As per Adam Smith's idea of laissez-faire capitalism, the role of government was limited. Here are the key points:
1. Protection of Property Rights: The government was responsible for enforcing property rights to ensure individuals could own, use, and dispose of property as they saw fit. This allowed for economic transactions to occur freely.
2. National Defense: Government played a role in providing national defense to protect the country from external threats. This was essential for maintaining a stable environment for economic activities.
3. Legal System: Establishing and maintaining a legal system was crucial under laissez-faire capitalism. The government's role included enforcing contracts and resolving disputes through a fair and impartial legal framework.
4. Infrastructure: In some cases, the government was involved in building infrastructure such as roads, bridges, and canals. This infrastructure supported trade and commerce by facilitating the movement of goods and services.
5. Minimal Intervention: Overall, the government's role was to create a framework for free markets to operate efficiently. It was expected to intervene minimally in economic affairs, allowing individuals and businesses to pursue their own self-interest within legal boundaries.
In summary, under Adam Smith's idea of laissez-faire capitalism, the government's role was focused on protecting property rights, providing national defense, maintaining a legal system, supporting infrastructure development, and intervening minimally in economic activities to foster a competitive market environment.
