The Philosophers of Industrialization

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The Philosophers of Industrialization by Mind Map: The Philosophers of Industrialization

1. Laissez faire

1.1. The economic policy of letting owners of industry and business set working conditions without interference.

1.2. This policy favors a free market unregulated by the government.

1.3. French for “let do,” and by extension, “let people do as they please.”

1.4. Laissez-faire economics stemmed from French economic philosophers of the Enlightenment.

2. Utilitarianism

3. Adam Smith

3.1. A professor at the University of Glasgow, Scotland

3.2. Defended the idea of a free economy, or free markets, in his 1776 book The Wealth of Nations.

3.3. According to Smith, economic liberty guaranteed economic progress.

3.4. As a result, government should not interfere. Smith’s arguments rested on what he called the three natural laws of economics:

4. Three natural laws of economics

4.1. 1. the law of self-interest—People work for their own good.

4.2. 2. the law of competition—Competition forces people to make a better product.

4.3. the law of supply and demand—Enough goods would be produced at the lowest possible price to meet demand in a market economy.