Adam Smith's Free-Enterprise Economics

This President, his Economic Advisors, and appointees to any agency, or Department that has anything to do with the Economy or finances, should shun any of the John Maynard Keynes economic philosophies, and instead turn to the philosophies of Adam Smith a Scottish born Philosopher, (1723-1790). In 1776 while living in London, he published "An Inquiry into the Nature and causes of the Wealth of Nations." The book examined in detail the consequences of economic freedom. For example it covered such concepts as the role of self-interest, the division of labor, the function of markets, and the international implications of a laissez-faire economy.

The United States was the first country to experiment with the Adam Smith formula for Free Enterprise economics, and as it was implemented, it ultimately became a monumental success and as a result the United States over the last two and third centuries became the leading economic power in the world. Mr. Smith's Principles were structured on the basis of a whole national economy and natural law. The principle points of his Free Enterprise Economics are as follows;

1. Specialized production-allow each person or corporation of persons do what they do best.

2. The exchange of goods in a free market environment takes place without government interference in production, prices or wages.

3. The free market provides the needs of the people on the basis of supply and demand, with no government imposed monopolies.

4. Prices are regulated by competition on the basis of supply and demand.

5. Profits are the means by which the production of goods and services are made worthwhile.

6. Competition is seen as the means by which quality is improved, quantity is increased. and prices are reduced.




In addition to Adam Smith's formula for Free Enterprise Economics, he also had four really quite simple Laws of Economics, and they are as follows:

1. The Freedom to try.

2. The Freedom to buy.

3. The Freedom to sell

4. The Freedom to fail

"The Founding Fathers agreed with Adam Smith that the greatest threat to economic prosperity is the arbitrary intervention of the government into the economic affairs of private business and the buying public. Historically, this has usually involved fixing prices, fixing wages, controlling production, controlling distribution, granting monopolies, or subsidizing certain products." (This paragraph is a quote from W. Cleon Skousen's book The 5000 Year Leap)

It is a pity that our so called leadership in this country has blinders on and cannot see what it takes to turn this economy around and get it moving in the direction once again of true prosperity. As I said before many times Keyensian Economics just plain do not work in promoting a Free-Enterprise Economic America.

Hobbit73