Governments play a big role in our economy today. From environmental rules to price regulations, it is generally assumed that governments are needed to keep the economy moving. It was Adam Smith who first challenged the thoughts of government in the economy. His theory was that an economic system functions best when there is no interference by government. This theory was known as "laissez-faire" or "let things be." Smith concluded that the capital follows its …
showed first 75 words of 819 total

showed last 75 words of 819 total
…and intervention in the economy is detrimental."7 But in a realistic marketplace, like the one we operate under today, there are going to be flaws. Monopolies will always exist in some form, and the greed of the individual will always cause him to strive for more. Government is needed in the economy to help those who cannot survive in a harsh world of throat slashing greed where everybody is in it for the next dollar.