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capitalism -

capitalism -. Carol Mathias. Adam Smith - Father of Capitalism. Lived 1723 - 1790 in Scotland. Economist and philosopher. The Wealth of Nations. Written in 1776 as a protest against mercantilism . By the Way … . FACTOID: The full title of Adam Smith ’ s book is

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capitalism -

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  1. capitalism - Carol Mathias

  2. Adam Smith - Father of Capitalism • Lived 1723 - 1790 in Scotland. • Economist and philosopher

  3. The Wealth of Nations • Written in 1776 as a protest against mercantilism.

  4. By the Way…... • FACTOID: • The full title of Adam Smith’s book is • An Inquiry into the Nature and Causes of the Wealth of Nations.

  5. Mercantilism. • System set up by Jean Baptiste Colbert during Louis XIV time in France.

  6. Louis had a problem…. • Being King was very expensive. • Louis needed money….real bad!

  7. Colbert had a solution! • C + I + G + X - M = GDP • Decided to try • C + I + G + X = GDP

  8. C + I + G + X = GDP • Colbert made King Louis rich. • opportunity benefit!

  9. C + I + G + X = GDP • But what are the opportunity costs?

  10. Adam Smith predicted…. • Revolution!! • People would get ticked off.

  11. The American Revolution... • We weren’t allowed to spend our money the way we wanted.

  12. The French Revolution • People really got ticked off!

  13. Adam Smith proposed... • Capitalism! • Let the people decide the 3 economic questions!

  14. Smith proposed... • People need incentives to work. • Profits are the best incentives.

  15. People need incentives…. • PSYCHIC INCOME.

  16. Entrepreneurs • People who take risks and create goods and services & enjoy profit.

  17. Bill Gates House

  18. Warren Buffet - Omaha’s billionaire. • FoundedBuffy’s Buffet. • Chairman of Solomon Brothers Investments. • Chairman of Borsheim’s Jewelry. • Most expensive stock is Berkshire Hathaway.

  19. Rose Blumkin – Nebraska Furniture Mart • 1893-1998 • “Always sell cheap and tell the truth.”

  20. Famous entrepreneurs • Buffalo Bill Cody. • Created Wild West Show for world.

  21. Ray Kroc - Founder of McDonald’s • Began the fast food revolution.

  22. Adam Smith suggested an economy of entrepreneurs.

  23. The Invisible Hand • One person’s acting in their self-interest is likely others.

  24. The Invisible Hand • Runs all through the economy. • Problems are solved by it as well.

  25. What Role for Government in Capitalism?

  26. Govt. only ties up the invisible hand. • Even when well-intentioned, government just “screws things up.” • Government should just keep out of the way of business.

  27. Laissez-faire. • French for “hands off”. • Govt. should be laissez faire with business.

  28. Smith didn’t mean no government. • Government did have special jobs to make economy work.

  29. Government’s Job • Provide Infrastructure for the system.

  30. Fire & Police protection. Transportation system. Public education. Communications. What Govt. Provides.

  31. Court system to define property rights. Military protection for borders and products. Smith’s Role for Govt.

  32. Our Strengths

  33. Key Benefits • Summarize the key benefits provided by the product, service, or idea being promoted

  34. Next Steps • Specify the actions required of your audience

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