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Adam Smith would talk about how wealth was not distributed fairly and that people needed to understand that it needed to be dispersed properly in order for everything to be fair. “Today Smith’s reputation rests on his explanation of how rational self-interest in a free- market economy leads to economic well-being. It may surprise those who would discount Smith as an advocate of ruthless individualism that hi... ... middle of paper ... ...ould run from but embrace. Adam Smith helped shaped how the world is today. He helped form many different theories in order to help us understand how and why people think certain ways and helped us understand how to think as well.
The authors argue, very basically, that it is “institutions, more precisely the political institutions that determine economic institutions” (Boldrin, Levine and Modica) that determine whether a nation will succeed or fall apart. They present a variety of important examples and make statements meant to force their audience to really think about privilege, luck and what truly determines our fate. This essay will first present a summary of the book and its central ideas, and then it will discuss whether these are valid, important and how they fit into the broader debate. The book opens with a chapter entitled “So Close and Yet So Different: the Economics of the Rio Grande”. This is an interesting choice in itself – people often discuss these questions relative to third world countries in Africa and the Middle East, but rarely do we consider the issue from the perspective of the US-Mexico border and the striking difference that exists between these two nations in towns and cities that exist only hours apart.