Political Science 2102A/B Study Guide - Aggregate Demand, Invisible Hand, Foreign Corporation
31 Jan 2014
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Division of labour into specialized, routine task: increases dexterity of each worker, saves time, invention of machine made work capable for all. Allowed even women and children to perform tasks they became simple and easy. Purpose of trade was to exchange own surplus for surplus of others. Market economy provides universal opulence and improved standard of living for bulk of population. Wanted to remove protectionism to promote trade and to maximise competition. Welfare bad, made people only work for what is needed. Government should give individual ability to purse self-interest. Invisible hand market forces push supply and demand to equilibrium. Markets destroyer of uniqueness of individuals work: difference natural and good. Markets destroy local culture sense of community. Economy won"t be able to support increase in population that follows a wage increase. Development of property ownership: tribal (means of survival for family) state (union of tribes, communal.
