Smith's theoretical system is an encyclopedic economic system. Although it lacks strict logic and has various contradictions, it has had a wide and profound impact on economic practice and the development of economics for more than two centuries.
Smith is an advocate of economic liberalism. He expected to establish a self-regulating social and economic order on the basis of self-discipline and individual freedom, so he advocated a "natural and simple free system". Among them, the government only needs to maintain peace, establish and maintain a strict law enforcement system, and provide education and other minimum public utilities.
The government does not need to interfere in general economic affairs, so it can be assured that everyone has the freedom to act in his own way, and he will naturally make the greatest contribution to the public interest. In other words, a free social and economic system is the basic condition for the smooth operation of the market economy and economic growth.
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Adam Smith is a British economist, philosopher, writer and the main founder of economics.
In Smith's view, human behavior is driven by six natural motives: self-love, sympathy, desire for freedom, sense of justice, work habits and exchange tendency. These motives are carefully balanced by various social mechanisms, so that their own interests will not be strongly opposed to the emergence of others, and the resulting self-interested behavior will inevitably take into account the interests of others when pursuing personal interests.
Convinced of the natural balance of human motivation and belief in natural order, Smith put forward his conclusion that everyone will be "guided by an invisible hand to achieve a goal that is not his intention" when pursuing his own interests. Based on this basic viewpoint, his economic theory analyzes the economic process.
Baidu Encyclopedia-Adam Smith