buchholz - more valuable to society than what they started...

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Adam Smith “Invisible Hand” -When people make decisions they imagine an “impartial spectator” who advises them. People decide on the basis of sympathy, not selfishness -Natural human desires and drives exist because all humans want to live better than they do: we are very rarely satisfied with our current situation -Government should not repress self-interests, but promote it as an important resource. Self-interests motivates more powerfully than kindness and altruism -If people promote their self-interests, society as a whole prospers: the “invisible hand” concept -invisible hand forces people to take scarce resources and produce something
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Unformatted text preview: more valuable to society than what they started with Division of Labor -specialization increases output and productivity (pin example)-workers develop more skill in their particular task and waste less time changing from task to task Free Market-Under a market system, even the poor and politically impotent can prosper Market system reduces discriminations because consumers buy from whoever offers the best price-Government should not protect its industries, regulate labor or distribute favors to merchants Alfred Marshall...
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This note was uploaded on 04/07/2008 for the course ECON 201 taught by Professor Witte during the Fall '08 term at Northwestern.

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