Open topic Essay Example | Topics and Well Written Essays - 1000 words

Open topic - Essay ExampleFor Smith, the grocery store will regulate itself through its invisible book which the governing and its regulatory power play no part. In his monumental work An Inquiry into the Nature and Causes of the Wealth of Nations or Wealth of Nations (1776), he argued that idiosyncratics pursue their self-interest argon real good for the larger society. To paraphrase Smith, he contended that by directing that labor in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by aninvisible flockto promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. (1776, 364). This idea of Adam Smiths individuals spare-time activity of self-interest to be good for society in general became the driv ing force of classical capitalistic economies. This was and contradicted by John Maynard Keynes. ... These two economists contradicted in a manner that Smith negated the role of government intervention in the economy by solely relying on the markets invisible hand fleck Keynes believed that the economy will work at its optimum with the influence and intervention of the government. Analysis age these two economists made two contradicting explanation and suggestion on how economies should work, they are however both correct. For Smith, while it may sound as an oversimplified generalization that the economy is ruled by market forces invisible hand, this truth however cannot be denied. We just cannot break the law of market forces that rules the economy. Our own pursuit for our individual success has also been generally good for society for we can contribute more when we are individually productive. For Keynes, his economic precepts has never been truer today with governments interv ening in the recent 2009 Financial Crisis to bail out companies to keep on jobs and the economy in general from depression. Contradictory ideas but both are true and only distinguishable on its implication on the market and the economy in general. Smith may have explained the uncut reality about the dynamics of the capitalist economy and accepted the fact if individuals are left on their own, we will be always be driven by our selfish motive. harmonize to Smith, self-interest is not necessarily evil as he contends that our pursuit for self-interest will actually make the economy work efficiently and will be good in the long run. Keynes however made an assertion that this is in fact disastrous if we attempt to apply it to the facts of experience and attempted to witticism the selfish and disastrous