The Father of Capitalism and Classical Economics Personal Information Economic Theory Political Criticism Matilde Lomaglio Lorenzo Grossi Daniel Xu PPT by Daniel Xu Key Ideas ID: 532149
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Adam Smith - The Father of Capitalism and Classical Economics
Personal Information – Economic Theory – Political CriticismMatilde Lomaglio – Lorenzo Grossi – Daniel XuPPT by Daniel Xu
Key Ideas
Key WordsSlide2
Personal Information
Adam Smith16th June 1723 – 17th July 1790 (Aged 67)Born in Kirkcaldy, Fife, Scotland
Political Economist, Philosopher
Glasgow University and Balliol College Oxford UniversityAppointed professor of Logic and Moral philosophy
Founding member of the Royal Society of EdinburghComically absent-minded
Talk to Himself, Spells of imaginary illness
A Deist maybe?Slide3
Economic TheoryGeneral Idea: How to make a capitalist economic more
human and meaningfulUnderlying Ambition: Make nations & people happierSpecific Theory:
1. Specialization
2. Consumer Capitalism
3.
How to treat the Rich
4.
Educate ConsumerSlide4
SpecializationModern World of WORK:
1. Produce unprecedented amounts of wealth2. Boring and meaning-lessSmall Business vs Big Business
Therefore, modernity cooperation owners have an extra responsibility to their workers, to remind them of purpose, role and ultimate dignity of their labor.Slide5
Mathematic Simulation for Specialization
10 Workers10 Days10 Tasks = 1 Car
Individually: 1 Worker = 10 Tasks = 10 DaysCooperatively
: 1 Worker = 1 Task = 1 DayCaution: Stress worker will have a lower Production Rate
Unlimited Funding
Individually
Cooperatively
Production in 10 days
10
10
Cost for
one car
Much
more than basic
Basic
Benefit overall
Basic or Less
BasicSlide6
Consumer CapitalismLuxury goods
Broadening Middle ClassJean-Jacques Rousseau
- Sparta, austere, martial life style - Ban Luxuries
VSAdam Smith
- Luxuries held a serious role to play in economic -
Generated the surplus of wealth into caring the weakest member of the society
-
Frivolity
, but no
starvation
Good for the poor > Society devoted to high idealsSlide7
Consumer CapitalismGenerate sizeable profits from helping people in truly important, ambitious ways.
Capitalism > Service Basic Needs + Buy Frivolous thingCapitalism = Earing
True FulfillmentSlide8
How to treat the richChristian: Make them feel Guilty.
Radical Left Wing: Raise taxesAdam Smith:
Heart rates will remain cold, rich will flee away.
Social Dissatisfaction
Rich cares about honor and respect instead of actual money
Plenty of honor and status distributed
“The great secret of economic is to direct vanity to proper objects.”
-Adam SmithSlide9
Educate ConsumersEvil Corp
Low Paying Jobs
Environmental Abuse
Sickening Ingredients
Fundamentally, our
taste
decide whether the
corp
is evil or not.
It is not companies that degrade the world, it is our appetites, which they merely served
.
Capitalism will be saved by
elevating the quality of consumer demand
.Slide10
Moral SentimentsMoral Sentiments
How human communication relies on sympathy
People are
self-interested but naturally like to help others.Slide11
The wealth of NationsCompile
and Popularize some of the pre-existed ideas, form the Classical Economics
Laissez – Faire Idea were promoted
Producers Engage in the enterprises for the purpose of earing money
Producer get financial rewards
People(consumers) get what they want
People(consumers) buy products that they want
Creates wealth for the Entire Nation
Created the concept of
GDPSlide12
Political CriticismsJean-Jaques
Rousseau VS Adam Smith (Consumer Capitalism)Can Economic ever be at once
profitable & civilized
?How can you say people are naturally like to help each other when your philosophies are based on
self – interest and maximizing return. (
Moral Sentiments
)
The Invisible Hands
Adam Smith did not invent most of the ideas in
The Wealth Of Nations,
instead he popularized them, so is this concept actually his? (
The Wealth Of Nations
)Slide13
Bibliographyhttp://www.investopedia.com/updates/adam-smith-economics/?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186
- Adam Smith: The Father of Economics, Investopediahttps://www.google.ca/search?q=adam+smith&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjPlIr-4InQAhXIx1QKHc3hA68Q_AUICCgB&biw=1366&bih=660 - Adam Smith Image, Googlehttps://en.wikipedia.org/wiki/Adam_Smith
- Adam Smith, Wikipediahttps://www.youtube.com/watch?v=ejJRhn53X2M
- Political Theory – Adam Smith, Youtube