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These people would, without specific state intervention, "direct ... that industry in such a manner as its produce may be of the greatest value." This would enable the whole economy to become more productive, and it would therefore be wealthier. Smith stated that protecting particular producers would lead to inefficient production, and that a national hoarding of cash in the form of coinage would only increase prices.
Smith states that when people make a trade they value what they are purchasing more than they value what they are giving in exchange for a commodity. If this were not the case, then they would not make the trade but retain ownership of the more valuable item...
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Common topics in this essay:
- : ADAM SMITH AND KARL MARK: CONTRASTING VIEWS OF CAPITALISM
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