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?
(4 points) answer in 2-4 sentences as a 7-8th grader

Answer 1

Adam Smith believed that free trade and free markets were essential for economic growth and prosperity. He argued that when people are free to buy and sell as they wish, it leads to more competition, better prices, and innovation. However, during Smith’s time in the 18th century, many countries had strict rules and government controls over trade, including tariffs and monopolies, which limited freedom and often hurt the economy. Smith's ideas were pretty different from how many economies operated because they focused more on control than on letting people trade freely.