In this first lesson of Module 2, Associate Professor Paulo dos Santos discusses the good in capitalist economies by introducing two notable political economists who argued that markets, competition, and well-functioning price systems are the best ways for an industrial society to organise itself: Adam Smith and Friedrich Hayek. This video focuses on Adam Smith.
By the end of this video (1/2), learners will be able to:
- Explain Adam Smith’s argument that market competition tends to force individual producers to act in ways that promote the social good
- Discuss how specialization and the division of labor contribute to increases in labor productivity