Essay - Adam Smith's Free Market Capitalism Adam Smith's Upheld the Concept...

ADAM SMITH'S FREE MARKET CAPITALISM

Adam Smith's upheld the concept of free market capitalism at a time when the world did not tr*****de in such complex environment. Each state was economically ********** of the other. In saying that market capitalism could remain unregulated stem from the fact that at the time governments were too keen on taxing its nations. During the Gold system, a n*****tion depended on the free flow of coinage to be able to trade. A s*****ppage in the free ***** would mean there is hindrance to trade and hence a slump in the economy. On ***** adverse side if government provides ***** flow of the coinage system even to "foreigner" then it ***** mean ***** cut down barriers to ***** and allow foreigners to trade freely with the local market thereby increasing competition to the level that local market would *****come suffocated. His rationale for this was ***** ***** ***** important ***** ***** local industry to come up to par with industrial standards. Of course, Smith was speaking in context with the ********** revolution where the flow of the economy ***** very much in the hand of the government.

A free ***** capitalism cannot exist in the face of the new economy because, the ***** have changed in both economical and social systems. The ***** social system does not allow the *****ence ***** ***** market capitalism because it proves ***** threatening to the local *****. IN maintaining a free market capitalism, it would mean to give up all authority to the market so that ********** is free competition among *****rs. Provided that there is perfect competition, Smith's ***** market can***** achieve *****ion unless there is a balance between dem***** and supply. This is not possible and ***** h***** market ***** cannot exist on ***** own.

SOCIAL CRITIQUE

To enumerate his theory, later economists like Karl Marx and John Maynard Keynes came up ***** their ***** theories. Starting from the socialist point of view, Marx ***** that market capitalism always have a tendency of boom and slumps ***** it is subjected to demand and supply. In the modern economic *****, there ***** no fixed system that is either *****tally capitalist or totally feudal. There must be a mixed economic system in order to maintain productivity. The social critique also ********** ***** in times of tough competition and military conflicts aggregate demand and supply tend to waver drastically. Even if a n*****tion follows a free ***** capitalism, it ***** survive ********** there would be too ***** concentration of supply or demand. Here Marx was referring to the World Wars when the unique productivity level decreased drastically to endanger the status of free market ***** in many ***** ***** European States and Brita*****. As a result of this the state had to protect its own interest by regulating it. [Wood, 1999].

***** the Communist Manifes*****, together with Engels, Marx explained the consideration for geopolitical and military conditions of the world. For instance Britain have enough wealth to ***** a capit*****list