Expert answer:help me with this assignment on Wealth of Nations
Answer & Explanation:You have to read ” wealth of nations ” and then solve the assignment FREEDOM AND FREE MARKET.odtWEALTH OF NATIONS.odt
freedom_and_free_market.odt
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wealth_of_nations.odt
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Name:
Date:
Graded Assignment
Reading Guide: Freedom and the Free Market
Answer the following questions as you complete this reading.
(3 points)
1.
What significant events were occurring in England and North America at the
time that The Wealth of Nations was written?
Score
(3 points)
2.
What was Adam Smith’s purpose in writing The Wealth of Nations?
Score
(3 points)
3.
Why does Smith think that pursuing personal interests is a more effective
way to benefit society than trying to pursue the interest of society as a
whole?
Score
(3 points)
4.
Why does Smith think that the government should stay out of economic
affairs?
Score
(4 points)
5.
Are there any reasons why Smith’s model of capitalism might not be a
successful argument in favor of the free-market system? Explain.
Score
(4 points)
6.
Smith points out the possibility of producers contriving to raise prices. Are
there other problems with the free-market system that he did not point out?
Score
Adam Smith is sometimes called the founder of capitalism.
You have learned about the economic goal of freedom. You have also examined other goals, such as
efficiency, growth, security, and equity.
Advocates of the free-market system might argue that the most important goal is freedom. Freedom is
so desirable, they might say, that it makes it worthwhile to sacrifice other goals. Some advocates of the
free-market system, however, think that we might not need to make these sacrifices. They believe that
pursuing freedom allows us to reach the other goals as well.
Adam Smith was an early advocate of the free-market system. In the same year that the Declaration of
Independence was written, he published a book called An Inquiry into the Nature and Causes of the
Wealth of Nations. It is often called simply The Wealth of Nations.
Modern free-market advocates often cite Adam Smith to support their claim that freedom is the most
important economic goal. Read some of what Smith said so you can judge the claims of the free-market
supporters who agree with his reasoning.
The Wealth of Nations, page 1 of 3
Read the following excerpt from The Wealth of Nations and think about the things that Adam Smith
said about the free-market system.
As every individual, therefore, endeavours as much as he can both to employ his capital in the
support of domestic industry, and so to direct that industry that its produce may be of the greatest
value; every individual necessarily labours to render the annual revenue of the society as great as he
can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is
promoting it. By preferring the support of domestic to that of foreign industry, he intends only his
own security; and by directing that industry in such a manner as its produce may be of the greatest
value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible
hand to promote an end which was no part of his intention. Nor is it always the worse for the society
that it was no part of it. By pursuing his own interest he frequently promotes that of the society more
effectually than when he really intends to promote it. I have never known much good done by those
who affected to trade for the public good. It is an affectation, indeed, not very common among
merchants, and very few words need be employed in dissuading them from it.
The Wealth of Nations, page 2 of 3
What is the species of domestic industry which his capital can employ, and of which the produce is
likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge
much better than any statesman or lawgiver can do for him. The statesman who should attempt to
direct private people in what manner they ought to employ their capitals would not only load
himself with a most unnecessary attention, but assume an authority which could safely be trusted,
not only to no single person, but to no council or senate whatever, and which would nowhere be so
dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to
exercise it ….
The Wealth of Nations, page 3 of 3
The property which every man has in his own labour, as it is the original foundation of all other
property, so it is the most sacred and inviolable. The patrimony of a poor man lies in the strength
and dexterity of his hands; and to hinder him from employing this strength and dexterity in what
manner he thinks proper without injury to his neighbour, is a plain violation of this most sacred
property. It is a manifest encroachment upon the just liberty both of the workman, and of those who
might be disposed to employ him. As it hinders the one from working at what he thinks proper, so it
hinders the others from employing whom they think proper. To judge whether he is fit to be
employed, may surely be trusted to the discretion of the employers whose interest it so much
concerns. The affected anxiety of the law-giver lest they should employ an improper person, is
evidently as impertinent as it is oppressive ….
People of the same trade seldom meet together, even for merriment and diversion, but the
conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is
impossible indeed to prevent such meetings, by any law which either could be executed, or would
be consistent with liberty and justice. But though the law cannot hinder people of the same trade
from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less
to render them necessary.
The Invisible Hand
An important part of Smith’s theory is the “invisible hand.” He did not believe that a literal hand guides
economic outcomes. The invisible hand is a metaphor or symbol of market forces in the free-market
system that lead to good outcomes without any planning. Because of this invisible hand, pursuing
freedom helps realize other economic goals such as efficiency, growth, and security.
Smith clearly did not trust governments to direct economic affairs. Individuals pursuing their interests
can “judge much better than any statesman or lawgiver can” what’s best for the economy. Smith was
very suspicious of government intervention in the economy.
Smith was also wary of producers, since their pursuit of profit might persuade them to work against
competition. That is what he meant by “some contrivance to raise prices.” He recognized that the
government has a role to play in the game of economics. He believed that the government’s role should
be limited to protecting such things as competition, free choice, and private property. The government
should not have “folly and presumption enough” to believe it can run the economy directly. According
to Smith, it’s better for everyone if the economy is left in the hands of private individuals pursuing their
own interests. That is the invisible hand at work.
The invisible hand isn’t actually a hand.
Adam Smith is sometimes called the founder of capitalism.
You have learned about the economic goal of freedom. You have also examined other goals, such as
efficiency, growth, security, and equity.
Advocates of the free-market system might argue that the most important goal is freedom. Freedom is
so desirable, they might say, that it makes it worthwhile to sacrifice other goals. Some advocates of the
free-market system, however, think that we might not need to make these sacrifices. They believe that
pursuing freedom allows us to reach the other goals as well.
Adam Smith was an early advocate of the free-market system. In the same year that the Declaration of
Independence was written, he published a book called An Inquiry into the Nature and Causes of the
Wealth of Nations. It is often called simply The Wealth of Nations.
Modern free-market advocates often cite Adam Smith to support their claim that freedom is the most
important economic goal. Read some of what Smith said so you can judge the claims of the free-market
supporters who agree with his reasoning.
The Wealth of Nations, page 1 of 3
Read the following excerpt from The Wealth of Nations and think about the things that Adam Smith
said about the free-market system.
As every individual, therefore, endeavours as much as he can both to employ his capital in the
support of domestic industry, and so to direct that industry that its produce may be of the greatest
value; every individual necessarily labours to render the annual revenue of the society as great as he
can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is
promoting it. By preferring the support of domestic to that of foreign industry, he intends only his
own security; and by directing that industry in such a manner as its produce may be of the greatest
value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible
hand to promote an end which was no part of his intention. Nor is it always the worse for the society
that it was no part of it. By pursuing his own interest he frequently promotes that of the society more
effectually than when he really intends to promote it. I have never known much good done by those
who affected to trade for the public good. It is an affectation, indeed, not very common among
merchants, and very few words need be employed in dissuading them from it.
The Wealth of Nations, page 2 of 3
What is the species of domestic industry which his capital can employ, and of which the produce is
likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge
much better than any statesman or lawgiver can do for him. The statesman who should attempt to
direct private people in what manner they ought to employ their capitals would not only load
himself with a most unnecessary attention, but assume an authority which could safely be trusted,
not only to no single person, but to no council or senate whatever, and which would nowhere be so
dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to
exercise it ….
The Wealth of Nations, page 3 of 3
The property which every man has in his own labour, as it is the original foundation of all other
property, so it is the most sacred and inviolable. The patrimony of a poor man lies in the strength
and dexterity of his hands; and to hinder him from employing this strength and dexterity in what
manner he thinks proper without injury to his neighbour, is a plain violation of this most sacred
property. It is a manifest encroachment upon the just liberty both of the workman, and of those who
might be disposed to employ him. As it hinders the one from working at what he thinks proper, so it
hinders the others from employing whom they think proper. To judge whether he is fit to be
employed, may surely be trusted to the discretion of the employers whose interest it so much
concerns. The affected anxiety of the law-giver lest they should employ an improper person, is
evidently as impertinent as it is oppressive ….
People of the same trade seldom meet together, even for merriment and diversion, but the
conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is
impossible indeed to prevent such meetings, by any law which either could be executed, or would
be consistent with liberty and justice. But though the law cannot hinder people of the same trade
from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less
to render them necessary.
The Invisible Hand
An important part of Smith’s theory is the “invisible hand.” He did not believe that a literal hand guides
economic outcomes. The invisible hand is a metaphor or symbol of market forces in the free-market
system that lead to good outcomes without any planning. Because of this invisible hand, pursuing
freedom helps realize other economic goals such as efficiency, growth, and security.
Smith clearly did not trust governments to direct economic affairs. Individuals pursuing their interests
can “judge much better than any statesman or lawgiver can” what’s best for the economy. Smith was
very suspicious of government intervention in the economy.
Smith was also wary of producers, since their pursuit of profit might persuade them to work against
competition. That is what he meant by “some contrivance to raise prices.” He recognized that the
government has a role to play in the game of economics. He believed that the government’s role should
be limited to protecting such things as competition, free choice, and private property. The government
should not have “folly and presumption enough” to believe it can run the economy directly. According
to Smith, it’s better for everyone if the economy is left in the hands of private individuals pursuing their
own interests. That is the invisible hand at work.
The invisible hand isn’t actually a hand.
Adam Smith is sometimes called the founder of capitalism.
You have learned about the economic goal of freedom. You have also examined other goals, such as
efficiency, growth, security, and equity.
Advocates of the free-market system might argue that the most important goal is freedom. Freedom is
so desirable, they might say, that it makes it worthwhile to sacrifice other goals. Some advocates of the
free-market system, however, think that we might not need to make these sacrifices. They believe that
pursuing freedom allows us to reach the other goals as well.
Adam Smith was an early advocate of the free-market system. In the same year that the Declaration of
Independence was written, he published a book called An Inquiry into the Nature and Causes of the
Wealth of Nations. It is often called simply The Wealth of Nations.
Modern free-market advocates often cite Adam Smith to support their claim that freedom is the most
important economic goal. Read some of what Smith said so you can judge the claims of the free-market
supporters who agree with his reasoning.
The Wealth of Nations, page 1 of 3
Read the following excerpt from The Wealth of Nations and think about the things that Adam Smith
said about the free-market system.
As every individual, therefore, endeavours as much as he can both to employ his capital in the
support of domestic industry, and so to direct that industry that its produce may be of the greatest
value; every individual necessarily labours to render the annual revenue of the society as great as he
can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is
promoting it. By preferring the support of domestic to that of foreign industry, he intends only his
own security; and by directing that industry in such a manner as its produce may be of the greatest
value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible
hand to promote an end which was no part of his intention. Nor is it always the worse for the society
that it was no part of it. By pursuing his own interest he frequently promotes that of the society more
effectually than when he really intends to promote it. I have never known much good done by those
who affected to trade for the public good. It is an affectation, indeed, not very common among
merchants, and very few words need be employed in dissuading them from it.
The Wealth of Nations, page 2 of 3
What is the species of domestic industry which his capital can employ, and of which the produce is
likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge
much better than any statesman or lawgiver can do for him. The statesman who should attempt to
direct private people in what manner they ought to employ their capitals would not only load
himself with a most unnecessary attention, but assume an authority which could safely be trusted,
not only to no single person, but to no council or senate whatever, and which would nowhere be so
dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to
exercise it ….
The Wealth of Nations, page 3 of 3
The property which every man has in his own labour, as it is the original foundation of all other
property, so it is the most sacred and inviolable. The patrimony of a poor man lies in the strength
and dexterity of his hands; and to hinder him from employing this strength and dexterity in what
manner he thinks proper without injury to his neighbour, is a plain violation of this most sacred
property. It is a manifest encroachment upon the just liberty both of the workman, and of those who
might be disposed to employ him. As it hinders the one from working at what he thinks proper, so it
hinders the others from employing whom they think proper. To judge whether he is fit to be
employed, may surely be trusted to the discretion of the employers whose interest it so much
concerns. The affected anxiety of the law-giver lest they should employ an improper person, is
evidently as impertinent as it is oppressive ….
People of the same trade seldom meet together, even for merriment and diversion, but the
conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is
impossible indeed to prevent such meetings, by any law which either could be executed, or would
be consistent with liberty and justice. But though the law cannot hinder people of the same trade
from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less
to render them necessary.
The Invisible Hand
An important part of Smith’s theory is the “invisible hand.” He did not believe that a literal hand guides
economic outcomes. The invisible hand is a metaphor or symbol of market forces in the free-market
system that lead to good outcomes without any planning. Because of this invisible hand, pursuing
freedom helps realize other economic goals such as efficiency, growth, and security.
Smith clearly did not trust governments to direct economic affairs. Individuals pursuing their interests
can “judge much better than any statesman or lawgiver can” what’s best for the economy. Smith was
very suspicious of government intervention in the economy.
Smith was also wary of producers, since their pursuit of profit might persuade them to work against
competition. That is what he meant by “some contrivance to raise prices.” He recognized that the
government has a role to play in the game of economics. He believed that the government’s role should
be limited to protecting such things as competition, free choice, and private property. The government
should not have “folly and presumption enough” to believe it can run the economy directly. According
to Smith, it’s better for everyone if the economy is left in the hands of private individuals pursuing their
own interests. That is the invisible hand at work.
The invisible hand isn’t actually a hand.
Name:
Date:
Graded Assignment
Reading Guide: Freedom and the Free Market
Answer the following questions as you complete this reading.
(3 points)
1.
What significant events were occurring in England and North America at the
time that The Wealth of Nations was written?
Score
(3 points)
2.
What was Adam Smith’s purpose in writing The Wealth of Nations?
Score
(3 points)
3.
Why does Smith think that pursuing personal interests is a more effective
way to benefit society than trying to pursue the interest of society as a
whole?
Score
(3 points)
4.
Why does Smith think that the government should stay out of economic
affairs?
Score
(4 points)
5.
Are there any reasons why Smith’s model of capitalism might not be a
successful argument in favor of the free-market system? Explain.
Score
(4 points)
6.
Smith points out the possibility of producers contriving to raise prices. Are
there other problems with the free-market system that he did not point out?
Score
Name:
Date:
Graded Assignment
…
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