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Founding Fathers
Philosophy and Philosophers
Abigail Adams

In what ways was Adam Smith 'pro-business'?

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July 16, 2015 6:18PM

Adam Smith was pro-capitalism. Google "Wealth of Nations", a book by Smith which may answer some questions.

Adam Smith was an economist who embraced the idea of the "invisible hand" of competition as being the best manner in which to assure the best quality goods at the best prices. Short example, suppose you are the only hat maker in a small town. Your hats are poorly made and over-priced, but you are the only hat maker in town. Suddenly one day another hat maker opens up shop in the town and begins turning out better quality hats than yours, and sells them at a lower price. You now have only two options. You can match his quality and price, or you can go out of business. That is Adam Smith's "invisible hand" of competition at work.

Adam Smith was an economist who embraced the idea of the "invisible hand" of competition as being the best manner in which to assure the best quality goods at the best prices. Short example, suppose you are the only hat maker in a small town. Your hats are poorly made and over-priced, but you are the only hat maker in town. Suddenly one day another hat maker opens up shop in the town and begins turning out better quality hats than yours, and sells them at a lower price. You now have only two options. You can match his quality and price, or you can go out of business. That is Adam Smith's "invisible hand" of competition at work.