The Wealth of Nations

By: Emma Hunt

What is Capitalism?

Capitalism is based on the production of goods and services in order to make a profit. This was first introduced by Adam Smith, who said that if we gave the people freedom to exchange goods how they wanted, the nation's government would not have to do much to increase people's self-interest. Smith worked hard in order for capitalism to become a practice of many. He took the work seriously and to heart, and many people believed in him. He gave the people freedom.

Examples of Capitalism

The United Kingdom is only one of many examples of where capitalism is still practiced. Even though no country is pure capitalism, there are still numerous countries that practice it in some fashion.
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Smith's view on Mercantilism

Mercantilism was viewed as a misery or a bad thing. Smith changed the people's view on mercantilism and provided freedom. Smith came up with the idea of a free market, which would have raised the standard of living considerably.
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Another example of a country that practices capitalism is Mexico.

What Makes Capitalism Better?

With a free market economy, taxes would be lowered and free trade would be allowed which would eliminate tariffs. Large governments were frowned upon and Smith focused on universal education which dulled the effects of the division of labor in industrialization. He also encouraged enlightened self-interest. He believed this would help people and be good for them. Overall, capitalism had many advantages that makes it more powerful and successful than socialism and communism.