The Wealth Of Nations By Adam Smith Analysis

analytical Essay
983 words
983 words

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 …show more content…

Another important concept Smith developed in the chapter is the idea of trade and how it is part of human nature. The following quote describes trade by a simple animal analogy “Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog. Nobody ever saw one animal by its gestures and natural cries signify to another…But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will more likely to prevail if he can interest their self-love in his favor, and show them that it is for their own advantage to do for him what he requires of them” (Wealth of Nations, p.7 ). This makes the point that trade is indeed natural and is necessary for life’s daily …show more content…

In this particular barter, “the women from the hosts’ side would select one of the men, give him a cloth and begin abusing him followed by dragging him into a bush for intercourse”( Debt: The First 5,000 Years, pg. 5). Afterwards, the man would give her beads or tobacco and the whole ritual would continue. Both of David Graeber’s examples are quite different than Adam Smith’s where he displays interest for materialistic items while Graeber’s shows interests for 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

In this essay, the author

  • Explains that adam smith was the father of modern economics. his major work was "an inquiry into the nature and causes of the wealth of nations" where his economic views are seen.
  • Analyzes how adam smith defines annual labor as the fund that supplies the laborer with life's necessities. he argues that the division of labor should be observed greatly, even in primitive civilizations.
  • Analyzes how smith articulated the benefits of the division of labor which spreads opulence to even the poor. smith developed the idea of trade and how it is part of human nature.
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