Question

. Contrast the views of Locke, Marx, Smith, Keynes, and Spencer on the nature and proper functions of government and on its relationship to business. Which views seem to you to provide the most adequate analysis of contemporary relations between business and government? Explain your answer fully.

Answer 1

The British economist Keynes believed that the governments's role should be to stimulate the economy rather than running the economy and having total control on the economy and business.The government can bring the economy out from depression by increasing government spending which creates job and improves the buying power of the consumers.

According to Marx ,in Marxism government, workers should own the means of production.Marx and Keynes have more similarity than differences . Both believe that there is something wrong with Capitalism and both believed in increasing spending.

Locke is of the view that government is based on idea of separation of powers and believes that the legislative power is supreme. Locke spoke about freedom of thought , speech and religion  and believed that property is the most important natural right . Locke's view on relationship to business and government is that man is born free to do whatever he wished without taking permission from any other person.

Adam Smith believed that government have a role to play . He believed that the government should havel control and enforce contracts , grant patents and copyrights in order to give encouragement to new inventions as well as new ideas.He believed in Laissez fairre policy where government does not interfere in business.

Spencer believed that the government should protect the country from foreign invasion as well as protect citizens and their property from criminals.The government should not intervene in any other work or business.He considered any other government action to be 'over legislation' and was against government aid to the poor.

I believe Adam Smith's is the best .He believed that the government should havel control and enforce contracts , grant patents and copyrights in order to give encouragement to new inventions as well as new ideas.He believed in Laissez fairre policy where government does not interfere in business.