Adam Smith felt that the growth of the market in a capitalistic society would eventually to come to a halt (Heilbroner1 67). ... Adam Smith In the Wealth of Nations, Adam Smith employs his theory of the division of labor; a task that has many different components can be divided and separated. ... However, "Smith did not approve of accumulation for accumulation's sake" (Heilbroner1 64). ... The economy, guided by the "invisible hand", adjusts itself according to society's self-interest (Smith). ... This made Adam Smith's growth model is inapplicable because is assumes that a...

• Word Count: 1442
• Approx Pages: 6
• Has Bibliography
• Grade Level: Undergraduate

However, the main reason that income inequality starts can be traced back to Adam Smith and the division of labor. In his famous book, The Wealth of Nations, Adam Smith described the free market system as a "self-regulating mechanism ", which increases society's wealth and happiness. ... Adam Smith called this system, "laissez-faire " which means leave alone and let the system regulate itself. ... According to Adam Smith, "Government involvement distorted the natural and rational exercise of free, prudent choice " (The Wealth of Nations, 54). ... Adam Smith came up with theory of "The inv...

• Word Count: 1440
• Approx Pages: 6
• Has Bibliography
• Grade Level: High School