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?
Please check my answer:
Adan Smith argued that it wasn't fair that countries couldn't trade with other countries due to the government's policy to keep wealth in the nation. So he argued that gold and silver do not have a value by themselves, but from what they can purchase. He said that the best and fastest way for a nation to become very wealthy, is to allow trades from other countries. Basically, free trade. When more trades are made, more goods will be made, too. Allowing free trade also means the goods will be made by more people.
3 answers
Looks good!
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?
During Adam Smith's time, many national economies operated with heavy government intervention and protectionist policies, such as tariffs and trade restrictions. These policies aimed to protect domestic industries and promote the growth of the national economy. Adam Smith's position, however, was different as he believed that free trade and free markets were necessary for a nation's economic growth and prosperity. He argued that government intervention often resulted in inefficiencies and distortions in the market, leading to slower economic growth. Therefore, Adam Smith's ideas were in opposition to the prevailing mercantilist economic policies of the time.