Question

Wealth brings with it its own checks and balances. The

basis of political economy is non-interference. The only
safe rule is found in the self-adjusting meter of demand
and supply. Do not legislate.... make equal laws:
secure life and property, and you need not give charity.
Open the doors of opportunity to talent and virtue, and
they will do themselves justice, and property will not
be in bad hands. In a free and just commonwealth,
property rushes from the idle [lazy] and brainless, to
the industrious, brave, and persevering.
Read the quotation by Ralph Waldo Emerson.
According to both Emerson and Adam Smith, what
guarantees success in a free market system?
individual freedom
public ownership
O government regulation
trade barriers

Answer 1

Ralph Waldo Emerson and Adam Smith suggest that individual freedom is what guarantees success in a free market system, where the self-regulating forces of demand and supply create optimal outcomes, thus advocating for minimal government interference in the economy.

Step-by-step explanation:

According to both Ralph Waldo Emerson and Adam Smith, individual freedom guarantees success in a free market system. Adam Smith, in his seminal work The Wealth of Nations, elaborates on the concept of the 'invisible hand', where individual self-interest in a market with little or no government interference naturally leads to the best outcome for both the individual and society as a whole. This is supported by the idea that competition drives efficiency, low prices, and innovation, benefiting everyone involved in the economic process.

The self-adjusting meter of demand and supply mentioned by Emerson represents the free market's natural mechanism for aligning production with consumers' needs and desires. This system allows property and wealth to 'rush' from the unproductive to the productive, incentivizing industry and perseverance. Therefore, both thinkers advocate for a laissez-faire economy that maximizes individual potential and minimizes governmental regulation.