Question

One argument made by Adam Smith is that capitalism

Answer 1

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Adam Smith was a Scottish philosopher and was involved in political economics. Modern capitalism ideals stemmed from his observations and ideas. Capitalism is an economic system where the country's trade and industries are controlled by private owners and individuals can own private property and their own businesses. Adam Smith defined some important aspects seen in capitalist systems. He saw that everyone is motivated to do things for themselves and, in this case, greed can be good and make someone more successful. Smith also claimed that competition was good for businesses and owners. It can make them invent and try new things, create better products, and offer low prices. Another concept of capitalism presented by Smith was "laissez-faire", meaning "leave alone". This means that the government would leave people alone in regards to economics. Laws could prevent businesses and individuals from progressing and improving. These free markets could manage their competition, creating more businesses and taxes.