1.) Adam Smith wrote in his book Wealth of Nations that the key to a successful economy was for government to not get involved. Smith theorized that the economy was at its best when:
- everyone had rights to property
- a division of labor exists
- exchange is peaceful and mutual
- there were NO special privileges
2.) Smith argued that the source of wealth for everyone is the ability to produce and exchange commerce. This view is very different from the views of the mercantilists who said that the more gold and silver a person had, the richer they were.
3.) Capitalism emerged as a self-organizing system under spontaneous order. The capitalist way of life really took off during the late 1800s when the Industrial Revoluion was in full swing and when free trade and exchange was the norm.
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