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Are there any reasons why Smith's model of capitalism might not be a successful argument

in favor of the free-market system? Explain.

User Jon Brooks
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2 Answers

13 votes
13 votes

Answer:

There are many reasons to criticize Adam Smith’s model of capitalism, first when he defended his ideals the world was a different place, most of the people worked on farms and as craftsmen and practiced the trade. When the industrial revolution came, capitalism changed deeply.

Adam Smith defended the idea of demand and offer, which would create an invisible hand that would balance the market. But the Industrial Revolution came and changed the world deeply, the laissez-faire is not a good policy because it makes room for abuses and makes disparity grow in society. Because of that, the regulation of capitalism by the government is very important so social equality is achieved.

Step-by-step explanation:

Sorry it's a lot but I hope it kinda helps

User Simple Fellow
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20 votes
20 votes

Answer:

smith stated in his theory that the free market economy is governed by "invisible hand", this stands in opposite argument of the free market economy which stated that the free market is governed by supply & demand