Adam Smith Wealth of Nations Essay Example | Topics and Well Written Essays - 250 words

Adam Smith Wealth of Nations - Essay ExampleSmith is actually considered to be the Father of Modern Economics.Adam Smiths ideas as reflected in his work are quench relevant today. His concept of free-trade is still what majority of the worlds economy is practicing. Free trade, according to Smith, is the ability of the economy to produce the sufficient amount of goods and proffer different varieties with the guidance of what he calls the invisible hand. If there is a shortage of a certain product, expense tends to increase which, in turn, gives higher profit to the producers. This entices more producers to enter the grocery store which leads to the increase in issue of the product and more competition among the producers. Given this condition, price naturally gets wiped out(p)er. Once the price gets too low that the producers would incur losses than profits, they will be out of business. Although this competition can be due to humans quest of self-interest, this benefits the s ociety as a whole by keeping the prices of goods at a low direct and, at the same time, having a variety of products and services.This idea is what happens in our modern economic society. Businesses get into the market because they can see a potential profitable market. And what prevents these businesses to monopolize in their field is the fact that there will be other businesses or individuals who would want to get into the same market and have a fair competition.