\"It is Adam Smith\'s greatest contribution that he recognized in the social wor
ID: 1179615 • Letter: #
Question
"It is Adam Smith's greatest contribution that he recognized in the social world of economics what Isaac Newton had recognized in the physical world of the heavens: a self-regulating natural order." Paul Samuelson
a. What was that "self-regulating natural order" and what did it accomplish?
b. What would Karl Marx have to say about the naturalness of this order?
Questions from A and B have to be answered and it has to be an fqr, (where it's the intro paragraph, 2 body paragraphs and then conclusion)
Explanation / Answer
Natural order is something that is severely lacking in today's society with the constant interference of the government and other third parties. Without this interference, it is simple to acquire "natural order" because everything will simply fall into place how it was meant to be.
Adam Smith's concept of "natural order" is his theory of the "invisible hand." The invisibile hand concept simply states that the economy will regulate itself. Throughout the cycle of supply and demand, everything will gradually move towards equilibrium which will allow for the greatest benefit and the least cost.
Karl Marx was an individual who thought greatly to the idea of laissez-faire which meant little or no interference from the government, though during his time, the government was simply there to assist when necessary. Marx would agree with this concept of natural order because that is how he viewed society. Everything would work out the way that it was meant to be becaues the laws of natural would see to it. The government did not need to interfere unless it was absolutely necessary. For example, with the construction of canals. This sort of endeaver is too great to accomplish by private parties and so the government would be needed to provide funding. For small endeavors, private parties would accomplish whatever task necessary to achieve their own profit while simultaneoulsy benefitting the society.
Natural order is a concept that is seen less today because of the standardization and the interference by the government. The idea of the invisible hand is one that will always hold true, and I believe the government should not be interfering in a way that does not benefit everyone in society. Privatization should become more popular than standardization.
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