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...
Krispy Kreme vs. Dunkin Donuts
Krispy Kreme and Dunkin Donuts both try to make the best donuts and earn the most profit.
Apple vs. Microsoft
Apple and Microsoft try to create the best technology-related products, such as computers. There is heavy competition between them.
Cute characters vs. other cute characters
Items related to characters such as Hello Kitty and Domo-kun are very popular. There is competition in trying to have the most popular character and thus sell more merchandise.
Benefits of competition include...
- Consumers get a wide variety of choices
- The economy grows
- Less taxes
- Items cost less
- Higher quality items