According to Adam Smith’s work, the “An Inquiry into the Nature and Causes of the Wealth of Nations.” – one of the most important books on economics ever written, his work established economics as an autonomous subject and launched the economic doctrine of a free market economy. Smith argued that the state should not interfere with the functioning of the economy. It should adopt a free market economy. A free market economy is one of the economic systems, which attempt to solve the basic economic problem with a minimum of regulation and control by governments, and the allocation of resources is determined by very unique system called the price mechanism. The reason why it is called the “price” mech

It is not always that starting life with very little will get little protection from destitution. For people who inherited nothing, their wealth may come from the successful sale of their labour services. David Beckham came from nothing, but he is able to sell his labour services (kicking a football!) for tens of thousands of pounds a week! Here is another example, which is widely known in Thailand. Mr.Taksin Shinawatra, the Prime Minister of Thailand who was one of the poor, now he is one of the wealthiest men in Thailand.

The market economy, as seen in history causes a wide gap or disparity between groups of people in the country. Massive wealth is held by a few and this small group get richer because one needs wealth to generate more wealth. It is inherited wealth, earning high incomes from the sales of the factors of production that they own (renting land and making profit and interest from capital). Of course, in this system, if you have nothing and you do not have marketable labour skills (for most people this will be a good education), then you will remain poor.

Some topics in this essay:
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