Question

According to Adam Smith, the government should only intervene in society for what THREE REASONS?

Answer 1

According to Adam Smith, the government should intervene in society to administer justice, enforce private property rights and when it comes to defending the nation against external aggression.

Explanation:

1. Adam Smith, the renowned British economists, philosopher and author also known as "The father of Economics " laid down a set of rules and regulations in his work "An Inquiry of the Wealth of Nations" said that there are three imperative situations when the government of the country should intervene in the proper functioning of the society to ensure its implementation.

2. To ensure proper justice and equality to the people at large, the government of the country must take initiatives and see to it that justice and equality are imparted and everyone in the society remains content. Adam Smith observed that law and order is something which is of utmost significance for a healthy, prosperous and peaceful nation and the government has got a big role to play

3. The next point that Adam Smith talked about was defending the nation against external aggression or national defense which is an equally important and significant function of the government. National defense concerns the lives and properties of the people at large which needs proper government intervention. Defending and protecting the people from external aggression is of utmost importance and only the government has the real authority to ensure it.