One of the greatest contributors of economics, Adam Smith wrote “The Wealth of Nations “in which he argued the economic trading system of mercantilism during the 16th and 18th century. In “The Wealth of Nations” he presented his idea of the free market, which is commonly known as Laissez Faire that focuses on free trade and free competition of products without any interventions of the government. Learning about Adam Smith’s “The Wealth of Nations” there are some pros and cons if we put it in a context of our generation. In Smith’s “The Wealth of Nations” he has discussed the issues underlying on, how can, one’s country achieve a fair and equal share of wealth. He has suggested ways on how his theory can be a solution to the economic
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If an individual is assigned to make all of the parts in creating a shoe in one day, then it would consume him an average of a month to make a hundred pieces but when groups of individuals are divided into tasks and combined together with the same specialization then the job would lessen the time consumption. This can also help the people to maximize their skills and products can be done systematically and efficiently. Another would be the idea of International Trade. The idea of International Trade is advantageous because a nation cannot simply produce all the needs of their country. For this to be solved the state has to trade with their neighboring countries which can satisfy their daily needs and vice-versa. A country cannot fully supply everything that the citizen 's requirements in order to live. To ensure their needs and wants they would trade with another country that can produce a specific need they want and in return, they will trade with their own specialized good. Lastly, to achieve economic prosperity the government should have a minimal government intervention. Once the government intervenes the free market, implementation of taxes, tariffs, and quotas will prevail then …show more content…
Without the emplacement of taxes, tariff, and quotas the government cannot supply proper public services that a nation needs like health care, education, and etc. These taxes are the main source of the government to provide funds to ensure our safety and protection. When a government does not receive support from its people then there is a possibility that some public services like the military will not execute its duties rightfully due to the lack of money to sustain the military. Also, the idea of the free market can also develop the excessive greediness of an individual. Naturally, Man is driven by self-interest therefore once free market is imposed, there is a probability that he can usurp the economic freedom of another. For Man, his only concern is himself, he will do things in order to satisfy his self-interest but in order to satisfy his needs, he should interact mutually with another person to gain his interests. When a man abuses this freedom then he will become greedy and can usurp the freedom of another individual. The last loop-hole of Adam Smith would be the International Trade. The man is driven by self-interest this means that man can find ways to utilize and supply their needs without trading with other countries. This would result in the comparison of goods, comparing one’s product that has a better quality than the other. This idea
If an individual is assigned to make all of the parts in creating a shoe in one day, then it would consume him an average of a month to make a hundred pieces but when groups of individuals are divided into tasks and combined together with the same specialization then the job would lessen the time consumption. This can also help the people to maximize their skills and products can be done systematically and efficiently. Another would be the idea of International Trade. The idea of International Trade is advantageous because a nation cannot simply produce all the needs of their country. For this to be solved the state has to trade with their neighboring countries which can satisfy their daily needs and vice-versa. A country cannot fully supply everything that the citizen 's requirements in order to live. To ensure their needs and wants they would trade with another country that can produce a specific need they want and in return, they will trade with their own specialized good. Lastly, to achieve economic prosperity the government should have a minimal government intervention. Once the government intervenes the free market, implementation of taxes, tariffs, and quotas will prevail then …show more content…
Without the emplacement of taxes, tariff, and quotas the government cannot supply proper public services that a nation needs like health care, education, and etc. These taxes are the main source of the government to provide funds to ensure our safety and protection. When a government does not receive support from its people then there is a possibility that some public services like the military will not execute its duties rightfully due to the lack of money to sustain the military. Also, the idea of the free market can also develop the excessive greediness of an individual. Naturally, Man is driven by self-interest therefore once free market is imposed, there is a probability that he can usurp the economic freedom of another. For Man, his only concern is himself, he will do things in order to satisfy his self-interest but in order to satisfy his needs, he should interact mutually with another person to gain his interests. When a man abuses this freedom then he will become greedy and can usurp the freedom of another individual. The last loop-hole of Adam Smith would be the International Trade. The man is driven by self-interest this means that man can find ways to utilize and supply their needs without trading with other countries. This would result in the comparison of goods, comparing one’s product that has a better quality than the other. This idea