laissez Faire economics laissez Faire economics

By: By: Evan DoiEvan Doi

Dominique LuongDominique LuongBen KelchnerBen Kelchner

Chantelle Searle Chantelle Searle

What is laissez Faire What is laissez Faire economics economics • laissez Faire economics is a system that laissez Faire economics is a system that

denies the government full power in the denies the government full power in the economy and allows the manufacture full economy and allows the manufacture full power within the framework of law. power within the framework of law.

• laissez Faire economics shares the same laissez Faire economics shares the same framework as Political liberalism. framework as Political liberalism.

• laissez Faire economics also states that laissez Faire economics also states that Free trade and Unregulated economic Free trade and Unregulated economic activity is OK.activity is OK.

The Pros of laissez Faire The Pros of laissez Faire economics economics

The Pros of laissez Faire The Pros of laissez Faire economics economics

• The laissez Faire economics is a helpful The laissez Faire economics is a helpful form of economics in certain ways. It form of economics in certain ways. It allows the manufactures to sell their allows the manufactures to sell their products without interference by the products without interference by the government. It also helps the government. It also helps the manufacture because the manufacture manufacture because the manufacture can set their own standards and can set their own standards and regulations on their products. regulations on their products.

Continued Continued

Another advantage for the manufactures Another advantage for the manufactures was Free trade and Unregulated was Free trade and Unregulated economic activity. Both free trade and economic activity. Both free trade and unregulated economic activity allowed unregulated economic activity allowed the manufacture to not only set their the manufacture to not only set their own standards but it also allowed them own standards but it also allowed them to regulate laws and company action to regulate laws and company action without the government trying to without the government trying to prevent them. prevent them.

Continued Continued

In all laissez Faire economics is good In all laissez Faire economics is good system for major corporations and system for major corporations and the rich. the rich.

Writer’s of economicsWriter’s of economics

Adam Smith and Horatio AlgerAdam Smith and Horatio Alger

Adam Smith Adam Smith

• Adam Smith thought and believed that Adam Smith thought and believed that competition would lead to proper pricing competition would lead to proper pricing of goods. This played a large role in his of goods. This played a large role in his economic policy recommendations.economic policy recommendations.

• Adam Smith therefore didn’t want the Adam Smith therefore didn’t want the government interventions into business government interventions into business affairs . Because they would control the affairs . Because they would control the businesses.businesses.

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• Adam Smith published Adam Smith published An inquiry into the An inquiry into the nature and causes of wealth of nationsnature and causes of wealth of nations in in 1776.1776.

• He wrote that labor was the only source of a He wrote that labor was the only source of a nation’s wealth. He thought that the true nation’s wealth. He thought that the true wealth of a nation wasn’t laid in gold but in wealth of a nation wasn’t laid in gold but in that achievement of an abundance of the that achievement of an abundance of the necessities of life. In his book he warned necessities of life. In his book he warned against unnecessary interventions made by against unnecessary interventions made by the government.the government.

Horatio Alger Horatio Alger

• Horatio Alger was also known as Horatio Alger was also known as “Horatio Alger hero” because this “Horatio Alger hero” because this phrase is referring to the person who phrase is referring to the person who achieves success by his own efforts in achieves success by his own efforts in the face of great obstacles.the face of great obstacles.

• In his writings he wrote about boys In his writings he wrote about boys overcoming poverty and them achieving overcoming poverty and them achieving success when obstacles arise.success when obstacles arise.

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• So with laissez faire these people in So with laissez faire these people in these situations were able to these situations were able to overcome these obstaclesovercome these obstacles

• His stories are about a boy being in a His stories are about a boy being in a desperate situation and that boy with desperate situation and that boy with difficult effort improves himself and difficult effort improves himself and succeeds.succeeds.

OTHER TOPICSOTHER TOPICS

Urban LifeUrban Life

• Urban Life: With this form of Urban Life: With this form of government it allowed the people to government it allowed the people to decide where to bring up cities and decide where to bring up cities and also where to build. This also also where to build. This also allowed the people to by certain allowed the people to by certain products without the government products without the government intervention. Such as weapons and intervention. Such as weapons and other illegal things.other illegal things.

The Steam EngineThe Steam Engine

• An engineer, Thomas Newcomen, built the first modern steam engine in An engineer, Thomas Newcomen, built the first modern steam engine in 1705.1705.

• In 1774 James Watt began to make improvements on Newcomen’s engine.In 1774 James Watt began to make improvements on Newcomen’s engine.– He changed it from an atmospheric to a true “steam engine” as well as He changed it from an atmospheric to a true “steam engine” as well as

providing a rotary motion. providing a rotary motion. • The industrialist Michael Boulton took Watt into partnership.The industrialist Michael Boulton took Watt into partnership.

– Their firm produced nearly five hundred engines before Watt’s patent Their firm produced nearly five hundred engines before Watt’s patent expired in 1800.expired in 1800.

• Robert Fulton’s steamboat, the Clermont (1807), made river transport Robert Fulton’s steamboat, the Clermont (1807), made river transport quicker and more profitable.quicker and more profitable.

• By 1850 Steamships could carry bulk cargo more cheaply than railroads By 1850 Steamships could carry bulk cargo more cheaply than railroads except during freezing weather.except during freezing weather.

• Steamboats soon replaced sailboats because they were not dependent on Steamboats soon replaced sailboats because they were not dependent on the winds and could therefore meet schedules more regularly.the winds and could therefore meet schedules more regularly.

• In 1848 Samuel Cunard introduced regularly scheduled steamships to the In 1848 Samuel Cunard introduced regularly scheduled steamships to the Atlantic.Atlantic.– It ran between Liverpool and New York, reducing travel time It ran between Liverpool and New York, reducing travel time

dramatically.dramatically.

RailroadsRailroads

• Total mileage…Total mileage…• YearYear• 1830184018501860187018301840185018601870Railroad Railroad

MileageMileage733328887930,63650,000The railroad brought 733328887930,63650,000The railroad brought modern management and a national marketmodern management and a national market– These led to big business and consumer culture.These led to big business and consumer culture.

• As you can see from the above chart, railroads played a As you can see from the above chart, railroads played a large role in the Industrial Revolution.large role in the Industrial Revolution.

• Because railroads could go so fast…Because railroads could go so fast…• The big railway boom came in the years 1844 to 1847.The big railway boom came in the years 1844 to 1847.

– People got their land taken away, but it was worth it because…People got their land taken away, but it was worth it because…• People were able to move around and visit relatives.People were able to move around and visit relatives.• Large amount of food could be transported without going bad.Large amount of food could be transported without going bad.