Money is neutral.
When trade with other country
David Hume believe protectionism will cause loss in( trade with others brings three often
underappreciated benefits:)
i.. Competition------you get quality stuff
"Trabint" ---Germany
ii. Innovation (and the ability to learn from others)
Eg. Toyota&Assembly line
Lenin----assembly line
iii. Division of labor
*Adam Smith1776
You don't need the government to regulate everything.
All you need is to allow a system "laisszze faire"
*Government should:
1. Police & Courts to protect democracy
2. National Defense to protect from foreign barbarianism
3. Public Goods
* We will have a chance for success:
1. Rights to Property be protected
2. Division of Labor
3. Exchange is peaceful and mutual
" The source of wealth is our ability to produce and exchange"
4. No Special Privilege
11:40:.......
these only make the economy be dynamic
What is "spontaneous order" all about?
Trading is not designed by anybody. People exchange out of their self-interests
Worries of A.D.
1.Public prejudice(Bias)
2.Interested parties are probably able to control the government.
*Capitalism is not just the accumulation of capital, it also includes medical treatment, insurance ,technology,which increase people's living standard.
The capitalistic a country is, the smaller the fraction of income comes from capital, the more actually comes from tertiary industry.
*Materialism isn't a necessary cost in human progress because capitalism leaves the less inequality than other alternative systems.
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