Smith argue against the regulation of commerce because he believes it to be ineffective. According to Smith, economies become more effective as the division of labor grows. This enables a certain individual to specialize in one area and become exceptionally skilled at doing that one thing. For nations, the same holds true.
The core tenet of Smith's argument was that prosperity emerges from people's innate propensity for self-interest, or, to use more contemporary terminology, looking out for oneself. Smith maintained that allowing everyone the freedom to create and trade commodities as they liked (free trade) and opening the markets to domestic and international competition would foster greater prosperity than could be achieved with strict governmental rules.
Smith thought that via their regular economic decisions, people ultimately advance the public good. To work its magic, the invisible hand of the free market, as described by Adam Smith, needed assistance. A number of interdependencies were specifically produced by the market that resulted from an expanding division of labor in society and in production processes. Through personal economic interests, these connections promoted social wellbeing.
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