Free Essays on CAPITALISM IS THE IDEL SOCIL SYSTEM

From the 1400’s to the 1700’s, the major European trading nations used an economic system known as mercantilism. Under this system, governments made sure to manage their economic situation so that the amount of exports exceeded the amount of imports. They placed high tariffs (taxes) on imported goods so that they would cost more at home, and gave financial aid to local farms and industries so they could lower the prices of their exports. Nations made themselves rich by selling more goods than they bought. During the mid-1700’s, a group of French economists also known as physiocrats urged the government to stop making foreign trade its business. Their policy, called laissez faire ( a French phrase that meant allow to do.) demanded an end to the high tariffs and other trade restrictions. With the help of Adam Smith capitalism soon spread to other large trading countries. Smith’s book The Wealth Of Nations (1776) gave the basic argument for capitalism. In the book it was said that a government should not interfere with a nation’s economy but instead should let individuals act as â€Å"free agents† who look out for their own interests. These â€Å"free agents† Smith said would naturally bring a greater good to society â€Å"as if guided by an invisible hand.† The early growth of capitalism was based on the use of privately owned property to make money. The growth of markets encouraged men to invest capital- (goods or money devoted to making goods or money.) capitalists made two new systems of manufacturing. In one of them a capitalist would employ a large amount of journey men and helpers in his workshop for money. This helped make large workshops so, the work was divided, men no longer had to carry out manufacturing on their own like in the old system. The capitalist boss p... Free Essays on CAPITALISM IS THE IDEL SOCIL SYSTEM Free Essays on CAPITALISM IS THE IDEL SOCIL SYSTEM From the 1400’s to the 1700’s, the major European trading nations used an economic system known as mercantilism. Under this system, governments made sure to manage their economic situation so that the amount of exports exceeded the amount of imports. They placed high tariffs (taxes) on imported goods so that they would cost more at home, and gave financial aid to local farms and industries so they could lower the prices of their exports. Nations made themselves rich by selling more goods than they bought. During the mid-1700’s, a group of French economists also known as physiocrats urged the government to stop making foreign trade its business. Their policy, called laissez faire ( a French phrase that meant allow to do.) demanded an end to the high tariffs and other trade restrictions. With the help of Adam Smith capitalism soon spread to other large trading countries. Smith’s book The Wealth Of Nations (1776) gave the basic argument for capitalism. In the book it was said that a government should not interfere with a nation’s economy but instead should let individuals act as â€Å"free agents† who look out for their own interests. These â€Å"free agents† Smith said would naturally bring a greater good to society â€Å"as if guided by an invisible hand.† The early growth of capitalism was based on the use of privately owned property to make money. The growth of markets encouraged men to invest capital- (goods or money devoted to making goods or money.) capitalists made two new systems of manufacturing. In one of them a capitalist would employ a large amount of journey men and helpers in his workshop for money. This helped make large workshops so, the work was divided, men no longer had to carry out manufacturing on their own like in the old system. The capitalist boss p...