Adam Smith and Economic Liberalism

This is the Economika channel, and today we are talking about Adam Smith and Economic Liberalism.
The Wealth of Nations (1776) remain an indispensable book. Adam Smith, a promoter of liberalism, he says that a nation's wealth should not be measured by its gold, but by the goods and services that are available to its people. For Smith, society's progress is achieved through economic freedom. This position is contrary to mercantilism, which was the prevailing idea until then, which proposes government control over all aspects of trade and encourages the creation of artificial privileges, monopolies and barriers to trade.
Adam Smith cannot be ignored.

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Economic liberalism is an ideology that is an integral part of conservative social thought about minimal government intervention in the economy of a nation and about complete freedom for individuals in the economy.

In history, countries had the highest rates of GDP growth and living standards in those times when the state intervened in the economy, supported domestic producers, subsidized them and provided them with preferential loans. Examples, Russia (period 1929-1955), China, South Korea.

Data for countries around the world whose economies grew at double-digit (almost double-digit) rates for more than 20 years in the 20th century are given below:

1. 13.8% - Russia - average annual growth for 22 years (1929–1955).
2. 11.5% - Taiwan - average annual growth for 27 years (1947-1973).
3. 10.4% - China - average annual growth for 25 years (1983-2007).
4. 10.2% - South Korea - average annual growth for 23 years (1966–1988).
5. 9.7% - Japan - average annual growth for 23 years (1948-1970).
6. 9.2% - Singapore - average annual growth for 24 years (1966-1989).

Thus, in the twentieth century, the world's largest national economic growth for more than 20 years was achieved in Russia in 1929–1955 (minus four war years). During this period, real wages grew 4 times, citizens’ deposits in savings banks grew 5 times, and the economy grew 14 times.

And:
- First place in the world in terms of the share of mechanical engineering in the total volume of industrial production.
- Complete technical and economic independence of the state has been ensured.
- First place in the world in terms of agricultural mechanization.
- First place in Europe and second in the world in terms of absolute industry size.
- First place in Europe and second in the world in terms of labor productivity in industry.
- The latest industries and advanced technologies: nuclear, space, rocketry, aircraft manufacturing, instrument making, radio engineering, electronics, electrical engineering and others.

And sanctions did not prevent such economic growth in Russia.