30.9.11

Classical Economic Theory Part 2

Labors
Some classical economic figures such as Adam Smith (1723-1790), Thomas Robert Malthus (1766-1834), Jean Baptiste Say (1767-1832), David Ricardo (1772-1823), Johan Heinrich von Thunen (1780-1850), Nassau William Senior (1790-1864), Friedrich von Herman, John Stuart Mill (1806-1873) and John Elliot Cairnes (1824-1875) obtained the honor of Karl Marx (1818-1883) in the upper of classic explores the economic problems being assessed does not go obsolete . Unlike the Merchantilist and the Physiocrats, the classical economic analysis focuses on price theory. The classic try to resolve the economic problems with the way the study of demand and supply factors that determine price.

John Maynard Keynes (1883-1946) argued that the classical view of economic analysis focuses on price theory, it is necessary to understand the use of means of production to perfection. In this connection the classical notion extended to the economists who do not consider it possible existence of an undesirable unemployment (involuntary unemployment).

One of the ideas of the classical influence in the era of globalization the world is thinking about international trade. Thought the mercantilist ideas of the classic against which it favors only the entry of export-oriented precious metals and by minimizing the import of goods from abroad.

The mercantilist put pressure on foreign trade. The Physiocrats saw agriculture as the source of all prosperity. Adam Smith (1723-1790) as the classical figure to express his opinion in his book entitled "Inquiry into the Nature and Causes of the Wealth of Nations" is: "Work carried out a nation is to finance the capital needs of the people living on its origin, and with the results of such work can be purchased for purposes of his life abroad. "productive capacity rather than labor is always increasing due to the division of labor is more fundamental and neat.

Adam Smith (1723-1790) describes the advantages of the division of labor by giving an example of a needle factory. Inside the needle factory, a worker can definitely make the needle 20 pieces a day. From the results of Smith's visit to a factory hand who has done the division of labor, workers turned out 10 people can make 48,000 pieces of needles, a division of labor that there is an interesting special wire, there is a special cut and there are special sharpen the needle, and others. From these circumstances it can be argued that the work performed pembagiaan it can enhance the production of every worker of the 20 pieces to 4800 pieces needles or as much as 240-fold increase.

The division of labor is often divided into two terms, the first is to divide the work into simple so that all workers with a certain level of expertise can do the job. Understanding the second is the division of labor that divides the work of a multilevel production activities into several sections. In the development, the concept of division of labor continues to grow and directed the activities terspesialisasikan work, and in the production activities of a more modern division of labor occurs conveyor systems ("conveyor system").

Mass production of cars by Ford itself also inspired by the concept of division of labor, so the cheaper the cost of production. With the cost of production is more efficient, the price offered can be more competitive with other products. Currently the concept of division of labor has been used extensively in almost all industrial sectors.
Profit division of labor is:
1. Everyone can do the job that suits his talents.
2. Can increase knowledge on the job so it is more steady.
3. The person doing the same job on an ongoing basis so as to avoid loss of time, this means more efficient.

Thoughts on value by the classic still relevant to the development of the world today. For example in Indonesia who have problems in determining the selling price of a few state enterprises that are considered too expensive.

Related Post :

0 comments:

Post a Comment