Capitalism
Download
1 / 34

capitalism - - PowerPoint PPT Presentation


  • 151 Views
  • Uploaded on

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

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'capitalism -' - Jims


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Capitalism

capitalism -

Carol Mathias


Adam smith father of capitalism
Adam Smith - Father of Capitalism

  • Lived 1723 - 1790 in Scotland.

  • Economist and philosopher


The wealth of nations
The Wealth of Nations

  • Written in 1776 as a protest against mercantilism.


By the way
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.


Mercantilism
Mercantilism.

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


Louis had a problem
Louis had a problem….

  • Being King was very expensive.

  • Louis needed money….real bad!


Colbert had a solution
Colbert had a solution!

  • C + I + G + X - M = GDP

  • Decided to try

    • C + I + G + X = GDP


C i g x gdp
C + I + G + X = GDP

  • Colbert made King Louis rich.

    • opportunity benefit!


C i g x gdp1
C + I + G + X = GDP

  • But what are the opportunity costs?


Adam smith predicted
Adam Smith predicted….

  • Revolution!!

  • People would get ticked off.


The american revolution
The American Revolution...

  • We weren’t allowed to spend our money the way we wanted.


The french revolution
The French Revolution

  • People really got ticked off!


Adam smith proposed
Adam Smith proposed...

  • Capitalism!

  • Let the people decide the 3 economic questions!


Smith proposed
Smith proposed...

  • People need incentives to work.

  • Profits are the best incentives.


People need incentives
People need incentives….

  • PSYCHIC INCOME.


Entrepreneurs
Entrepreneurs

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



Warren buffet omaha s billionaire
Warren Buffet - Omaha’s billionaire.

  • FoundedBuffy’s Buffet.

  • Chairman of Solomon Brothers Investments.

  • Chairman of Borsheim’s Jewelry.

  • Most expensive stock is Berkshire Hathaway.


Rose blumkin nebraska furniture mart
Rose Blumkin – Nebraska Furniture Mart

  • 1893-1998

  • “Always sell cheap and tell the truth.”


Famous entrepreneurs
Famous entrepreneurs

  • Buffalo Bill Cody.

  • Created Wild West Show for world.


Ray kroc founder of mcdonald s
Ray Kroc - Founder of McDonald’s

  • Began the fast food revolution.



The invisible hand
The Invisible Hand

  • One person’s acting in their self-interest is likely others.


The invisible hand1
The Invisible Hand

  • Runs all through the economy.

  • Problems are solved by it as well.



Govt only ties up the invisible hand
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.


Laissez faire
Laissez-faire.

  • French for “hands off”.

  • Govt. should be laissez faire with business.


Smith didn t mean no government
Smith didn’t mean no government.

  • Government did have special jobs to make economy work.


Government s job
Government’s Job

  • Provide Infrastructure for the system.


What govt provides

Fire & Police protection.

Transportation system.

Public education.

Communications.

What Govt. Provides.


Smith s role for govt

Court system to define property rights.

Military protection for borders and products.

Smith’s Role for Govt.



Key benefits
Key Benefits

  • Summarize the key benefits provided by the product, service, or idea being promoted


Next steps
Next Steps

  • Specify the actions required of your audience


ad