Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Theories

Enlightened Self Interest

Classical Economics

Invisible hand Theory

  • our natural tendency to look out for ourselves, also allows us to look out for others
  • both parties benefit from each transaction
  • long term thinking will stop businesses from abusing customers
  • the natural force that guides free market capitalism through competition for scarce resources
  • each participant tries to maximize self-interest
  • no government regulations would be needed to ensure a mutually beneficial exchange
  • replaced Mercantilism
  • believed in the government taking a laissez-faire leadership role
  • minimize government interaction
  • reduce taxes

It is not from the benevolence of the butcher, the brewer, or baker that we can expect out dinner, but from their regard to their own interest.” –Adam Smith

Biography

- Birthday unknown but baptized on June 05th, 1723, Scotland, Kirkcaldy.

At the Age of 4 he was taken away by gypsies

Ideas that advanced economic thought

Attended University of Glasgow at the age of 14, later on he went to Oxford.

Died on July 17, 1790

Laissez-faire economics

Solid Currency and Free-market Economy

Ideas

Adam Smith

  • Free trade economy
  • Laissez-faire economics
  • Means "let things alone"
  • More power to individuals
  • Apply labor and materials as they wish
  • solid currency
  • hard metals make it harder for government to depreciate currency
  • keep taxes low
  • allow free-trade across borders
  • eliminate tariffs
  • tariffs and other taxes made life more expensive and slowed down industry/international trade
  • Cheaper goods and materials can be bought easily from foreign suppliers
  • Firms produce higher quality goods due to increased competition

The father of Capitalism

by: Nicholas Alder, Ali shahab, Abdul Rehman, Talha Javed

Contributions to economics

Contributed many ideas and theories to the field of economics.

Invisible hand and Capitalism

Laissez-Faire

Adam smith is considered the father of capitalism.

He contributed the idea about reducing the role of govt. intervention and taxation in free market.

He contributed the idea about how supply and demand determined the prices of goods and a free market would keep these prices low.

Smith believed that as long as markets were free and competitive the actions of people motivated by self- interest would work together for the greater good of the society.

He came up with the term "invisible hand" to describe natural force that guides free market capitalism through competition for scarce resources.

Laissez-faire made a large contribution to classical economics

Division of labor

Contributed the idea about workers being skilled at one particular job rather than being ok at everything. This was known as the division of labor theory.

His most famous example is on pin manufacturing where 1 person draws the wire, another straightens it, another cuts it and so on.

If many individuals worked together and each took up one task, the production would increase and lead to greater profit and better economy.

Bibliography

"Adam Smith And "The Wealth Of Nations"" Adam Smith And "The Wealth Of Nations

N.p., 17 Apr. 2009. Web. 12 Sept. 2013. <http://www.investopedia.com/articles/economics/09/adam-smith-wealth-of-nations.asp>

"Adam Smith." Britannica School. Encyclopædia Britannica, Inc., 2013. Web. 12 Sep. 2013.

<http://school.eb.com/levels/high/article/109541>.

"Adam Smith." The Concise Encyclopedia of Economics. Liberty Fund Inc., n.d. Web. 12 Sept.

2013. <http://www.econlib.org/library/Enc/bios/Smith.html>.

"Adam Smith: The Father Of Economics." Investopedia. N.p., 26 Feb. 2009. Web. 12 Sept.

2013. <http://www.investopedia.com/articles/economics/08/adam-smith-economics.asp>

Gordon, Steven. "Our Stockholm Syndrome about Supply Management." Macleans.com.

Macleans, 5 Mar. 2013. Web. 12 Sept. 2013. <http://www2.macleans.ca/2013/03/05/our-stockholm-syndrome-about-supply-management/>.

"Invisible Hand." What Is Invisible Hand? Definition and Meaning. Investor Words, n.d. Web.

13 Sept. 2013. <http://www.investorwords.com/2633/invisible_hand.html>.

"Three Economists and Their Theories." Infoplease. Infoplease, n.d. Web. 13 Sept. 2013.

<http://www.infoplease.com/cig/economics/three-economists-their-theories.html>.

What if we do nothing?

Pro

Con

Define the objective

Explain new strategies

Summarize your recommendation

Explain your expectations

Adam Smith

Based on Jim Harvey's speech structures

Learn more about creating dynamic, engaging presentations with Prezi