Abstinence theory of interest, 110

Aggregate demand, 153, 154f, 188–189

Aggregate demand management, 136,

137, 150

Aggregate effective demand, 158–159

Aggregate supply, 153, 154f, 188–189

Agriculture, 42, 43, 49

Alienation, 97

Alliance for Progress, 201

Alm, Richard, 33–34

Anti-American attitudes, 86

Anti-Samuelson, 170

Anti-Semitism, Marx and, 68–69

Antisaving proponents, 157–158

Apostles, 139

Aristotle, 38–39

Arrow, Kenneth J., 20

AS-AD diagram, 188–189

Associations, establishment of, 113

Austrian economists, 128–132

Balanced budget multiplier, 172, 176

Banker to the Poor (Yunus), 204

Banking, free, 36

Bastiat, Frederic, 47, 74, 151, 216

Bauer, P.T., 202, 204

Behavioral economics, 214n1

Berman, Marshall, 67

Birthrate, 52–53

Black, Joseph, 17

Blackboard economics, 55

Blaug, Mark, 55, 105q, 125, 167

Blinder, Alan, 20, 188–189

Block, Walter, 31

Böhm-Bawerk, Eugen, 93, 110–112,

180

Boulding, Kenneth E., 208

Bourgeoisie, 76

Bretton Woods agreement, 152

Brown, William Montgomery, 67

Buchanan, James, 209–210

Buckle, Henry Thomas, 12

Burning incidents, Smith’s, 16, 17

Callaghan, James, 198

Cambridge school, 115

Cannan, Edwin, 15

Cantillon, Richard, 42–43

Capital

accumulation and falling profits, 85–86

forms of, 84–85

marginal productivity theory, 120

Capital and Interest (Böhm-Bawerk), 110

Capital development, positive theory of,

112

Capital investment, 11

Capital (Marx), 68, 80–81

money, 99–100

transformation problem, 92–93

Capitalism

benefits, 32–34, 98

collapse predictions, 90–91, 101, 102

crisis of, 86

degrees of faith in, 26–27

evolutionary role of, 99–100

Friedman’s view of, 196

Heilbroner’s view of, 202

Keynes’ view of, 135–136, 149, 153

Marxist view of, 83, 85–87

modern day, 97–98

Protestantism and, 123–124

threats to, 135, 138

unstability of, 153, 172, 196

Veblen’s view of, 121–123

Weber’s view of, 123

See also Economic freedom

Capitalism and Freedom (Friedman), 192,

197

Capitalist-entrepreneur, 111

Capitalists

Böhm-Bawerk’s view of, 110–111

Marxist view of, 93

risk taker, 111

workers and, 93–94, 111–112

Carlyle, Thomas, 63

Carnegie, Andrew, 33

Catchings, Waddill, 157–158, 183

Catholics, 39, 103

Chamberlin, Edward H., 134, 215

Chirognomy, 141n3

Church attendance, 24n9

Churchill, Winston, 142

Clark, John Bates, 109–110, 117–120

Class conflict

Marx, 85, 96

Ricardo, 55, 57

Veblen, 121–122

Class consciousness, 96

Classical model, 7

abandonment of, 106

dismal science, 50–52, 63

imperfections, 134–135

Keynes and, 149–150

macroeconomics, 48–49

principles, 18, 36–37

recessions, 185–186

recurrence, 206–209, 216

See also Natural liberty

Coase, Ronald, 30, 55

Colander, David, 56

Collectivist Economic Planning (Hayek),

200

Colonialism, 8, 86

Commerce, Montesquieu on, 40–41

Commerce and Government (Condillac), 43

Communism

Marx and, 65–66, 87–89, 95

See also Socialism

Communism and the Bible, 103

Communist Manifesto (Marx & Engels),

75–76, 86

revolutionary socialism, 88–89

youthful fanaticism and, 66–67

Comparative advantage, 54

Compensatory fiscal policy, 172

Competition, 18

imperfect, 134–135, 215

Montesquieu on, 39

Smith on, 30–31

Condillac, Etienne Bonnot de, 43

Condition of the Working Class in England

(Engels), 75

Constant capital, 84–85

Consumer demand. See Demand

Consumption

economic indicators, 182

Keynesian view of, 150, 175, 181

leaks, 180

production and, 48–49, 184

productive and unproductive, 186

Contradiction in nature, 87

Corn model, 57, 59

Cost. See Price

Cost, opportunity, 109

Cost of Freedom (Wallich), 201

Cost theory, 59

Cox, Michael, 32–34

Credit, Keynes’ view of, 152

Critique of Critical Critique (Marx &

Engels), 75

Darwin, Charles, 80

Das Kapital (Marx). See Capital

Debt, national, 176–177

Demand, 48–49

aggregate. See Aggregate demand

consumer, 106, 107–109, 185

creates supply, 159

effective, 158–159

prices determined by, 109

Demuth, Helene, 78

Denby, David, 97, 98

Depression model, 162

Desai, Meghnad, 102

Determinism, 80, 87, 96

Dialectical materialism, 71

Diamond-water paradox, 50–51,

108n1–109n1

Digression on Silver (Smith), 36

Diminishing returns, 53

Dismal science, 50–52, 63

Dissent, 101

Distribution, 106

fundamental theorem of, 58

law of competitive, 118

linked to production, 109

Distribution of Wealth (Clark), 118, 119

Distribution problem, 117–118

Division of labor. See Labor

Douglas, C.H., 157

D’Souza, Dinesh, 29

Easy-money policy, 128, 130, 213

Eaton, John, 148n7

Economic and Philosophical Manuscripts

of 1844 (Marx), 67, 74

Economic classes, disintegration of,

93–94

Economic Consequences of Mr. Churchill

(Keynes), 142

Economic Consequences of the Peace

(Keynes), 140–141, 156

Economic determinism, 80, 87, 96

Economic freedom, 10–11, 18

economic growth and, 31–32, 203–204

effects of, 31–32, 34

See also Capitalism

Economic growth

Böhm-Bawerk on, 112

economic freedom and, 31–32, 203–204

keys to, 11

Protestantism and, 124

savings and, 179

Economic indicators, 182

Economic Possibilities for Our

Grandchildren (Keynes), 152, 217

Economic theories

pendulum approach to, ix–x

totem pole approach to, x–xi

Economics

blackboard, 55

classical. See Classical model

expanding role of, 209

the imperial science, 209

mathematics and, 55, 56

moral behavior and, 30

neoclassical, 106, 192–193, 199, 205

as a social science, 113

stagnation of, 106

Economics (Samuelson), 165–166, 169,

170

Economics of Imperfect Competition

(Robinson), 134–135

Edgeworth, Francis, 115–116

Education, 89

Effective demand, 158–159

Egoism, 27, 29

Ekins diagram, 180, 181f

Ekins, Paul, 180, 181f

Elements of Pure Economics (Walras), 107,

116

Employment

Keynes’ theory of, 153, 154, 160–162, 172

See also Unemployment

End of Laissez-Faire (Keynes), 149

End of Prosperity (Sweezy), 91

Engels, Friedrich

death of, 83

on Feuerbach, 71

friendship with Marx, 74–75

Marx’s illegitimate son, 78–79

revised views, 95–96

Enlightened self-interest. See Invisible

hand

Enlightenment, 4, 6

Entrepreneurs, 48, 93, 111

Environmentalism, 214

Equation of exchange, 126–127, 196

Essay on Population (Malthus), 51

Essay on the Nature of Commerce in

General (Cantillon), 42–43

Essence of Christianity (Feuerbach), 71

Everyday Stalinism (Fitzpatrick), 203

Exchange

classical view of, 106

equation of, 126–127, 196

key to wealth, 9

Marxist view of, 99–100

Experimental economics, 215

Exploitation, worker, 85, 86

Fable of the Bees, 39–40

Falling profits, 85–86

Faust, 72

Federal Reserve, 127–128, 160,

194–195

Feuerbach, Ludwig, 71

Fiscal policy, 172, 208

Fisher, Irving, 125–128, 129

Fitzpatrick, Sheila, 203

Foster, William T., 157–158, 183

Foundations of Economic Analysis

(Samuelson), 55

Franklin, Benjamin, 44–45, 174

Free banking, 36

Free markets

degrees of faith in, 26–27

post Soviet Union, 199, 204

wealth and prosperity through, 18

Free trade. See Trade

Freedom, economic. See Economic

freedom

Friedman, Milton, 3q, 191q

on Great Depression, 128, 193–196

honors and awards, 192

on “invisible hand,” 19–20, 192

Keynesian opponent, 137, 192–193

monetary rules, 198–199

Phillips curve, 197–198

quantity of money, 194, 196–197

Frugality. See Thrift

Fukuyama, Francis, 204

Galbraith, John Kenneth, 136

Garrison, Roger, 109n1

General equilibrium theory, 116

General Theory of Employment, Interest

and Money (Keynes), 144–146

capital instability, 135, 153–154

General Theory of Employment, Interest

and Money (Keynes) (continued)

German edition, 163

monetary policy, 196–197

Say’s law of markets, 184–186

George, Henry, 119, 120n2

Gibbon, Edward, 5

God

invisible hand and, 25–26

Smith’s references to, 23, 24, 25, 44

See also Religious beliefs

Goethe, 72

Gold

Great Depression, 194–195

Keynes’ view of, 150, 152

mercantilism and, 8

Mises’ view of, 131

removing from monetary system, 152

Smith’s view of, 9, 36

See also Money

Government

Friedman’s view of, 196

Great Depression and, 211

Keynes’ views of, 136, 150, 159

size and growth, 212–213

Smith’s view of, 34–36

Great Contraction, 194, 211

Great Depression, 128, 132, 134, 163

Friedman on, 193–196

gold standard, 194–195

Higgs on, 210–211

money supply, 194, 195f

Great Duration, 211

Great Escape, 211

Greed, 27, 29, 97, 124

Gross domestic expenditures (GDE), 182

Gross domestic product (GDP), 158–159,

182, 212

Gutiérrez, Gustavo, 103

Gwartney, James, 31–32, 34, 205–206

Hahn, Frank, 20, 26

Hands, reading of, 141n3

Hansen, Alvin, 165, 167–168

Harmony of interests, 57

Harrington, Michael, 90, 94

Harris, Seymour E., 164–165

Harrod, Roy, 139

Harrod-Domar model, 201

Hayek, Friedrich

on classical model, 106

on Fable of the Bees, 40

on investment, 183

on Keynes, 192

Hayek, Friedrich (continued)

on Mill, 62

monetary crisis predictions, 128, 132

on savings, 158

on socialism and economics, 200

stages of production, 131

Hayekian triangles, 131

Hazlitt, Henry, 192

Hegel, George Wilhem, 71, 87

Heilbroner, Robert, 25, 202–203

Hicks, John, 153

Higgs, Robert, 210–211

Historical materialism, 87, 96

History of Astronomy (Smith), 21

History of the Decline and Fall of the

Roman Empire (Gibbon), 5

Hobson, J.A., 86

Human Action (Mises), 192

Hume, David, 6, 17, 24–25, 44

Hutt, W.H., 163q

Hutton, James, 17

Hydraulic Keynesianism, 174, 175f, 180

I, Pencil (Read), 10n2, 26

Illiad (Homer), 78

Imperfect competition, 134–135, 215

Imperfect market, 214–215

Imperial science, 209

Imperialism, 86

“In the long run we are all dead” (Keynes),

150–152

Income

earned, 109

national, 171–172, 182, 197

See also Distribution

Income-expenditure diagram, 171–172, 186

Inflation, unemployment and, 187, 198

Inflationary booms, 130–131

Inflationary crisis, 186–189

Interest

abstinence theory of, 110

marginal productivity theory, 120

market rate of, 130

natural rate of, 130

See also Savings

International development organizations,

201

Investment

Böhm-Bawerk’s view of, 112, 120

Hayek on, 183

Keynes’ view of, 155–157, 162

Samuelson’s view of, 171–172, 174–175

transfer tax, 162

See also Savings

Investors, Keynes’ view of, 153–155

Invisible God, 25

Invisible hand

benefits, 19–20

Fable of the Bees, 39

Friedman on, 19–20, 192

God and, 25–26

interpretations, 22–23

Keynes’ critique of, 149

mathematical models, 115

Smith’s references to, 21–22, 23

Stiglitz on, 214

Iron law of wages, 58

IS-LM diagram, 153

Jevons, William Stanley, 46q, 107–108,

114–115

Jews, Marx’s anti-Semitism, 68–69

Joint-input problem, 118

Journals, 101, 113

Jouvenel, Bertrand de, 7–8, 11

Just price, 39

Justice, 18, 206

Kahn, Richard, 160

Kates, Steven, 49, 184–186

Keynes, Florence Ada, 138

Keynes, John Maynard

on capitalism, 135–136, 149, 153

chirognomy, 141n3

dark side, 137–138

death of, 147

disdain for Marx, 147–148

on Fable of the Bees, 40

General Theory. See General Theory of

Employment, Interest and Money

on government, 136, 150, 159

homosexuality, 139–140

honors and awards, 191

“In the long run we are all dead,”

150–152

on Jevons, 114–115

life of, 138–147

Marxist disdain for, 148n7

misogynistic tendencies, 140, 156n9

on Montesquieu, 41

public works, 160–162

recession solutions, 159–160

on Ricardo, 56–57, 60

on Smith, 149

spending, 158–162

stock market activities, 142–144, 155

totem pole position, x, xif

on uninvested savings, 155–157

Keynes, John Neville, 138

Keynesian cross, 171–172, 186

Keynesian economics

comeback, 186–189, 213

critics, 177–186

revolt against, 192

Samuelson and, 170–177

Keynesian revolution, 136–137, 163

Keynesian topics, 171

Klamer, Arjo, 56

Kolakowski, Leszek, 89

Kondratieff, Nikolai, 91

Krugman, Paul, 133q

on Keynes’ General Theory, 146

on Keynsian economics, 138, 189

Kuznets, Simon, 158

Labor

division of, 10

marginal productivity of, 109

value in, 59–60, 83

Labor theory of value, 54, 59–60, 83–84, 92

Labor unions, 119

Laissez-faire policy

Bastiat, 47

Keynes, 149

Malthus, 53

Montesquieu, 41

Quesnay, 42

Say, 47

Walras, 116

Land, marginal productivity and, 119–120

Landlords

Marx and, 84, 85

Ricardo and, 57–59

Lassalle, Ferdinand, 77

Latin America

Adam Smith solution, 104

Marxist-driven ideology, 102–104

Law, The (Bastiat), 47

Law of comparative advantage, 54

Law of competitive distribution, 118

Law of diminishing returns, 53, 58

Law of markets. See Say’s law

Law of nature, Malthus,’ 52–54

Law of the falling rate of profit, 85–86

Lawson, Robert A., 31–32, 34

Lebergott, Stanley, 32–33

Leisure class, 121, 122

Lenin, Vladimir Ilich, 81, 86

Leontief, Wassily, 89

Liberation theology, 102–104

Liebknecht, Wilhelm, 77

Liquidity trap, 160, 177–178

Living standards. See Standard of living

London School of Economics, 113

Lopokova, Lydia, 140

Loss, price-cost margins and, 109

Lucas, Robert Jr., 198

Macbeth, 22–23

Machinery

labor-saving, 11

Marxist view of, 85, 86, 94

Macroeconomics

classical model, 48–49

Keynes and, 137, 153

microeconomics linked to, 129, 137n2

neoclassical, 205

Samuelson and, 166

Macroeconomics (Mankiw), 206–207

Malthus, Thomas Robert

dismal science, 50–52, 63

population studies, 51–52

sins of omission, 53–54

Mandel, Ernest, 90

Mandeville, Bernard, 39–40

Mankiw, N. Gregory, 191q, 206–207

Mantoux, Etienne de, 141n4

Marginal productivity theory, 118–120

Marginal utility, 108, 114

Marginalist revolution, 107–110

Marginality principle, 117

Market economy, invisible hand, 19

Market imperfection, 214–215

Market rate of interest, 130

Markets, Say’s law of. See Say’s Law

Marshall, Alfred, 112–113, 115, 133q

Marshall Plan, 201

Marx, Eleanor, 83

Marx, Karl

an antieconomist, 94–95

beard and Zeus, 78

college radical, 70–71

communism, 65–66, 87–89, 95

Communist Manifesto. See Communist

Manifesto

criticisms of, 92–94, 110

dark side of, 72–73

Das Kapital. See Capital

death of, 82

and economics, 67–68

and Engels, 74–75

false predictions, 89–90

illegitimate son, 78–79, 83

influences on, 71–72

Keynes’ disdain for, 147–148

Marx, Karl (continued)

life of, 68–82

marriage, 73–74

phrenology, 77–78

poem about, 71

poems by, 72–73

police report on, 76–77

poverty and wealth of, 79–80

quotes, 64q

recantation, 95

religious beliefs, 69–70, 71, 89

revolutionary socialism, 88–89

Ricardo’s influence on, 54

Smith contrasted to, 64–65

surplus value, 84–85

totem pole position, xi, xif

transformation problem, 92–93

youthful fanaticism and, 66–67

Marx, Laura, 83

Marxism & Marxists

collapse of, 199–200

Keynes’ disdain for, 147–148

modern-day, 90–91, 96–98, 100–104,

213

1930’s, 135

Materialism, 97

Mathematics, 55, 56, 115–116, 168

McConnell, Campbell, 179

Meltzer, Allan H., 154

Menger, Carl, 107–108

Mercantilism, 7–9, 22, 44

Micro-credit revolution, 204

Microeconomics

imperfect competition, 134–135

macroeconomics linked to, 129, 137n2

neoclassical, 205

Mill, John Stuart, 50, 61–63, 106, 122

Minsky, Hyman P., 153, 175

Mises, Ludwig von, 94, 128–132

on Keynes, 151, 164, 192

on socialism and economics, 200

vindication of, 203

Modigliani, Franco, 179

Monetary crisis predictions, 128

Monetary History of the United States

(Friedman), 193

Monetary models and policy

Fisher’s, 125–128, 129

Friedman’s, 193–194, 197–199

government and, 213

Keynes on, 196–197

Mises’s, 129–130

Monetary system, Smith’s view of, 36

Money

as a commodity, 129

elimination of, 89

Marxist view of, 99–100

role of, 125

See also Exchange; Gold; Monetary

models and policy; Money, quantity

theory of

Money, Interest and Prices (Patinkin), 178

Money, quantity theory of

Fisher’s, 126–127

Friedman vs. Keynes, 196–197

Hume’s views of, 44

Smith’s view of, 36

Monopoly, 30–31, 86

Montesquieu, Charles de Secondat, 39,

40–41

Monthly Review, 101

Moral behavior, 30

Multiplier

balanced budget, 172, 176

Friedman on, 197

full employment, 160–162

savings, 180

Musgrave, Richard, 209–210

National debt, 176–177

National income, 171–172, 182, 197

Natural liberty, 7, 10–11

Keynes’ critique of, 149

principles of, 11, 18

standard of living and, 31–32

See also Classical model

Natural rate

interest, 130

unemployment, 197

Neoclassical economics. See Economics,

neoclassical

New Left Review, 101

Newcomb, Simon, 126

Nordhaus, Bill, 208

Novak, Michael, 103–104

On Liberty (Mill), 61

On Principles of Political Economy and

Taxation (Ricardo), 54, 56, 60

On the Jewish Question (Marx), 68–69

Opportunity cost, 109

Optimality, 116–117

Optimism

era of, 46

Smith and, 37–38

turns dismal, 50–52, 63

Orbis Books, 103, 104

Oulanem (Marx), 72–73

Overworked American (Schor), 97–98

Padover, Saul K., 64q, 69

Paradox of thrift, 173–174, 179, 208

Paradoxes

diamond-water, 50–51, 108n1–109n1

thrift, 173–174, 179, 208

value, 108

Pareto, Vilfredo, 115–116

Pareto optimality, 116–117

Patinkin, Don, 178

Pendulum, ix–x

Peuchet, Jacques, 73

Phillips, A.W., 187

Phillips curve, 187, 197–198

Phrenology, 77–78

Pigou, Arthur C., 178

Pin factory, 10

Plato, 38–39

Player, The (Marx), 72

Poetry

about Marx, 71

Marx’s, 72–73

Pollution fees, 214

Poor people

benefit from capitalism, 32–34

Yunus and, 204–205

Popper, Karl, 96–97

Population studies, 51–52

Positive Theory of Capital (Böhm-Bawerk),

112

Poverty of Philosophy (Marx), 96

Price

determined by demands, 109

determined by scarcity, 108n1

determined by supply, 59

stability, 127, 130

Price and Production (Hayek), 131

Price-cost margins, 109

Principles of Economics (Mankiw), 207

Principles of Economics (Marshall), 113

Principles of Economics (Menger), 107

Principles of Political Economy (Mill), 61,

106, 122

Private property

Marxist view of, 89

Veblen’s view of, 121

Privatization, 35

Production

consumption and, 48–49, 184

errors of, 185

Production (continued)

factors of, 118

key to wealth, 9

linked to distribution, 109

for profits and use, 106

roundabout, 112, 131

stages of, 10, 131

Production of Commodities by Means of

Commodities (Sraffa), 55

Profit rate and value problem, 92–93

Profits

falling, 85–86

price-cost margins and, 109

production for, 106

use and, 109

Property, private. See Private property

Prosperity

economic freedom and, 31

keys to, 10–11, 18

Protestant Ethic and the Spirit of

Capitalism (Weber), 123

Protestant Reformation, 123, 124

Protestants, 39

Public-choice theory, 209–210

Public Finance in Theory and Practice

(Musgrave), 209

Public works, 160–162

Purchasing Power of Money (Fisher), 126

Quantity Theory of Money, 126–127

Quantity theory of money. See Money,

quantity theory of

Quesnay, François, 41–42

Radical journals and organizations, 101–102

Rational expectations, 198

Read, Leonard, 10n2, 26

Real balance effect, 178

Recession

1970s, 186–189, 198

Keynesian solutions to, 159–160, 172–173

Say’s explanation for, 185–186

Reflections on the Formation and

Distribution of Wealth (Turgot), 43

Religious beliefs

Hume, 24–25, 44

Marx, 69–70, 71, 89

Smith, 24–25, 44

Weber, 123, 124

See also God

Religious freedom, church attendance and,

24n9

Revolutionary socialism. See Socialism

Ricardian vice, 54, 55

Ricardo, David, 54–56

dismal science, 50, 51, 63

distribution, 57–59

Marx and, 83–84

Say on, 48

value in labor, 59–60

Risk level, 111

Robinson, Joan, 135, 215

Rostow, W.W., 201, 204

Rothbard, Murray, 42, 192

Rothschild, Emma, 22–23

Roundaboutness, 112, 131

Samuelson, Paul A., 164

AS-AD diagram, 188

on Capital, 93

criticism of, 169–170

Economics, 165–166, 169, 170

goals of, 171

honors and awards, 166, 168, 169

on Keynes’ General Theory, 146, 153

Keynesian cross, 171–172, 186

life of, 166–167

macro policy dilemma, 187

on Marx, 69

on Marxist economics, 94

mathematical equations, 55, 168

on national debt, 176–177

on new global economy, 208

paradox of thrift, 173–174, 208

postwar predictions, 168

revised theories, 208

on Smith, 12, 174

on socialism, 201

Saving American Capitalism (Harris), 164

Savings

antisaving proponents, 157–158

Böhm-Bawerk’s view of, 112, 180

economic growth and, 179

Hayek on, 158

Keynes’ view of, 155–157

Mankiw’s view of, 207

multiplier, 180

positive side of, 180

Protestantism and, 124

Samuelson’s view of, 171–175, 208

Say’s view of, 49

See also Interest; Investment; Thrift

Say, Jean-Baptiste, 47–48

Say’s Law, 48–49, 86, 92

inverse of, 159

Keynes and, 184–186

Say’s Law and the Keynesian Revolution

(Kates), 184–185

Schor, Juliet, 97–98

Schumpeter, Joseph, 60, 101, 200

Schwartz, Anna J., 193

Schweickart, David, 102

Self-interest

meaning of, 27

sympathy vs., 29–30

wealth and prosperity through, 18, 19

See also Invisible hand

Self-restraint, 28

Selfishness, 29

Senior, Nassau William, 28n10

Shakespeare, 22–23

Sham-lecture, 13–14

Shaw, G.K., 189

Silver, 8, 9, 36

Skulls, reading of, 77–78

Smith, Adam

advocate for the common man, 6–7

burning of manuscripts & papers, 17

burns clothes, 16

customs agent, 16–17

death of, 18

economic freedom, 10–11

on Fable of the Bees, 40

famous remark, 38

on government, 34–36

hypotheses, 31–32

invisible hand. See Invisible hand

Keynes’ critique of, 149

life of, 12–18

Marx contrasted to, 64–65

natural liberty, 7, 10–11

optimist, 37–38

religious beliefs, 24–25, 44

sham-lecture, 13–14

shift back to, 205–206, 216

sympathy vs. self-interest, 29–30

totem pole position, x, xif

universal opulence, 6, 7, 10–11, 32

view of greed and selfishness, 29

view of trade, 8

Wealth of Nations. See Wealth of Nations

Smith, Vernon L., 215

Smugglers, 16

Social Justice Without Socialism (Clark), 119

Social Security, 207

Socialism, 60–61, 200

critics of, 203

Heilbroner on, 202–203

Marx and, 88–89, 95

Socialism (continued)

Mill and, 62–63

post WWII, 200–202

Sweezy and, 101

Solow growth model, 207

Somary, Felix, 142

Soviet Union, collapse of, 199, 202

Spanish scholastics, 39, 124

Specie-flow mechanism, 44, 131

Spending, Keynes’ on, 158–161

Spirit of the Laws (Montesquieu), 40

Sraffa, Piero, 54, 55

Stabilization policy, 208

Stages of Economic Growth (Rostow), 201

Stages-of-production, 10

Stagflation, 198

Stagnation thesis, 167–168

Standard of living

capitalism and, 32–34

economic freedom and, 31–32

Stigler, George, 14n4, 20

Stiglitz, Joseph, 214–215

Stock market

crash of 1929, 127

Keynes and, 142–144, 155

transfer tax, 162

Suicide

of Marx’s daughters, 83

Marx’s fascination with, 73

Supply, 48–49

aggregate, 153, 154f, 188–189

demand creates, 159

price determined by, 59

Surplus value, 84–85, 110

Sweezy, Paul M., 91, 100–101, 135

Sympathy, self-interest vs., 29–30

System of natural liberty. See Natural

liberty

Tableau économique, 41–42

Tariffs, Smith’s view of, 8

Tarshis, Lorie, 175

Tax cuts, Keynesian view of, 172

Taxation

land, 119–120

Samuelson’s view of, 176

Smith’s view of, 35

Teaching of Marx for Girls and Boys

(Brown), 67

Theology, liberation, 102–104

Theology of Liberation (Gutiérrez), 103

Theory of Money and Credit (Mises),

129–130

Theory of Monopolistic Competition

(Chamberlin), 134

Theory of Moral Sentiments (Smith)

God, 23, 25, 44

government, 35–36

invisible hand, 21–22, 23

sympathy, 29–30

year published, 14

Theory of Political Economy (Jevons), 107

Theory of surplus value, 84–85, 110

Theory of the Leisure Class (Veblen), 121, 122

Thrift, 11, 36

anti-thrift proponents, 157–158

Böhm-Bawerk’s view of, 112

Keynes’ view of, 156–157

paradox of, 173–174, 179, 208

Protestantism and, 124

Say’s view of, 49

See also Savings

Tobin, James, 26, 162n11, 193

Tocqueville, Alexis de, 47

Totem pole, x–xi

Townsend, Charles, 15

Tract on Monetary Reform (Keynes), 142

Trade

Bastiat’s view of, 47

Hume’s view of, 44

mercantilist restraint of, 8

Smith’s view of, 8–9, 16

Transfer tax, 162

Transformation problem, 92–93

Traveling abroad, youth, 14n4

Treatise on Money (Keynes), 143, 156

Treatise on Political Economy (Say), 47, 48

Tullock, Gordon, 210

Turgot, Jacques, 43

Twilight of Capitalism (Harrington), 90

Underconsumptionists, 157–158

Unemployment

inflation and, 187, 198

involuntary, 185, 215

Mankiw’s view of, 207

natural rate of, 197

wage cuts and, 178

war and, 163–164

Unemployment equilibrium, 153

Union of Radical Political Economics,

101–102

Unions. See Labor unions

United Kingdom, rise in income, 5f

United States

standard of living, 33, 33f

United States (continued)

stock market crash of 1929, 127

Universal opulence, 6, 7, 10–11, 32

Universities, economics departments, 113

URPE. See Union of Radical Political

Economics

Utility, marginal. See Marginal utility

Value

cost-of-production theory, 59, 106,

108

labor theory, 54, 59–60, 83–84, 92

marginal principle of, 108–109

paradox of, 108

surplus, 84–85, 110

in “use” vs. in “exchange,” 108

Variable capital, 84–85

Veblen, Thorstein, 121–123

Viner, Jacob, 23

Voltaire, 15

Wages

Böhm-Bawerk’s view of, 111

Clark’s view of, 118–119

cuts and unemployment, 178

Malthus’ view of, 54

Mankiw’s view of, 207

marginal productivity of labor and,

109

natural liberty and, 11

Ricardo’s view of, 57–59

Waiting argument, 110

Wallich, Henry C., 201

Walrus, Leon, 107–108, 115–116

War

employment and, 163–164

Keynes’ view of, 163

Smith’s view of, 35

Watershed years

1776, 4–6

1848, 60–61

1948, 164–165

1970s, 186–189

Wealth

earned, 109

keys to, 9–10, 18

measurement of, 9

Ricardo’s distribution of, 57–59

Wealth, Distribution of (Clark), 118, 119

Wealth of Nations (Smith)

editions, 15

greed and egoism, 27–28

invisible hand reference, 22

Wealth of Nations (Smith) (continued)

objectives of writing, 7

sympathy vs. self-interest, 29–30

universal acclaim, 12

writing and publication of, 4–5, 15

See also Smith, Adam

Webb, Beatrice, 135, 200

Webb, Sidney, 135, 200

Weber, Max, 123–125

Welfare economics, 20–21, 115–116

Westphalen, Jenny von, 72, 73–74, 79

death of, 82

Wicksell, Knut, 107, 130

“Woolen coat” example (Smith), 10,

19

Wordsworth, William, 46, 168

Worker-capitalist phenomenon, 93–94

See also Capitalists

Worker exploitation, 85, 86

Worker revolts, 76

World Bank, 199, 201, 204

World War II, 163, 211

socialism after, 200–203

Worldly Philosophers (Heilbroner), 202

Yeager, Leland, 189

Youth

education, 89

traveling abroad, 14n4

Yunus, Muhammad, 204–205

Zeus, 78