1. Economic Theory Influence of Enlightenment Thinking
Adam Smith ‘The Wealth of Nations’
Objective: Explain how the ideas from the Enlightenment changed economic systems

2. 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.

3. 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