The Philosophies Of Adam Smith: The Father Of Economics

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Universally, free market economies exist to fulfill the wants or needs of consumers by supply and demand. People have the leeway to plan their own business by buying and selling goods without the government’s help. This is evident because a free market economy is solely based on the “laissez- faire” approach and self-interest which was introduced by Adam Smith. Although, free market economies may not be a completely perfect system, it contributes countless gains to society as well as individuals such as economic freedom, efficiency, independence, human rights, and many more within society which thus has shaped the world into what it is molded into today creating a legacy based on Adam Smith’s ideas. Adam Smith, a renown political…show more content…
Many citizens would assume that the Declaration of Independence is the most influential historical document for America, but really Adam…show more content…
One benefit that a free market offers to society is economic efficiency. Since, a free market is self-regulating, producers are entirely free to make their own choices on what services or products to purchase. Of course, due to supply and demand the most desired products by consumers will be produced because they are willing to pay at prices they want. Moreover, in a free market there is the most economic freedom compared to a communist system. For example, in a free market economy workers have the independence to work at whatever firm/business they want. They even have the privilege of producing what they want as well. While, in a communist society (planned market economy) workers can’t choose their work because the government is in control. Not to mention, individuals in a free market economy have the property right of choosing their own labor plus they can make free contracts for those services (Rothbard, “Free Market”). With job specialization, individuals could work on only tasks that they are very skilled at instead of wasting time and energy trying to do everything at once which thus allows the economy to be effective. For example, people can own a home. Not only does a free market promote economic freedom, but growth. Competition is a profit because it inspires innovation. For
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