1. American Enlightenment

2. American Colonies Population Growth: 111,000 in 1670 to 1.6 million in 1760 Movement away from communalism and toward individualism & nationalism Mercantilism strengthened economy Power of the mind over the power of religion

3. The Enlightened Americans John Adams (1745-1826) Ben Franklin (1706-1790) Thomas Jefferson (1743-1826)

4. Declaration of Independence We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights; that among these are Life, Liberty, and the Pursuit of Happiness- That to secure these rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government…

5. Declaration of Independence We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights; that among these are Life, Liberty, and the Pursuit of Happiness - That to secure these rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government…

6. The Constitution Used ideas of: Locke Montesquieu Rousseau and Voltaire

7. The Constitution What is the purpose of government? To protect peoples’ natural rights - Locke How did the government get its power? From the consent of the people - Locke How should government be organized? Limit power - Montesquieu How do we limit government’s power? Separate branches - Montesquieu Checks and balances - Montesquieu

8. The Constitution “All men are… Created equal” – Voltaire The best government is… Popular sovereignty (direct democracy) Rousseau Who the people? We the People – Rousseau

9. Have we seen anything like this before? Direct DemocracyRepublic

10. Aha! Why not simply create a representative democracy? Laws will be made and administered by elected representatives, thus we have republican principles… …and these representatives will be elected by the people. Hence the government will derive its authority from the consent of the people as a whole.

11. We’ve done it! But I wonder if man is good or evil? It doesn’t matter. People working in their own self interest promote society’s interest. Who are you? I’m Adam Smith. I’m the other topic today.

12. Adam Smith The Birth of Modern Economic Theory

13. Adam Smith (1723-1790) Taught logic, philosophy, and ethics at the University of Glasgow. In 1776 wrote The Theory of Moral Sentiments and an Inquiry Into the Nature and Causes of the Wealth of Nations

14. The Wealth of Nations

15. Basic Free Market Principles 1. Trade between nations is good – both parties benefit 2. Individuals seeking self interest will create a better society Invisible Hand 3. Government should interfere minimally with the market Laissez Faire (Let it be) 4. Competitive, free markets are the most efficient