Capitalism:

Capitalism is normally used to describe our social system that we live it now. Capitalism has been in human history for a long time now. Capitalism is the social system which now exists in all countries. This system produces and distributes goods from owned by small minority of people. These people are commonly called the capitalist class. The working classes are people who have to sell their ability to work in return for a wage or salary. The working class gets paid to produce goods that are sold for profit. This profit is gained by capitalist class because they can make more money selling what the working class has produced. Capitalists live off the profits they obtained from exploiting the working class. This class separation is essential for capitalism. The motive for producing goods and services is not to satisfy’s people’s needs. The goods produces may satisfy human needs but those needs will not be met if people do not have sufficient money. The profit motive is not just the result of greed of individual capitalists. The need to make profit is imposed on capitalist as a condition for not losing their investments and their position as capitalist. Competition with other capitalists helps them keep up to date with production of goods. Capitalism
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Adam Smith:

French thinkers, who were known as physiocrats, focused on economic reforms. Physiocrats based their thinking on natural laws, or rules discoverable by reason and govern scientific forces such as gravity and motion. Their rational economic system was based on the natural laws of economics, according to these physiocrats.
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Adam Smith admired the physiocrats. He was a scottish philosopher and economist who wrote the inspiring work The Wealth of Nations. Throughout this book, Smith argued that the free market should regulate business activity. The book showed that manufactoring, trade, wages, profits, and economic growth were all tied together in the market forces of supply and demand. He believed that wherever there was a demand for goods or services, suppliers should want to meet that demand in order to make a profit. lthough Adam Smith supported Laissez faire, which allows business to operate with barely any government interference, he also believed that the government had the responsibility to protect society, administer justice, and provide public works. The Wealth of Nationswas not only a study of economics; it was a survey of human social psychology of life, welfare, political institutions, the law, and morality. Although Adam Smith supported Laissez faire, which allows business to operate with barely any government interference, he also believed that the government had the responsibility to protect society, administer justice, and provide public works.
Adam Smith was an 18th Century philosopher and a political economist. He wrote the most important economic work ever written "Wealth of Nations. The Wealth of Nations was a book that describes what builds a wealthy nation, it had a big impact on Europe and the United States. He also published The Theory of Moral Sentiments. He writes largely against the merchant system, and his work was inspired by the enlightenment.


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