The debate between those advocating for a free market and those advocating for government intervention in the economy has been an ongoing debate for centuries. During the time period of the founding of the United States of America, key economic and political thinkers engaged in a debate over the proper role of government in the economy. In this Assignment, you will read writings by two of those thinkers, Adam Smith and Alexander Hamilton.
Instructions:
What does Adam Smith think about government intervention in the economy? What are two reasons that Smith offers, suggesting that tariffs are not desirable? Is there any scenario in which Smith might support government intervention in the economy?
What does Hamilton conclude about government interference in the economy? What does Hamilton propose will be the result if tariffs are imposed? How does Hamilton justify the use of tariffs?
Considering the views of both Hamilton and Smith, who makes a more convincing argument with regard to the desirability of government intervention in the economy? Why?