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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 -

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


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