Criminal Justice Sample Essay on Economic Theories

Economic Theories

  1. Per the text, one (1) of the major beliefs of classical economists was that individuals are basically motivated by self-interest in most of their actions. On the other hand, socialists believe that governments have a major responsibility to perfect people by motivating them to look beyond their self-interest. Defend one (1) of these two (2) opposing positions. Provide support for your response.

Doing socially beneficial things that are in one’s own interest makes it possible to use human abilities properly. Communism puts an end to political authority. Individuals will absorb society into themselves and recognize humanity as their own internalized nature. Socialism erodes away equality and individual diversities. Without the establishment of an equal society there is no strong coercion hence social political movement will create internal conflicts and therefore a void in social responsibility.

  • Within the conservative media, many opponents of President Obama’s policies label such policies as socialist. From the e-Activity and your knowledge of various socialist ideas, evaluate the validity of such assessments. Justify your response.

      President Obama has been striving to increase control over the economy on energy, education, and healthcare with smaller forays into transportation and food. He is adopting strategies in socialism the economy. Increasing taxes on the rich is gradually restricting labor output putting productivity under the control of government. He is also putting centralization of the country’s financial system in the hands of the state.

  • Compare and contrast the fundamental tenets of the German historical school with those of the classical school of economics. Investigate the key contribution(s) of the German historical school to current economic theories and policies.

 Historical school saw economics as resulting from careful historical and empirical analysis unlike classical school who based economics on logical implications. According to historical school, source of knowledge was history and not current social conditions. Historical school undertook historical investigations covering wide areas, a system that provided business men with textbooks and handbooks for reference. They also introduced comparative historical method.

  4. From the e-Activity, dispute the validity of the rational economic behavior tenet of marginalize in relation to the events that led to the 2008 financial crisis. Justify your response.

The neoclassical approach in having a unit in which to measure capital is independent of distribution and prices. It is therefore incapable to explain the origin and size and the rate of profits in any approach in the theory of distribution. The models of marginalize tend to focus on markets or aggregate outcomes instead of observing individual behavior. The 2008 crisis aftermath resulted from ignoring the conflict of individual’s interests.

  • Critique or defend two (2) of Jevons’ views on public policy. Substantiate your position with evidence of the success or failure of current public policies favored by Jevons.

According to Jevon, it is wholly a confusion of ideas if we supposed economical use of fuel to be equal to the diminished consumption. Britain was rapidly depleting coal on which it wholly depended on. The perspective was to improve their economy in future which Jevon saw was not energy efficiency. Jevon’s view that efforts to improve efficiency in energy could negate environmental gains has been proved by the upcoming economists. This is following the long term rise in U.S. motor-fuel consumption and increase in curb weight, miles travelled by vehicles and car ownership since 1980.

  • Compare and contrast Clark’s marginal productivity theory of income distribution with Marx’s distribution theory. Defend one (1) of the two (2) income distribution theories.

Clark believed that each factor of production would receive an equal return to its contribution in the society and therefore the distribution of income was ethically correct. He therefore explains why income is distributed in a particular way bringing an understanding to the flow of income. Marx only focuses on measurement of capital per unit to the expense of how income is really distributed. It is therefore unable to relate the unit capital to income distribution.