Summary Of Canada's Mixed Economy Adam Smith

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Who is the most satisfied with Canada’s mixed economy- Adam Smith or Karl Marx? Adam Smith would be most satisfied with Canada’s economy today because his theories are seen in Canada’s economy today. Smith is known as the father of modern economics and an advocate for the laissez- faire economic policies. Smith’s famous theories were that of laissez- faire- minimizing the role of government intervention and taxation in the free markets- and the "invisible hand” that guides supply and demand. These ideas reflect the concept that each person, by maximizing his/ her own benefit, unintentionally helps to create the best outcome for all. In his book, “An Inquiry into the Nature and Causes of the Wealth of Nations, Smith sates, “It is not from the…show more content…
This means that Canada has some government owned business and other privately owned enterprises as well. The government owned businesses include; Canada post, CBC, and Via Rail. The private owned businesses are what provide customers their desired or needed goods and services. They observe what the consumers buy and then predict what we will buy in the future and also develop new, more efficient products and services to meet the current demand. Privately owned businesses create competition in the market competing for the purchaser’s attention. This in turn gives the buyers more variety for the same product. Examples of privately owned businesses in Canada would be; Roots, Wal-Mart, IBM and Honda. Smith’s theory about the “invisible hand” is evident in the Canadian economy today. The “hand” controls the economy by driving prices down through competition and resources. This figurative “hand” exists today in Canada, as the citizen’s benefit from variety. The variety of products and services available almost always leave room for an alternative, which is what, in effect, forces prices to be lower. An example of this scenario today would be price match guarantee. The consumers would go to Wal-Mart and buy product A, if that same product is found on a Canadian store online or another store, Walmart would collect the details of the product that you would like to match along the name of the retailer and where they can find their advertisement for the same product at a lower price (for example, an online flyer or ad on their website). Then they would simply match the price and you will save money. This creates lots of competition and variety amongst businesses because they want consumers to buy their products so that they can make more

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