00:01
So adam smith is often referred to as the sort of founder of economics and is most famous for his idea of the invisible hand that people left to their own devices will self -organize in a way that produces the most benefits to society.
00:14
So there's some statements here.
00:16
But if you're just interested in the answer, it's two that individuals should be free to pursue their self -interest.
00:23
But i'm going to talk briefly about why the others are wrong and why that one's right.
00:28
Government should intervene to help middle class.
00:32
He definitely believed that government should intervene in some ways, let's say in a limited way to help society, not the middle class, and in a very limited way, right? there was no idea that, again, the middle class to britain is like the professional, what we would call in north america, the upper middle class, the professional class.
00:57
He did not think there was any obligation for government to intervene to help one class of society in particular.
01:03
And where society did need interventions, it was for social problems, for things like pollution, right, where he didn't think the market was going to do the job.
01:15
So in general, he believes in freedom and limited intervention for social problems, not the government deliberately giving a hand to the professional class.
01:25
Freedom to pursue self -interest is what he's known for, right? this idea that self -regulation will leads to good outcomes, right? this is the invisible hand, right? the government shouldn't tell you where to spend your money.
01:44
You should get to decide where to spend your money because you know best where the money should be spent.
01:51
And if everyone is free to choose where to spend their money, the businesses that will exist will be the ones that society...