The Life and Thought of Marquis de Condorcet - Research Paper Example

?MOREHOUSE College The Life and Thought of Marquis de Condorcet Social Mathematics This paper discusses the life and thought of Marquis de Condorcet. The main issue discussed in the paper is Condorcet’s opinion on economic and political choice in relation to international finance. Name Social Mathematics April 26, 2011 John Handy The Life and Thought of Marquis de Condorcet Marie Jean Antoine Nicholas de Caritat is a French philosopher and mathematician born on 17 September 1743 in Ribemont, France. His title Marquis de Condorcet was derived from Condorcet town in Dauphine. He is said to be an early protege mathematician who studied under Jean Le Rond d’Alembert. He was once elected as a representative in the legislative assembly of Paris but was forced to go for exile during the Revolution for having sympathized with the Girondins1. He later killed himself to avoid being persecuted. He contributed a lot in the development of Condorcet Paradox, which was based on facet that it is possible that a majority may develop a preference for option A to option B; option B over option C, just to name a few. In this thought, he observed that majority prefers’ is non transitive. Other significant contributions were seen in his publication of Vie de M Turgot under which he supported Turgot’s economic ideas. In 1786, Condorcet came up with ideas of differential; and integral calculus. This gave a new treatment of infinitesimals. Condorcet’s economic thoughts are seen to be of immense importance in the operation of international trade policy, finance, and international, developmental issues. The purpose of this essay is to provide a literature review on Condorcet’s thoughts and discuss how influential his thoughts are in relation to international, developmental issues regarding economics and political choices. Literature Review on Condorcet’s Opinion on Economic and Political Choice in Relation to International Finance Condorcet once argued that the disposition and enlightenment is a factor of the liberal economic order2. This suggests that individuals are the best judges of their personal interests and as such have the best knowhow of the circumstances within their locality. They are autonomous and impartial, and civilized because they have the will to resolve conflict through diplomatic means instead of resorting to the use of violence. They are never afraid of portents or injustices of feudal. Condorcet argues that the disposition of discursive and deliberative is sometimes sub-cursive of market of economic order3 . Therefore, for it to be enlightened, it must be written off to pave the way for economic and political judgment. Condorcet went a head to suggest this is to make judgments about judgments among them being those related to relationships between political and economic choices and between political and economic interests. Condorcet thought is also influential with regard to the shortcomings of liberal economic order. Rothschild notes that there are quite a number of shortcomings of the liberal economic order4. He argues that occasionally people seek to pursue their personal, economic interests using political influence. They seek political influence, regulation and protected monopoly. This people also have the funds and use it to buy power. Other shortcomings of economic order are that the invisible order is just unlike divine providence under which people should develop confidence. It is the unruly, innumerable outcome of judgments. The best way of solving liberal economic order varies in accordance with circumstance. Rothschild argues that a merchant can never know under their empire if laws governing it would be under those he will sell. Under such circumstances, all the resources of commerce would be cut down to the extraordinary enterprise which an individual risks where profits are immense and which are only undertaken by merchants who have knowhow to ensure there is an indulgence of the law5. Condorcet describes a merchant as continually engaged in the calculation of probability that, in case he refuses to sell at a given price, then part of his grain will remain unsolved. For this reason, he or she must fear the competition of other merchants, adjusting their supply (“the foreign-gain arrival”), and decrease in demand. Rothschild notes that this is a true reflection of commercial life 6. Nevertheless, under the prohibition empire, the merchant must also be concerned about other risks. Condorcet suggests that with the probability of changes in the law, under which officials can put a blind eye on or enforce the law regarding their caprice or their individual interests. Rothschild notes that the manner in which merchants thinks, their mentality and spirit is influenced by regulation. The form of protection provided to a particular type of commerce injures commerce in general. Condorcet, in his publication of Vie de M. Turgot asserts that, “every privilege for buying, or selling, or manufacturing, far from encouraging industry, transforms it into a spirit of intrigue in those who have privileges, and stifles it in others”7. According to this argument by Condorcet, the resistance to commerce freedom is directly related to trader’s prejudices or to accredited traders interests. This is mainly because it is only them who like regulations since the new regulations make valuable operations dependent on government. This eliminates competition among traders who does not have enough funds to have protectors8. For this reason, individuals who become traders or merchants in such an environment are mainly those who have a talent or taste for political stratagem9. These groups of people are disliked by opinion of the public and as such not among those who would be discouraged by dislike of the public from going into business. Condorcet’s description of the normal way of thinking is also influential in international, developmental issues according to Rothschild10. Condorcet argues that information and computation needed of a bureaucratic monopoly such as those consisting of angels would either be beyond powers mortal or immortal. In this case, he suggests that ordinary mortal officials do have their personal fears and interests. Nevertheless, the fears are not mandatory that it will be relieved by laissez-faire policy. In his 1775 pamphlet (Monopole et Monopoleur), Condorcet asks, “how can it be that a wise government should place its confidence in different interests of men that it should suppose that the avarice of buyers and the greed of merchants will…”11. Tax policies are another area of international, developmental issue on finance. For instance, tax policy adopted by different countries impact enormously of trade. This may either be in the form of direct or indirect taxes. When taxes charged on commodities are high, many merchants and traders get affected in which some may end up leaving the business for some time. This interferes with trade and hampering development. It is for this reason that Condorcet found it necessary to write extensively on tax policies. This he did both before and after the French Revolution. In his research on fiscal reform, he made several attempts aimed at evaluating the shift from direct to indirect taxation in equity perspective- as between those who gain and those who incur losses occasioned by tax reforms12. Condorcet also tried to investigate whether a scheme of reform can bring equilibrium. The thought is described in his Vie de M. Turgot in which he uses mathematical computations regarding economic writings. Later on he became concerned about progressive tax system regarding appropriate size of the tax bracket. In this case, he suggested that the incremental tax should be gradual but indiscernible13. He made such a suggestion because of his concern over marginal disincentives. That is he suggested that it was supremely pertinent to regulate progressive taxation in a way makes it useless for a person to purchase a new piece of land or to invest in capital market14. These ideas have been so helpful in developing a tax policy that ensures equity in international trade fair. For instance, his suggestion of progressive tax policy has been so vital in ensuring that no single individual or country is left wholly to bear all the burden of tax. Instead, the tax is transferred from one point to another. Condorcet’s idea of replacing the direct tax system with an indirect tax system has also been of benefits in international trade. This is because; the tax burden can be shifted from one dealer to the next. For instance, once a product has been manufactured, some of the tax burden is borne by the manufacturer who then sells the product to a wholesaler. The wholesaler would bear one of the tax burdens and transfer it to the retailer. The retailer is also expected to bear some of the taxes before transferring some to the retailer. Many countries across the globe have adopted this system of taxation. It is also used in international dealings such as trade15.Condorcet’s public expenditure theory founded on general economic equilibrium, on the idea of evaluation of marginal utility of an individual is of importance with regard to international expenditure. Condorcet argued that there exist a number of public objectives like those pertaining to ensuring that no individual is left to starve to death or subjected to extreme deprivation, which is vital, for extensive consensus. He went ahead to suggest that the expenditures of the public which is not that much useful should be undertaken only under the permission of all those who are affected. Rothchild notes that the unanimity of consent can be elapsed under situations where the project is proved beyond a reasonable doubt to be useful. This can also happen when it is difficult or impossible to stop those who did not accept profiting from it. In this regard, each person should only consent to the project after having compared the cost factors and benefits expected to accrue from the project. Condorcet also argues that public service subsidies should stop where it becomes abundant for each individual to pay the subsidy than not to pay. Moreover, some public expenditures are not that much necessary; since they have as their limit, the stage where the expenditures utility becomes equal to the produced evil by the taxation16. His thought on public expenditure is of importance in solving international issues regarding public expenditure. This is evident when he cautions that public expenditure should not be undertaken in parsimonious spirit or of the attempt to cut down public expenditure17. However, public expenditure should be founded on the economy or on efforts aimed at achieving the best but incurring least cost. The aim here is to compare every component, for every degree of the expenditure in question18. This thought in deed helps in guiding international market to be cautions and avoid engaging in matters that only incur a lot of expenditures but realizes minimal benefits. In this regard, all the activities that a government of any country engages in should at all times be cost effective in nature. This would in turn spur economic growth in a given country and the international market, as well. Condorcet reveals that, in relation to expenditure for vital purposes, there reaches a point it stops being the same to the wrong it brings into being. This suggestion is also vital with regard to international finance. For instance, there is some expenditure that, despite their benefits not being tangible, they can never be ignored. For instance, humanitarian assistance is something that is vital. As such, despite the fact the cost incurred be immense, it brings a lot of good to those who have been languishing in need19. Condorcet also made a remarkable contribution regarding economic problems of price. This he did by comparing the economic problems of price with three body problem found in mechanics of celestial which preoccupied d, Alembert and Lagrange. Condorcet considered heavenly bodies as masses without extensions and reduced the problem by “a hundred multiplying condition”. Despite such attempt, the problems that are restricted still could not be solved. In this regard, Condorcet concludes, “the effect of forces which act upon the mind of the narrowest merchant is far more difficult to calculate”20. In connection with this argument, Condorcet implies that what an individual trader thinks is not easy to establish mathematically. As a consequence, the price likely to be charged by a merchant is not easy to establish21. This issue has been of a significant concern internationally. In some cases, the economic prices are usually determined by the forces of demand and supply. However, this depends on the type of market: perfect or imperfect market. Under perfect market, the merchant would be able to charge the price that he or she wishes. This is because they enjoy some degree of monopoly22. However, under impact market, there is no course for alarm as the forces of supply and demand will determine the prices charged. This is because there is free entry into and out of the market. Condorcet’s ideas in this case are helpful as it guides the government in determining the price control measures to help cushion its people from exploitation by unscrupulous merchants. This is because in case they are left to monopolize the market, they will be able only to charge the prices which they feel would give them highest returns. The use of the idea will now be used in fixing a ceiling price beyond which traders would not be allowed to sell their commodities23. Conclusion Condorcet’s work has been of outstanding benefit in the world of social mathematics and economics. For instance, his work is so influential in understanding the economic and political choice. This is evident from his argument that the disposition of enlightenment is a condition of liberal economic order. As such, an individual is the best judge for his personal interest and poses the best knowhow of the circumstances within their locality. Moreover, his teachings are crucial in the commerce as it provides a caution on why cutting down expenditures are crucial. He suggests that public expenditure should be founded on the economy or on efforts aimed at achieving the best but incurring least cost His suggestions are also so crucial in solving problems of liberal economic order. This are found on his writings regarding tax policy in which he attempted to evaluate how the world of finance can transition from direct to indirect tax system. He also made a remarkable contribution in elaborating the issue of public expenditure particularly the economic problems of price. Through Condorcet’s contribution, readers can better understand the economic and political choice in relation to international finance. Ideas that Emerged from the Report There are quite a number of ideas that have emerged from the discussion. Firstly, it has emerged that the thinking, mentality or the spirit of merchants is influenced by regulation. In relation to commerce, it means that protection provided to any form of commerce, injures commerce. Secondly, it has emerged that from Condorcet’s assertions that, the opposition to autonomy of commerce corresponds to the traders prejudices or interest of traders accredited. Thirdly, regarding Condorcet’s work on public expenditure, a new Idea has come. The idea suggests that public expenditure. Bibliography Condorcet, Marie A.N.C.M. Esquisse d'un tableau historique des progres de l'esprit humain (Paris: Masson et Fils, 1822), pp. 279­85, 293­94, 303­5. Goudzwaard, Bob, Vennen, Mark V, & Heemst, David V. Hope in troubled times: a new vision for confronting global crises. Massachusetts: John Wiley & Sons. 2007. P.18-66. Mooney, Chris. The Republican Brain: The Science of Why They Deny Science--And Reality. New Jersey: John Wiley & Sons. 2004. P.22-36. Modern History Sourcebook: Condorcet: The Future Progress of the Human Mind (1997). Fordham University (New York). Retrieved on 3 May 2012 from http://www.fordham.edu/halsall/mod/condorcet-progress.asp. Riggs, Thomas & Bonk, Mary. Everyday Finance: Economics, Personal Money Management, and Entrepreneurship, Volume 1. Gale Cengage Learning. 2008. P.55-78. Rothschild, Emma. Economic Sentiments: Adam Smith, Condorcet, and the Enlightenment. New York: Harvard University Press. 2001. P.156-174. Scholte, Jan A. Globalization: A Critical Introduction. New York: Palgrave Macmillan. 2005. Shackelford, George G. Jefferson's adoptive son: the life of William Short, 1759-1848 Kentucky: The University of Kentucky. 1993. P.23-28. Read More