Corporations, Nonprofits, and Labor Unions

Corporations, Nonprofits, and Labor Unions — page 1
INTRODUCTION A nation is not made wealthy by the childish accumulation accumulation of shiny metals but is enriched by the economic prosperity of its people This quote is from Adam Smith a Scottish philosopher and the author of The Wealth of Nations 1776 which for the first time in history described the idea of a political economic system Smith’s book is considered the foundation of classical economics which focuses on economic growth and freedom and one of the most important important books ever written At the time a country’s wealth was based on how much gold and silver it had Smith believed that wealth should be based on how productive a country is and how much it can buy sell or trade An economy is the part of a society that creates wealth A country uses an economic system to manage its money and resources and meet the needs and wants of its people It dictates what goods and services are to be produced and sold In a healthy economy jobs are plentiful and people and businesses flourish The demand for goods and services is high In a failing economy demand is low businesses close and people lose their jobs A healthy economy depends on strong business institutions institutions and good management Management is necessary because no matter how productive a society gets there will never be an infinite number of resources Even those who live in the most abundant of societies could suffer a shortage of goods and services For example natural disasters like earthquakes 4