Despots and DollarsThe Impact of the Enlightenment on Politics

and Economics

Politics and the EnlightenmentThe Enlightenment was more

about social criticism than actual social change

Many new political theories were thought of and intellectually explored in the works of the Philosophes

However, none wee implemented in the real world

But, one interesting political development did take place

The concept of the “Enlightened Despot”

Enlightened DespotismThis is a Monarch (King, Queen, Prince etc.) who declared

themselves “Enlightened.”They would read the ideas of the Philospohes and use

these ideas to improve the situation of their country and people

An enlightened despot would serve the people and be logical and practical in the creation and implementation of Policy

All these despots courted intellectuals, initiated reform and reduced the influence of religion

They thought of themselves as wise Philosopher-Kings that were advancing culture, protecting society and creating a better state.

Fredrick the GreatThere are 3 main examples of

Enlightened despots: - Catherine II of Russia (or Catherine the Great) - Joseph II and his mother Maria Theresa (Austria) - Fredrick II of Prussia (or Fredrick the Great)

Fredrick is the greatest exampleHe was a poet, author, philosopher

and musicianHe became close friends with VoltaireHe vastly increased the power and

influence of Prussia in Europe

The reality of Enlightened DespotsThey did some positive things (more religious toleration,

economic reform, agricultural advancements)However, these despots were unwilling to give any power to the

peopleThey were ultimately self-interested and most would disregard

enlightened thought when it did not suit themFredrick talked peace and reform but built an army 3 times

bigger than his predecessor, fought unnecessary wars and often disregarded his own treaties

Being enlightened was “Fashionable” and that is really what enlightened despotism was all about – the appearance of being enlightened

Voltaire eventually abandoned Fredrick as a friendAgain, as typical with the Enlightenment, it was all talk and

little action

Economic Theory Mercantilism became a vast burden

on the people who colonized the new world

They resented working only to improve the wealth and power of the mother country

Many sought economic freedom as badly as they sought personal freedom

The theory of Mercantilism was challenged economists Quesnay and Turgot – they worked to develop a science of Economics and Laws of Economic behavior

It was Turgot that coined the Phrase “Laissez-Farie, Laissez-Passer” - Allow them to do, Allow them to pass

The Wealth of NationsAdam Smith wrote the ‘Wealth of Nations,” the most influential

work on the development of modern economic theoryHe is considered the father of EconomicsHe claimed that wealth was not fixed.Rather, it was based on labour and tradeHe encouraged competitionHe stated that the economy was naturally self-regulating

according to the laws of supply and demand (The concept of free markets)

Mutual Self-Interest guided and preserved the system (The concept of the Invisible hand)

The entire system of capitalism is built on Adam Smith’s theories

The Impact of SmithThe western world is powered by Smith’s

ideas – his importance cannot be overstatedHe was also a major contributor to future

revolutions as people strived to control the economic lives as well as their personal lives

Money is power . . . If you can control your own wealth, then you are truly free.

Smith might be the most important philosophe of all

SummaryThe Enlightenment had effects on politics and

economicsEnlightened despots tried to model the philosophies of

the age – however, it was more for show, few real changes took place

New concepts of economics were developed and mercantilism was openly challenged

Adam Smith’s Wealth of Nations lay the foundations of modern Capitalism (free markets, open competition, mutual self interest & supply and demand)

THE INVISIBLE HAND!