How was Adam Smith's position about the necessity of free trade and free markets different from how many national economies operated during this period? (4 points)
1. Adam Smith believed in the idea of laissez-faire economics, which advocated for minimal government interference in the economy and promoted free trade and free markets. Many national economies during this period operated under mercantilist policies, which involved government intervention in the form of protectionist measures such as tariffs and quotas to promote domestic industries and exports.
2. Smith argued that free trade and competition would lead to greater efficiency, innovation, and overall economic prosperity. In contrast, many national economies at the time operated under monopolistic, mercantilist policies that favored certain industries or businesses, limiting competition and stifling growth.
3. Smith believed in the concept of the "invisible hand," which suggested that individuals acting in their own self-interest would unintentionally benefit society as a whole. This idea stood in contrast to the prevalent belief in many national economies at the time that government intervention was necessary to regulate and guide economic activity.
4. Smith's views on free trade and free markets were ahead of their time and had a significant impact on later economic thought. However, many national economies during this period were slow to adopt these ideas and continued to operate under mercantilist policies for many years. It was not until later centuries that free trade and free markets became more universally accepted principles in economic theory and practice.