your job to do, irrespective of the business in which you work?

Food, shelter, clothing, fuel- allow us to entertain problems with freedom and prospect of success. (Lower 2 sections of Maslow's triangle)

According to Thoreau, what do we need possess for ourselves in order to entertain the true problems of life?

Food, shelter, clothing, fuel- allow us to entertain problems with freedom and prospect of success. (Lower 2 sections of maslows triangle)

Cicero - obligations of friendship

Friendship still applies in business and is even necessary

Saikaku - how does he keep his accounts

Frugality, Keep costs down

Why does Fukuyama think we are at the end of history? Why do Comte and Fourier think we are at the end of history?

Fukuyama--When everyone comes to the common census that business is about infinite profit, infinite growth, and maximized self-interest. Comte and Fourier--Industrial Revolution, When you eliminate scarcity you come to the end of history.

Who are the antithesis thinkers you have read so far?

Goethe, Plato, Aristotle, Thoreau, Tawney, (Acquisitions) Marx

Marx writes that "in general, the greater the productiveness of labor, the less is the labor time required of an article." What does he mean?

Greater productivity, less time needed for the production of the article, the less amount of labor crystallized in the article and the less its value. The more time it takes to make a product, the greater labor time, less are produced and all have more value. The value of a commodity varies directly as the quantity of the labor put into it.

How would you define GDP?

Gross Domestic Product: A summation of all goods that a certain country makes at home

Who posits the first "end of history" argument? Describe it and compare with others.

Hagel: Thesis, Antithesis, and synthesis

What does Mephisto offer Faust and how is it a modern idea?

He offers him riches, fancy houses, women. Modern in every sense!

What is Thoreau's position on the older, wiser generations?

He said that "your elders teach you nothing for they have neither lived the ways necessary and are too old to live the new ways.

Describe Aristotle's "Thales" story. What is the point of his telling it?

He tells it in third person. Thales was looking at the stars and found that there would be a rich supply of olives in the coming season so he bought all the olive pressers at a very low price and made a ton of money the next season. In approximately 1 year, his company then goes on to become a monopoly. This is a demonstration of a good man becoming a "bad" one. When you want to make money, you reduce yourself to a lower level then what you plan.

Why does Thoreau go to the woods? Why does he leave the woods?

He wanted to live deliberately, to front only the essential facts of life and to see what it had to teach. he went there to "live". He leaves because it was just an experiment.

What, according to Tawney, is the position held by Dante and the Cahorsine monks on finance, or the lending of money?

He was highly against it. "Dante put the Cahorisine monks in Hell."

What constitutes a healthy business environment for Plato? What aspects of business does he think are essential to creating that health?

Healthy business environment is one where everyone is interdependent, and everything begins with needs (food, shelter, and clothing). To create a healthy business environment there should be a division of labor. With this division: you gain experience that make you more skilled at one specific task, which generates lower costs, which leads to lower prices, better quality, and more distribution.

Describe Smith's argument about home markets.

Home markets are limited by their capital. Capital should be maintained within the home market as much as possible. Foreign trade should only be employed to benefit one's own home market.

What is Thoreau's "serfs of the soil" argument question?

How someone got forced into the lowest class of cultivators that they must work for every day of their lives. (50+ hours a week.) How they must work every day of their lives and in the end, really have not gotten anything or anywhere doing it.

What does Weber say about a change of calling—is it under any circumstances?

If "it is useful for the common good or one's own, and not injurious to anyone, and if it does not lead to unfaithfulness in one of the callings.

Cicero - conclusions on house selling affair

If a defect poses mortal peril you are obligated to tell otherwise the buyer should be educated. Caveat vendor: Seller Beware Caveat emptor: Buyer beware

Mill - justification for interest

If you abstain from consumption, you should be receiving some sort of return

What, in Friedman's belief, is the idea of corporate social responsibility?

It is based on the discretion of the stockholders. They can decide. The business itself has no responsibility or obligation (ceo, employees, etc.) to anyone other than the stockholders. They need to maximize the money to their stockholders.

Maimonides - attitude toward religion as it impacts faith

Jews can only lend with interest to gentiles not other Jews.

What actions suggest that Columbus practiced a kind of business imperialism? How does he serve Spain (what good things does he do for Spain)?

Killing the Caniba, showing and demonstrating their weapons on the shore to the Indians. He took advantage of the exchange value- the exchange was of less value than what the Indians were giving to him- gold. Declaring the Carribean as Spain.

What, according to Marx, is the one kind of value that can serve as the basis of commodity pricing in a communist state?

Labor

Carnegie - suggestions for better labor/capital relations

Labor deserves a fair return. Treating your employees well

Tawney -why 19th century motivators don't work in the 20th (and now, 21st, century) century

Labor is educated. Not motivated by fear.

Tawney -the problem of efficiency in 1920

Labor is no longer motivated by fear and managers are still using motivation by fear and it isn't working.

Is Emerson a laissez-faire, socialist, or Fabian thinker—he tells us. Explain his motives.

Laissez-faire because he felt that there shouldn't be rules enacted in order to limit business productivity, that the government should not legislate, make equal laws, open the doors of opportunity. He is a capitalist.

What, in Plato's belief, will we do when there are no restrictions in business?

Marriage between virtue and vice

Compare Maslow's Needs Hierarchy to Thoreau's "Needs Hierarchy."

Maslow's Hierarchy of Needs: 5. Physiological (food) 4. Security (shelter) 3. Affiliation (affection, love) 2. Self-esteem 1. Self-actualization (beginning a search for your own consiousness) - fewer than 1% are actually in number Maslow says people spend most of their lives in 3 and 4. Thoreau thinks you only need 1 and 2. He thinks people should do what it takes to make them happy now.

Explain Rand's argument for "money is the root of all evil."

Money is not the root of all evil. If you criticize money then you have to criticize the mind and the creative idea because those are the first steps to generating money. Man's mind is the production of all goods and wealth.

Which types of moneymaking does Aristotle dislike the most?

Money made from interest is unnatural. Money was intended to be used for exchange. (USERY)

Defoe - why should merchants keep the books

Moral obligation to understanding accounting.

Maimonides - rule for joint ventures

Multiple people go into business, all should gain and lose.

How does Emerson describe business and the people who succeed at it?

Nature is an outgrowth of God, business is an outgrowth of nature, therefore, business is an outgrowth of God. Comparative advantage: nations first have it, China: labor us: technology. People have it as well, for example, brains, common sense, etc.

What does Aristotle's "shoe" analogy suggest for needs to be real?

Need is natural and proper. It is natural or proper to have the shoe because it is a fulfilling its intended purpose/need, but it is unnatural to buy a second pair because that need has already been fulfilled. Second pair: improper and unnatural.

Cicero - difference versus Plato interpretation of Gyges

Plato: Any man would turn bad.Cicero: An educated man would not

Franklin - rules for borrowing and lending

Nothing wrong with interest. Point of borrowing money is to get rich. Do not borrow it for consumer uses (food, clothes). Borrow money to start business, so you can make money with it. Danger in debt. AGREE WITH EMERSON

What is the old world/new world problem in Faust?

Old World: Religion/theological drivers New World: economic drivers Faust tries to combine the two.

What are the assumptions of the Catholic Church during the medieval period?

One independent variable and ratio or interval dependent variables.

What is market development v. market penetration relative to the Columbus journal?

Penetration--Make relationships, exchange, angelic advantage, intimidation factor, and good letters to stockholders. Development--wealth, servants, exchange land, colonization, catholic converts

(Fill in the blanks) According to Rockefeller Jr. the soundest industrial policy has in mind the welfare of _____ as well as the making of _______.

People, profit

Why does Socrates say that war is the inevitable result of a "wants" orientation?

Peoples infinite desires in the city of wants leads to a growth that can no longer be sustained within the city limits. The society will want to branch out and take what others have (specifically their land and resources), and if the neighboring city is also a city of want, they will want what we have. This is why war is inevitable.

What would Carnegie accept as good uses to which surplus wealth can be directed?

Philanthropic uses that befit the public as a whole, like libraries, concerts halls, schools, parks

Which professions does Mandeville cite as corrupt but helpful to the hive? Explain his logic.

Physicians, Lawyers, Theologians (Philosophers), Generals, Cabinet-Congress-ETC (Government)

Which ancient philosopher says: "Men seek after a better notion of wealth and of the art of making money than the mere acquisition of coin, and they are right."

Plato (427-347 BC) and Aristotle (384-322 BC) and other influential Greek and Roman physicians.

Mill - justification for profit

Return on Investment (ROI) If you advance money for purpose of moving it forward, you deserve a return. Bank deserves a return too

What does Tawney mean by economic rights and economic functions (The Acquisitive Society)?

Rights—get as rich as you possibly can and do whatever you like with it. Functions—social responsibilities.

Who says that empathy tempers self-interest in commerce? Explain his reasoning.

SMITH-the empathy of your workers and people around you will temper your greed.

Saikaku - explain the cakes story

Saikaku ordered rice cakes. Assistant purchased the cake. Pay by weight. Saikaku was upset because after the cake cools down, it would cost less. Do whatever to honestly lower costs.

What was John Calvin's attitude toward wealth?

Salvation by faith- teachings should be based on the bible, and all people with faith are equal.

Does Confucius favor any kind of regulation? If so, describe it.

Says that government should follow three things: Equality, opportunity and freedom. Only regulations he wanted were tariffs, monopolies and class system. Ideal world for him is that men can have and produce what they want and the government will help them and not get in their way.

What is the "shareholder" problem in Faust?

Shareholders restrict and disregard vision.

Explain Rand's argument for "the love of money is the root of all evil."

She claims there is nothing wrong with loving money. Money is the creation of the best power within you. If you love the money it's because you love what it is that created it (aka the mind).

What does Aristotle say about the philosopher Thales?

Showed to the world that philosophers can easily be rich if they like, but that their ambition is of another sort.

Carnegie said most able "men" were the ones who would earn a lot of money and this justified their philanthropic leadership. He based this justification on which belief?

Social Darwinism

Carnegie - 1st suggestion for improved capital/labor relations (the one he cannot implement 1n 1889)

Stock sharing system: better the company does, the better the employees do. Sliding Scale

Saikaku - his attitude toward women in accounting

Successful in accounting because of there ability to keep track of details. Far superior than men to compartmentalize.

Who says: "[Man] has what is peculiar to himself, an inclination to the life of the intellect and of society - 'to know the truth about God and to live in communities.' These activities, which form his life according to the law of nature may be regarded...as indifferent or hostile to the life of the spirit. But the characteristic thought is different. It is that of a synthesis."?

Tawney

During the advance of commercialism in the medieval period, according to Tawney, what did Church choose to do as a response to those who would pursue money in business?

Tell them it was okay to pursue the money, but must follow church rules and regulations.

How is the Columbus mission a joint venture and a market development project?

The church and Spain are stockholders providing the capital, there was a joint venture with the Indians--they are to mine gold, grow vegetables, etc. In return, Columbus would put an end to the Caniba invasions. Market development: Try and sell as much as possible in as many places as possible. Once land is developed, it is an asset. Also convert Indians to Christianity.

What are Rand's views about money, love for money, and the phrase "to make money?"

The more you have, the more power you have over the things around you. The love of money isn't bad. To make money allows you to control the variables around you.

What does Smith say about regulating imports through monopolies and tariffs?

They are bad- don't promote growth, because they don't let competition in. More companies means more advertising, increased quality, decreased price, increased employment, increased wealth, increased production, increased consumption.

What is an acquisitive society?

The one we have today. One driven by power and infinite expansion for our own self-advancement.

What did worldly Protestant asceticism mean according to Weber?

The paradox of wealth being a sign of election (not a guarantee) and that you seek wealth only to be ascetic with it and save it.

What does Thoreau mean when he uses the term "serfs of the soil"?

The slaves to working. People who are just confined to work in order to fill fulfilled.

What is Thoreau's position on the consumption of luxuries?

There is no place for consumption of luxuries. You should only consume the necessities of life

What are the "sumptuary laws?" Did they fail or succeed? Why?

They allowed people to buy things, but only at the same level as everybody else. They changed yearly and made it so that people could buy luxuries, but only what was allowed and not necessarily what people wanted. Failed because people still did not get what they wanted.

What was the most probable cause for the Catholic Church's failure to direct commerce toward a greater emphasis on salvation?

They were corrupted by their own system and avarice. Engaged in usary, the sale of indulgences, etc.

How did the Catholic Church of the feudal order respond to "social climbing? Why?

They weren't fond of it because they wanted to stay in control with the other minorities that they also controlled.

Veblen - what happens when people can't buy goods on emulative basis

They will go into debt

What does Friedman say about what we now call "cause-related" marketing?

Thinks that it is a joke, for the publicity and the money that it will make in the future.

Who said: "the mass of men lead lives of quiet desperation."

Thoreau

What are Thoreau's views of big versus small business?

Thoreau doesn't trust big business. He wanted business traits. Liked the idea of being productive in his own business (small). Can keep your soul with small business.

Who says: "yet not the less, in my case, did I think it worth the while to weave them and instead of studying how to make it worth men's while to buy baskets, I studied rather how to avoid the necessity of selling them."

Thoreau regarding his basket story

Through what the Medieval Church expected to lead people from a barbaric materialism to higher religious principles?

Through the intermediate (church and business classes)

Veblen - how conspicuous consumption began historically

To be like someone as successful as you want to be. Ex. Chief

How does Conwell justify the pursuit of wealth?

To make money honestly is to preach the gospel. The men who get rich may be the most honest men you find in the community. You do more good with your money than without it and it gives you power to do good with it so reinvest it.

What needs does Mandeville's hive doctrine introduce for economic health of nations?

Vice and Virtue need to work together. Vice as the "noble sin". One without the other is unbalanced.

If one takes his allegory seriously, what is Mandeville's belief about commercial society?

Vice and virtue are both necessary for a society.

Which wants does Emerson say cannot be argued down (he provides a list)?

Wants are problematic, but wealth can be problematic. 1) Each man's expense must proceed from his character. As long as they are genuine buys, the investment is safe. 2) Nature goes by rule. The secret of success lies never in the amount of money, but in the relation of income to outgo. 3) Investment. Do not dictate nor try to carry out each of your schemes by ignorant willfulness, but to learn practically the secret spoken from all nature, that things themselves refuse to be mismanaged, and will show to the watchful their own law. 4) Corporate Culture-(Entrepreneurs) Look for seed of the same kind. Not to buy one kind of another's friendship. 5) All things ascend. Whatever we do must have a higher aim. You can buy or invest for spiritualization.

Who says: "The real moral objection [to money] is to relaxation in the security of possession, the enjoyment of wealth with the consequences of idleness and the temptations of the flesh, above all of distraction from the pursuit of a righteous life"

Weber

Mill - "Wal-Mart" Principle

What Walmart does in order to be successful, is when they buy inventory, they do not spend their own money. They take a loan for 30 to 60 days. Buy inventory on loan, sell it for the lowest possible price but at the highest velocity. Pay back loan day before it's due. Penetration pricing

What is a functional society?

When people put their communities needs first and make that the driver of their profit.

What does it mean to say that this recession (The Great Recession) is a "deleveraging" recession?

When the stock is dropping you can't do anything. It is a power deleveraging situation.

How do land, labor, capital and entrepreneurialism factor in to the Columbus mission?

With him as the entrepreneur, it creates the 4 necessities of capitalism: Entrepreneur=Columbus, Capital=ships, oars, men, goods to trade, Land= Hispaniola, Labor=Indians)

What is, according to Emerson, the first thing each person must do for himself and to make society more unified and secure?

Work: have a secure job that provides for you

Is there any relationship between "supply and demand" and the "Great Principle" of Confucius? Explain.

Yes. "It is simply that everyone respectively employs his own ability and exhausts his own energy to get what he wants. Therefore, when the commodity is cheap, it calls for the demand and raises its price; and when it is dear, it calls forth its supply.

Veblen - conspicuous consumption as habit and what it means to standard of living

You are buying so people see what you have.

Smith says,: "No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain." What does it mean?

You can only do so much along the production curve

Describe Emerson's "animation" argument.

You must animate the things you buy- using them for a purpose to improve yourself or the world. For example, using a computer to learn, not play solitaire.

Veblen women as trophies--historical perspective and motives of the men

You see the chief with a big hut and lot of food, horses. Motivates you to want to do the same

Veblen definition of pecuniary emulation

You want to be like someone you see is successful, so you do what they do.

Carnegie says that for capitalism to work, we must accept certain inequalities and accept difficult principles. What are they?

cutting costs: Cutting labor, laying people off. AKA "Big Corporation affects"

Aquinus Promotion

do not inform buyers unless it endangers the buyer. However, ought to inform, but the buyer should inform themselves.

Describe the Confucian "circle."

employment> income> demand> consumption> production (Investment)> employment - circle starts over from here. In the center is "Equalized distribution" Overall Prices Fall

Saikaku - what is the purpose of accounting

to get rich

Cicero - fairness doctrines

we don't want to see people fail we want to see them succeed. we want to see people succeed at no one else's expense.

Cicero - expediency principle of Aristides

what is morally right isn't always expedient and what is expedient isn't always morally right