Locke and Smith Study Questions

Most recent alteration: October 13, 2010

Locke

1. What do the following terms mean: state of nature, rights, natural rights, right to liberty, right to life, right to property?

2. What is the basis, according to Locke for our rights to life and liberty?

3. Is all wealth originally assigned to individual human beings by the Creator? Explain.

4. How does an item become the private property of an individual?

5. Why according to Locke do human beings chose to enter a social contract?

6. What is the purpose of government (relate to natural rights)?

7. What elements of a free enterprise system does Locke seem to justify?

8. Would Locke approve of the use of coercion in economic transactions? (How would he justify his position?)

9. Would Locke morally permit the use of fraud in economic transactions? (How would he justify his position?)

10. Discuss one or more criticisms of the Lockean defense of capitalism.

Smith

1. Explain the following terms: invisible hand, natural price, natural liberty.

2. What is Smith's (apparent) primary moral premise? (a premise he likely shares with other British thinkers who are his near contemporaries)
Note how this differs from Locke's moral starting point.

3. How does the invisible hand work (assuming that it does work)?

4. What assumption about human economic motivation does Smith's argument make?

5. Why is the system Smith advocates often called a "laissez-faire" system?

6. Would Smith approve of the use of coercion in economic transactions? (How would he justify his position?)

7. Would Smith morally permit the use of fraud in economic transactions? (How would he justify his position?)

8. What (unstated) assumptions does Smith make that critics have called into question?