The Free Enterprise System

by Jordan Lawson, 1A

Adam Smith's Core Beliefs

Adam Smith believed in five things:

  • Laissez faire
  • Invisible Hand
  • Wealth of Nations
  • Rational Self-Interest
  • Free Trade

- Laissez faire: No form of government interference in the economy

- Invisible hand: Self-regulating economy

- Wealth of Nations: Adam Smith's book

- Rational Self-Interest: Consumers are more concerned with themselves than they are with others

- Free Trade: Trade is left alone

Modern examples of competition include...

Benefits of competition include...

  • Consumers get a wide variety of choices
  • The economy grows
  • Less taxes
  • Items cost less
  • Higher quality items