Classical Laissez Faire Economy and Adam Smith

Adam Smith is the father of classical economics because of his work the wealth of nations. He is a firm supporter of laissez faire economy which believes that the markets best function with minimal govenrment interference (such as regulations, privileges, tariffs and subsidies) and supply will create it's own demand. This essentailly means that the market should be let go (laissez-faire literally means let go in french) and be free.

However Adam Smith also believed that monopolies are bad for the economy because they disrupted the way things should actually function in markets. (Laissez faire does nothing to stop monopolies)  Because of this he stated that  restrictions to free trade were sometimes necessary. He also believed that it was sometimes necessary for the government to assist companies and industries so as not to create monopolies.

I guess laissez faire markets are not as good as people claim since it's father believes that governments should control some aspects of economy. 

I also guess this is the reason that keynesian economic thought is formed when Great Depression happened. (This is an economic system that advocates for more regulation of the markets)

http://www.surfnetkids.com/go/1222/adam-smith/

https://en.wikipedia.org/wiki/Laissez-faire

https://en.wikipedia.org/wiki/Classical_economics

https://en.wikipedia.org/wiki/Keynesian_economics