Question

What is the difference between classical and distorted Adam Smith? Does demonetization relate with Distorted Adam Smith? If yes, then how?

Answer 1

SOLUTION :

In the classical view Smith argued against mercantilism and was a major proponent of laissez-faire economic policies. Smith is also known for creating the concept of gross domestic product (GDP) and for his theory of compensating wage differentials. According to this theory, dangerous or undesirable jobs tend to pay higher wages as a way of attracting workers to these positions.andThe series on which the enterprise was built helped create a global free-market revolution. But that revolution was at best incomplete and at worst distorted by a misunderstanding. That misunderstanding is that capitalism has nothing to do with morality, and may even depend on the vice of selfishness. This has been a useful cudgel by which the Left has been able to morally discredit the intellectual roots of the free-enterprise system. One of the most effective anti-capitalism films ever made, Wall Street, popularized the notion that capitalism depends on the (anti) ethical premise that ‘greed is good’. Adam Smith is typically called forth as chief witness for the prosecution in proving that capitalism is guilty of promoting greed.Demonotization does not related to Adam Smith because it's argue that free market and laissez faire policy for economy and invisible hand (market forces ) correct economy boom or recession.