CAPITALISM IS THE IDEL SOCIL SYSTEM

used an economic system known as mercantilism. Under this system,

governments made sure to manage their economic situation so that the

amount of exports exceeded the amount of imports. They placed high tariffs

(taxes) on imported goods so that they would cost more at home, and gave

financial aid to local farms and industries so they could lower the prices of

their exports. Nations made themselves rich by selling more goods than they

During the mid-1700’s, a group of French economists also known as

physiocrats urged the government to stop making foreign trade its business.

Their policy, called laissez faire ( a French phrase that meant allow to do.)

demanded an end to the high tariffs and other trade restrictions.

work on the materials at home and get paid a fee for the finished product.

capitalists made two new systems of manufacturing. In one of them a

Some topics in this essay:
Wealth Nations, , Adam Smith, “free agents”,