Question

please write an introductory paragraph of the ideas of Adam smiths’s view on capitalism ex. invisible hand, laissez fair, etc. and Marx’s theory of labor and other main ideas that applied to how capitalism arose. (please type and dont cooy paste, 500-800 words max and dont use bullet points)

Answer 1

Answer : Adam Smith was economist from Britain known as Father of Capitalism. According of Adam Smith, Invisible Hand is unseen market force which enable market economy to attain equilibrium when demand and supply is disturbed. This was introduced by Adam Smith in his book ' The Wealth of Nation '. In other word Invisible Hand is aggregate force of each party involved in Market engages in free trade in order to have self interest.

Laissez faire economy refers to the system in which asssets are owned by private firms and income is determined by market forces. It is dynamic economy which provides incentives to innovation and economic growth. Prices are determined by supply and demand. In this system there is limited tax and low government spending. Adam smith given intellectual credit to laissez faire which reflected that how an individual act for their self interest. It also helps in avoiding inefficiency by avoiding corruption. Adam Smith never used word capitalism instead of this , he used word ' Commercial Society '.

Adam Smith written about economic system in which he mentioned that industries are controlled by firms in order to generate profits. Labour was aggregate ef

Laissez faire and invisible hand both were key components of free market capitalism.