Adam Smith is one of the most influential individuals to have ever lived. His insights and new ideas into the discipline of economics have cemented his place in history as one of the greatest economists of all time. Smith was born in Kirkclady Scotland in 1723, he attended Glasgow University and Balliol College (v). Later in life Smith was appointed as Professor of logic at Glasgow University and later switched to Philosophy, seeing the full range of his academic background, it is clear how he incorporated multiple disciplines and diverse knowledge into the field of economics. Smith's first publication was the Theory of Moral Sentiments, in this work he explored the idea of human kindness and concluded that we have morals so we can fit into society and that our sympathy towards others is what helps create morals.
Another aspect of Smith that made his ideas so significant was he used a blend of both deductive and inductive thought to help create his ideas. By having a blend of both Smith ideas pertained to real problems in society and helped fix them. His optimism about the economy helped the overall attitude towards capitalism including Smith's economic theories. His Theory of the Division of Labor, economies of scale, free international trade, and theory of value proved to have a positive impact of the economy at that time. In 1764 Smith journeyed to France and met such individuals as Voltaire and d'Alembert and other economists who called themselves the Physiocrats (v). Smith was very influenced by them and became a strong advocate of the term they coined known as Laissez Faire, meaning hands off. Having had a important life learning experience Smith devoted himself to the biggest and most important task he would complete.
[...] Even with its incredible length it is fairly easy to read and encompasses almost all of the critical aspects of economics. Everything from developing nations to industrializing nations, and every aspect of the economy that is associated with each, Smith discusses with using specific examples and his own observations to create a powerful cohesive argument in a book that has become one of the most influential literary works in history. France One of the issues that Adam Smith discusses heavily about France is their general lack of trade with other nations. [...]
[...] Another important aspect to consider about the acquiring of gold and silver for different nations is that in a country without mines it is clear that to only method to attain these precious metals is through foreign trade. With increasing Globalization it is imperative that all goods can move freely between nations for the greater good of everyone, in which case the Dutch had it the best where all trade of gold and silver was allowed even among coin money. Gold and silver have also become one of the biggest motivators for the creation of new colonies. [...]
[...] There was an attempt to put the colonies on equal footing, several taxes were imposed. However there were several problems and it was critical that the taxes were immediately made effective and enforced in case the colonies try to evade the taxes. Given the excessive distance of these colonies and the increasing organization among themselves Great Britain grip and control are beginning to loosen at every law enacted by British Parliament. One of the main issues that Smith argues is how the leading men of the American colonies wish to preserve their own importance. [...]
[...] One possibility is in the country of Great Britain, industry is very secure and although not totally free, its more free than anywhere else in Europe. This is another important aspect of British law that helps to facilitate the growth of Great Britain. In addition natural effort of every individual to better his own condition is so powerful a principle that it alone, without assistance, is capable of carrying on society to wealth and prosperity” (581). Yet, this can apply to every nation since this principle pertains to every human. [...]
[...] It makes sense for the nations that have excess money to be among the few that hold these. As stated by Smith “Gold and silver are of greatest value in rich and poor countries, consequently they become least valuable in poor nations” (218). Gold and silver often carry value in terms of a status symbol in society. People who worry about such a thing are most often already well off in terms of land/investments and assets. Likewise in poor nations there are reasons why corn is more valuable, it's a food item that can help one stay alive and its often more expensive to transport corn because of the possibility of food perishing, therefore corn holds a much higher value than a metal which cannot help one stay alive. [...]
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