Preview
Preview

Adam Smith's Contributions to Modern Free Market Economics Essay

:: 3 Works Cited
Length: 2262 words (6.5 double-spaced pages)
Rating: Aqua      
Open Document
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Among economists, it is said Adam Smith is one of the main contributors to modern free market economics. His thoughts attacked mercantilism which was the prevalent form of government at the time. His works provided systematic rationales in the subjects of capitalism, free markets, and limited government intervention. His most popular books changed history because without them, many of these thoughts and ideas would not be so prevalent. Smith is regarded and cited as the father of modern economics. With this said, not all of Smith’s ideas were in agreement with laissez-faire. Although Adam Smith pioneered many ideas on modern free market economics, Smith cannot be depicted as a defender of laissez-faire because of his ideas on retaliatory tariffs, public goods, and taxation.
Laissez-Faire
The term laissez-faire (meaning ‘let it be’) was popularized by Vincent de Gournay in the 1750’s. From Merriam-Webster’s dictionary the term is defined as a doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights. This form of economic thought is often referred to as Capitalism.
Capitalism
Capitalism puts emphasis on free-markets (laissez-faire) and property rights. That is, nothing is publicly owned, and everything is private property. By leaving government out of the economy, Capitalism’s main goal was for the economy itself to grow. With this, promote social efficiency throughout the society. If left alone, the best possible use of resources will result. Along with this, a ‘natural price’ will result. That is, profits will equal zero and price will be at the lowest possible point. This results in ‘perfect competition’. Any profits have alr...


... middle of paper ...


...dea about the invisible hand. However, Smith was not a pure capitalist in the modern sense. While many people regard Smith as a key proponent in free market economics, some of his ideas do not go along with that thought.






Works Cited
Broadie, A. (2003). The Cambridge companion to the scottish enlightenment. New York, NY: Cambridge University Press.
Nation Master, Initials. (2010). Encyclopedia > Adam Smith. Statemaster. Retrieved (2010, March 9) from http://www.statemaster.com/encyclopedia/Adam-Smith#_note-1
Ross, K. (2008). Smith's law, free trade, and free immigration. Retrieved from http://www.friesian.com/smith.htm
Smith, A. (1895). An Inquiry into the nature and causes of the wealth of nations. New York, NY: T. Nelson and Sons.
Weiner, N. (n.d.). Adam smith's recommendations on taxation. Retrieved from http://www.progress.org/banneker/adam.html


Click the button above to view the complete essay, speech, term paper, or research paper








This essay is 100% guaranteed.


Title Length Color Rating  
The Contributions of Adam Smith and John M Keynes to the Study of Economics - Adam Smith was the founder of economics, as we know it today. His thoughts have shaped modern ideas about the market economy and the role of the state in relation to it. Smith laid the intellectual framework that explained the free market (which still holds true today) and laissez-faire. Both are connected with the underlying theme of economic growth. Smith's analysis is not confined to showing the interrelation between the different elements of a continually maintained system. It also explains how the system can generate the continual accumulation of wealth....   [tags: Adam Smith, John M Keynes] 1493 words
(4.3 pages)
Strong Essays [preview]
Essay about Progressing into Free Market Economies - ... Lastly, Post had brands like Honey Bunches of Oats, Shredded Wheat, Cocoa Pebbles, Fruity Pebbles, Golden Crisp, Honey Combs, Sesame Street, Good Morenings, and Grapenuts. Each sub-brand had different varieties of flavors such as original, cinnamon, berries, chocolate, etc. Why is it that we, here in the United States, can choose from so many different types of cereals, but places like Zimbabwe cannot. The answer is market freedom and demand. In order to care for others, we must first care for ourselves....   [tags: Walmart, Adam Smith] 1061 words
(3 pages)
Research Papers [preview]
The Importance of Adam Smith's Work to Economic Thought Essay - The Importance of Adam Smith's Work to Economic Thought Adam Smith is widely regarded as the father of economics as a social science, and is perhaps best known for his work The Wealth of Nations. Throughout this work Smith states and informs towards his belief that society is not at its most productive when ruled over by rules and limitations with regards to trade, and that in order for markets to maximise prosperity, a free trade environment should be made accessible. In this essay I intend to asses the way in which many of Smiths theories taken directly form his works can be applied to past and current situations, first from an economic then social, and then a political point of view....   [tags: Adam Smith Economy Economics]
:: 3 Works Cited
1609 words
(4.6 pages)
Powerful Essays [preview]
John Maynard Keynes and His Contribution to Economics and America Essay - Introduction With the recent recession John Maynard Keynes and his theories are being debated by millions of Americans, though likely without their knowledge, as his theories have become integral to America’s economic policy. A search of “John Maynard Keynes” on Google news, limited to just the past week, yields more than 200 results, illustrating the scope of Keynes’ continued influence. Fueled by concerns over unemployment and inflation the debate rages over government’s role in the economy, including regulation of industry, tax rates, and government spending to stimulate the economy....   [tags: Economics, Economy]
:: 8 Works Cited
1091 words
(3.1 pages)
Strong Essays [preview]
Philip Kotler: The Father of Marketing Essay - ... He was seen as the leader of marketing by the Academic Members of the AMA from the results of a survey in 1975. From the above it is clear to begin with that he was an intelligent educated man. Kotler made enormous amount of contributions to marketing. He spoke about the future of marketing and what it has in store for us. He also deals greatly with the difference between sales and marketing and how he believes they are “enemies”. In May 2013 Philip Kotler spoke about the future of marketing....   [tags: sales, economics, advertising] 584 words
(1.7 pages)
Research Papers [preview]
What Would Adam Smith Do about Indian Gold Market Issue Essay examples - ... As Suresh Hundia said during the holiday, bullion and jewellery sales are estimated to fall by 60%, while the silver sales will decrease by half. (Forbes website: 5/11/2013). Adam Smith, a Scottish moral philosopher and a pioneer of political economy, who was well-known by his two classic work: The Theory of Moral Sentiment and The Wealth of Nations. Smith is widely cited as the father of modern economics and is still one of the most influential thinkers in the domain of economics until now....   [tags: competition, buyers, market, theory] 550 words
(1.6 pages)
Research Papers [preview]
Essay on Adam Smith’s contribution to capitalism - Adam Smith is considered as one of the most influential economists in the 18th century. Although his theories have been criticized by several socialist economists, however, his idea of capitalism still has great impact to the rest of the economists during classical, neo classical periods and the structure of today’s economy. Even the former Prime Minister of Britain, Margaret Thatcher had praised on Smith’s contribution on today’s capitalism market. She commented “Adam Smith, in fact, heralded the end of the strait-jacket of feudalism and released all the innate energy of private initiative and enterprise which enable wealth to be created on a scale never before contemplated” (Copley and Sut...   [tags: Biography] 2768 words
(7.9 pages)
Powerful Essays [preview]
Chilean Economic Market Essay - Chile has become the preferred test market in Latin America, in recent years the private sector from many industries used as the entry county for the Latin America market that is the case of the Chinese automobile industry, the since 2006 start it export vehicles in this country an today has share market of 8% (Chile C. , 2010) . The small size, economic and political stability make Chile an excellent country for experimentation, which can give the experience and the funds need it for AKH to start its expansion in the Hispanic market as the strategic used by Chinese automobile industry ....   [tags: Economics] 879 words
(2.5 pages)
Better Essays [preview]
Essay Adam Smith - Adam Smith Adam Smith, a brilliant eighteenth-century Scottish political economist, had the advantage of judging the significance ol colonies by a rigorous examination based on the colonial experience of 300 years. His overview has a built-in bias: he strongly disapproved of excessive regulation of colonial trade by parent countries. But his analysis is rich with insight and remarkably dispassionate in its argument. Adam Smith recognized that the discovery of the New World not only brought wealth and prosperity to the Old World, but that it also marked a divide in the history of mankind....   [tags: Political Economist Adam Smith Biographies Essays] 4989 words
(14.3 pages)
Strong Essays [preview]
Economics Essay -      Definition of Topic: Economics is the study of supply and demand. It defines the ways that human beings allocate resources and how resources are distributed amongst a market. It allows you to see trends in current market places and predict what may happen in the future. Many different subjects were once regarded as a part of economics. Political science and even sociology were once considered part of the field. These subjects still play a major role in understanding economics but are also completely separate disciplines today....   [tags: Understanding Economics Essays]
:: 2 Works Cited
1694 words
(4.8 pages)
Better Essays [preview]