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Economic System Resistance Factors

Definition

The various obstacles that prevent the adoption of more efficient economic arrangements, including entrenched interests, ideological commitments, and institutional inertia. Smith identifies these factors as key barriers to economic reform.

Source Chapter

Book IV, Chapter 6

Context

Smith analyzes the resistance to economic reform, identifying various factors that prevent the adoption of more efficient market-based arrangements despite their demonstrated superiority.

Economic Domain

General Theory