Why is Adam Smith opposed to a system of government that would oppress its laborers by enslaving them or levying high taxes upon them? Key words: quality of life for the entire society, government that oppression, labor productivity, natural incentive system moral grounds
Smith's criticisms of these systems of government is based not on moral grounds, but on economic ones. Smith argues that not allowing a laborer to enjoy the fruits of his labor makes him disinclined to work, since it disrupts a natural incentive system. When laborers are disinclined to work, and can only be motivated to work through threats and violence, they are far less productive. Systems of government that oppress their laborers make the economic system less productive and efficient, lowering the quality of life for the entire society.
Explain impact of Adam Smith and capitalism on economic thoughts Key words: invisible hand, natural law, the division of labor, the doctrine of money and income
Adam Smith as the father of today's fundamental conservative ideas What Adam Smith did in his book was to explain how self-interest was the engine of the economy and competition its governor. He set forth the great lesson that all economists come to sooner or later. I quote Professor Heilbroner: “First, he [Adam Smith] has explained how prices are kept from ranging arbitrarily away from the actual cost of producing a good. Second, he has explained how society can induce its producers of commodities to provide it with what it wants. Third, he has pointed out why high prices are a self-curing disease, for they cause production in those lines to increase. And finally, he has accounted for a basic similarity of incomes at each level of the great producing strata of the nation. In a word, he has found in the mechanism of the market a self-regulating system which provides for society's orderly provision.
Notions about of gross domestic product (GDP) in “The Wealth of Nations” Key words: imports and exports free exchange measuring a nation's prosperit production and commerce
Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism the opposite of free trade. The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain time period.[1] Sometimes a distinction is made between a balance of trade for goods versus one for services. The balance of trade measures a flow of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other.
