Class Lecture #11 - 9/26

1.) England really didn't have any resources or characteristics unique to them, so.... Why England?
         - no single cause but rather lots of side and spontaneous changes
         - "decay of religious mysticism" people just as interested in life today than life after death
         - harder to colonize England b/c it's an island
         - institutions --> Adam Smith, single most important determinant of wealth
         - society that allowed for individual freedom and tolerance

2.) Mercantilism: one single person, the King, regulated all economic activity
         - heavy restraints on all individuals
         - import/export regulations
         - restrictions on movement
         - price control, etc.

3.) Decline of mercantilism..... French Physiocrats (Quesnay) searched for laws that could govern social aspects of life similar to scientific laws. They came up with circular flow which explains the flow of money between firms and individuals (inc: factors, goods and services, etc.)..... income = expenditures (money made is money spent)


                                                                                                                                              Rizzo