"the invisible hand," which he used to demonstrate how self-interest guides the most efficient use of resources in a nation's economy. In 1778, he was appointed to a post of commissioner of customs in Edinburgh, Scotland. He died there on July 17, 1790, after a painful illness. After his death it was discovered that Smith had devoted a considerable part of his income to numerous secret acts of charity. In the piece entitled Four Percent Follies from The Accidental Theorist Krugman discusses how some people think Alan Greenspan should let the economy grow faster. Four Percenters, those against Greenspan, feel that he is not putting enough currency into circulation therefore slowing growth. If more money is put into the economy then nit will grow faster but if too much is put in, inflation will occur. Also, they feel that this will remedy the low rate of unemployment which will soon cause inflation to spiral upward if it continues to decrease below the standard 6%. Adam Smith would surely understand the Four Percenters plea. He would want the economy to be free from too much government control. Greenspan is abusing his place and should let the currency flow into the market rather then hold back. Sure, Smith would say some mediation is necessary to keep too much money from pouring in so inflation doesnt occur. Smith believes that the economy should be free from the government yet the government should still silently oversee it to prevent any problems. Greenspan is preventing problems but is being too cautious and Smith would want him to let more currency into our market but still keep it from getting out of control. My view on this matter is quite similar to that of Adam Smiths view on the matter. I also feel that an economy should be allowed to flourish and grow to its fullest capacity. As the article illustrates, inserting more money into the economy will certainly cause the economy to grow and also help fix the unemployment rate. So I f...
