WORLD HISTORY

Detailed explanation-1: -Adam smith believed in a free market economy where the invisible hand guides the supply and demand where each individual works for their own self interest. He believed in laissez faire policy with minimum government intervention.

Detailed explanation-2: -Adam Smith described free markets as “an obvious and simple system of natural liberty.” He did not favor the landowner, the factory owner, or the worker, but rather all of society. He saw, however, self-defeating forces at work, preventing the full operation of the free market and undermining the wealth of all nations.

Detailed explanation-3: -Smith introduced the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.

Detailed explanation-4: -Adam Smith’s economic theory is the idea that markets tend to work best when the government leaves them alone.

Detailed explanation-5: -Milton Friedman was an American economist who advocated for free-market capitalism. He is the founder of monetarism, an active monetary policy where governments control the amount of money in circulation.