Capitalism

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An economic system based on private businesses owning the means of production for profit.

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What is Capitalism?

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A Scottish philosopher & economist, often called the father of Capitalism. In 1776, he wrote 'The Wealth of Nations', a book that laid out the foundational principles of modern capitalism.

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Who is Adam Smith?

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Productivity Drives Innovation: The quest to create more products cheaper and faster would lead to investments in innovation.

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What is Principle #1 of Capitalism according to Adam Smith?

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Division of Labor: To increase productivity, each person focuses and specializes in one element of producing a good or service.

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What is Principle #2 of Capitalism according to Adam Smith?

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The Invisible Hand: The economy will regulate itself based on the demands of the market and the consumer. The self-interest of the consumer to want better products will drive companies to compete to make the best product at the best price.

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What is Principle #3 of Capitalism according to Adam Smith?

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The belief that governments should not interfere with the affairs of business or place taxes on trade.

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What is Laissez-Faire Economics?

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Relies on businesses to be incorruptible, tends to centralize wealth on the few, and nothing stops companies from attempting to eliminate competition to create a monopoly or take dangerous risks with people's investments.

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What are some issues with Capitalism?