Question

How is socialism fundamentally different from the economic philosophy promoted by Adam smith

Answer 1

Socialism is different from Adam Smith's economic philosophy in terms of government intervention, wealth redistribution, and focus.

Step-by-step explanation:

Socialism is fundamentally different from the economic philosophy promoted by Adam Smith in several ways.

Firstly, socialism advocates for social ownership of the means of production and a stronger government intervention in the economy, while Adam Smith's economic philosophy, known as classical liberalism, promotes a laissez-faire approach with minimal government intervention.

Secondly, socialism aims to address the problem of inequality by redistributing wealth in society, whereas Adam Smith believed that free-market competition and self-interest would lead to greater prosperity for all.

Lastly, socialism focuses on benefiting society as a whole, while capitalism, the economic system advocated by Adam Smith, seeks to benefit the individual.

Answer 2

Adam Smith's economic theory stated that markets worked best when left alone. In other words, free markets would regulate themselves through competition, supply and demand, and other factors. Socialism on the other hand states that free markets should not exist and instead the citizens should collectively own all property.

Step-by-step explanation: