Adam Smith believed that government should only play a small
role in the economy. For Smith the government
should only dispense justice, administer property rights and protect the nation
from aggression. He was in favor of the
capitalist free enterprise system the reason for this was because Smith
believed that man’s motivation was caused by rational self-interest. Through that self-interest, man uses what he
can to stimulate growth and production to produce profits. Still there will be some intervention by government
to ensure fairness and to prevent unlawful economic activities.
