Source Analysis

June 8

2010Humanities 30-1Mr. Kabachia

Lacey Pilgrim

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Source AnalysisIn the first source, the author has a view that is well-suited with Modern Liberalism and Keynesian

economics. In this source we are given the authors argument that individuals cannot be free to pursue

their happiness unless there is preventative actions that are taken by the government. He believes that

the government should have some involvement in the economy by creating social and economic

programs that prevent individuals from going into debt, poverty, and prevent them from going hungry.

With this argument, you can also depict that the author is referring to capitalism from when he says that

individuals cannot be free unless they accept and embrace the fact that there has to be some

government involvement in order for the individuals to be capable of pursuing their happiness. This

makes us believe that the author presumably believes in welfare capitalism, in which the government is

involved to create and provide a “safety net”. This “safety net” is provided to prevent these insecurities

that the author mentions such as debt or poverty. The author of this source also mentions welfare state,

a capitalist economy, where there is some government involvement to modify the market forces in

order to stabilize the economy through social programs. He is also referring welfare state to the idea of

the less frequent and less exaggerated “boom-and-bust” cycle developed by Richard Keynes called

Keynesian economics. His idea was that during good economic times the taxes are raised, and during

bad times, using that extra money to help the economy recover from the bust and soften the blow. This

source is a clear example of the opposition of classical liberalism and the promotion of modern

liberalism.

In the second source, the author is strongly criticizing socialism and left-wing ideologies. He makes his

argument by relating the socialist ideas as being impossible by assuming the production of goods is

occurring through “magic”. His conservative view is being projected through capitalist ideas that you

must need human labor in order to produce goods and this factor should not be changed, which is

3 | P a g e S o u r c e A n a l y s i s L a c e y P i l g r i m

rejecting any government involvement. The author is promoting classical liberalism and rejecting

government involvement in an economy. The third source is also promoting classical liberalism and the

principle of self-interest. The illustrator of this source drew two wealthy men wearing suits, in an

extravagant home reading a recent news article about the poor also gaining in an economic boom. This

illustration depicts a capitalist idea because the article states that during an economic boom the poor

also benefit, which seems pointless to the wealthy men. The men are promoting capitalism and self-

interest because they do not see the good in an economic boom if the poor can also benefit from it.

These men are naïve to the principles of socialism and the ways of the “left” as well as modern

liberalism. This source promotes classical liberalism because it stays true to the values of capitalism and

also encourages the success of individuals, supporting value of self over value of others with no

government involvement.

The relationship between these sources addresses two main issues, government involvement as well as

the benefits of capitalism. These sources each address a different belief on the extent to which a

government should be involved in an economy. The first source rejects classical liberalism by saying that

there needs to be government intervention in order to enable individuals to truly pursue their

happiness. With this the author also believes that capitalism should be included in the economy with

occasional government intervention in order to run a more fair economy, which would be welfare

capitalism. The sources II and III are embracing classical liberalism by stating that government should

have no involvement in the economy, and by believing that capitalism and private companies should

only run the market. All three of these sources address self-interest. Source I is concerned about the

individuals pursuit of happiness and their self-interest in the economy, ensuring that there is some

government program to fall back on if necessary. Source II embraces self-interest and states that it can

prevent hunger and poverty around the world, if the people work hard. Source III also addresses self-

interest by promoting it as a necessary part of a capitalist economy.