What are some examples of Adam Smith's economic policies in action?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Perhaps the most important example of a policy in action that Adam Smith would have approved of is the continuing move towards more free trade in the world.  Smith felt that free trade would be beneficial to the world because it would enlarge the size of the market.  It would allow for more division of labor throughout that market.  This would increase efficiency.  Therefore, Smith would approve of the free trade zones and free trade agreements that are such an important part of our global economy today.

Smith would also approve of any laissez-faire economic proposals.  Therefore, he would be likely to approve of proposals to disentangle the government from the economy.  He would approve of the sorts of reforms that some European countries are trying to implement where they remove government regulations that make it harder to fire employees or that tightly restrict the number of people who can work in a given profession.

Overall, Smith would approve of policies that allow more economic freedom and call for less government regulation of the economy.

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