Download Adam Smith Big Idea?

Adam Smith
Big Idea?
The Government should stay OUT of the
economy!
Free Enterprise Capitalist System
Stay out?
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


No regulations
No protection for workers
No control of prices
No control of wages
“Laissez-faire”
So what should
government do?
 Protect citizens from foreign invasion
 Guard against crime within the nation
 Help build infrastructure
What will guide the
economy?
 “The Invisible Hand”
 Self-Interest
 Supply and Demand
 Competition
Self Interest?
 Everyone wants to make the most…..
Supply and Demand?
So…
 If demand is greater than the supply
available…
 If demand decreases for a particular
item…
Competition?
 Competition is great!
 Prices
 Efficiency
Is there a down side?
 What if you don’t have skills needed in
the economy?
 What if you don’t have money or capital
to buy the things that you need?
How about the U.S.
economy?
 Do we have a Free Enterprise Capitalist
system?