Reviews for The Republican Party: Its History, Principles, and Policies

The average rating for The Republican Party: Its History, Principles, and Policies based on 2 reviews is 4 stars.

Review # 1 was written on 2017-04-25 00:00:00 Shellina Rush 095-The theory of economic development-Joseph Schumpeter-1911 Barack "The function of entrepreneurs is to combine factors of production and bring them together. Because this is a special action only when the elements are first combined - and if it is done in the process of running an enterprise, it is a routine task. ." Joseph Schumpeter, born in 1883 in Moravia (present-day Czech Republic) in the Austro-Hungarian Empire, died in 1950. He received his Juris Doctor degree from the University of Vienna. In 1932, he moved to the United States as a professor of economics at Harvard University. Representative works: Capitalism, Socialism and Democracy, Economic Development Theory, History of Economic Analysis, Marx to Keynes Top Ten Economists, etc. The Theory of Economic Development was first published in Austria in the autumn of 1911. Economic books. It summarizes the main economic phenomena of the generation and development of capitalism and makes a pioneering and profound discussion while describing the historical development process. The first innovative theory put forward in this book was that it caused a sensation in western economics. Part of the directory. 1. The circulation of economic life is restricted by a certain environment. 2. The fundamental phenomenon of economic development. 3. Credit and capital. 4. Entrepreneur's profit. 5. Interest on capital. 6. Economic cycle. Schumpeter pioneered the "Innovation Theory". According to Schumpeter, innovation, or a new combination, essentially means creating a new production function. It may be to create a new product, or it may be to increase the productivity of existing products. An economic activity without a "new combination" is essentially a circular flow and has no "development". In such production, the residual value beyond the value of the goods produced is generally not obtained. Production can only realize the value that is seen in advance in the production plan, it is pre-hidden in the value of the means of production. Economic growth, such as population growth and wealth accumulation, cannot in essence be called a development process. Because it does not produce qualitative changes, and there is only one adaptation process, is a change in quantity. In the process of development, there are three important factors, "land" "labor" and "new combination of means of production and credit". We call people who implement new combinations "entrepreneurs". In other words, people with such tasks cannot be called "entrepreneurs" or "professional managers" if they simply maintain the day-to-day operations of existing portfolios and management enterprises. Despite the new mix of entrepreneurs' "leaders", the image of capitalist entrepreneurs is not relevant to the image of the political leaders we know well. The latter convinces people of the desirableness of carrying out his plan, and the only person the former has to convince or impress is the banker or investor who will fund him. In principle, only entrepreneurs need credit. Credit is essentially a creation of purchasing power that empowers entrepreneurs, but it is not simply a transfer of existing purchasing power. The purchasing power here is not generated out of space but draws the original purchasing power out of its original position and into a new portfolio led by entrepreneurs. What bankers have to do is entrust factors of production to such a group of people. By sacrificing the purchasing power that existed before, this newly created purchasing power allows the new portfolio to move. In a circular flow, the same products are produced in the same way year after year; "In a circular flow, an enterprise's total income (income without monopoly factors) is sufficient to offset expenditure." The characteristics of their income can be expressed in full terms of "operating wages". In other words, in such enterprises, there are only producers who make no profit and do not suffer losses. Profits are generated only in new combinations created by "entrepreneurs". This is what we call entrepreneurial profits. Therefore, the entrepreneur must be an innovator. Innovation is bound to be destructive and profitable, And the group that made the profits was the one who first introduced the new portfolio into the market. Because books, like children, become independent people once they leave their parents' homes. They live their own lives, and authors have their own. It would be inappropriate to intervene with outsiders who have left home. The book has broken its path, rightly or wrongly, and it has earned its place in German literature in its time and field. For me, it seems best not to let it get in the way as much as possible. ." "When we look at the general forms of economic phenomena, about their consistency, or about how to understand their keys, we are showing that at this moment we want to see them as something that needs to be studied as something "unknown" and something that needs to be explored; When we succeed in finding a clear causal relationship between the two phenomena, if the phenomenon of "cause" is non-economic, then our problem is solved. That's what we can do as economists in this situation, and we have to give way to other disciplines in the future. On the other hand, if the factor as a cause is economic, we must continue our efforts in interpretation until we reach the base of non-economic. This is true for both general theories and specific cases. If I can say, for example, that the phenomenon of land rent is due to differences in the quality of land, then the economic explanation is already complete. ." "The same is true of other items in the farmer's calculations, not to ask him whether he is fully accounted for like a big industrialist, or semi-consciously and through the power of habit to make his decisions. Within certain limits he usually knew the price of what he had to buy; he knew how much he had to spend on his work (whether he was calculating the value of his labor on purely economic principles, or he viewed it in a completely different light than anyone else); he knew how to farm it, all based on long-term experience. It is also from experience that all the people he buys from him know the size and intensity of his needs. Since the "circular flow" of economic periods, which is most striking of all economic rhythms, is relatively rapid, and because what happens in each economic period is essentially the same, the mechanism of exchange economy operates with great precision. Past economic periods dominated the activities of individuals. ." One of the reasons for connecting human society to its great power is that, in addition to the political system, there is our economic system. It is conceivable that if modern society does not have a strong economic system, almost everyone in society will be connected to this network. How the overall strength of human society will be greatly weakened. And this system, which connects the vast majority of individual humans into this network, is one of the sources of strength that gives us a significant advantage over other animals. How much meat the butcher sells is determined by how much meat his customers, such as tailors, will buy and at what price. But this depends on the latter's operating income, which in turn depends on the needs and purchasing power of the latter's customers, such as shoemakers, and the purchasing power of shoemakers depends on the needs and purchasing power of the people he produces for them; This economic world is made up of quantitative interlocking and interdependent relationships that can be seen everywhere, no matter which direction people choose to move around. No matter where you enter this, no matter where you leave it, you may have taken many, but not a certain number of steps, and you must return to this starting point in the end. ." It is precise because economic activity is so interconnected. This allows changes in one of these links to spread to the entire economic system like ripples on the surface of the water. Especially in today's highly globalized economy, this effect may be even more pronounced. Our economic system is like an ecosystem. Consisting of a large number of parts, they interact with each other in one form or another. Social products themselves do not exist as social products. It is not the result of the conscious yearning of systematic activities, just as the economic system itself is not an "economy" operating under a unified plan. "If we think we have enough intelligence, we can accurately plan the output, sales, and sales of every commodity in our economic activities." Then we will certainly pay the price. Economic activity may have any motive, even a spiritual one, but its significance is always to meet needs. "Philosophers encourage us to reduce our desires, and thus our troubles. Economists encourage us to pursue our desires because it encourages us to spend more and produce more. "These two "aspects" of production make it an economic problem from the start. It must be distinguished from the purely technical problems of production. There is an antagonism between them that we often see in economic life in the personal confrontation between a technical manager and a business manager in a business. We often see changes in the production process proposed by one party rejected by the other. For example, an engineer might suggest a new process that business leaders reject because they would not benefit. Engineers and businessmen may express their views that they aim to manage the business properly and that their judgment comes from knowledge of this appropriateness. "To this day, there is still such a contradiction between those responsible for production in an enterprise and those ， responsible for business practices. The purpose of the two sides is different, thus creating a difference in conclusions. It is also useful to often compare ideals with reality so that the abandonment of possibilities is not due to ignorance, but to considering mature economic reasons. In short, every method of production used at certain times is subject to economic appropriateness. ." Technically and economically, production means combining things and power within our means. Each production method means a particular combination. Different production methods can only be distinguished by combination, that is, either according to the object of the combination or according to the relationship between their quantities. Each specific production behavior, for us to reflect such a combination, for us is such a combination. ." So technology refers to a production method or combination of products. Like giving children the same building blocks, different ways of the building will get different results, either castles, or airplanes, or robots. Even if you give the same people, material resources, and money as a business, different methods of using these resources will produce different results. The most important thing for business owners is how to continuously optimize the combination of all the resources at hand. But we immediately saw that the need to make a decision would arise in any work. The apprentice of a shoemaker cannot repair his shoes without making a decision and deciding on some issues independently, no matter how small. "What to do" and "how to do" taught him; When a power company worker goes to a home to repair a lighting system, he even has to make some decisions about what to do and how to do it. An agent even has to be involved in price decision-making, and within a certain range may entrust him with the right to set the price of his goods - yet he is neither a "leader" nor necessarily an "independent". As for business leaders or independent owners, they must make decisions and make decisions on most things. But what and why he did it was also taught to him. ." If we divide the form of labor into the labor of the leader and the labor of the enforcer. Each of us plays both roles but in different proportions and degrees. Even as a business leader, his job is not entirely to assign others what to do. It also contains something that requires his direct execution. And even as small as a front-line worker. His work is not entirely to follow the instructions of his superiors to do things. On a smaller level, he also needs to make his judgments and have absolute autonomy. There are all kinds of economics in this world that say that we can't read them through in our limited leisure time. Therefore, we must carefully choose, carefully allocate their time resources to those relatively cost-effective theories and theories. It's as if a person can eat a limited amount of food a day. Then he must carefully select the type and quality of food ingested. After eating too much junk food, the appetite for healthy food is bound to be small. Since all production involves choosing between the possibilities of competition and always means negating the production of other goods, the total value of the product is by no means a net gain, but merely its surplus after subtracting the value of other products that could otherwise have been produced. The value of the latter represents an argument against the selected product, while at the same time measuring its strength. Here we encounter the cost element. Cost is a phenomenon of value. At the end of the analysis, the cost to producers of the production of a good is such that the consumer goods are: they could have been obtained with the same means of production, but they cannot now be produced because of the results of the production choices. Thus, the use of means of production involves a sacrifice, as does the use of labor in terms of other means of production. There is indeed another condition that must be met about labor, namely that every expenditure on labor must create a utility that at least compensates for the counter-effects associated with labor expenditure. This, however, will in no way change the fact that, within the scope of this condition, an individual engages in labor expenditure in the same way as he engages in expenditure on other productive resources. ." 2016/11/13 2020/04/18

Review # 2 was written on 2011-11-30 00:00:00 James Stewart Schumpeter's comprehensive theory of economic development as entrepreneurial innovation was first laid down in this 1911 book. It prefigures his theory of "creative destruction" in Capitalism, Socialism and Democracy. Compared to the scanty attention paid to the subject in that later and arguably more famous book, The Theory of Economic Development explains the matter in detail. The book is all about the impact of innovation on the shape and trajectory of the evolving economy. This process explains the creative destruction of business fortunes, technological innovations, and the oscillating nature of capitalism's triumph. The book has six chapters. It is possible to get the heart of his theory, as Schumpeter readily admits, by simply reading Chapter 2 if you are already familiar with the essence of the neoclassical equilibrium theory, i.e. what Schumpeter calls the theory of "circular flow". If you need refreshment, this theory is summarized, with idiosyncratic flourishes, in Chapter 1. The second chapter, however, marks a departure from this "circular flow" theory by providing an endogenous theory of development focused on the entrepreneurial act of innovation, defined as the creative recombination of existing resources and goods, that upsets the commercial equilibrium. This theory explains how capitalism is essentially an evolutionary process that proceeds through "jerky motion" and does not "grow like a tree" (both metaphors used by Schumpeter himself). In this process, old industries, techniques, and values are destroyed, and new ones are born/birthed which again gives rise to various new profit opportunities that can be seized by alert innovators. The last four chapters explicate this theory, with dogged persistence, into the realm of banking, credit, entrepreneurial profit, wage levels, prices, rising prosperity, and business cycles. The value of this chapters lies in their brilliant exposition of the link between entrepreneurial innovation and the functioning of the rest of the economy. He convincingly shows how the continual disturbance of equilibrium conditions through entrepreneurship has massive ramifications for the various classes of the "evenly rotating economy". However, in the final analysis, re-evaluating Schumpeter's theory in light of numerous advances in business cycle theory, credit theory, monetarism, casts some doubt as to the universal validity of some of his suggestions which remain sketchy. Schumpeter himself later on became rather dissatisfied with some of the exposition in these later chapters, as explained in the author's preface to the second edition of the book. At any rate, the brilliance of the central theory cannot be doubted. The equilibrium theory of neoclassical economics can explain important parts of the economic process, but it also leaves several important parts unexplained. These can better be explained by seeing innovation and creativity as propelling the economy into a disequilibrium, evolutionary process. The field of contemporary evolutionary economics owes its origin to Schumpeter's marvelous insights. They remain as fresh and exciting today as they must have been when originally presented.