Optimism - adam smith - division of labour (copy)

Optimism

Belief in positive outcomes regardless of challenges

Optimist

Person who sees the positive side of situations

Adam Smith

Father of the economy, originator of the invisible hand concept

The Theory of Moral Sentiments

Smith's book on human interaction and decision-making based on self-interest

The Wealth of Nations

Smith's influential book on open markets and work division

Invisible Hand

A term introduced by economist Adam Smith to describe the unintended social benefits resulting from individual actions in a free market. It suggests that individuals, by pursuing their own interests, unintentionally promote the collective good.

Law of Supply & Demand

A fundamental economic principle stating that when supply exceeds demand, prices tend to fall, and when demand exceeds supply, prices tend to rise. This interaction between supply and demand determines the price and quantity of goods and services in a market.

Self-interest

Motivation for economic activity according to Smith

Limits and protection of the law

Individuals, not governments, should decide production and consumption

Division of Labor

Specialization to increase productivity, illustrated by pin factory example

labor division: Globalization

Smith's support for labor division between cities and countries

Dangers of division of labor

Inconveniences such as difficulty finding work, dependence on individuals, and mental strain

Communist Manifesto

Marx's work predicting worker revolt against harsh labor conditions