About this videoIn 1776, Adam Smith wrote The Wealth of Nations, a book that is partially responsible for the Industrial Revolution and the increase of the standard of living. Previously, the world was mainly dominated by mercantilism in which the government had control over all the population’s economic activities and it falsely related wealth to the accumulation of gold. Adam Smith’s revolutionary ideas, according to Jacob G. Hornberger, were based on the fact that economic activities didn’t need to be controlled and that the real wealth was not based on gold but on the increase of standard of living and division of labor. Throughout his lecture, Hornberger points out that the criticisms directed towards the Industrial Revolution are fallacies considering the fact that this event created a great amount of wealth that gave better opportunities to the poorest people in society. Furthermore, he illustrates a period of time in which the United States had complete freedom – a time in which there was no income tax, no economic regulations, open borders and an increase of immigration and productivity. |
|
CreditsThe Austrian Economics and the Libertarian Ideal: The Nature and Causes of the Wealth of Nations
| |
