Question

How did the classical social theorists explain the rise of capitalism?  How did marginalist economics and classical social theory both arise out of classical political economy? (maximum 1,000 words)

Answer 1

Answer:

• How did the classical social theorists explain the rise of capitalism?

Classical sociology is the systematic study of human society and social life in its earliest period that directed to its founding as a technical discipline. The basic intention of conflict theory is that disparity occurs in all societies, which results in struggle that leads to social alteration.

The classical theory is the traditional theory in which major emphasis is on the organisation than the staffs working therein. This theory states that the organization is considered as a mechanism and the human beings as diverse components/parts of that machine.

Rise of capitalism:

Capitalism is an economic system in which the role of government is secondary. The major property is held by the people and companies make most of the decision about the factors of production. The factors of production are entirely and privately kept (by individuals or companies) and operated for profit. The major objective of this system is to maximise profit which results into concentration of economic power. The intercontinental slave trade and farm prosperity were the major reasons responsible for the growth of capitalism.

• How did marginalist economics and classical social theory both arise out of classical political economy?

Classical political economy:

The fundamental principle of the classical theory is that the economy is self‐regulating. Classical economists maintain that the economy is always capable of achieving the natural level of real GDP or output, which is the level of real GDP that is obtained when the economy's resources are fully employed.

The main idea of the Classical school was that markets work best when they are left alone means without any interfearence, and that there is nothing but the smallest role for government. The approach is firmly one of laissez-faire and a strong belief in the efficiency of free markets to generate economic development.

Marginalist economics and classical social theory:

• Marginalist economics:

It is marked by interaction with unequal cultures, and obtaining some but not all the characters or values common to any one of them.it is selling goods at a price that just equals the extra cost of producing the last unit supplied.

• Classical social theory:

Classical sociology is the methodical study of human civilization and social life in its initial period that led to its founding as a technical discipline. The basic proposal of battle theory is that disparity exists in all civilizations, which results in battle that leads to social alteration.