Adam Smith : The Father Of Modern Economics Essay

Adam Smith : The Father Of Modern Economics Essay

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Adam Smith is notably known to be the father of modern economics, and many of his work have been implemented today. His major work was “An Inquiry into the Nature and Causes of the Wealth of Nations” where his economic views are seen. He was exceptionally known as a classical economist not only for his principles but for how he presented them. His anthropological principles for the distribution of labor and resources made him known as the “first economic historian” (Sociological Theory in the Classical Era, p. 66). In his famous work, The Wealth of Nations, mirrored the dawn of the industrial revolution occurring in Europe.

Adam Smith begins his famous work by initially defining annual labor as the fund that supplies the laborer with life’s necessities. Which encompasses three things: materials required for the production of labor, the effect of division of labor and finally the production that is produced. Upon production, the remainder of the fund is distributed to the society. This division of labor ultimately caused a great increase in the output which further increased productivity. Due to the increased output and surplus, the cost of goods decreased. Furthermore, in such a society where labor is developed gives citizens access to wages. Both of these factors make more goods available to citizens ensuring they can easily afford them leading to Smith’s definition of “universal opulence” (Wealth of Nations, pg. 5). He makes a great point that the division of labor should be observed greatly, even in primitive civilizations. He also makes a point on how the expansion of labor is enforced when the market is very large and that the industry of the city is reinforced by the country. Smith also argues about the quality of the pr...


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... genuine items. Graeber shows how the villagers seek interest in other villagers who are genuine, who are helpful and not simply cunning or rebellious. In addition, he displays how these personalities are far more important than materialistic items. In contrast, Smith discusses about trading for daily necessities. Graber’s technique is definitely persuasive and has opened a new of thinking about the bartering system. Personally, I have always considering the bartering system as means of materialistic trade not of genuine people. The way David Graeber illustrated his view was very interesting has caused me look at things in different perspectives. In conclusion, Smith’s discussion overturned the grudging view of mercantilism and provided us with the vision of freedom. The open-trade market he had intended for has indeed raised the global standard of living today.



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