PAPM 1000 Chapter Notes - Chapter 5: The Theory Of Moral Sentiments, Physiocracy, Curbed
4 Dec 2017
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Chapter 5 the classical school adam smith. Important influences: there were several key influences on smith"s thinking, first was the general intellectual climate of his time, this period was known as enlightenment. These rules can be regarded as commands and laws of the deity. If we violate god"s rules, we will be punished by the torments of inward shame and self- condemnation: smith states that the rich tend to save and reinvest, therefore consuming little more than the workers. The rich inadvertently share the produce of all their improvements with the poorer workers. 2: machinery can be invented to increase productivity once tasks have been simplified and made routine through the division of labor. 3: to establish the administration of justice, to erect and maintain the public works and institutions that private entrepreneurs cannot undertake profitably, he thought the law should enforce the performance of contracts.
