Economics BC3041: Theoretical Foundations of Political Economy

Fall 2014
Writing Assignment #1
Rough Draft Due: Oct 21
st

Final Draft Due: Nov 6th

1. How are the labor theories of value of Smith, Ricardo and Marx different? Feel free to
discuss the propaganda aspects of how they all treat the labor theory of value, but you
must also establish the mechanical aspects of the theory and how they are different. Make
sure to explain why it matters. Explain this in clear everyday language as though you were
writing to someone who did not do the readings. Cite the material as appropriate.

2. Adam Smith presents an economic theory of middle class (the owners of stock)
accumulation and of middle class political activity. Both of which are grounded in the self
interest of the class. Explain the way in which he describes the middle class as both good
for society at large and bad for it. Does Smith adequately deal with the ambiguity inherent in
the picture he has painted of the class most central to economic development? Explain this
in clear everyday language as though you were writing to someone who did not do the
readings. Cite the material as appropriate.

3. Adam Smith has a very bright view of the forward march of progress, for all members of
society, while Karl Marx argues that capitalist progress must undo itself, or at least it is only
good for one segment of society. Present the arguments for and against the accumulation of
capital in both Smith and Marx. Who makes the most compelling case, why? Explain this in
clear everyday language as though you were writing to someone who did not do the readings.
Cite the material as appropriate.