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Few have actually read Adam Smith’s treatises: The Theory of Moral Sentiments or An Inquiry into the Nature and Causes of the Wealth of Nations. Yet many speak ‘as if’ they have, citing his celebration self-interest as sufficient incentive and his advocacy of laissez-faire (minimal government) as a proper policy posture. The implication is apparently that no intentional human action is required to accomplish market marvels: “As if by an invisible hand,” resources are guided to their best uses.
In your possession, you have a two-sided excerpt from the latter. You also have the Frank textbook, the McMillan text (preface and chapter 1) and the Cassidy text (through page 26).
Write a brief paper—employing only these sources—to speak to the ‘visible hand’: the role of humans, and collectively, governments, in creating markets—social constructs—and the proper role (at a general level) of government in preventing market failure. You may consult other sources for enlightenment, but you may quote directly only from the assigned sources.
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