Adam Smith on Current Unequal Wealth Distribution and Social Unrest
Overview
This essay examines Adam Smith's economic philosophy and applies it to contemporary issues of wealth inequality and social unrest. The author argues that Smith viewed unequal wealth distribution not as a problem but as an essential feature of market economies, and explores how Smith's laissez-faire principles would address modern economic disparities.
What this essay covers
- Introduction establishing the connection between wealth inequality and social tension
- Analysis of Smith's laissez-faire principle and self-regulatory markets
- Discussion of economic development factors including saving capacity, division of labor, and market extent
- Critique of government intervention and its effects on price regulation and low-income earners
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Adam Smith on Current Unequal Wealth Distribution and Social Unrest
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Adam Smith on Current Unequal Wealth Distribution and Social Unrest
Introduction
Unequal wealth distribution is currently among the most challenging economic factors in the world. Countries and individuals face economic disparity across the globe, and this is what consequently contributes to social tension. With certain regions highly productive with massive volumes of wealth, other areas face economic struggles and constraints that leave the residents with no better options than to indulge in seeking better ways of survival. Such survival means include causing social problems to live better, according to them. Adam Smith uses the principle of Laissez-Faire, which states that economies and businesses give better results when there is no government interference. Through Adam Smith’s policy, businesses can run and flexibly stay in the economic market without any external interference. This article seeks to consider Adam Smith’s view and how he would react to the current unequal wealth distribution said to have caused social unrest.
The Socialist West and Unequal Wealth Distribution
The unevenness in the wealth distribution did not worry Smith. In fact, it was, in many cases, argued that Smith saw the unevenness in wealth distribution as an economic opportunity to individuals or businesses that wanted to take control of the market. In any normal society, unless a perfect world existed, there can never be total perfection in wealth distribution where each individual has exactly the same amount of wealth as the fellows (Genetski, 1978).