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Posts uit april 20, 2014 weergeven

De Mainstream Pers 199

When Scottisch moral philosopher and economist Adam Smith finished his opus, most probably he didn't realize that it would become a landmark examination of political economy. Published in 1776, The Wealth of Nations details the benefits, interconnections and consequences of a free-market economy that paved the way for modern capitalism. Smith believed that there could be no market for anything unless someone, somewhere, was willing to pay for it. He was convinced of the merits of a laissez-faire (let-the market-decide) approach because he believed competition, not intervention, would naturally regulate the market and thus some 'invisible hand' would ensure justice and equality for all.
For example, Smith was of the view that a free market would make monopoly impossible and therefore workers and consumers could not be exploited. If over-demand for a certain product existed, then that demand would naturally encourage others to compete in the same market and prices would fall.