ECONOMIC SYSTEMS

Adam Smith- laissez faire Scottish moral philosopher Wealth of Nations- Capitalism Free market economy- govt should refrain from interfering. If people were allowed to seek personal gain, it would increase general welfare Challenged “mercantilism”, where govt regulated trade to increase gold/silver Driving philosophical idea behind Industrial Revolution

David Ricardo/Thomas Malthus Also believers in capitalism Said that population boom outstripped food supply, also led to low wages. Workers’ condition was result of “natural law”

Jeremy Bentham Pass legislation that “maximizes the greatest happiness for the greatest number of people” Ethics- “greatest good” Does not consider personal gain/advancement.

Count de Saint-Simon “Positivism”- modern socialism Poor workers led by artists/scientists should form communities under protection of benevolent business leaders. Government takes from rich, gives to those in need Similar to Utopian socialism Still popular in Latin Am. countries

Friedrich List Realized Great Britain domination of world economy because of capitalism Rejected capitalism and free trade German states should eliminate tariffs between one another and pass high tariffs against Britain Led to creation of Zollverein

Charles Fourier Hated capitalism Envisioned ideal society where workers would live together in dormitories, work together, share everything Criticized as unrealistic/imaginative. “Utopia” is Greek for “not” and “place”= “No place” Robert Owen made attempt to create utopian society

Karl Marx Communism, branch of socialism Egalitarian, stateless, classless society based on common ownership of means of production. No private ownership, workers own everything Everyone received same compensation for work