Describe two roles of government intervention that Adam Smith conceded were necessary in their approach to the economy. (Site 1)

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Social Studies

Owen Macias

2 August, 13:58

Describe two roles of government intervention that Adam Smith conceded were necessary in their approach to the economy. (Site 1)

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Iyana Everett · Answer 1

Adam Smith is considered the founder of modern economics. He stated that the economic is guided by an invisible hand and that governments should interfere less in some areas of the economic to make it more efficient. He specified that government intervention could be best used in these areas.

1) The creation of social security regulations and also provide national defense to protect the society and all citizens from all the violence and invasions or attack forces from other societies. These of course, is what every society from every country would like to have.

2) The government should establish an exact administration of justice in the context of order and law. These refers to have a court system to apply the right justice for all citizens of a society in an equal manner.