The Life Of Adam Smith: The Father Of Economics

analytical Essay
1678 words
1678 words

The Life of Adam Smith
Adam Smith was a Scottish philosopher and economist. He is most widely known as the father of economics and for his work An Inquiry into the Nature and Causes of the Wealth of Nations. In this book he proposes ideas that continue to play a huge role in our economy today.
Becoming One of the Greatest Economist There is no record of Smith’s actual date of birth, but his baptism took place on June 5th, 1723 in Kirkcaldy, Scotland (Ross, 1995). His parents were Margaret Douglas and Adam Smith (Ross, 1995). His father passed away before he was born so Smith was raised by his mother and many “tutors and curators” (Ross, 1995, p. 2). Smith’s education started in Kirkcaldy at the one room school houses in the town (Ross, 1995). …show more content…

In this essay, the author

  • Explains that adam smith was a scottish philosopher and economist. his baptism took place on june 5th, 1723 in kirkcaldy, scotland.
  • Explains that smith decided to continue his education at glasglow university, a "powerhouse of the scottish enlightenment," and three years later took his studies to balliol college of oxford.
  • Narrates how smith moved back to kirkcaldy and hoped to find a tutor position, but began giving rhetoric lectures at edinburgh university. the success of his lectures reached gasglow and the university offered him the position of chair of logic
  • Explains that smith began to tutor the duke of buccleuch and followed him on his travels to france, where he wrote his most prominent work, an inquiry into the nature and causes of the wealth of nations.
  • Explains that smith spent several years in kirkcaldy writing the wealth of nations, but then moved to london where he wished his book to be published.
  • Explains that the first volume of the wealth of nations was published in a newspaper called the london chronicle in 1776. it boasted 1,000 pages in two quarto volumes and cost only £1
  • Opines that while a wealth of nations was a success, smith wished to return to kirkcaldy to be in solitude. smith proposed creating "constitutional union of the mother country and the colonies."
  • Explains that smith was highly qualified for the job, as he had demonstrated a deep understanding of the function and organization of customs in his fifth volume of the wealth of nations
  • Explains that prohibitions hinder revue from profiting by the importation. high duties, which make it scarce profitable to trade fair in the goods upon which they are imposed, are hurtful to revenue and favorable to smuggling.
  • Analyzes how smith saw smuggling as a crime, but free trade stimulated economic growth in the mercantile system that scotland had in place.
  • Explains that smith continued to attend customs meetings, but in his old age and ailing health he did step down from the position of customs commissioner. smith died july 17th, 1790 of a "painful illness"
  • Analyzes how smith's biggest contribution to economics was an inquiry into the nature and causes of the wealth of nations.
  • Analyzes how smith divulges the secret to wage differentials in the wealth of nations. smith explains why butcher and public executor jobs are "brutal and odious," but very profitable.
  • Explains smith's theory of the invisible hand, which helps the demand and supply of goods in a free market reach equilibrium automatically. an "invisible hand" guides selfish individuals to do what is best for themselves.
  • Analyzes how smith transforms the way that the general public perceives actual wealth of a nation. he explains that increased productivity leads to increased wealth.

While he did not obtain a tutor position, Smith did begin giving rhetoric lectures at Edinburgh University (Ross, 1995). The success of his lectures reached Gasglow and the university offered him the position of Chair of Logic (Ross, 1995). He began giving lectures at the university, and was even elected Chair of Moral Philosophy (Ross, 1995). In 1764, Smith elected to leave the world of academia in favor of tutoring the duke of Buccleuch (The Concise Encyclopedia of Economics, 2008).
Smith begins to tutor the duke of Buccleuch and follows him on his travels to France (Ross, 1995). It is believed that during his time in France, Smith may have begun writing him most prominent work, An Inquiry into the Nature and Causes of the Wealth of Nations (Ross, 1995). Smith continued to tutor and accompany the duke on his travels into Geneva, which allowed him to conduct more research for a his most famous work (Ross, 1995). The duke of Buccleuch progressed under Smith’s tutelage between 1764 and 1767, and did not require his teaching any longer so Smith made plans to move back to Kirkcaldy (Ross, …show more content…

The first idea that he explores is the division of labor (The Concise Encyclopedia of Economics, 2008). Smith believed that wealth was directly linked to creating more divisions of labor (The Concise Encyclopedia of Economics, 2008). Smith uses pins to illustrate this theory: “ten workers could produce 48,000 pins per day if each of eighteen specialized tasks was assigned to particular workers. Average productivity: 4,800 pins per worker per day. But absent the division of labor, a worker would be lucky to produce even one pin per day” (The Concise Encyclopedia of Economics, 2008). Division of labor allows for “increased dexterity of workers,” the production of goods in less time, and the creation of better equipment to produce said goods (Adam Smith Theory of Development in Economics,

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