17.8 – AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS: ADAM SMITH

ByEthan Fair &Veronica Stabley

Adam Smith (1723-1790)

A Scottish philosopher and professor at University of Glasgow.

As a critic of mercantilism, he was a strong believer of free enterprises and less government control of trade.

Adam Smith's Philosophy and Summary of 17.8

The government should not control the trade, it should be done by individuals.

When the government is taken out of trade, the economy would be better for everyone.

Individual self-interest would benefit the society of a country because everyone would be satisfied with what they are doing and what they are able to do on their own.

Thus, giving each person their own power, so that they feel they are in control of their own wealth.

The individual also feels like he has accomplished something, hence adding confidence and trust in their ideas, government, and people.

17.8 Questions

Briefly restate, in your own words, Adam Smith’s argument?

Adam Smith argued that the government should not control trade because it is corrupt and charges more then what is really charged by the other countries. If given the chance, the individuals would benefit society more than the government would because they would pursue what they love hence, they would try harder to make that product good.

Which century Europe would be classes of people in the nineteenth most likely to favor free enterprise? Which would be most likely to oppose it? Why?

The lower-middle and poor classes would favor free enterprise the most. Those who would be opposed would be nobles, merchants, and kings. Nobles, merchants, and kings already have wealth and power, but if they had free enterprise, there would be more competition and might even make less money. The poor and lower middle classes would favor it because they think their ideas would benefit society greatly. They also would think that their ideas are so great that they wouldn’t worry about currency anymore.

Links

http://majorlyenglish.files.wordpress.com/2008/03/money_bag_with_dollar_sign.jpg

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  http://imagecache2.allposters.com/images/pic/MEPOD/

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  http://www.blupete.com/Literature/Biographies/Philosophy/

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