Passion for present enjoyment Statesman – will tell you

Questions: Invisible hand is where and when to employ

 Momentary
Bankcruptcy 1. How can a community with controlled by capital
 Occasional
individual self-interests stay  Private
Principle to save
Self-interest can root together? interests Prodigal – public enemy
 Dispassionate
greed and theft 2. How can individual’s private  passions Frugal - benefactor
 Calm
businesses conform to the need of
society
Wealth and Revenue depends First state – bourgeoisie 3. How can a community perform When will government intervene?
on Second state – religious tasks without central planning?  Externalities (pollution)
 Quality of metals Third state – majority but still  Imperfect competition
 Annual produce dominated by the rich  Inequality of income and
wealth
Division of labor came from Adam Smith – The Wealth of Nations  Business cycles (inflation)
the propensity to
 Truck
 Barter and trade Laws of Market
Reasons to employ capital at Difference of natural
With the consequences of  Controls prices from
home talent is because of
the faculties of straying away from the
 You know who to trust  Education
 Speech cost of production
 You know the market  Habit
 Reason  Produces goods based on
well
the demand of society  Customs
 You know the laws and
 Reduces prices
Society should progress despite regulations well
 Similar income Natural inclinations = public
 Extravagance of interest
government Experience roots Home-trade – consumption
 Withdraw stock near
 Greatest errors of  Frugality Foreign-trade – carrying trade
home
administration  Good conduct
 Turn towards distant
Private interest = passions employment
 Stocks toward
employment
 Divide and distribute
stock of every
society