Theories of Adam Smith.
Answers
Adam smith was an economist and philosopher who wrote what is considered the “bible of capitalism”. The wealth of Nations, in which he details the first system of political economy.
The theory of moral sentiments: In 1759, Smith published the theory of moral sentiments, a book whose main contention is that human morality depends on sympathy between the individual and other members of society. On the heels of the book, he became the tutor of the future duke of buccleuch (1763-1766) and traveled with him to France, where Smith me with other eminent thinkers of his days, such as Benjamin Franklin and French economist Turgot.
The Wealth of Nations: After toiling for nine years, in 776 Adam Smith publish an inquiry into the nature and causes of the Wealth of Nations which is thought as the first work dedicated to the study of political economy. Economics of the time were dominated by the idea that a country’s wealth was best measured by its store of gold and silver. Smith proposed that a nation’s wealth should be judged not by this metric but by the total its production and commerce-today known as gross domestic production. (GDP). He also explored theories of division of labor, an idea dating back to Plato, through which specialization would lead to a qualitative increase in productivity.
Smith’s ideas are a reflection on economics in light of the beginning of the Industrial Revaluation, and he states that free-market economics (I.e. capital ones) are the most productive and beneficial to their societies, He goes on to argue for an economic system based on individual self-interest led by an “Invisible hand”, which would achieve the greatest good for all.
In time, The Wealth of Nations won smith a far-reaching reputation, and the work, considered a foundational work of classical economics, is one of the most influential books ever written.
