Question

Cite one example of how the enlightenment characterized a dramatic shift economic thought

Answer 1

During the Enlightenment, there was a shift in economic thought with the rejection of the idea that wealth is finite. Enlightenment thinkers proposed that wealth could be created through productive activities, leading to the development of the market economy.

Step-by-step explanation:

During the Enlightenment, there was a dramatic shift in economic thought. One example of this shift is the rejection of the mercantilist idea that wealth is finite. Enlightenment thinkers proposed that wealth could actually be created through productive activities that generate goods and services valued in the market. This new concept of wealth creation paved the way for the development of the market economy and promoted trade liberalization.

Answer 2

The Enlightenment was a period of new intellectual thought and identity that arose in the 18th century that existed predominately in Europe. During the Enlightenment, new thinkers rose that presented new ideas involving reason, church and state, and individual liberties and identity.

In regards to economics, new thinkers such as Adam Smith became highly influential in setting the idea of modern day economics. Adam Smith, a Scottish philosopher is famous for writing the influential work "The Wealth Of Nations", in which he states that a country's economy runs automatically, and when given little government interference, is able to sustain itself by means of economic competition among individuals for more wealth and prosperity. Through the workings of the "invisible hand" (individuals who organize their own division of labour without government interference), economic competition becomes commonplace and leads to stronger free market for the state to thrive off. This idea is influential and relevant, as money and profit remains a strong driving force in society.

Adam Smith's theory of economic liberty for the individual without government regulation is a strong example of how certain Enlightenment philosophers questioned the relationship between the individual and the state. Adam Smith's theory set the foundation for what we know as modern day capitalism.