ADAM SMITH PROBLEM

The Adam Smith Problem

The Adam Smith Problem

The Adam Smith Problem

The Adam Smith problem known in social science, the contrast between Adam Smith's early work and his masterpiece "The Wealth of Nations". Has Adam Smith objected to it? From the point of the current economic crisis, this question is more relevant than ever. It turns out: Who is on deregulation and free market relies, is silent in these times of crisis. After all was forgotten: deregulation is only possible if the entrepreneur does not forget social and rational aspects. In the footsteps of Adam Smith, the subprime crisis and its gigantic proportions are for the here and now and for the future (Gocmen, 2007, p. 35-41).

As the founder of modern economics, there is no doubt in relation to Adam Smith and his masterpiece, the "Inquiry into the Nature and Causes of the Wealth of Nations" - also simply known as "The Wealth of Nations". For a long time managers, CEOs and financial moguls have relied on it and just this one work. More deregulation and less bureaucracy, fewer benefits and justifiable egoism - that is, in effect, the "fat bonuses" the image always denounced (Gocmen, 2007, p. 35-41). They are all silent, after the deregulated market has even gone against the wall. Just the state, "he has to stay out of everything" has to save now (Gocmen, 2007, p. 35-41). 1.3 trillion U.S. dollars were gambled in a big way - so estimates of the International Monetary Fund. A sum that now is by the Paulson plan (700 billion dollars), the German Financial Market Stabilization Act to be collected (€ 400 billion) and interest rate cuts - but why delay the banks?

Answer is: Adam Smith. To rely on him and call for deregulation was a long time hobby number 1 of the "big bosses" as they called the proletariat. Now that the real economy threatens to fall into recession, its impact will be felt more, according to estimates by matching mirror, there is a nakedness to admit that one has been deceived. Who has not been wrong about Adam Smith, but the big bosses. Even before the "Wealth of Nations" appeared namely, "The Theory of Moral Sentiments" (Theory of Moral Sentiments) (Butler, Eamonn, 2007, p. 54-63). In the Wealth of Nations, Smith says that the subject of the greatest economic decision-making authority should be given (Klein, Daniel, 2008, p. 358-372). Assuming that a person as economically active subject only from our own selfishness, so the quest for profits and ultimately personal wealth, power gets the economy to promote and invest in the production of goods, he describes in his famous work dedicated to the personal selfishness through the creation of jobs, the achievement of innovation and development and paying taxes and reinvestment in the land to him these liberties granted to the personal selfishness and the "economies hard-hitting" for the benefit of all effects, even the poorest will - to the common good of the entire ...