economy

Working title: To What Extent Does an Economy Need Government Intervention According to Adam Smith?
Argument:
Adam Smith argues that the economy does not need any government intervention to grow. He uses the principle of Laissez-Faire, saying that there should be no restrictions placed by government, since economic development relies on division of labor, saving and freedom. He further argues that the economy should be driven and regulated by an invisible hand, competition being the key element. Samuels & Medema (2005) have refuted this claim, saying that a free market where everyone is left to have their decisions, without a central governing entity presents a lot of chaos, and can place barriers on entry, leaving only the rich to control everything.
References
Harpham, E. J. (2000). The problem of liberty in the thought of Adam Smith. Journal of the History of Economic Thought, 22(2), 217-239.
Samuels, W. J., & Medema, S. G. (2005). Freeing Smith from the ‘Free Market’: On the misperception of Adam Smith on the economic role of government. History of Political Economy, 37(2), 219-226.
Witztum, A., & Young, J. T. (2006). The neglected agent: Justice, power, and distribution in Adam Smith. History of Political Economy, 38(3), 437-471.
Young, J. T. (2005). Unintended order and intervention: Adam Smith’s theory of the role of the state. History of political economy, 37(Suppl 1), 91-119.

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Argument: Adam Smith argues that the economy does not need any government intervention to grow. He uses the principle of Laissez-Faire, saying that there should be no restrictions placed by government, since economic development relies on division of labor, saving and freedom. He further argues that the economy should be driven and regulated by an invisible hand, competition being the key element. Samuels & Medema (2005) have refuted this ..

APA 2168 words