Diminishing The Wealth Of Nations

(Diminishing The Wealth Of Nations)

Some have noted that the anniversary of Adam Smith's birthday was a few days ago. Smith is known authorship of Wealth of Nations, published in March, 1776, just months before the signing of the Declaration of Independence the following July 4th. Smith's work has been recognized as the Bible for free market capitalism, which was appropriate because the soon to be newly constituted United States of America was to have a free market economy. Having such policies are generally the best in promoting economic growth.


That being said, modern world wide economies seem less concerned with economic growth and more government involvement. In other words and contrary to Smith's prescription, what is being practiced is socialism. Karl Marx was as much an economist as Adam Smith but it has been his economic prescriptions that have been gaining traction. Socialism depends on the triumph of the collective over the free market that promotes the individual.


Case in point, President Biden and Treasury Secretary Yellin have been proposing a 15% global minimum tax. In their words. such a tax would level the playing field. To what end ? Why should an American company be subject to an external expense that would seem to be independent of domestic supply and demand concerns.


Those concerns, however, are not those of the President and Treasury Secretary. Their globalist vision and their climate change agenda makes it necessary to attempt to levy this new outlay. Adam Smith, for his part, would prefer free trade. Indeed, Smith would probably be appalled today when examining what counts for economic policy.


To borrow from Smith's book, the so-called "wealth of nations" is becoming less and less due to global government policies. The Davos Syndrome is in plain sight and would be repudiated by Smith as well. Contrary to Biden's comments, he has not presided over an employment boom but the opposite. Perhaps the President should read Wealth of Nations, to how things are done.

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