Adam Smith

Adam Smith

Introduction

This assignment is based on Adam Smith; he is the British philosopher and economist. Adam Smith significantly boosted the development of the economy as a modern science. In 1776, he published in London his research as a book called as the Wealth of Nations, in five volumes, which is considered as one of the peaks of modern economic thought. Smith was convinced that the key to the country's wealth is the freedom of economic activity. Adam Smith believes that division of labor is the main source of growth and development of a country. This is possible because it increases the ability of workers to engage in a small number of operations.

Discussion and Analysis

Smith was convinced that the key to the country's wealth is the freedom of economic activity. The less the government intervenes in the economic life of the country, the better economic development will take place. Government regulation is advisable only in cases where there is a threat to freedom of the public good. A useful measure of the state regulation is protecting the country from external enemies, and concern for the safety of citizens. The Wealth of Nations is a publication that seeks to understand the nature and causes of the wealth of nations. Smith as a Scottish philosopher wrote this book to determine the commercialism of nations. This seminal work of Adam Smith is considered as the landmark indicator of political economy. His five volumes appeared in 1776, translated into the major languages; Smith immediately got great reputation due to his research work in economics (Raphael, 1985).

Smith lived a remarkably, quiet and unobtrusive life. He was a professor at the University of Glasgow and has lectured on theology, ethics, law, and political economy. In 1776, Smith published a thick book with a long title, "Inquiry into the Nature and Causes of the Wealth of Nations", which brought him fame as the founder of economics. Smith shows how the factors determine the price of the goods to the development of the economy.

Smith's doctrine contains three important points: the division of labor, pricing and resource allocation, and growth economic. He also shows a deep belief in personal freedom, and highlights the importance of economic growth. Smith formulated a well-known statement "invisible hand." He explains that man pursues only his own gain, and in this case, an invisible hand promotes an end which is not a part of person's intention in pursuit of their own interests.

Ideas and attitude of Adam Smith toward the economic policy were part of a whole. He considered economic growth as the basic goal, whose desirability was beyond all dispute. Therefore, the relevance of any particular policy should be measured by its impact on economic growth and, particularly on the accumulation of capital and labor specialization. To oppose many of the practices of the government of the time, Smith was consistent with its analytical system. But criticism of governments did not stem directly from its analysis because sometimes questioning led to the laissez ...