Adam Smith's Economic Liberalism outlines economic liberalism: an economic theory and policy system that advocates market mechanism and opposes human intervention in the economy. It was originally put forward as a slogan by the foreign minister of Louis XV of France. Later, Quesnay and others confirmed that there is a natural order independent of human will in society, which dominates the development of society. Adam Smith advocated the principle of "an invisible hand" and further developed the idea of economic freedom. The thought of "free economy" is the center of Smith's whole economic theory, and Ricardo also expounded the same thought. Economic liberalism is an ideological proposition that has occupied an important position in the capitalist world for a long time. Economic liberalism is an ideology that supports personal property and the right to freedom of contract. Economic liberalism advocates limiting the government's manipulation of economic affairs and letting the market mechanism play the role of regulating resources. Economic liberals are not anarchists. Not all of them are against the role of the government. However, in most cases, their research results show that government intervention is excessive. Economic liberalism includes Smith's economic liberalism and neoliberalism. Adam Smith believes in The Wealth of Nations that in the commodity economy, everyone aims at pursuing his own interests. Under the guidance of an "invisible hand", that is, through the spontaneous adjustment of the market mechanism, the choices made by everyone in pursuit of their own interests will naturally lead to the optimal allocation of social resources. In the 1930s, Keynesian state interventionism took the place of economic liberalism and occupied a dominant position. In the 1970s, when Keynesianism was helpless in the face of "stagflation", the trend of new economic liberalism rose in the capitalist world. It believes that private ownership of means of production is the premise of all economic activities, especially all activities in the market economy; The exchange and spontaneous operation of the market are fully effective; Free trade is the best foreign trade policy. Neo-liberalism resolutely opposes excessive government intervention. Neo-liberalism is different from Smith's economic liberalism. Smith's economic liberalism advocates complete laissez-faire, while neo-liberalism generally emphasizes economic freedom under state intervention. Economic liberalism is a form. The academic origin of economic liberalism is Smith's economic laissez-faire. Modern (economic) liberalism, also known as neoliberalism, is represented by Hayek. This school believes that the market is the most important or even the only force for the rational allocation of economic resources, so it believes in free market economy and opposes any form of state intervention in economic activities. In addition, neoliberalism in a broad sense includes monetarism, while neoliberalism in a narrow sense only includes Hayek's neoliberalism theory and West Germany's neoliberalism theory. The slogan of this liberalism is "free enterprise". Supporting laissez-faire capitalism means removing legal barriers, such as trade barriers and monopoly and subsidy privileges imposed by the government. Economic liberalism wants the government to control the economy as little as possible, or not at all. Some economic liberals will accept the government's restrictions on monopoly and oligarchy, but some of them think that monopoly and oligarchy are caused by government intervention. Economic liberals advocate that the value of products and services should be freely chosen by individuals, that is, the power of the market. Some people agree that the government can play a monopoly role in some areas, such as police and court services. Economic liberalism believes that the economic inequality caused by unequal negotiation status is the result of natural competition-as long as it does not involve the use of coercive means. This form of liberalism was especially influenced by British liberalism in the19th century. Small government and anarchic capitalism are both manifestations of economic liberalism. The basic market of economic liberalism requires the removal of all kinds of administrative or political obstacles that bring inconvenience to capital owners who pursue personal profit maximization, and the pursuit of personal profit maximization has become a rational behavior mode. This is the social foundation of economic liberalism and neoliberalism. Advocates of economic liberalism, especially believers of neo-liberalism, advocate that the nation-state should obey the demands of economic dominators for economic freedom, prohibit any control over the market, especially the labor market, oppose deficit finance and inflation, advocate universal privatization of public services, and reduce public and social expenditures serving the social foundation. In contemporary China, especially in the 1990s, economic liberalism is in an absolute control position in the ideological circle. It has a profound social background: the capitalization of power has developed from commercial capital and production capital to financial capital, and a new powerful group has basically formed, which needs corresponding ideological theory, forming the monopoly of economics on the whole social science and neo-liberalism on economics; The gradual reform gradually gave up the compensation for the vulnerable groups, and the nature of deprivation became increasingly obvious, which betrayed the most basic spirit of the gradual reform. Every time the system reform "in line with international standards" produces a few rich people and eliminates a large number of workers ... Economic theory is divorced from economic and social reality through its own existence, first of all, the existence of ideology, which most often appears in the form of pure abstraction and theory, and they are particularly inclined to confuse logical things with logical things. Economic theory tends to endow reality with extremely logical myths. The theoretical analysis of economists has played an important role in the birth of economic liberalism, especially neoliberalism, because it is the theoretical basis for the emergence of economic liberalism. However, the reality is this: not only in most economically developed countries, the proportion of poor people is increasing day by day, but also the income gap is growing abnormally. In the role of economic liberals, some people think that there is no function that the government can operate at all, while others think that the government should only provide justice, public security and national defense to resist foreign invasion (small government).