POL201Y1 Lecture Notes - Government Failure, Newly Industrialized Country, Zollverein
Document Summary
Why does it happen in some places and not others: the story of the industrial revolution is one of how the market somehow spontaneously generates growth, however, the government intervenes to create the structure of the market. Descriptive- is it free of state regulation and intervention. Prescriptive: should it be free of state regulation and intervention. Mostly the differences tended to be ideological, normative, not empiracal. Human beings have a natural propensity to truck and barter . Adam smith -- -this is driven by the profit motive, the incentive to accumulate wealth it is driven by private entrepreneurs and investors if people are free, a market will develop more or less spontaneously. Once labour is pushed off of the land and a food surplus is in place due to the agricultural revolution, industrialization takes off invisible hand of the market. Invisible hand: the law of supply and demand, supply will rise and fall to meet demand.
