Adam Smith's Economic Ideas and the Wealth of Nations
Classified in Social sciences
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One of the main ideas is what Adam Smith's economy is based on, and it is the division of labour. He keeps the idea that people work because it is good for them. Adam Smith focused on liberal ideas, which is a free-market, where the government doesn't interfere with the market (laissez-faire). He supported that competition kept everyone honest. Smith is also a big supporter of government favoring war-related industries, so that they would be prepared in case of war. He thought about the importance of the risk. His beliefs were related to the relation between interests and rewards, and risk. If the reward is big, investors tend to forget about the risk. But Smith thought that the danger (real) was big capitalism or entrepreneurs cheating on... Continue reading "Adam Smith's Economic Ideas and the Wealth of Nations" »