capitalism

• Adam smith wrote the wealth of nations and thought that capitalism is better than mercantilism.
• They didn't want government involved with the economy
• Phisocrats were more open minded.
• In capitalism people only supplied what they had demand for.
• The government gets the most money from businesses because of mercantilism so they wanted to replace mercantilism with capitalism.
• Capitalism allowed for more global trade networks because it allowed for more join stock companies and  trade in more areas.
• Capitalism believed that governments should reduce their intervention in economic decisions and that businesses and consumers were allowed to make choices in their own interests.
• The market will guide people to make decisions beneficial for society
• Means of production are privately owned and operated for profit.
• "invisible hand" - Adam Smith's idea that when individuals act in their self interest, they are also acting in the best interest of society as a whole.
• Individuals have freedom to choose how to spend their time and resources.
• Profit is the main motive for business activity.