Which of the three main contributions of Adam Smith do you think is
the most important or most relevant in the world today? Which one do you
find the most interesting or most insightful? Explain.
The three main contributions of Adam Smith that I think is most
important or most relevant in the world today are division of labors,
free market and the role of government. Division of labors is a way to
reduce the time of productivity efficiently. If there is only one person
producing, it will take much more time than few people cooperates to
accomplish the product. As it reduces the time of producing, there are
more production can be produced. The article ‘1,400 govt cars to be sold
in Wenzhou reform’, (2012-04-13, china daily) is about the reform of
government cars. If there is no division of labors, there is hard to
have 1,400 government cars are produced in a short period. Even to
auction the cars need labors to take their parts of jobs so can do the
auction more efficiently. Free market is one of the most important
contributions to the world’s economics. It is also the base of trade. If
there is no free market, there will not much benefits of trade.
Everyone sells and buys in the free market and the price is the
invisible hand as it is base on the supply and demand. The article
‘China’s movie sector becomes second-largest in the world’ (2012-04-18,
Zheng Yangpeng, china daily) show us the demand in China is very large
and it overtook Japan. The role of government is important in every
aspect of society likes economics, social equity and development of the
country. When the market fails, government redeems the market for the
country and citizens. The article ‘Europe’s rescue plan falters’
(2012-04-18), we all know that the financial crisis in Europe. The
government plays a very important role to redeem the crisis as it
influences the whole world’s economics. If there is no the role of
government, it will be collapsed directly and expeditiously.
I find the role of government is the most insightful because even
there is a free market helps to trade with others in order to improve
the economics, if there is no government approves or helps, it will not
be worked. Likes China government, if the china government did not
approve the ‘open-door’ policy, there will be such a active market now
in China. Therefore, Government makes a big influence to the
stock-market, economics and development of the country.
http://www.chinadaily.com.cn/china/2012-04/13/content_15046097.htm http://chinawatch.washingtonpost.com/2012/04/chinas-movie-sector-becomes-second-largest-in-the-world.php
http://online.wsj.com/article/SB10001424052702304331204577352031520413246.html?mod=WSJAsia_hpp_LEFTTopStories
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