Adam Smith views the world as an economy driven by greed. Hypocrisy has dominated human mental institutions. He talks about consumption and production of goods as his main point of reference. He argues that the elite members of the society consume more than the poor whom they divide the little that is available. Contrary to the declaration by the rich as only doing what is good, Smith posits that the whole human race is driven by selfish interest and not the universal goodwill they proclaim (Heilbroner 47). Based on this, the government has a duty to intervene in production and provision of essential services which cannot be left in the hands of a few elite members of the society driven by extreme greed.
The government needs to leverage consumption and production for the common good of all members of the community. Smith views contradict with Jefferson view on the declaration of rights and independence. According to Jefferson, human beings have the inherent right and independent of thoughts. A wealthy person getting goods from a poor person who is in need of money is just exercising right of ownership and not greed. The role of the government is to ensure these natural rights and the independence of its citizens is upheld.
Smith theory on a self-regulating market is sufficient enough to bring sanity to the market. We have always seen the market forces; the demand and supply always reach equilibrium on their own. The government should not intervene but instead provide an enabling business environment through favorable trade policies. However, in times of crises, the government should take a pivotal role in safeguarding the interest of its citizens without much intervention that will cripple the efficiency market forces.
The trickle-down theory in its original form cannot achieve the success of letting the rich share with the poor. Denny argues that it is the responsibility of government to ensure redistribution of wealth through taxation among other regulative practices to achieve a better and uniform economic growth (23).
Works Cited
Denny J. A. The Role of Government in Economy and Business. Yogyakarta: LKiS, 2006. Print.
Heilbroner, Robert L. The Worldly Philosophers: The Lives, Times And Ideas Of The Great Economic Thinkers. New York: Simon & Schuster, 2011. Print.
