5 Things You Didn't Know About Adam Smith
Adam Smith FRSA was a Scottish economist, philosopher as well as a moral philosopher, a pioneer of political economy, and a key figure during the Scottish Enlightenment, also known as ''The Father of Economics'' or ''The Father of Capitalism''.Smith wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. In his work, Adam Smith introduced his theory of absolute advantage
Adam Smith's Early Life
Smith was born in 1723, in the village of North Berwick in the East Lothian county of Scotland. At age 9, Smith went to St Mary's College, the University of St Andrews, from where he left in 1745. He returned to Scotland, where he became a doctor of civil and canon law. Smith then relocated to London in 1749 to practice law. During this time, Smith was befriended by the noted economist William Petty and became active in the Society for the Diffusion of Useful Knowledge, also known as "Swan Club". In 1756, Smith married his first wife, Mary Barbour, but the marriage ended in 1758. Smith then moved to Paris to study law at the University of Paris.
His Wealth of Nations
"In the end it matters little where wealth is derived. It is as good to be rich in France as in Germany, as to have it in China as in Brazil, as to have it in Prussia as in Russia." My Mum always says that maxim is the most ridiculous thing she's ever heard. Some things in life are clearly better in England or in the USA - don't get me wrong - I'm not saying they're bad. In general, yes, I would agree. However, if I'm honest, it would be a big stretch to say that the US has all of the advantages of England...or Scotland for that matter. It's not always very easy to tell at the moment, because England is arguably in a slump and the USA economy is doing very well.
The Theory of Moral Sentiments
(1759) Smith is generally regarded as the ''Father of Economic Science,'' the ''Father of Economics,'' and even the ''Father of Capitalism'' He published his first tract in 1754, but as Adam Smith said himself, his real scientific breakthrough was in 1759, with the publication of In a number of essays and short articles he dealt with a wide range of economic topics, including credit, interest, value, price, and rent, wages and profits, costs and returns, investments, competition and trade, the benefits of monopoly, and specialisation. In his book, he examined in great depth the advantages and disadvantages of private ownership and the division of labour, and of the power of trading monopolies.
His Relationship with Lord Kames
Lord Kames and Adam Smith first met while on a train from Edinburgh to London, en route to Aberdeen. The two discussed the nature of money and created what has been called "The First Credit Line of the World". In his book Wealth of Nations, Smith examines the economy and effects of capital accumulation, and argues that if a country could produce what they need in a very cheap way, then it could sell that produce and not only export it but also have an infinite supply of it. In other words, as long as a country had cheap labor it could also export goods to the world, and not only have a very large supply of goods to sell but also have an infinite supply of goods to export.
Conclusion
Thanks to the written work of Adam Smith , the ideas of rational decision making, comparative advantage, comparative advantage, interdependence and comparative costs and benefits, and market efficiency are, to this day, thought to be central to understanding the operation of the market. Even in the world of computer science and cybernetic processes, the work of Smith is widely applied and recognized by experts in the field. As the author of one of the most famous books on economics, The Wealth of Nations , and as a founding father of modern economics, we owe a lot to Adam Smith.Over a span of 600 years, from 1776 to 2000, it has been estimated that Smith's work has been the subject of nearly 40,000 publications, which makes him the most referenced author in economics.
إرسال تعليق