Capitalism Analysis

564 Words3 Pages
Recently, I picked up an older piece by a Scottish philosopher known as Adam Smith. In his work, An Inquiry into the Nature and Causes of the Wealth of Nations, Smith proposed a type of government and economic system that relies heavily on self-interest known as Capitalism. However, I do not see how this type of egocentric view would lead to a prosperous state. Instead the government needs to focus on the needs of the whole. It should have a hand in regulating the economy to ensure that all of its peoples are prosperous in the end. Smith’s system revolved around the idea of a free market, where business owners are free to choose what they want to produce, how much of it they want to produce, at what price they want to sell it at. This decision making process is apparently supposed to result a prospering economy for both the consumers and producers involved thanks to a thing he calls the “Invisible Hand.” Saying things like, “No regulation of commerce can increases the quantity of industry in any society beyond what its capital can maintain,” is complete rubbish (Smith 32). I cannot ...
Open Document