Conserving Economic Theories essays

Conserving Economic Theories essays Before the Industrial Revolution, we would export our raw goods to other countries. Then they were made into manufactured goods and shipped back to us where we had to pay a high fee for them. Now that the Industrial Revolution is starting we have many factories and industries. These factories can now turn our raw goods into useful manufactured materials. The growth of these factories and industries are the start of the Industrial Revolution. They are bringing a lot of money to the American economy which making many people rich. There are many different views on what the rich should do with their money. The conservative economic theories included laissez-faire, Social Darwinism, and The Gospel of Wealth (AMSCO p.339). Adam Smith came up with the idea of laissez-faire when he wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776 (Smith, Adam). Since he wrote this before the Industrial Revolution, his ideas never really caught on until now. According to the theory of laissez-faire, the government wouldnt be as involved in the economy. Adam Smith believed that this would help the economy by introducing competition which would improve the goods and services and lower the prices (AMSCO p.339). He was completely against monopolies and mercantilist ideas because he believed that they worked against his whole laissez-faire idea. He did believe that there should be restrictions on free trade and the government should get involved in the economy to reduce poverty and government regulations to support the workers (Smith, Adam). Social Darwinism was the idea of survival of the fittest. Herbert Spencer was the most influential Social Darwinist. He believed that money went to the most fit, which was most beneficial to society (AMSCO p.339). Many of the wealthy people started out poor and worked their way up. Social Darwinists believed that those who rem...