Adam Smith (1723-1790) (September 30th, 2011)

Laissez faire: People associated with one another so long as they are not harming one another.

• Police and Courts
• National Defense
• Public Works

How can people get fed if the King does not feed them?
Smith said - people who pursue self interest should be allowed to:

• Rights of property
• Vital that the division of labor exists.
• Exchange has to be peaceful and mutually agreed upon
• No special privaledges

Smith mentions that:

• The source of wealth is the ability to produce and trade with other values.
• Mutually persuade them to trade with you and not stridently. Such that of this week's workshop where people had to trade with one another to get a certain goal of trade.
• You never ask for help no matter where you do it.
• When people need to wake up, they have no intentions of doing it to help everyone but more for the purpose for payment.
• Question those who would like to interfere with our affairs.
• Allows people to adjust in activities without someone telling them to do it. This is part of mercantilism.

Laissez faire for Adam Smith:

1. Parties should buy at any price.
2. Any quantity to control prices in a mobile economy.
3. Trade should be open to everyone in the public.
4. License to do the occupation asked for.

Basically buy and sell to whoever you want, wherever you want, whatever you want.

Spontaneous order and Ferguson of 1767
The elites of the day had privileges due to Corn Laws:

• Grain was large, large imports were made.
• It was a price twice as much of a person's wage.

Anti Corn Laws in 1820
Corn Laws repealed in 1846
All goods produced in England from around the world in 1860
World had the fastest economic goods in 1870.