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Adam lists Republic of Hamburg, Venice and Amsterdam that had made profits from profits of a public wine cellar and apothecary's shop. Even Great Britain has said to make profit this way. Adam quotes "Postal Office as a perfect mercantile system"; the government advances the expense of establishing the different offices, and of buying or hiring the vehicles, and is repaid with a large profit by the duties upon what is carried. Adam believes that Postal system is perhaps the most successful example of mercantile system for the government. According to him the system involves no mystery in the business, the returns are not only certain, but immediate.
ADAM'S CONCEPT of FREE MARKET
The concept of free market raised by Adam is being thoroughly reviewed by all the leading economies of the world. He suggests, "The policy of some nations has given extraordinary encouragement to the industry of the country; that of others to the industry of towns. Scarce any nation has dealt equally and impartially with every sort of industry." Access to free market is major criteria that encourages...
Although the notion of free trade can adversely affect the local market, but the product whether local or foreign if fulfils the qualitative, quantitative and economic standards will capture the market. Government can play its important lead role for controlling the influx of foreign products such that the local investor doesn't suffer. A win-win situation can be negotiated upon. Government according to Adam's point-of-view should emphasis towards lending conditional support to the investor such that the productivity can be enhanced and the scope of the business can be broadened, and at the same the people should benefit from the product on compatible rates. Industrialization and its expansion are the areas of emphasis.
The development of the society can never be economic centered; rather the social and political aspects should be taken along. The sole aim of the policies of the government should be optimized gain and profitability of the people, investor. State's progress is proportional to the development of its stake holders.
Give me that which I want, and you shall have this which you want, is the meaning of every such offer" (Smith, 1776, p. 118-119). The unintentional consequence is thee same as it was before: an increasingly respectable and thriving nation, one so much so that it is as if shaped by what Smith deems the "invisible hand," from which Smith thus concludes that "it is the necessary, certain propensity
Adam Smith He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases,
The roadways and other such necessities which are constructed by the government at the government's expense, and of which the private individuals are unable to finance, ultimately are predicted by Smith to come at higher and higher costs to the society. SUMMARY & CONCLUSION Smith, in his work, demonstrates how it is that self-interest is held at bay to an extent by rivalry of economy results in a prosperity that is
His lectures were a success as many eminent people of Edinburgh attended them and earned him a decent income. During the course of his lectures on English literature, Smith perhaps realized that his real vocation was economics. Hence, addition to English literature, he started to deliver lectures in economics in 1750-51 in which he advocated the doctrines of commercial liberty, based largely on the ideas of Hutcheson. It was also
Adam Smith's Economic Philosophy: Just as Smith's moral point-of-view was ahead of his time with respect to ideas that others would popularize later, Smith presented matter-of-fact observations on the nature of work and the relationship between working people and society at large. More than one hundred years before Henry Ford revolutionized modern industry with his production line, Smith had explained the mechanism that accounted for its success. Using the example of manufacturing
ADAM SMITH'S FREE MARKET CAPITALISM Adam Smith's upheld the concept of free market capitalism at a time when the world did not trade in such complex environment. Each state was economically independent of the other. In saying that market capitalism could remain unregulated stem from the fact that at the time governments were too keen on taxing its nations. During the Gold system, a nation depended on the free flow of