The Wealth of Nations by Adam Smith: THe Beginning of Capitalism
explanatory Essay
1948 words
The first and most basic economic principal that needs to be understood is that God owns everything (Sproul, 2014). God created everything and He chose man to manage all that is His (Sproul, 2014). There has always been a strong connection between economics and Christian thought (Anderson, 2001). Scriptures will help evaluate the very foundation of each economic theory (Anderson, 2001). The free enterprise system has provided the greatest amount of freedom and the most effective economic gains of any economic system ever devised (Anderson, 2001). In 1776, Adam Smith created a publication called “The Wealth of Nations,” which was the beginning of Capitalism (Anderson, 2001). His theory stated that the wealth of nations could be increased by allowing the individual to seek their own self-interest and removal of governmental control over the economy (Anderson, 2001). There are three major points for the theory of capitalism. The first system was based upon the observance that people are motivated by self-interest (Anderson, 2001). The second premise was the acceptance of private property, which would be owned and freely traded in a market system (Anderson, 2001). Gains for exchanges of property creates incentive and become the driving power behind capitalism (Anderson, 2001). Lastly, the theory stated that it would be ideal to minimize the role of the government. The idea was to decrease the role of the government and increase free market (Anderson, 2001). Capitalism has a number of advantages that have liberated economic potential and provided a foundation for a great deal of political and economic freedom (Anderson, 2001). However, the down side of capitalism is that it can lead to monopolies (Anderson, 2001). Chr... ... middle of paper ... ... 24). Local Economic Statistics and Indicators. Retrieved from http://www.siskiyoucounty.org/data/uploads/Local%20Economic%20Statistics%20and%20Indicators%20-%20EDD%202012.pdf Siskiyou County Economic Development. (2011, July). Analyzing The Economic Impacts of Job Creation in the Siskiyou County Enterprise Zone. Retrieved from http://staging-siskiyoucounty.cirrusabs.com/data/uploads/Siskiyou%20Enterprise%20Zone%20Economic%20Impact%20Report.pdf University System of Georgia (USG). (2014). Business Procedures Manual. Retrieved from http://www.usg.edu/business_procedures_manual/section7/C1292 U.S. History. (2014). 59b. Reaganomics. Retrieved from http://www.ushistory.org/us/59b.asp Webb, L. (2013, Feb. 25). Biblical Economics Key to Real Reformation. Retrieved from https://www.cbn.com/cbnnews/finance/2013/February/Biblical-Economics-Key-to-Real-Reformation/
In this essay, the author
- Explains that god owns everything and chose man to manage all that is his. the free enterprise system has provided the greatest amount of freedom and the most effective economic gains of any economic system ever devised.
- Explains that adam smith's "the wealth of nations" was the beginning of capitalism. it was based on the observance that people are motivated by self-interest and the acceptance of private property.
- Explains that new hampshire's economic plan aims to provide access to high quality, affordable, integrated, and preventive health care. infrastructure assets are capital investments that have endured a number of years.
- Explains that the state's economic plan aims to preserve natural, cultural, and historic resources and develop regulatory environment and workforce housing.
- Explains that a survey would be distributed to about 500 businesses presently operating in siskiyou county, which would then be self-administered and recorded based off each person’s answers.
- Explains that as surveys are returned to the sender, the survey will be scored, and the data entered into an excel spreadsheet to rate each question with a measure.
- Explains that applied research will create an economic plan that will take into account biblical economic principles and create a economic stability plan with input from business leaders.
- Explains that the original idea was to send one to every business, but that could become overwhelming if everyone responds. the researcher will limit who receives the survey.
- Opines that the passion for a strong stable economy drives this research. the issue is when the plan includes biblical economic principles.
- Explains that the researcher seeks to develop goals for innovation and entrepreneurship for the state of jefferson to create a stable economy that will promote growth.
- Opines that the study will examine current businesses in rural areas to determine what makes them successful and examine what has been done survive the great recession.
- Recommends interviewing the businessperson or sending sample questions to the interviewee to prepare them for interview.
- Cites aldrich, kusmin, and anderson, k. (2001). a biblical view of economics- a christian life perspective.
- Cites business & industry association (bia) of new hampshire's strategic economic plan.
- Cites keating, r., and lifsher, m. (2012, jan. 26). california among least business friendly states, report says.
- Cites pender, reeder, and marre for creating rural wealth: a new lens for rural development efforts.
Related
- analytical
- opinionated
- Conley's Synopsis Of A Brief History Of Capitalismanalytical essayConley’s synopsis of “A Brief History of Capitalism,” outlines the natural progression of economic systems created in response to the needs of society. Social conditions present after the Protestant Reformation combined with advances in technology to have a direct influence on how labor was organized, and as a result, determined the relationship between societal groups. Innovations in agriculture and industry led to the formation of capitalism as a system best suited to the economic reality of the day. According to Adam Smith, individuals are ‘motivated by self-interest’ and flourish in a competitive environment. Wealth creation comes about through expanding exchanges between entities as well as an increased division of labor making
In this essay, the author
- Analyzes the natural progression of economic systems created in response to the needs of society.
- Analyzes marx's view of capitalism as a self-destructive economic model with no hope for long-term viability. marx saw the worker as detached and alienated from the fruits of his labor.
288 wordsRead More - Heilbroner's Adam Smith: The Father Of Economicsanalytical essayHeilbroner formally introduces Adam Smith, the father of economics, in this chapter. A story of a quiet, nervous, scholarly Scottish bachelor, who first taught at Oxford University and then for the remainder or his life at the University of Glasgow. He was a polymath of the social sciences and initially focused on lecturing Moral Philosophy, Ethics, Jurisprudence, and Political Economy. This is interesting because it bears striking resemblance to his contribution to economics. That is, Natural theology, which is a subset of the field of Moral philosophy, concentrates on the type of theology that provides arguments for the existence of God based on reason and ordinary experience of nature. Similarly, Dr. Smith’s greatest contributions was to
In this essay, the author
- Analyzes how heilbroner introduces adam smith, the father of economics, in his 900-page book titled "the wealth of nations".
259 wordsRead More - An Inquiry into the Wealth of Nations by Adam Smithanalytical essay40 years after the publication of Adam Smith’s “An Inquiry into the Wealth of Nations” during the early 19th century, the rivalry between the Capitalists and the Landlords was at its peak. Thomas Robert Malthus had lived through two conflicts one the Industrial Revolution, and the Control of landowners over Parliament. Malthus wrote an essay on the theory of population where he challenged England’s poor laws. On the other hand David Ricardo believed that the Malthusian position regarding the Corn Laws was wrong as Ricardo believed that countries don’t benefit from protectionist policies like the Corn Laws; however, they benefit from trade and globalization. In a protectionist society, profits fall while rents rise; to Ricardo this was a catastrophe. The wars that England fought affected its food imports and price of grains.
In this essay, the author
- Explains that the rivalry between the capitalists and the landlords was at its peak 40 years after the publication of adam smith's "an inquiry into the wealth of nations."
- Analyzes how capitalists dominated the economy while the landlords controlled the parliament. malthus was pro corn laws and wanted to ban their imports.
- Analyzes how ricardo sided with the capitalists as he advocated for competition and the incentive to work, while the neoclassical theory advocates free trade, globalization.
673 wordsRead More - Laissez Faire in The Wealth of Nations by Adam Smithanalytical essayTommy Jones begged, pleaded, and hoped beyond hope for that new touch screen phone that would immediately move him up the social ranks at his school. His wish was granted on Christmas morning. He was rewarded with that sleek, black phone with 4G capabilities. Two months later the next phone in that series is out, an exact clone of the orginal with the most moderate changes, and suddenly Tommy’s phone is obsolete. There was no great improvement when compared to the old model, no; the corporation knows that it will sell, no matter how small the improvement. This model of constant obsolescence has become the norm in the economy today; companies reap profits with mediocre products, completely uncaring of the consumers. To put the economy back in the hands of the consumers, a system of deregulation must be enacted to allow the marketplace to be run once again by consumer interest.
In this essay, the author
- Analyzes how tommy jones hoped for a new touch screen phone that would move him up the social ranks at his school. two months later the next phone in that series is out, an exact clone of the orginal with the most moderate changes.
- Analyzes adam smith's theory that the economy could be run entirely by consumer interest in his book the wealth of nations.
- Analyzes how multiple economists argue against laissez faire economics, arguing that corporations would gain unprecedented control if the economy were deregulated. adam smith said that no economy could realistically exist as a true free market.
- Explains that free market economies have become the most efficient for businesses and economies, since they are run entirely by the wants and needs of the consumers.
- Explains that laissez faire economics became more prevalent in the early twentieth and late nineteenth century, and the country experienced some of the most explosive economic growth in recorded history.
686 wordsRead More - Q3analytical essaySmith viewed capitalism as the system of trade in which workers added value to goods and earned the benefits from their labor when they traded their goods with others in a free and open market. Smith’s economy was founded on the idea that people used their minds and hands to create capital goods that were of value to society as a whole. These goods were then traded amongst community members in an equitable way, allowing both the producer and consumer to benefit.
In this essay, the author
- Imagines a scene in saving adam smith where richard, julia, and harold (as smith) go out together to see michael moore’s film in the theatre.
- Analyzes how smith stressed that while the market itself is impersonal, people must never be. he recognizes that money is a means to an ends and not an end in itself. moore shows the goals of the current financial system are to make as much money as possible without considering the consequences.
- Explains that smith's economy was founded on the idea that people used their minds and hands to create capital goods that were of value to society as a whole.
- Explains that even though individuals were motivated by self-interest to produce their goods, there was no malevolence intended, but the individual was unknowingly guided by histone internal moral compass to create and trade in a moral manner.
- Analyzes how moore makes a strong point when he describes how america's most talented scientists and mathematicians are devoted to the production of dangerous, intangible products.
- Analyzes how the market operates through an internal system of checks and balances. if the butcher sells bad meat, he may well face serious repercussions from customers who became ill from his product.
- Opines that moore and smith agree that deregulation of the banking system has led to disastrous consequences and new rules and legislation should be created to prevent this type of large scale crisis from occurring again.
633 wordsRead More - Capitalism and the Joy of Workingopinionated essayWealth and prosperity are created with capitalism. Freedom, self-interest and competition make for a healthy environment engulfed in capitalism. Freedom is the rights to exchange products and capital. Self-interest is the right to pursue ones own happiness (which after all is the American way) which transforms into pursuing ones own business and use it to appeal to the consumers.
In this essay, the author
- Explains that employers can't pay to get more creativity because it's not just about the money. something meaningful and challenging is generally more important for new workers coming into the workforce.
- Explains that capitalism plays a key factor in creativity because the workforce needs to be stimulated to produce good results. leaders that work under an authoritarian model stifle creativity and innovation.
- Opines that capitalism needs creativity and innovation and without it would breed a lull in change and technology.
- Opines that having a personal interest and personal bank account on line drives one to succeed.
- Explains that wealth and prosperity are created with capitalism. freedom, self-interest, and competition make for a healthy environment engulfed in capitalism;
- Explains that major corporations start at basement level with a dollar and an idea. their own self-interest in their idea created the companies to become what they are today.
- Explains that the aesthetic plays a huge part in the business culture. an aesthetically pleasing building enables entire departments to let loose their creative side and make their workdays more focused.
- Explains that personal areas like desks and offices can be a huge way for people to connect to their families and interests outside of work.
- Opines that a drab office environment takes its toll on the workforce's collective self-esteem.
- Opines that a clean and visually appealing office makes people feel professional and comfortable, and that the worst feeling in the world is working in an office you can't wait to leave.
- Opines that benjamin franklin had businessmen of the 20th century in his thought process when he signed the declaration of independence. adolf hitler said that nothing in this world has ever been achieved by coalitions.
- Explains that capitalism has a stigmata associated with it being for the good of the individual and what they will do to achieve the "american dream." all life is ultimately competitive because the natural propensity is to blow up.
- Explains that most of us use a mixture of competition and cooperation in our dealings with other people.
- Opines that cooperation in the workplace should be key, but key players will eventually stand out and the competition then begins. highly profitable firms receive higher wages than barely profitable ones.
- Argues that if a firm devoted its high profits to paying its current workers more than is justified by their productivity, it would be unable to attract the additional resources it needs to expand.
- Opines that even those who would get large wage increases because they work for firms creating high profits would probably not benefit from a policy of sharing in those profits.
- Explains that profit sharing arrangements do little to motivate more productive effort, while imposing risk on workers that few are comfortable accepting.
- Argues that fairness requires that workers share in profits of their firms. many workers, and their representatives who call for sharing profits with workers seem to believe in "heads i win, tails you lose." all workers are better off when most profits are retained to expand the production of goods and services.
1480 wordsRead More - Classical Theory Vs Classical Economicsanalytical essayIn the world of economics, before the Great Depression, there was only a single idea of capitalism which was known as classical theory. It is to believe that the steps to developing the idea of classical economics started with Adam Smith’s book, “An Inquiry into the Causes of the Wealth of a Nation.” One of the ideas of the book was the concept of the economy being controlled by “an invisible hand.” Classical theory is a idea in which the market is at its most efficient when the government does not interfere, following the term “laissez faire,” He preached that government need only preserve law and order, enforce justice, defend the nation, and provide for a few basic services that could not be met through the market.(serrano) This allowed
In this essay, the author
- Explains that the steps to developing the idea of classical economics started with adam smith's book, "an inquiry into the causes of the wealth of a nation."
- Explains jean-baptiste say, the creator of say's law, who agreed with adam smith except for the labor theory of value.
- Explains that keynes' theory of employment, interest, and money was created in 1936, during the great depression, by john maynard keynesian. he rejects the use of government spending to restore the economy to its former health.
- Analyzes how keynes depicts the determinants of planned expenditures, such as consumption, planned investment, government spending, and net expenditure.
- Analyzes how henry hoover kept the government at a limited position and pursued many policies as an alternative to solve the depression.
- Analyzes hoover's efforts to recover from the great depression, but he took a more classical approach.
- Explains that roosevelt created the new deal, a program that would pull the economy out the great depression.
1599 wordsRead More - Adam Smith Research Paperanalytical essayThese ideas are essentially the basis of capitalism, providing an open market to the people with little to no government regulation. Smith believed that economic competition should regulate the economy through the amount of an item (supply) and the necessity of said item (demand). In essence, Smith believed in an economic system in which power was given to the individual, rather than the group.
In this essay, the author
- Explains that adam smith was a predominant figure of the period of enlightenment. his father's death had little effect on his upbringing or philosophy.
- Explains that smith's ideas are based on his personal experiences within hisenvironment, and not on family relationships.
- Explains that many of smith's ideas are centred around economics, focusing on ideas such as free trade and supply and demand.
- Analyzes how adam smith's theories are applicable to the modern day because they set the groundwork for what would eventually become the economic system for many countries around the world.
469 wordsRead More - Adam Smith And Capitalismopinionated essayThe United States of America is regarded by many to be the epitome of capitalism. The free markets and horizontal relationships that Adam Smith proposed were intended to afford all citizens the opportunity for economic growth and success. However, I firmly believe that our modern system of capitalism falls short of Adam Smith’s vision, especially concerning wages. Smith held that if an individual worked diligently, the compensation for such labor should be more than sufficient to sustain the needs and well-being of a family. Adam Smith would deem the contemporary American economic system to be immoral and unjustified because low wages suppress workers’ abilities at self-sustainment and heighten the degree of education inequality across the
In this essay, the author
- Opines that adam smith's free markets and horizontal relationships were intended to afford all citizens the opportunity for economic growth and success. smith deems the contemporary american economic system to be immoral and unjust
- Explains that adam smith believed that the government was to regulate the market and ensure fair relationships between workers and employers. modern capitalism has thwarted this basic union.
- Analyzes how adam smith argued that a justified minimum wage was necessary for an individual to provide for themselves and their family.
- Explains that adam smith believed the government should provide a basic level of education to everyone, but low wages often correspond to lack of educational opportunities.
- Opines that the fair minimum wage is a fundamental element of capitalism that has proven to be flawed.
1193 wordsRead More - Adam Smith's Economic Genius In The Wealth Of Nationsanalytical essayAdam Smith’s economic genius presented in The Wealth of Nations is stimulating because it proves that the economy is constantly changing, but is founded upon basic principles that consistently remain the same. One theme that is regularly reiterated in Smith’s The Wealth of Nations is that each country’s economy plays an important role in the global economy. For example, the idea of the division of labor and trade specialization suggests that each country should utilize its’ resources and citizens’ expertise in order to maximize productivity and gain through trade with other countries. It does not make sense for a country produce a product more expensively when it can simply trade with another country. In addition, the concepts of the invisible
In this essay, the author
- Analyzes adam smith's economic genius presented in the wealth of nations as stimulating because it proves that the economy is constantly changing, but is founded upon basic principles that consistently remain the same.
- Explains that the economy can be thought of in terms of a sports team, where each player excels to benefit the team. many people want to help others by raising minimum wage, standardizing health care, or increasing welfare accessibility.
313 wordsRead More