POLS 110 Lecture Notes - Lecture 12: Liberal Democracy, Invisible Hand, Classical Liberalism
4 Dec 2015
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The wealth of nations how to understand emerging economic form of capitalism. The invisible hand of the market intending one"s own gain inadvertently benefits society as a whole. Efficiency, productivity, expansions, best allocation of resources and talents. Linked to rise of capitalism (private property, class divisions between. Justification of private ownership owner/investor and wage-earning worker) Minimize state involvement in making decisions about investment. Comparative advantage goods should be produced where it is cheapest to. Free trade will benefit all by encouraging comparative advantage produce them. American & french revolutions based on classic liberal democracies: french: land ownership or money minimum in order to vote: those who have saved enough money and developed an industry are rational. Democratic form of government best at representing the common interests. Everyone rationally will share an interest in protection of self and of property. Everyone rationally will want social progress and advance in common interest.
