2.2: Libertarianism as an Alternative Approach to the Question of Rights
Adam Smith notes the foundation of economic and business relationships, and describes how division of labor benefits the economy. Supply and demand create an economy that allows good products to succeed through the "invisible hand" of consumer choice and social benefits.
Read Chapter II of Book IV: "Of Restraints Upon Importation from Foreign Countries of Such Goods as Can Be Produced At Home," from Adam Smith's "An Inquiry into the Nature and Causes of the Wealth of Nations". In this chapter, Smith describes his concept of "The Invisible Hand". His economic theory focuses on "laissez-faire" economics, the free market, self-interest, and competition in which the best quality goods are the ones that will be successfully sold. This creates an "invisible hand" that, according to his theory, keeps the economy healthy and benefits everyone.
Read this article, which provides an overview of Milton Friedman's life, his economic theory, and his political positions.
Read this article, which also shows the relation between Milton Friedman's economic theories and broader ethical matters.
In this video, a variety of examples of taxation are discussed. The potential for taxation to lead to a variety of social problems (for example, taxation of molasses leading to smuggling and other illegal activities, at specific times in history) are discussed. Capitalism is contrasted with merchantilism, and the history of tariffs and government intervention in economics is discussed.
Robert Nozick offered philosophical arguments defending the same type of freedom Friedman advocates. Notice that he is critical of utilitarianism.
Anarchy, State, and Utopia, Nozick's most influential work, offers his suggestion of the best type of government. List the ways Nozick's ideal government would differ from Plato's.