Who was Adam Smith and what did he believe about economics ?
Adam Smith was from Scotland and became a economist. He published the book, The Wealth of Nations. In his book he talked about how wealth is not gold and silver but food, cloths, houses, transportation, communications, schools, good roads, factories, and cultivated farms- the essentials of life. He also said that in order for people to increase their standard of living and prosperity, that their goods and services should be copious and cheap. He proposed the idea of a "free market system", which is set up on the original law of "supply and demand".
What is "Capitalism/Free Market System" ?
Capitalism is where the government does not involve itself in a nations economy. The people would automatically work toward bringing the best to their society. The Free Market System allows people to do things with out the government getting involved. The Capitalist depend on free markets. The free markets of the nation are run by households and small businesses that are able to set their own prices for what they sell and how they sell it. Adam Smith says that the society should prosper when the people are allowed to create their own markets and have competition, where they set their own prices that benefit both the buyer and seller.
Should the U.S. Government have bailed out the auto industry ?
I believe the United States Government did the right thing by bailing out Ford, General Motors, and Chrysler. The government may not have seen the current benefits of the bail out but it is helping the economy greatly. If the government had not bailed out Ford, General Motors, and Chrysler than thousands, maybe even millions, of jobs would have been lost. Right now a large amount of people are job less and have no income. The government saved a lot of jobs and people's incomes.If the government had not bailed out the auto dealerships, Ford, General Motors, and Chrysler, the economy would be in a lot worse of a place. The bail out cost a great amount of money to keep the auto industry going, but the dealerships are working at it to get back on track. Ford, General Motors, and Chrysler are even hiring more people now that they are improving.
First of all, you are missing your parenthetical references to show where you obtained your information.
ReplyDeleteYour section on Adam Smith is a good beginning. You need, however, to go into much more detail. What is a free market, supply and demand, the invisible hand, etc.
As in the first section, a good beginning, but more is needed. How does the free market work? How does supply and demand apply to Capitalism?
You clearly are for the auto bailout and give good reasons as to why it should have been done. Mr. K