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What is the lassiez faire policy?
Government does not create laws that impact businesses.
Who was Adam Smith and what did he believe?
18th century philosopher and founder of economics
Wrote "Wealth of Nations"
Argued for laissez faire economics, leaving businesses unregulated by gov't
3 Natural Laws:
Self interest- People work for their own good
Competition- Competition forces people to make a better product
Supply & Demand- Enough goods will be produced at the lowest possible price to meet demand in a market economy.
Benefit of Capitalism:
Competition creates quality goods at lower prices
Constant search for new technologies
What is Marxist communism?
A completely classless society - now wealth differences, no social classes and eventually no need for government.
What is capitalism?
People invest money to make a profit
What is socialism?
A group of people own big business and spread the wealth equally.
What are most economic systems?
They are mixed between the different economic systems.
