Adam Smith

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Adam Smith was a Scottish political economist and moral philosopher, who studied moral philosophy at Oxford University and University of Glasgow. Smith is considered by many to be the founding father of economics and the first free-market capitalist. In fact, in many ways his philosophies and theories have helped shape our country and our economy into what it is today. Smith introduced us to the invisible hand theory which referred to the free markets. The invisible hand theory stated that ultimately when people were left able to pursue their best interests, meaning that they were able to pursue work that made them happy and that enabled them to command the highest wage for themselves or when entrepreneurs were able to provide good and services for profit, this promoted the growth and prosperity of the nation. In simpler terms, each individual while looking out for himself or herself will inadvertently help improve the lives of others around them

Adam Smith’s theories were a precursor to the free market system that we call capitalism. Smith’s theories held that the extent of government involvement should be limited and that the consumers would keep the markets at equilibrium. Smith’s theories held that in pursuing their best interests, consumer were able to choose the best prices and in doing so would weed out unfair competition, a process of elimination of sorts. These principles encouraged entrepreneurism and competition, which in itself is instrumental to the growth and development of any society. While Smith believed that while the government should have no role in the controlling the free market, he did believe that the government’s role should be enforcing contracts and patents for inventions of new ideas and products. He also believed that the government should be responsible for the construction of roads and bridges, which he believed would not…...

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