Adam Smith Essay Example | Topics and Well Written Essays - 500 words

Adam Smith - Essay ExampleWhile many elements of Adam Smiths possible action of capitalism predominate today, his view of pure capitalism has proved unfeasible in modern markets. There are a variety of reasons why Smiths theory of the invisible hand does not go far enough. One of the major reasons Smiths theory fails is because of the possibility of monopoly structures. In these situations, organizations are able to murder significant power that allows them to shape market elements in their favor, effectively eliminating the process of supply and demand, and making the emergence of competitors an impossibility. In these situations, it became the responsibility of the government to institute restrictive mechanisms, as not doing so would result in electromotive force recessions or economic complications. Other elements are the nature of ethical considerations. With the advent of the Industrial novelty organizations increasingly presented longer workweeks and poor working conditi ons. While its possible the invisible hand would ultimately regulate these situations, there remain significant humankind rights concerns in permitting such a pure capitalistic structure. In conclusion, this essay has examined Adam Smiths theory of capitalism and demonstrated why it is impossible in the modern world. In this context of understanding, the essay demonstrates that Smith proposed an invisible hand that regulates the market. Still, its clear this is impossible in the modern world because of the potential of corporate monopolies and widespread human rights concerns.