1. Adam Smith Aim/Goals: How does Adam Smith’s capitalism reflect the true spirit of the Enlightenment? Do Now: Should our government play a major role in our economy? Explain in a few sentences. Homework: Complete the handout.

2. Adam Smith and his Enlightened thoughts  Smith (1723-1790)  Key figure of the Enlightenment period  Two Books –The Theory of Moral Sentiments (1759) –An Inquiry into the Nature and Causes of the Wealth of Nations (1776)  More commonly known as Wealth of Nations  A study and explanation of industry and commerce

3. It’s Affects  Wasn’t all original thought, based off of prior work  Attacked Mercantilism  Attacked Jean Baptiste Colbert  Helped create the field of Economics  Free trade, Capitalism, Libertarianism, Division of Labor

4. Free Trade  Government restricts free trade through imposing tariffs.  Smith was against government barriers and believed in non- tariffs.  Laissez Faire- Leave it alone

5. Capitalism  System in which the means of production are mostly privately owned and operated for profit  Distribution, Production, Pricing of goods and services are determined largely in a free market  Price arranged by mutual consent of sellers and buyers

6. Libertarianism  Every person is the absolute owner of their own life and should be free to do whatever they wish as long as they don’t infringe on others rights.

7. Division of Labor  Various views  Smith contradicts himself here  One side says it is the only way to effective production. (Pin example 1 equals 1, but 10 dividing the 18 steps to making a pin divided up the work, they could make 48,000  The other side says it leads to mental mutilation

8. Division of Labor  Because workers are confined to a single repetitive task they become  Alienated  Lack of enthusiasm  And Karl Mark (Communist Manifesto) said it will eventually lead to the worker revolt that will end Capitalism

9. Division of Labor  Simulation  After we conduct simulation you will have to research division of labor and read an excerpt from Noam Chomsky you will type a one page paper, double spaced, 12 font, and tell me your thoughts on division of labor.

10. Noam Chomsky  Chomsky Interview about Adam Smith Chomsky Interview about Adam Smith Chomsky Interview about Adam Smith