Adam Smith's Influence On The Us Economic System

Before understanding which philosopher had the greatest impact on today’s economy system in the United State, people should know what type of system the U.S has. As of today, the U.S is basically a mixed economy. Many people considered the U.S a capitalist economy, but there is a lot of requirements that the U.S does not fulfill. One of the people who contributed to the economy system we have today in the U.S is Adam Smith. There is other philosophers who had a different ideology; however, it was not a strong effect. Adam Smith was an influential person which argued economics functioned best when it was not controlled by the government. He was not selfish, he was a person who shared his. The U.S economy would had been different if Adam Smith would had never presented his ideas to the people.

Adam Smith was from Scotland. Smith entered to the University of

Glasgow and then attended Balliol College at Oxford, he graduated majoring in European literature. However, his main focus was economics. Smith had several ideas, however there was two very critical ones: specialization and capitalism. Overall, Adam Smith had an idea that would make an economy system more human and more meaningful.
Specialization is when an organization, business, industry, and even an individual focus only on selling one or very few products.

This helps by making people focus on available resources, instead of trying to produce or sell various products which will cause overstock or understock. Many companies can specialize in certain products. An example would be international trade, in which one country produces grapes and another country produces mangos, each country can sell them at a low cost and so they can also obtain goods at a low price. Additionally, labor is more easily. If a person has a talent or certain abilities, they can put them to use instead of doing something that they do not know how to do it properly. For example, in a milk factory you have two people, one is good at milking cows and the other person is good at purifying the milk. The most intellectual action is to not make workers multitask, instead they should do the task they are proficient at. Specialization increases economy activity. This concept is very beneficial because is less time consuming and people can thrive at what they are good

at.
Capitalism is an economic system in which is managed by supply and demand from the consumer. In this system capital goods are owned by private business or individuals, instead of the government’s control. It is a simple system into which self-interest plays a role. Adam smith had always said that in order to be a financially stabled, the individual had to have the idea of self-interested. The government places taxes on many imported products, which leads the business to increase their product price higher and then less people will buy them. How does the government know what is the best for you?
In conclusion, Adam Smith was an impressive influencer and economic thinker. He made a gran impact into the U.S economy system. Although, the U.S system is not pure capitalism, there are several characteristics in the U.S economy system that come from the idea of capitalism. The U.S economy system is not considered pure capitalism because the government does control some factors of business in order to protect the consumer. However, businesses do have a lot of power of how to control their own business.