ADAM SMITH

A free market is a market without economic intervention and regulation by government except to regulate against force or fraud. Adam Smith (1723-1790) is one of the most famous economists. He was Scottish philosopher who believed in the free market system. Adam Smith spoke for democracy with his idea that self-interest, practiced by all classes of people, works to the benefit of society as a whole. Each person ought to be free to pursue their ambitions, and such freedom will benefit everyone with new markets, better products, and opportunities for greater wealth all around. Smith felt that the government should not interfere with the economy. Instead, he believed that the role of government should be to provide essential services such as defense, fire-fighting, and police protection, protect contracts under the law, grant patents and copyrights as incentives for invention, and provide public works such as roads that would benefit everyone.

"Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man or order of men." - Adam Smith