Today we will discuss the ideas of Adam Smith. The Wealth of Nations, written by Smith in 1776, described the newly industrializing world in which he lived. The book and his ideas underpin the theories of the Classical School of economics and have exerted great influence in the policy debates of countries throughout the world for two centuries.
Question of the Day
Adam Smith believed that governments should not interfere in the decisions of economic stakeholders. How did he think that such a system would maintain order ("hang together")?
Focus Questions
"How is it possible for a community in which everyone is busily following his self-interest not to fly apart"?
"What is it that guides each individual's private business so that it conforms to the needs of the group"?
"With no central planning authority and no steadying influence of age-old tradition, how does society manage to get those tasks done which are necessary for survival"?
Industrial Revolution
Enclosure
Crop rotation
Industrialization
Factors of production
Factory
Entrepreneur
Urbanization
Middle class
Stock
Corporation
Laissez-faire
Adam Smith
Capitalism
Utilitarianism
Socialism
Karl Marx
Communism
Union
Strike
Read Chapter 3 in The Worldly Philosophers by Robert Heilbroner.
Take notes on the reading. Organize your notes using the Question of the Day and today's Focus Questions. For each one, note at least one passage and any other information from the text that helps to answer the question.
Reading assessment with your partner
Scored discussion of the reading
Written free response
Optional: You are not required to listen to this podcast but doing so will deepen your understanding of the Industrial Revolution. If you want to try: Click here and download lecture 16 ("Getting and Spending - England"). Go to minute 36:45 and start listening there. You don't have to take notes but write a brief summary of why Professor Anderson believes the Industrial Revolution began in England.
Required: Read Chapter 26 (Section 1) in the blue textbook.
Required: Take notes on the reading. You should organize your notes so that they identify key ideas 6 and 7 (below). Under each key idea in your notes should be statements that support or relate to the question. The statements should use SHE from the lecture and reading. If you cannot find support for a key idea in the text or lecture, do not include the key idea in your notes.
Some states promoted reforms to mitigate the negative effects of capitalism.
Societies altered their patterns of social and economic organization in response to the IR.
For more background, sign up for this Coursera class and watch the video lectures.
Related readings: