Adam smith and John Maynard Keynes, were both revolutionary for their time. They both believed in big business, but their views on the way those business were run was totally different. Adam Smith was a capitalist and was a socialist. Canada has adopted Adam smith’s theory. Simply because it helps the economy more, if you let business run themselves, instead of having them run by governments. Businesses will be around forever, but if governments interfere the economy will suffer.
Adam Smith wrote a very power book called “The wealth of Nations’, it basically stated that, governments should have no interference in big business. Businesses should be left alone in order for their success. He believed in free enterprise and free trade, businesses should be able to do business with other companies, for the economy to grow. He the idea of the “Invisible hand’, where a companies good is led, to achieve good for everyone involved. John Maynard Keynes was a socialist, which meant that, businesses should get involved in business.
This would cancel out any chance of a monopoly being formed. This has advantages and disadvantages. Advantages, this may protect the consumer from high prices as one company may control that market, and therefore the price. Disadvantages, high prices means more tax dollars going to the government. Therefore the economy may or may not suffer. Adam smith’s theory makes a lot of sense, if governments get involved they may on fact make a business fail, because a government may not know anything about that particular business.
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This may cause the business to fail at the end. Which could make a very successful go bust. This could lead to job loss and maybe a recession, again the economy will suffer. Adam smiths theory make a lot more sense, then Maynard Keynes idea that governments should regulate business. Canada was adopted Smith’s theory as a oppose to Maynard.
Look to where it has gotten Canada, are economy is booming, like it has never been before. As more technology companies become into existent’s, governments have idea on how to run those businesses.