Hannah R, Riley V & Krista W
Adam Smith: "Father of Economics"
Rational Self Interest
- Little to no government interference
- "Automatic System"
- No regulated monopolies, fair competition
- Supply and demand help regulate each other
- Belief that there is no need for government intervention, "automatic".
- The "Invisible Hand" guides the market
Wealth of Nations
Real Life Examples
- Supply & demand in the market fluctuates.
- Entrepreneurs create businesses, therefore creating jobs and helping the economy.
- A true "Laissez-Faire" market has not ever existed on large scale.
- Doing what you believe will benefit you the most is an example of Rational Self Interest.
- "The positive effects of an open market are clearly evident in the stellar growth of the U.S. economy over the past decade. Since 1990, the U.S. economy has grown by more than 23 percent..." (heritage.org)