Question

According to Smith, what are a ruler's three basic duties? Note that he does not describe any duties regarding businesspeople. Assuming that he left this out on purpose, how do you think Smith believes governments should act toward businesses?

Answer 1

Adam Smith (1723 – 1790) was a Scottish economist. In 1776, he published The Wealth of Nations, which became the foundation of modern economics.

Smith saw the first duty of government was to protect the nation from invasion. Next, he supported an independent court system and administration of justice to control crime and protect property. Finally Smith favoured a system of “public works” that profits-seeking individuals may not be able to efficiently build and operate.

At the beginning stages of industrialization, Smith recognized that repetitive factory jobs dulled the minds o workers. Smith wanted all classes, even the poorest, to benefit from the free-market system. This is why I think  Adam Smith would agree with government interventions with businesspeople like Social Security, minimum-wage laws, child-labour laws and anti-monopoly laws.