Adam Smith Stimulus Material

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One of the pieces of stimulus material was an excerpt from Adam Smith’s The Wealth of Nations. In this piece of stimulus material, he broke down the different factors that affected wages and profit in Europe. Adam Smith concluded the best economic solution is a free-market economy where there is little to no government regulation. Moving forward a couple hundred years, in a different piece of stimulus material, Richard Nixon addressed a different idea. In his Address to the Nation on Labor Day, President Nixon presented a new economic philosophy to the American people, the limiting of certain freedoms and increased government regulation on the economy. Since President Nixon’s change in direction on economic policy, President Barack Obama …show more content…

However, current president, Donald Trump, has urged a push back to the laissez-faire economic philosophy of Adam Smith. In a meeting with multiple executives of large American companies, President Trump explained, “cuts to both corporate taxes and regulations — promises he made for the duration of his campaign — were on the horizon” (Lam, 2017). The differing economic philosophies presented in the stimulus material and the new president’s ideas for the future of the american economy, led me to ask the research question, “Should the United States federal government increase economic regulation?” By first examining a historical lens on the effects of economic regulation, then a scientific lens on the effects regulation has on innovation in science, and finally, an economic lens to look at the overall effects of President Trump’s plans to decrease government regulation, it will be clear the United States federal government should not increase economic …show more content…

This is explained in a study by Ramesh Bhat conducted in July 1998 for the International Journal of Health Planning and Management which evaluated regulation in the growing healthcare industry during India’s process of industrialization. The study concluded “The expansion of the private sector in India has forced the passage of a number of regulations to promote quality of care and protect consumers. This has expanded the role of government in developing and enforcing regulations in three areas of the health sector: drugs, medical practice, and health facilities…” Health Care regulation in developing countries is important to ensure the foundations of the country's healthcare system are set up fairly. This prevents one company from having a monopoly over a certain drug and charging unfair prices for it and it ensures quality care for all of a country’s

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