ISS 315 Lecture Notes - Lecture 1: Limited Government, Free Trade, Free Market
17 Jan 2019
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Document Summary
A study that explains how political power shapes the economic outcomes and vice versa. Economy should serve political state by maximizing wealth and power. Strong economy will further strengthen the government, cycle continues. Nations should build strong army conquer other nations. Gold and silver must be collected by the state (billionism) Grant legal monopolies to businesses that produce goods for export. Large pool of working-class people, large population is good for economy. Adam smith disagreed with mercantilism, introduced new ideas: three freedoms, division of labor. Freedom to compete: workers should be paid what is necessary for their. Freedom from government: free trade interference, tax on foreign goods, government should only focus on defense, national security is important protection of citizens, and creation and maintenance of public institution. David ricardo: negative effects of agriculture on business, comparative advantage and manufacturing, landlord"s gain = industrialist"s lost, no protectionism in agriculture and industry, free trade, foreign trade.
