GS101 Lecture Notes - Lecture 6: Canadian Imperial Bank Of Commerce, Efficiency Ratio, Great Depression
Document Summary
An ideology that is based on the ideas of the 19th c. classical liberal economists on (cid:498)laissez-faire(cid:499) capitalism: adam smith, david ricardo. Posits that unfettered competition is way of nature, which exists in balance: competition good thing because it leads to (cid:498)survival of the fittest(cid:499) Removal of barriers to trade, such as import duties/taxes will lead to more competition which will increase business efficiency and product quality. Economic markets will regulate themselves and tend toward equilibrium of supply/demand: e. g. wage controls interfere. Law of supply and demand will correct the excesses of capitalism. National gov(cid:495)ts should get out of the way, let markets do their thing. Gov(cid:495)t regulations distort natural workings of the market. Post wwj: characterized by protectionism, high tariffs on imported goods seen as necessary to development on national industries/businesses. Great depression reverberated around now increasingly economically interconnected globe. Establishment of welfare state government intervention in social economic.
