ADAM SMITH:
THE FATHER OF ECONOMICS
The Smith ides were a turning point—un punto di svolta
In each family there is some wealth , if the family have a protectionism, means that they try not to
spend money.
What does a governments it applies taxes
He was against this system(protectionism) because if we limit trade it will be counter productive
So he proposed another system: free trade……. Free from taxes so from regulations for
everybody, no rules, -no regulations in prices………that means that each company can apply the
price that they want, so competition,
What kind of experience he had ???
He had other experiences in Glasgow, Oxford University,
Who are the world economist……the head of the governments, such as Trump, Putin ecc…
His ideas are still applied
Italy is a free market economy
USA is a free market, Trump try to make USA a protectionism market, but he didn’t get it
The banc put a portrait of him on the twenty pound banknote
Assembly line where every ….is carried out by a group of workers …. Division of work, division of
labor, so you became more efficient, but alienation Is more stressful, in fatti la divisione va aa
vantaggio degli entrepreneur ma I lavatory sono alienate, perchè è un lavoro da robot, robot can
do that
Is more productive, efficient
Un falegname produce una sedia in una ora mentre un gruppo di lavoratori 3 sedie in un ora
So who was Adam smith…..
He was an economist, he believed in free trade in a period focus on protectionism, he encouraged
competition,
The work u can do…..wealth of a country
Invisible hand is the way we produced
What does a worker earn …. Money , but we have to be satisfaiting