Economic Theory Influence of Enlightenment Thinking Adam Smith ‘The Wealth of Nations’ Objective: Explain how the ideas from the Enlightenment changed economic systems
New economic Theories Applied natural law to economics Land source of nation’s wealth Laissez-faire economy-meaning let it alone. The government has little or no control over businesses.
Adam Smith ‘The Wealth of Nations’ Supported the theory of laissez-faire economics Believed in a free-market economy, supply and demand would determine prices and other economic decisions. He also believed that while governments should not interfere in economics, they did have a duty to protect citizens and provide public works for the betterment of society. Adam Smith