unit 12 Adam Smith.pptVIP

Book III: Of the different Progress of Opulence in different Nations Book IV: Of Systems of political Economy Book V: Of the Revenue of the Sovereign or Commonwealth Background Information Major Themes: 1.EnlightenedSelf-Interest Smith wanted people to practice thrift, hard work and enlightened self-interest. He thought the practice of enlightened self-interest was natural for the majority of people. In his famous example, a butcher does not supply meat based on good-hearted intentions, but because he profits by selling meat. Background Information 2. Limited GovernmentSmith saw the responsibilities of the government being limited to the defense of the nation, universal education, public works (infrastructure such as roads and bridges), the enforcement of legal rights (property rights and contracts) and the punishment of crime. He cautioned against larger, bureaucratic governments. Background Information 3. Solid Currency and Free-Market EconomyThe third element Smith proposed was a solid currency twinned with free-market principles. With hard currency acting as a check to spending, Smith wanted the government to follow free-market principles by keeping taxes low and allowing free trade across borders by eliminating tariffs. Background Information Text Study II. Significance of the Book I. A Close Reading of the Book IV. Influence of the Book Text Study Para. 1 This paragraph means that the wages from different professions are different because labor and success involved in them are different. Text Study Para. 2 This paragraph means that success is in general more certain in mechanick professions than in liberal ones. For example, a shoemaker is easier to live by the business than the counsellor at law, and the rate is at least twenty to one. Text Study Para 3 The reasons why so many people are eager to crowd into liberal professions are two: the desire for the reputation and the wish of good fortune with their natural confidence. T