History 1807 Lecture Notes - Lecture 9: Invisible Hand
24 Apr 2019
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He was born in an age of shift of society perception on different ideals. Before you had the landownership system with little possibility or hope for expansion. This brought an idea that people could change their future with their actions. Self interest everyone in society acts in self interest, this is best for economy. Based on that he makes several rules of the market: Law of accumulation goal of capitalist to accumulate the savings, more you accumulate the more you pay workers, pay to demand, higher wages means a longer life. State must maintain roads, rules, hospitals, organizations that cant work on profits. It is for the benefit and well being of hospitals. Flaws in his theory, he was a realist, he was describing what he saw around them. He imposes the idea that everyone is self interested so nobody will interact with another. He does not want monopoly to overtake everything else.
