The Wealth of Nations: A Revolutionary Work on Economics
analytical Essay
1342 words
Adam Smith’s The Wealth of Nations is one of history’s most revolutionary works on economics, with basic principals that remain applicable to today’s business world.
Smith wrote it in an effort to transform the way Europeans created and sold products and to promote the concept of a free market. The book was a catalyst for change, quickly spreading throughout the world new and revolutionary ways to improve the financial systems of Europe by making them more productive. It promoted the concept of specializing in products that are conducive to the resources and skills of a country. This period, known as the Industrial and Agricultural Revolution, was marked by an economy that had both positive and negative aspects.
The Industrial Revolution did lead to some good, such as a longer life expectancy and new technology. It also led to some changes that Smith did not anticipate, such as the rise of the Bourgeoisie as a main power, extremely poor living conditions for the working class, and horrific labor conditions for women and children.
As The Wealth of Nations grew in popularity, the Industrial Revolution began to take shape. Smith’s idea of an assembly line led to the creation of factories, or actual buildings used only for the task of production. This replaced the use of homes as a setting for work, freeing up homes to serve solely as the living quarters of the family. At the time of the Industrial Revolution, the only way to power these factories was by water power or the burning of coal. Because the sources of power were so limited, mills were built only in the rural areas in order to be close to power sources, such as rivers or coal mines (Engels: Industrial Manchester, 1).
What did this lead to? Factories and m...
... middle of paper ...
...isie and the creation of monopolies. Unlike aristocrats, who seemed to work together to make sure they all had wealth, the bourgeoisie fiercely competed with each other. Employers, as stated earlier, gave the workers next to no salary. They understood that lowering their prices by lowering wages was the best way to compete with each other. They also began to incorporate the idea of monopolies, which put all new or small business owners out of work and made entrepreneurship very difficult.
Overall, Smith could not have foreseen the many effects that occurred after The Wealth of Nations was published. He mainly focused on how the manufacturers of factories would “ destined to supply the great wants of the great body of the people.” The good of his work really does outweigh the harmful effects of the revolution.
Works Cited
Adam Smith, The Wealth of Nations
In this essay, the author
- Explains that adam smith's the wealth of nations was a catalyst for change, spreading throughout the world new and revolutionary ways to improve the financial systems of europe.
- Opines that the industrial revolution led to some good, such as a longer life expectancy and new technology, but also to changes that smith did not anticipate.
- Explains that smith's idea of an assembly line led to the creation of factories, or actual buildings used only for the task of production. the only way to power these factories was by water power or the burning of coal.
- Explains how the city of manchester became an industrial mecca, due to its perfect conditions for cloth manufacturing. due to overpopulation, the working class had essentially no space in which to live.
- Explains that these buildings were what we today would envision in third-world countries. they had dirt floors, were used as pigpens, and were filled with stagnant urine and excrement.
- Explains that smith's the wealth of nations was a roadmap for progress, but he did not advocate the resulting use of child labor. the workday was monday through saturday and sometimes even on the sabbath day.
- Explains that children worked tirelessly for hours and were granted a brief break to eat lunch. after this, they continued their fourteen- to sixteen-hour shifts until they were finally released for the day.
- Explains that poor children were forced to work on the machines in the factories that smith had championed in his writing.
- Analyzes how the sadler report proves that the horrid sanitation wasn't the working class' only problem. although the industrial revolution was supposed to spell progress, working conditions were worse than what the workers' ancestors had experienced.
- Explains that families felt pressured to sell their children to factory owners for just a few shillings per year. the little money they received helped them afford food for their family.
- Explains that the industrial revolution led to the final triumph of the bourgeoisie over aristocrats and proletariat.
- Explains that the industrial revolution led to the major source of power and income switching from ownership of land to control of capital or jurisdiction over the proletariat laborers.
- Analyzes how clausewitz said that policy is interwoven with the whole action of war, and must exercise a continuous influence upon it. king louis xvi was indebted to many of the bourgeoisie.
- Explains that smith probably did not anticipate the extreme competition between the bourgeoisie and the creation of monopolies.
- Analyzes how smith could not have foreseen the many effects that occurred after the wealth of nations was published. the good of his work really outweighs the harmful effects of the revolution.
Related
- argumentative
- analytical
- opinion
- explanatory
- Adam Smith An Inquiry To The Wealth Of Nationsargumentative essayCurto 1 Katelyn Curto Professor Frangos CH 400 February 26 2014 An Inquiry into the Wealth of Nations and The Communist Manifesto: A Comparison While Adam Smith’s An Inquiry into the Wealth of Nations was considered the “bible of modern capitalists,” The Communist Manifesto by Karl Marx and Freidrich Engels was seen as a doctrine for communism. Both writings were first brought important economic ideas to light and are still considered extremely influential works. First published in 1776, The Wealth of Nations was the magnum opus of Adam Smith.
In this essay, the author
- Compares an inquiry into the wealth of nations and the communist manifesto by karl marx and freidrich engels.
- Analyzes adam smith's the wealth of nations, which studies the economics of what builds a nation’s wealth and the benefits of capitalism.
- Explains that the communist manifesto was written by karl marx and freidrich engels to make communism ideas known and disprove common misconceptions.
- Compares smith's inquiry into the wealth of nations and engels' the communist manifesto, which reflect their respective times.
639 wordsRead More - The Wealth of Nationsanalytical essayThe Wealth of Nations Adam Smith’s famous attempt to explain the nature and causes of the wealth of nations rests on several crucial assumptions about human nature which in turn rely on false universalism and questionable dichotomies. To begin with, Smith makes roughly three claims about human nature. Primarily, Smith assumes that self-interest is inherent in all human beings. As opposed to animals which rely on benevolence, in opposition to natural pity (Rousseau p. 53), the human “will be more likely to prevail if he can interest [others’] self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them” (Smith, p. 18). Smith later relies on this “self-love” to ground his arguments on the steady base of human nature.
In this essay, the author
- Explains that adam smith's famous attempt to explain the nature and causes of the wealth of nations rests on several crucial assumptions about human nature which rely on false universalism and questionable dichotomies.
- Analyzes how smith makes three claims about human nature: self-interest is inherent in all human beings, whereas animals rely on benevolence. reason and speech play a crucial role in his treatment of human behavior.
- Analyzes how rousseau's dichotomy of "natural" and "cultured" humans treats the specific as universal — it is impossible to determine which human behavior is foundational and which is "merely" contrived.
- Analyzes how smith's description of human nature is applicable to western european coastal trading humans, rather than to the supposed universal and original human specimen.
- Cites smith, adam, cannan, and rousseau on the origin of inequality.
959 wordsRead More - Supply and Demand are Critical to Our Economy in Adam Smith's The Wealth of a Nationanalytical essayEveryday individuals and nations have the desire to be wealthier than what the previous generation had been. The whole desire of anybody is to better themselves in regards to their own rational self-interest. Adam Smith lays the ground work of how supply and demand is critical to the economy in The Wealth of Nations.
In this essay, the author
- Analyzes how adam smith lays the groundwork of how supply and demand is critical to the economy in the wealth of nations.
- Analyzes smith's argument that the greatest improvement to the economy is labor can be divided among those who are skilled in that business.
- Explains that the division of labor can be added in any important industry, not just a trivial one. when an industry decides to divide increases the productive powers of the firm.
- Analyzes smith's argument that capital is the most important asset that an industry can give no matter how much it is regulated. merchants want to bring capital into their own home market because it will help domestic industries while also bringing in foreign goods.
- Analyzes how smith explains how businesses and governments try to keep the domestic market supreme.
- Explains that division of labor is taking people who are good in a specific area and to divide the tasks to increase productivity.
- Explains that division of labor increases productivity due to workers dexterity, time-saving, machines and capital investments.
- Explains the invisible hand of supply and demand in aristotle's wealth of nations. it dictates what will be done in the market.
- Explains how adam smith in the wealth of nations, lays out the best way for a nation to better their selves.
1073 wordsRead More - Adam Smith's Moral Sentimentsanalytical essayAdam Smith has developed and created the most influential works of economic, philosophy and beyond. Adam Smith made an economic model for his theory involving the economic market through his books. Adam Smith produced his own book titled “The Theory of Moral Sentiments” which revolved around morals of humans and mercy toward a person or a community. On the other hand, the book did have a slight vision of the rejection of loving yourself and the slim idea what an individual wants for his or her self. Adam Smith also produced another book titled “An Inquiry into the Nature and Causes of the Wealth of Nations” that was based on the concept of the politics of economy. This book also gave the idea that wealth’s amount is determined by the amount of work not by length. Adam Smith’s book eventually g...
In this essay, the author
- Explains that adam smith was one of the most inspirational economists back in the 18th century and now.
- Explains that adam smith created the most influential works of economics, philosophy, and beyond. his most famous point was the reasoning on free trade and capitalism in the economy.
- Explains that adam smith's "the theory of moral sentiments" was intended to show the platform of lessons and ethics for the reader and all societies. "an inquiry into the nature and causes of the wealth of nations" showcases the motive of economic success in a country.
- Analyzes how adam smith's life story has influenced his books and texts. he worked hard in his education to achieve his direct, persuading, and ideal books.
- Opines that adam smith's writings lack biblical importance, concepts, and lessons, but they give clear insight on how our economic system works.
695 wordsRead More - Analysis of Wealth of Nations by Adam Smithanalytical essayAnalysis of Wealth of Nations by Adam Smith People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. Adam Smith The reasons for writing a book such as Adam Smith's The Wealth of Nations are many, and Smith seems to have had several in mind. His study traces the stages in the development of the modern economic system in an attempt to explain it, maps out the origins of money, and finally tackles the issues facing the mercantile system which controlled the society he lived in. In the process, he provides an exposition for his vision of a laissez faire economy, that is, capitalism as we now know it.
In this essay, the author
- Explains that adam smith wrote the wealth of nations as a result of some eighteen years of writing.
- Explains that adam smith wrote the book to explain how smith's introduction outlined well.
- Describes the role industrialization has to play in the state's wealth.
- Analyzes how smith illustrates that a system of fair and accessible trade is necessary for an effective trade system.
- Analyzes how smith's example of the pin maker is used to demonstrate his point about pin makers.
- Illustrates the plight of labour under a system of increasing specialization.
- Analyzes how he asserts that an english worker under that system of divided labour is richer than an american.
- Opines that the pursuit of self-interest creates a division of labour.
- Analyzes how he attests that the only thing that matters is the human condition itself.
- Explains that human nature extends to the merchant classes, and it is in this regard that his assertions are made.
- Describes the benefits of high prices in raising the price, and thereby lessening the sale of goods.
- Explains that smith's conspiracy theory is rooted in the tension that has always existed between smith and smith.
- Opines that in his later years, also became a customs official.
- Opines that it is easy to see where the success of adam smith's wealth of nations lies.
- Explains that smith's the wealth of nations traces the stages in the development of the modern economic system in an attempt to explain it.
- Analyzes how smith's account reveals his views on the nature of the human condition.
- Analyzes smith's economic or scientific theme of the 'invisible hand', or the unseen guiding force in operation in any given market, which articulated his notion that if an individual were to act according to their own interest then they would in fact be acting in the best interests of society.
- Analyzes how smith's book was written as a reaction to the mercantile system of the day.
- Opines that while the violence and injustice of the rulers of mankind is an ancient evil, it is not as bad as the mean rapacity, the monopolizing spirit of
- Opines that smith offers an alternative to the mercantile system of his day which he considered so tyrannous.
1044 wordsRead More - Adam Smith Essayanalytical essayAdam Smith was a man of many achievements. As a Scottish philosopher and political economist he became famous by his classical and influential books. In 1759 he wrote a book called “The Theory of Mortal Sentiments”and in 1775 he wrote another called “An Inquiry to the Nature and Causes of the Wealth of Nations”. Known as the “father of modern economics” Adam Smith has greatly influenced society. Adam Smith’s history impacted the way that our society is today. Adam’s childhood, environment, education and events throughout his life contributed to the way that we view society. With Adam’s theories and great works he molded a pathway to different stand points on the public and its society. Among his great works are the wealth of nations and inquiry to the nature and causes of the wealth of nations alongside the theory Adam named the invisible hand. Adam also thought about the public from an economic and political stand point. Due to factors that influenced Adam’s early life, he was able to learn from those before him to become the great economist, politician, and philosopher that he was. This way, even though Adam Smith lived during the time of the scientific revolution his words of wisdom in politics and the economy are still used today in the public.
In this essay, the author
- Explains that adam smith, a scottish philosopher and political economist, became famous by his influential books, including the theory of mortal sentiments and an inquiry to the nature and causes of the wealth of nations
- Explains that adam smith was born on june 5th, 1723 in kirkcaldy, scotland. he was raised by a widowed mother, who gave him an education to support his mother and himself.
- Describes adam smith's "invisible hand theory" in his book, wealth of nations.
- Explains that every individual labors to render the annual revenue of the society as great as he can. he is led by an invisible hand to promote an end which was no part of his intention.
- Explains that the invisible hand guides markets and capitalism through competition for rare resources and is the natural way of the economy.
- Explains that adam smith's wealth of nations and the theory of mortal sentiments were two of adams' greatest works that impacted society.
- Analyzes how adam smith's theories changed the course of wealth, trade, and labor. his views were political and economic, thus helping the public economy and politics develop during the life and after the death.
847 wordsRead More - NAFTA and the Labor Debateopinion essaySmith, Adam. 1976. An Inquiery into the Nature and Causes of the Wealth of Nations.
In this essay, the author
- Explains that the north american free trade agreement (nafta) is a regional trade agreement between mexico, the united states, and canada.
- Opines that trade agreements like nafta, where manufacturing jobs are shifted from the developed world to the developing world, are necessary.
- Explains that mexico is becoming industrialized while the united states is entering a new era where the service business dominates. trade agreements like the north american free trade agreement facilitate this transition in economies.
- Analyzes how adam smith's view on division of labor is proving itself with the north american free trade agreement. the united states and mexico are engaged in the type of industry that best suits each country.
- Explains that the north american free trade agreement was designed to eliminate all trade barriers between the three countries and promote conditions of fair competition and increase investment opportunities.
- Explains that the nafta was mostly designed to take advantage of mexico's maquiladora program. they explain that they can bring as many foreign workers as they want but hourly wage earners have to be mexican.
- Explains that the north american free trade agreement was a highly controversial issue in all three countries before it came into effect.
- Explains that there are many sides to the labor dispute that erupted because of nafta. canada and the united states are developed both industrially and technologically, while mexico is still considered a developing country.
- Explains the impact of nafta on mexico and the united states. the u.s. government reports that 18 million jobs were created and 7 million lost in the us.
- Explains that mexico's increase in employment is more linked to nafta than in the united states. rates have also risen dramatically since the north american free trade agreement went into effect.
- Analyzes how adam smith tells us that the workmen want to get as much money as they can, while the masters seek to give as little money.
- Opines that the trade agreement was beneficial to both countries, but several sectors of the economies of each nation benefited more than others.
- Analyzes how the manufacturing sector has grown in mexico. it is mexico's largest economic activity second only to the commerce.
- Explains that manufacturing in the united states has remained stagnant throughout much of this decade and a greater part of the 1980’s. the highest number of workers this year is the month of october with 18,202,000 workers.
- Explains that the service occupation industry has seen a steady rise in employment over the past two decades. the service industry employment number now stands at its highest point in 1999.
- Opines that trade agreements like the one that the united states has with mexico will be the norm in the coming decades.
- Explains that mexican companies that export more than 80 percent of their production, pay 40 percent more. mexico is gaining not only with more jobs but higher paying jobs.
- Opines that the north american free trade agreement was a movement for growth instead of restraining the inevitable development of these countries.
- Cites globerman, steven, and alan rugman. foreign investment in nafta.
- Explains smith's inquiry into the nature and causes of the wealth of nations.
- Explains the secretaria de trabajo y prevision social. estadisticas laborales.
- Explains the north american free trade agreement at five years: what it means for the u.s. and mexico.
- Explains the north american free trade agreement: five years linking u.s. and mexican markets.
2959 wordsRead More - A Modern Division of Labor and Gender Normsanalytical essaySmith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. 4th Edition. Edited by R.H. Campbell and A.S. Skinner. 1776. Reprint, Oxford: Clarendon Press, 1979.
In this essay, the author
- Argues that as society evolves from agricultural to industrial and then to postindustrial modes of production, gender norms adapt to society's needs and wants to yield efficient divisions of labor.
- Analyzes how gary becker's model of a division of labor relies on patriarchal gender norms and institutions from the agricultural and industrial era to allocate household duties efficiently.
- Analyzes how modes of production alter gender power dynamics to conform to market demands for an efficient division of labor.
- Analyzes how postindustrial modes of production impose different material constraints and favor different skills than previous modes.
- Cites becker, gary, clayton-dye, and iversen, torben and frances rosenbluth. the political economy of gender inequality.
1069 wordsRead More - The Industrial Revolutions on 18th and 19th Century Europeanalytical essaySmith, Adam. An Inquiry into the Nature and Causes of the Wealth of Nations. Ed. Edwin Cannan. 1904 ed. London: Methuen, 1776. Library of Economics and Liberty. Web. 4 May 2014. .
In this essay, the author
- Explains that parliament passed laws regulating factories in the nineteenth century, especially towards laboring children. both groups were paid only out of consideration for necessities and experienced harsh discipline.
- Analyzes how the introduction of working class women into the workforce transformed society. since the french revolution, people followed rousseau’s idea of separate spheres for men and women.
- Explains childhood lost: child labor during the industrial revolution. eastern illinois university, n.d.
- Explains that the industrial revolutions, spurred by technological innovation and the discoveries of new materials, created new industries.
- Cites engels, friedrich, wischnewetzky, goldfinger, shara, oosthoek, and pomeranz.
1480 wordsRead More - 24. Smith, A. (1863), An iquiry into the nature and causes of the wealth of nations, J.R. M'Culloc , available at http://books.google.de/books?hl=en&lr=&id=pnItAAAAYAAJ&oi=fnd&pg=PR1&dq=adam+smith+wealth+of+nations&ots=GeSevWKCRb&sig=2uw9lvE3JydIniVZoXCYiGpY0Zk#v=onepage&q=adam%20smith%20wealth%20of%20nations&f=false, accessed on the 17 January 2014.
In this essay, the author
- Explains that the paper has looked into the effects of minimum wages on a global scale, but there is still disagreement as to their effects. germany has the largest economy and the fourth lowest unemployment rates in the eurozone.
- Analyzes how the wagner null hypothesis was never rejected at a level of five percent, which could indicate that there isn't enough strong evidence to confirm the predominant wage curve.
- Compares the number of people receiving minimum wages in germany to other eurozone members to determine the effects of a coordinated eu minimum wage policy.
- Cites baumol, w.j., genicot, g. and stiglitz, j.
- Explains how wages don't fall during a recession. bosch, g., weinkopf, c. (2008), low-wage work in germany.
- Explains carver, t.n., theory of wages adjusted to recent theories of value, oxford univesity press, quarter journal of economics, pp. 377-402.
- Cites the central intelligence agency's the world factbook and j.r. commons' wage theories and wages policies.
- Explains that trade union responses to migrant workers from the "new europe": a three sector comparison in the uk, norway and germany.
- Explains fernández-macas, e., and vacás-soriano, c. (2013), a coordinated eu minimum wage policy?, eurofound.
- Cites finfacts ireland and furker, b., and seldén, k.
- Explains that gorodzeisky, richards, and richards (2013), trade unions and migrant workers in western europe, european journal of industrial relations.
- Explains the international institute for labour studies (2012), eurozone job crisis: trends and policy response, available at http://www.ilo.org/global/research/publications
- Explains kampelmann, s., rycx, f. and ryckx. who earns minimum wage in europe, european trade union
- Explains keynes, j.m. (2008), the general theory of employment, interest and money.
- Cites marsden, d., ruhs, p. and mortenson, c.e.
- Summarizes neumark, d., and nizalova, o. (2007), minimum wage effects in the long run, university of wisconsin press.
- Cites neumark, d./ wascher, w. (2006), minimum wages and employment: a review of evidence from the new minimum wage research, national bureau of economic research.
- Explains quandl's minimum wage – all countries and smith, a. (1863), an iquiry into the nature and causes of the wealth of nations.
- Cites stigler, g., wage indicator, and wagner, j.
694 wordsRead More