How Did Adam Smith Contribute To Capitalism

Adam Smith a political economist-philosopher born in Scotland, in 1723. Adam Smith was best known for his beliefs in a free market economy. He was known as the father of modern capitalism. Adam Smith philosophy on economics was that labor was a far more important aspect of a nation’s wealth and life and that a nation can become wealthy by ensuring their wealth through production. Ultimately, Smith believed that a country will benefit economically from individuals are given the sportily to pursue excellence, happiness, and individual prosperity. If they are educated and given a job that would result in economic prosperity and increase the wealth of the nations; however, Adam Smith was a believer of capitalists that live off the profits they obtain from exploiting the working class while reinvesting some of their profits for the further accumulation of wealth.

Adam Smith believed that capitalism was the most logical, lucrative, and moral political and economic system. The ideas of Adam Smith cannot be followed in the world in which we live today centralized economic planning. The government has a direct effect on the economy. The Federal Reserve sets interest rates and controls the money supply. The federal government increases spending to stimulate the economy. capitalism also sets price and wage controls when inflation starts getting out of hand The Federal Reserve setting interest rates is also a form of price control. Centralized economic planning, whether it is through an income tax, control of the money supply, setting interest rates, and price and wage controls. Adam Smith supported a limited role of government control of the