Economics
Adam Smith/Capitalism Essay
Mr. Martin
Spring 2014
Capitalism is both resolutely embraced and vilified in the 21st century. On the
one hand, its supporters insist that it is a rational social order based on freedom,
squaring self-interest and moral, ethical behavior. Indeed, the Adam Smith
Institute insists that the poor benefit from economic and social freedom the most.
Its critics insist that it leads to extreme inequality (the 1%/99% debate), market
instability, the exploitation of workers, and often imperialism or political
oppression. Your job is to sort through the contradictions in order to come to
your own informed opinion as to the nature of capitalism.
Sources:
Buchholz, “The Second Coming of Adam Smith,” pp. 10-42.
Michael Moore, Capitalism: A Love Story
Consult at least two electronic sources, one highlighting the virtues of capitalism,
one focusing on its criticisms. This research can be conducted during class on
Thursday, January 16.
From Buchholz, focus on these areas:
1) What were the shortcomings of mercantilism and earlier economic
beliefs, such as those of the Physiocrats?
2) Under capitalism, how does the free market work, especially the
division of labor?
3) What is the appropriate role of government, according to Smith?
4) How have the ideas of Smith been used/abused by American
politicians since c. 1980?
From the film, assess the extent to which you think Moore offers legitimate
criticisms of capitalism, particularly as it relates to morals and ethics and how
capitalism has been employed in the past three decades.
From your electronic sources, apply specific material not found in Buchholz or
the Moore film.
Your conclusion articulates your informed analysis of capitalism, pros and/or
cons.
Guidelines:
1) c. 5-7 pages
2) 12 Font, Times New Roman, parenthetical documentation acceptable.
3) Provide a Works Cited Page in accordance with the MLA format.
4) Due at the beginning of class on Tuesday, January 21.