Adam Smith Essay Example | Topics and Well Written Essays - 500 words

Adam Smith - Essay eccentricWhile many elements of Adam Smiths theory of capitalism persist today, his view of sharp capitalism has proved impossible in red-brick markets. There are a variety of reasons why Smiths theory of the invisible hand does not go far enough. One of the study reasons Smiths theory fails is because of the possibility of monopoly structures. In these situations, organizations are able to gain significant former that allows them to shape market elements in their favor, effectively eliminating the process of supply and demand, and making the emergence of competitors an impossibility. In these situations, it became the function of the government to institute regulatory mechanisms, as not doing so would result in potential recessions or economic complications. Other elements are the nature of ethical considerations. With the advent of the Industrial Revolution organizations increasingly presented drawn-out workweeks and poor working conditions. While its poss ible the invisible hand would ultimately regulate these situations, thither remain significant human rights concerns in permitting such a pure capitalistic structure. In conclusion, this analyse has examined Adam Smiths theory of capitalism and demonstrated why it is impossible in the modern world. In this context of understanding, the essay demonstrates that Smith proposed an invisible hand that regulates the market. Still, its clear this is impossible in the modern world because of the potential of corporate monopolies and widespread human rights concerns.