Adam Smith on Current Unequal Wealth Distribution and Social Unrest

Adam Smith on Current Unequal Wealth Distribution and Social Unrest
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Adam Smith on Current Unequal Wealth Distribution and Social Unrest
Introduction
Unequal wealth distribution is currently among the most challenging economic factors in the world. Countries and individuals face economic disparity across the globe, and this is what consequently contributes to social tension. With certain regions highly productive with massive volumes of wealth, other areas face economic struggles and constraints that leave the residents with no better options than to indulge in seeking better ways of survival. Such survival means include causing social problems to live better, according to them. Adam Smith uses the principle of Laissez-Faire, which states that economies and businesses give better results when there is no government interference. Through Adam Smith’s policy, businesses can run and flexibly stay in the economic market without any external interference. This article seeks to consider Adam Smith’s view and how he would react to the current unequal wealth distribution said to have caused social unrest.
The Socialist West and Unequal Wealth Distribution
The unevenness in the wealth distribution did not worry Smith. In fact, it was, in many cases, argued that Smith saw the unevenness in wealth distribution as an economic opportunity to individuals or businesses that wanted to take control of the market. In any normal society, unless a perfect world existed, there can never be total perfection in wealth distribution where each individual has exactly the same amount of wealth as the fellows (Genetski, 1978). The inequality, as Smith argues, is very relevant in any economic world. The differences in the levels of income and wealth are what completes the economic world. Even if the government interventions into the economic sectors were to take place, there still would be no equality in the amount of wealth and income each individual gets (Stiglitz, 1969). The theories of economic development consider the following factors as of great value, namely; the amount one is capable of saving over any given period, division of labor where each individual only focusses on the areas, he or she has expertise on and wide extent of the market. The latter widens the economic viability and power of individuals as larger economies of scale increase the chances of economic importance to both businesses and individuals.
A self-regulatory market, where the government has very little interference, gives freedom to investors and gives confidence to them, this consequently becomes a boost as some individuals work best in the absence of pressure and follow-ups. Smith describes the self-regulatory market, laissez-faire, as a belief that the economies will perform best and yield even better results if the government does not interfere or intervene in the market. This idea is recognized as one of the leading principles of a free market economy and capitalism (Sowell, 1994). Just as David Hume argues, Smith clarifies that protecting specific producers or manufacturers could cause inefficient production and other economic disparity problems leading to an unnecessary increase in the commodity prices, (Hum...