Question

According to Adam Smith what role should government play in the economy?

Answer 1

Adam Smith believed that the government’s responsibility should be to ensure a society where business can prosper. He felt that government attention should be focused on the following: ensuring a peaceful and stable nation, protecting citizens rights to use private resources to make a profit, guaranteeing an honest judicial system, granting patents and copyrights, and providing public works to benefit all of society.

Answer 2

According to Adam Smith the government should play a "very minimal" role in the economy, since Smith believed that the economy should be dictated by the "invisible hand of the market"--meaning in today's terms a "free market" economy.