Answer:
According to Adam Smith, peace, easy taxes, and a tolerable administration of justice are the three conditions that are necessary for a state to achieve the highest degree of opulence from the lowest barbarism. These conditions promote economic growth in the following ways:Peace: A peaceful environment is crucial for economic growth because it provides stability and predictability, which are necessary for businesses to thrive. When there is peace, businesses can invest in long-term projects, hire workers, and engage in trade without fear of disruptions from violence, war, or civil unrest. Peace also encourages foreign investment and trade, which can bring in new capital, technology, and ideas that can stimulate economic growth.Easy taxes: A tax system that is easy to understand, fair, and predictable is essential for economic growth because it allows businesses to plan and invest with confidence. When taxes are too high, complicated, or unpredictable, businesses may be discouraged from investing or may move to other locations where the tax burden is lower. Easy taxes also encourage entrepreneurship and innovation, as individuals are more likely to start new businesses when they know that they will not be burdened by excessive taxes or bureaucratic red tape.Tolerable administration of justice: A tolerable administration of justice is necessary for economic growth because it provides a framework for resolving disputes and enforcing contracts. When there is a reliable legal system, businesses can enter into agreements with confidence, knowing that they will be able to enforce their rights if necessary. A tolerable administration of justice also encourages investment and innovation because it reduces the risk of fraud, theft, and other forms of economic crime.Overall, Adam Smith argues that peace, easy taxes, and a tolerable administration of justice are essential for economic growth because they provide stability, predictability, and a framework for investment and innovation. By promoting these conditions, a state can move from a state of barbarism to one of opulence and prosperity.