Capitalism

  

Categories: Econ, Regulations, Bonds

The "Father of Capitalism," Adam Smith, wrote a philosophy book during the Enlightenment Period. No, not Everybody Poops...the other one.

Smith expressed the view that people feel good helping others, which somehow justifies the "invisible hand" so intrinsic to the workings of capitalism.

Competition of supply and demand, driven by self-interest, allocates resources to where they are most wanted and valued. In a bread and gluten-loving country, such as we are, entrepreneurs buy the resources needed to make the best bread to sell at the best price. If a bread maker makes bad bread, no one will buy it, and the bad bread maker will go out of business.

This market regulates itself, and the people who want the bread will work to earn money to buy it. So, everyone benefits. Even the poor, who will be given charity since it makes people feel good.

Perhaps the Enlightenment Thinkers, including Adam Smith, didn't quite have human nature pinned down.

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