Although Adam Smith lived in the 18th century, the father of modern economics still has much to teach the world today. Smith's world famous book Wealth of Nations is arguably the most important piece on economics in history. It greatly influenced other scholars, thinkers, and eventually policymakers away from the then-dominant global policy of mercantilism toward freer trade.
Tariffs and Candlestick Makers
The fight between those who prefer free markets and those who prefer protectionism and domestic production is a war that has been waged since the time of mercantilism in the 1600's. Adam Smith, Frédéric Bastiat, and many other classical economists of their time fought hard against the idea that markets needed to be controlled extensively by government regulations. They, along with many others, believed that government intervention in the economy produced inefficiency and dead-weight loss.
Trade Liberalization vs. Protectionism: Pros & Cons
Globalization has always instigated debate and disagreement. It’s blamed for the decay of state sovereignty, the rise of transnational organized crime and economic degradation. It’s constantly used as a scapegoat by politicians and world leaders who want to justify cases of economic and social race to the bottom phenomena in their respective nations, and it’s generally used as an easy excuse to defend failures and downsides. Regardless of these accusations, however, it’s important to note that the benefits of globalization and liberalization vastly overshadow their discontents, especially in the context of trade and economic growth.
American Freedom Institute 