History 1807 Lecture 17: Lecture 17
16 Nov 2015
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This is because it will improve the public good. He is placing an assumption that man is rational. He did not consider for producers to act irrationally however. Economics still to this day believe in the thought of people acting in a rational way. He also did not consider how easy credit would become accessible. He believed in an equilibrium in which goods would be produced in a rational manor for the overall public interest (example food production) The problem of scarcity however has been basically solved. The whole economy is dependant on consumption and corporations. We lost half of what adam smith promoted. We are becoming wealthier, but having the wrong impact and going deeper into debt, full focus on self interest and consumption. He said that if you permit the free market of supply and demand, there will be a better distribution of goods.
