Question
How was Adam Smith's position about the necessity of free trade and free markets different from how many national economies operated during this period? write 2 paragraphs like a middle schooler
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GPT-4o mini
Adam Smith believed strongly in the idea of free trade and free markets, where businesses could sell their goods without too many rules from the government. He thought that when people are free to buy and sell whatever they want, it would create competition, which would lead to better products and lower prices for everyone. He argued that if countries traded freely with one another, they could benefit from each other's strengths. For example, one country might be really good at making wheat, while another is great at producing machinery. By trading, both countries could get what they need and improve their economies.
However, during Adam Smith's time in the 18th century, many countries did not follow his ideas. Instead of allowing free trade, they often had strict rules and tariffs that made it hard for businesses to trade with each other. These rules were set by governments that wanted to protect their own economies but ended up limiting growth and innovation. Many countries focused on mercantilism, which meant they tried to accumulate wealth by controlling trade and resources. This was the opposite of what Smith believed, as it created barriers that made it harder for countries to work together and grow their economies.
However, during Adam Smith's time in the 18th century, many countries did not follow his ideas. Instead of allowing free trade, they often had strict rules and tariffs that made it hard for businesses to trade with each other. These rules were set by governments that wanted to protect their own economies but ended up limiting growth and innovation. Many countries focused on mercantilism, which meant they tried to accumulate wealth by controlling trade and resources. This was the opposite of what Smith believed, as it created barriers that made it harder for countries to work together and grow their economies.