Adam Smith Wealth Of Nations Essay

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Benjamin Cherian Professor William Seay ECON 101/INTL 102 – 003 29 September 2017 Driving Forces in Strong Political Economies Adam Smith is hailed as the Father of Free-Market Capitalism and Political Economy. In Wealth of Nations, a person can observe several ideas proposed by Smith on political economy and the proper purpose and function of markets and the role of government. Overall, one could state that the two driving factors that every strong political economy requires are the production of goods and services and limited government interference. The foundation of every economy lies in the creation of goods and services. In Wealth of Nations, Smith encourages that nations maximize the number of these essential products in order to achieve greater wealth . The specific types of goods and services would be dependent on the personal interests and desires of consumers. In other words, the relationship between supply and demand dictates what types of commodities will be available. Smith promoted a division …show more content…

These included enforcing laws, investing in projects that dealt with public works, supporting education for all, and upholding national defense . Essentially, these responsibilities could be considered those that benefit the common good. Education, in particular, would promote unity among workers . For example, promoting religious tolerance via education would provide greater stability among the people in a nation. Individuals could then focus on producing goods and services and earning wealth rather than worry about threats of religious upheaval. Furthermore, Smith considered education as a means to combat the repetitious nature of division of labor . If education was promoted by the government, individuals now possessed the opportunity to learn new skills to make themselves even more valuable to employers and

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