The Philosopher Café

July 26, 2006 Meeting Notes

 

I.           Book/Media Discussion – 6:00 – 6:10

o      The Worldly Philosophers, Heilbroner, Robert L.

An overview of the major ideas in the philosophy of Economics including Adam Smith, Karl Marx, Thomas Malthus and John Maynard Keynes. 

o      The Wealth of Nations, Smith, Adam

Considered by many to be the founding treatise on economics establishing the principles of supply and demand and economic value. 

o       Deming Management Method, Mary Walton

You may remember a lot of hype about quality back in the 1980s.  This was a time when American corporations gave lip service to quality because they could not ignore the success of Dr. Deming’s methods as practiced by the Japanese.  Ironically, Dr. Deming insists that he was just teaching what American business had done early in the 20^th century but had since forgotten. The clear sense of his ideas is still lost on most of America’s corporations.

o      Capitalism: The Unknown Ideal, Rand, Ayn

Rand expounds on her principles of natural rights, rational self interest and capitalism, the economic system that makes these possible.  She argues that the problems of capitalism are in fact problems caused by government interference with the market system.

II. Discussion:    Is government intervention in commerce necessary?  6:10 – 7:00 PM

Participants recommended the following books:  Why Do Businessmen Need Philosophy? By Ayn rand and Capitalism and Progress by Bob Goudzwaard, and The Black Book of Communism.

 

 

o      The cost of a needed project such as a bridge or disaster relief so you need the government to do it.

o      Government provides things for the common good.

o      Consider Native Americans before the colonization. There were no property rights because there was no understanding of ownership the way we understand it.  They had only the bare essentials and worked hard for that.  There was no specialization of labor, i.e. no concept of skills/jobs.  Were they happy this way?  First, you don’t miss what you don’t have.  The question becomes, would people be happier if they never discovered property rights/ownership, i.e. capitalism?

o       Consider theMiddle East with governments that are primarily anti-capitalistic theocracies.

o       Economy comes from ancient Greek words “ecos” which means household and “conomy” which means stewardship.  I think the government is the steward of our tax money and is responsible to manage it for the public welfare.

o      I think that view is an open door to problems, i.e. lead to other economic views such as socialism and communism.

o      What’s the goal of making all this money?  Is it to benefit all or just get some very rich?

o       It is not ethical to take the money of the man who earned it and give it to someone who did not.

 

III. Introduction – Philosophy of  Economics 7:00 – 7:30 PM

 

Relevance of the topic

 

o      France passes a law banning companies from firing employees.

o      France is now considering a law requiring that Apple use a standard format for its Ipod.

o       Microsoft and Anti-Trust.

o       Should US companies work with totalitarian governments such as the Chinese government?

 

Capitalism: The Beginning of Economics

 

The Primary Law of Economics: TINSTAAFL - There is no such thing as a free lunch.

Adam Smith – The Wealth of Nations

• Outsourcing so we can fail more projects more efficiently.
• Getting back to basics: The Systems Development Lifecycle and why projects fail.
• The myth of IT and jobs being lost.

 

Karl Marx – Capitalist Exploitation and the Class Struggle

• Quality is the extent to which the requirements are met

           

Thomas Robert Malthus – Gloom and Doom

 

John Maynard Keynes – Borrow your way to prosperity

 

Questions to consider:

• Were the great industrialists robber barons or heroes?
• Can you have an incentive to work without capitalism?
• Capitalism and Freedom: Can you have one without the other?
• What is the effect of taxation on the economy and on individuals?
• Capitalism and self sacrifice: Is this a contradiction?