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Laissez Faire In The Wealth Of Nations By Adam Smith

869 words - 4 pages

Tommy Jones begged, pleaded, and hoped beyond hope for that new touch screen phone that would immediately move him up the social ranks at his school. His wish was granted on Christmas morning. He was rewarded with that sleek, black phone with 4G capabilities. Two months later the next phone in that series is out, an exact clone of the orginal with the most moderate changes, and suddenly Tommy’s phone is obsolete. There was no great improvement when compared to the old model, no; the corporation knows that it will sell, no matter how small the improvement. This model of constant obsolescence has become the norm in the economy today; companies reap profits with mediocre products, completely ...view middle of the document...

This is the product of corporations advertising progress that is not there. Corporations have become too powerful, while consumers have become too dependent. However if more free market conditions were enacted, then the consumers would have control in the marketplace.
Multiple economists argue against Laissez Faire economics, they argue that if the economy were entirely deregulated then corporations would gain unprecedented control. They believe monopolies would be formed and the consumers would become simple pawns in the CEO’s quest for profit. Even Adam Smith, said that no economy could realistically exist as a true free market. In fact Smith even had a pessimistic view of corporations in general, an article in Forbes with the reporter Marc Hodak quoting Smith saying, “The directors of such companies … being the managers rather of other people’s money rather than of their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which [they would] watch over their own.” But Smith’s reasoning for free market economics was actually to protect the consumers and restrain the corporations by making the corporations entirely dependent on consumer interests.
Also free market economies have become the most efficient for businesses and the economies. Since free market is run completely by the wants and needs of the consumers, it offers the most incentive to create a new business or product to become the next Steve Jobs or Bill Gates. In this type of economy there is the most room for profit and growth, based purely off of one’s own ideas. This...

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