Adam Smith's Influence

Paper Summary:

While the aristocracy was controlling the social and economic activity of most European nations in the years leading up to 1776, Adam Smith was imagining the possibilities of a yet to be established free enterprise economic system. The culmination of these thoughts was the 1776 publishing of his famous book, "An Inquiry into the Nature and Causes of the Wealth of Nations". This paper gives examples of how Adam Smith's ideas have influenced modern economics. Areas of his influence are examined from modern taxation policy, to modern price controls.

From the Paper:

"Adam Smith's principle that government intervention is detrimental to society can be clearly observed in the modern world by observing price controls. Dr. Michael Zimmer, professor of Economics at the University of Evansville, points out that you do not need to look far to see the clear and concise examples of countries plagued by this phenomena. Zimmer asserts that countries enforcing strict price controls fail to supply enough goods to satisfy the demand of the public. He points out a clear case of this being demonstrated in the Korean Peninsula. Here we can observe that North Korea is dreadfully poor, while across the border South Korea (a country without strict price controls) is one of the most prosperous countries on the planet. South Korea's prosperity is clearly due to their promotion of free enterprise and their lack of price controls."

More papers on Adam Smith's Influence:

• Analytical Essay # 143166 : "Adam Smith's Economic Revolutions"
• Research Paper # 83529 : "Adam Smith"
• Essay # 34802 : "Adam Smith's "Wealth of Nations"

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