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qaws [65]
3 years ago
12

How do the roles of government as defined by Adam smith support a country’s economic interest

History
1 answer:
MAVERICK [17]3 years ago
6 0

<u>The roles of government as defined by Adam smith support a country’s economic interest as follows:</u>

In the book titled “Wealth of Nations”, Adam Smith, who is also known as the father of economics, mentions that "Government should limit its activities to administer justice, enforcing private property rights, and defending the nation against aggression."

He was in favor of a free economy and the idea of people having the required amount of freedom to make economic decisions. He meant that by doing so there will be economic prosperity, which remains as the main idea which supports free economy.

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Answer: Advantages:

1. The peasants condition improved and there was an

improvement in agriculture.

2. It resulted in a political advantage to the English as

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3. Permanent Settlement led to the modernisation of India in

the sphere of revenue system.

4. The English government did not have to fix the revenue

every year. The income of the government was fixed once for all.

5. A large number of employees were no longer needed for the

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departments of the company.

But some scholars say that the permanent settlement had many

disadvantages:  

1. It had an adverse affect on the income of the company as

the revenue was fixed on the low side due to lack of proper measurement.

2. The system was beneficial only for the landlords. The

condition of farmers did not improve and they continued to be the victims of harassments

by the landlord.

3. The landlords who were not able to pay the required

revenue, their land was sold off.

4. The landlords led a luxurious life and did not do anything

to improve agricultural produce.

5. The system created a special class of zamindars who were

loyal to the English this hurt the national feeling of the people.

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