Final answer:
The debate discussed in the passages centers on the merits of laissez-faire liberalism, contrasting it with mercantilist principles and involving key economic thinkers like Adam Smith, who advocated for free markets and minimal government intervention.
Step-by-step explanation:
The ideas expressed in the passages revolve around the debate of economic theories and practices that emerged around the 19th century. This debate encompasses the merits of laissez-faire liberalism, a system that advocates a free-market economy with minimal government intervention. Adam Smith, a pivotal figure in this debate, challenged the then-prevailing mercantilist ideals by promoting laissez-faire principles, arguing that economic affairs should be free of government interference to foster prosperity and efficiency. In contrast, mercantilism emphasized a nation's power through trade and export, with wealth measured in gold and silver. Social liberalism and classical liberalism defended individual rights and limited governance, whilst allowing capitalist economic principles to drive market regulations effectively.