Enlightenment Wealth, Smithian Trade, and the Rise of the Liberal Economy

All flashcards

What is anthropocentrism?

The view that human beings are the most important component of the universe.

What is scientism?

The view that inductive methods of the natural sciences are the only source of genuine knowledge.

How does classical liberal theory understand wealth?

Wealth can be created when people use assets, creativity, and effort to produce goods and services that are valued in the market.

What contrast did Enlightenment-era accounts draw between civilization and savagery?

They associated civilization with reason, scientific knowledge, and the market, while often describing societies organized around traditional religion, superstition, and family-based power as savage. This was a historically situated judgment, not a neutral universal standard.

What is laissez-faire?

An economic approach in which governments do not interfere in the market and allow economic activity to take its course.

Quiz questions

1. In Adam Smith's account, how could individuals pursuing their own interests benefit society over the long run?Answer: Their choices could contribute to social welfare when they had freedom to produce and trade.
2. In Smith's account, what does comparative advantage suggest countries should do?Answer: Concentrate on goods they can produce especially well given their circumstances.
3. What did the British Corn Laws do before their repeal in the 1780s?Answer: They restricted imported corn and food through tariffs and quotas, favoring domestic producers.
4. Why did Britain impose import tariffs during the Napoleonic Wars?Answer: To raise government revenue for the costs of war.
5. What was the general purpose of the Concert of Europe after 1815?Answer: To maintain equilibrium among major European powers and help prevent another war among them.