Although Smith believes in free markets, he doesn't necessarily need the government to be inactive, but limited. In his book Wealth of Nations, Smith states that the government has three functions and none initiated any kind of government-regulated market or economy. ... In Polanyi's book, The Great Transformation, he states, "While laissez-faire economy was the product of deliberate state action, subsequent restrictions on laissez-faire started in a spontaneous way. ... When discussing Adam Smith, it is clear to note that the role of the government is very limited and only need...

• Word Count: 1585
• Approx Pages: 6
• Grade Level: Undergraduate