Adam Smith On Capitalism
'The Wealth of Nations'
Capitalism is the result of town + city life and trade expansion.  It is an economic system based on private business through the use of capital.
The three main features are:
  1. Private Ownership- capital belongs to individuals who may use it as they please.
  2. Profit Motive- when people want a product, producers will supply it to make a profit (law of supply and demand).
  3. Market Economy- money value can be placed on everything- land, goods, time, labor.  Buyers and sellers exchange by fluctuating supply and demand prices.


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Uploaded: 01-15-02