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The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.
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Own goal
By Dr Madsen Pirie
A German football referee, Robert Hoyzer, has admitted match-fixing in all three of Germany’s top leagues, and betting on the results. There are no rules barring German referees from betting on matches, even the ones at which they officiate. Before reunification, Germans used to be limited to bets on a win or draw, but now they can bet on when the first goal is scored, or when and how many yellow cards will be handed out. Eric Culp says this has created a multi-million pound industry, and given referees an incentive to fix the results. This follows the recent scandal in which numbers of German federal and state politicians were forced to resign after revelations that they accepted payments and favours from big German companies. These payments were also quite legal. To outsiders it seems like an attempt to bring football and politics into line with the 'Continental model' of the economy. In the Anglo-Saxon free-market model, competition and changing circumstances bring about unpredictable results. This makes it difficult for governments and officials to plan and allocate resources. A model which replaces the unpredictability of individual and team talent by the systematic planning of officials is obviously capable of a more even allocation of outcomes. It is one in which victory can be determined not by the chance of the game, but by international bargaining by officials. Herr Schröder will doubtless welcome it because "it replaces the random, competitive elements of football with the orderly planning by officials. It gives football a level playing field." Feedback
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Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.
A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations. |