Explain how Adam Smith felt about institutional economic interference under mercantilism.
Adam Smith, the author of "The Wealth of Nations," was highly critical of institutional economic interference under mercantilism. He believed that the numerous regulations and restrictions imposed by mercantilist policies stifled economic growth and hindered individual freedom.
Smith argued that mercantilist policies, such as tariffs, subsidies, and monopolies, were designed to benefit the ruling elites and well-connected merchants at the expense of the broader population. These policies distorted market competition, enriched privileged individuals or groups, and limited the opportunities for others to succeed through their own efforts.
In contrast to mercantilism, Smith advocated for a free-market system where individuals were free to pursue their economic interests without heavy governmental intervention. He believed that competition and the pursuit of self-interest would lead to economic efficiency and greater overall prosperity for society.
Therefore, Smith believed that institutional economic interference under mercantilism was detrimental to the economy and called for a more hands-off approach by the government to allow for a more efficient and equitable economic system.