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15 December, 15:17

How did Adam Smith's ideas support the free enterprise system?

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  1. 15 December, 15:37
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    "Adam Smith", also referred as the "Founding father of modern economics". He used the term "free enterprise system " in which he attempts to deduce that what would happen if the government is stopped from interfering to the trade industry and with the person's natural behavior and also let the market forces self-regulating.

    He believed that all men are derived from rational self-interest and if one does which is not in the favor of the market then there will be competition in the market which will lead to an economic crisis.
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