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What’s good about allowing society to follow Adam Smith’s Invisible Hand? In that spirit, people can...

What’s good about allowing society to follow Adam Smith’s Invisible Hand? In that spirit, people can judge for themselves how much they risk from being exposed to COVID-19, so why should government get involved with shutting down businesses? Why not let individuals make their own choices?

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Answer- In the Adam smith invisible hand policy government role was invisible . Change in interest rate and wages was responsible to again gain the full employment. Therefore , role of government was not essential society was responsible to take decision regarding supply and output. Therefore no unemployment was there. But now, in the outbreak of covid 19 , Adam smith lassiz faire policy cannot be adopted because firstly, there is no full employment and due to it even after the danger people are ready to open business. Therefore, it is essential now, for the government to interfere in shutting down the business.

Rahul Sunny answered 2 years ago
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