ADAM SMITH, RONALD REAGAN, AND JEFFREY SACHS

This research draws comparisons with the economic theories of Adam Smith in the 1770s, the economic policies followed during the presidency of Ronald Reagan in the 1980s, and the economic prescriptions advocated by Jeffrey Sachs in the 1990s. The emphasis in this research is on trade and economic activity.

In the formulation of economic theory, Adam Smith was principally concerned with the factors which led to increased wealth in an economy. Smith (1776, pp. 131-136) contended that the cost of labor provided the basis for the determination of the value of a commodity. Smith further contended that it was the relative expenditure of labor that mattered. Smith also contended, however, that the factors of supply and demand also affected the actual price levels (inflation) of commodities in the market place. While Smith considered that the factors of supply and demand were the major determinants of commodity prices, the value of labor consumed in their production was held by Smith to provide the basis for the determination of value of commodities. Smith also contended, however, that the factors of supply and demand also affected the actual price levels of commodities in the market place.

Within the framework described in the preceding paragraph, Smith thought that the size of an economy's output should be limited only by the size of markets--or demand. The key element in the process, in Smith's perception, was the accumulati

. . .
entation of overt trade restrictions, the administration was never above government-to-government pressures to ease trade problems. Such government-to-government pressures with the Japanese involving Japanese automobile exports to the United States were among the first of this type of action taken by the Reagan Administration. The governments of the United States and Japan, and the Japanese automobile industry eventually agreed on voluntary Japanese automobile import quotas to the United States The voluntary import quotas were designed to last long enough for the domestic industry to get back on its feet. Although it took quite some time to negotiate and implement the voluntary import quotas, it was apparent to most in both government and the automotive industry in each of the countries, that voluntary quotas would be agreed upon, or the United States would likely be forced to seek and impose mandatory quotas. The supply-side approach to fiscal policy was made-to-order for the Reagan campaign for presidency in 1980. What the Reagan faction desired above all else were reductions in taxes and government spending. In 1984, President Reagan (p. 149) stated that: "One of my principal goals when I came to Washington was to revers
. . .

Some common words found in the essay are:
President Reagan, Adam Smith, North American, Reagan Administration, Stroup Studenmund, Eastern European, Reaganomics Reaganomics, Bush Administrations, Poland's Solidarity, Japan Japanese, reagan administration, american colonies, economic growth, north american, north american colonies, ronald reagan, federal government, adam smith, fiscal policy, jeffrey sachs, president reagan, public papers presidents, united ronald reagan, presidents united ronald, papers presidents united,
Approximate Word count = 3323
Approximate Pages = 13 (250 words per page)