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The State, The Market and Economic Development: A Second Look at Adam Smith in Theory and Practice
Author(s) -
Goldsmith Arthur A.
Publication year - 1995
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/j.1467-7660.1995.tb00568.x
Subject(s) - capitalism , ideology , laissez faire , adam smith , state (computer science) , government (linguistics) , economics , private enterprise , market economy , neoclassical economics , free enterprise , free market , invisible hand , economic system , political economy , political science , law , politics , finance , algorithm , linguistics , philosophy , computer science
This article looks at the place of government in the development of market economies. Using ideas from Adam Smith, and illustrations from Anglo‐American economic history, it shows how government was deeply involved in creating the conditions for capitalism and in moulding a sustaining environment for private enterprise. Despite the claims of contemporary laissez‐faire ideology to the contrary, the emergence and the maintenance of a capitalist economic system always depend, at least in part, on an effective state.