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American History


Written by:

Miguel T


Date added:

November 23, 2014








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3 / 745


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These people would, without specific state intervention, "direct ... that industry in such a manner as its produce may be of the greatest value." This would enable the whole economy to become more productive, and it would therefore be wealthier. Smith stated that protecting particular producers would lead to inefficient production, and that a national hoarding of cash in the form of coinage would only increase prices...
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If this were not the case, then they would not make the trade but retain ownership of the more valuable item. This notion underlies the concept of mutually-beneficial trade where it is held that both sides tend to benefit by an exchange. Although Smith is often described as the "father of capitalism" Adam Smith himself never used the term "capitalism"...
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