Adam Smith's Economic Liberalism Theories and their Implications on Protectionism and Financial Regulations Policy in the US.

Abstract

Adam Smith economic Liberalism theories are considered as the foundations for Capitalism which has inevitably impacted so many nations on the globe. Smith theories were compiled in his book "The Wealth of Nations" in which he strongly advocated open market and competitive economies. The current study takes the US into account aiming at clarifying the effect of those theories on the United States financial regulations and Protectionism policy. A descriptive analytical method as well as historical method are used to answer the questions of the research. The study sheds light on the US economy during the Great Depression and after the Second World War area. As a result of this research, the study has proven the failure of Protectionism policy and the effectiveness of trade Liberalization as the United States faced the biggest crisis in its history by adopting free market policies and eliminating trade restrictions policies, which stand as the main cause behind the Wall Street stock market crash and the Great Depression. As a consequence, Adam Smith economic ideology has greatly contributed to the growth and development of the American economy after the Second World