Question

Use the following excerpt from Wealth Of Nations to answer the question below:

Answer 1

This view differs from communism because it argues against government control of the economy.

In his influential book, An Inquiry into the Nature and Causes of the Wealth of Nations (published in 1776), Adam Smith argued against government control of commerce and industry.  He advocated a system that allowed business owners to operate freely and unhindered.  Smith strongly criticized the economic patterns which existed at his time, which he labeled the "mercantile system." That system restricted trade and regulated which businesses had government permission to operate.  Commerce was heavily controlled by the government through charters granted to specific trading companies.

Smith countered by advocating a free market -- the opportunity for all nations to increase their wealth by exchanging goods freely with one another according to what would become known as capitalist principles.  

Answer 2

This view differs from communism because it argues against government control of the economy.