Adam Smith Essay, Research Paper
The purpose of this report is to educate the reader on a great man, the “Father of Economics”, Adam Smith. His two unequal works, Theory of moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations laid the groundwork for several economists today. His concepts, such as the “invisible hand” and opinions are widely respected and integral to economic theory three centuries later.
Adam Smith was born the son of the comptroller of customs at Kirkcaldy, Fife, Scotland in 1723, his father dying six months earlier (Lucidcafe, 2000). He studied at Glasgow University, then Oxford before moving on to deliver public lectures (Faber, 1999). In 1751 Smith was made a professor of Logic at Glasgow University, then was promoted to the Chair of Logic, a post held until 1763, which he relinquished to become a tutor to the Duke of Buccleuch in France during 1764-66 (Smith, 2001). Upon return, Smith is elected a Fellow of the Royal Society. In 1776 Smith published the Wealth of Nations; seven years later becoming a founding member of the Royal Society of Edinburgh. On July 17, 1790, Adam Smith dies after an illness.
The Theory of Sentiments, published in 1759, was based on his Glasgow lectures. This work is concerned with the explanation of moral approval and disapproval (Bartleby, 2001). He bases his explanation on sympathy, focusing on the standards of ethical conduct that hold society together, emphasizing the general harmony of human motives and activities under a beneficient Providence (Ockham, 2001).
In 1776, while America was signing the Declaration of Independence, Smith moved to London and authored his world renowned Wealth of Nations, which examines the consequences of economic freedom (Bartleby, 2001). It covered the role of self-interest; the division of labor, the theory being if everyone does what he or she does best, the society as a whole would become more productive; the function of markets; and the international implications of a laissez-faire economy (Landry, 1998). At the time of publishing, there was a strong sentiment for free trade in both Britain and America (Leemhuis, 1997). This had been influenced by economic hardships and poverty caused by war, but Britain stayed set in its way for years. Smith laid the framework of free market that still holds true today.
Laissez-faire government believes commerce and trade should be permitted to operate free of controls of any kind; there should be no tariffs or other barriers. The direct translation from the French language is “leave alone to do”, which is self explanatory. A majority of people saw confusion in economic activity in England mid 18th century (Kilcullen, 1996). Everyone was doing as they pleased and deemed necessary. Businesses produced what they wanted to produce and consumers purchased what they wanted to buy. Nobody, including the government, dictated what had to be produced or purchased, yet businesses were providing the goods and services consumers wanted and needed. This is the basis for Adam Smith’s “invisible hand theory”. The “invisible hand” encourages businesses to provide what consumers want. At the same time, it discourages government involvement. The whole idea started with profit-seeking individuals. People started businesses out of self-interest, as it grew other people would copy and enter the same field; directly resulting in consumer satisfaction and competition which controlled prices (Nickerson, 1997). Soon businesses needed labor where workers shared tasks. This resulted in mass production, more efficiency, and lower costs. The money earned gave consumers money to spend. The only responsibilities of the government should be to define property right, set up honest courts, impose minor taxes and subsidies to compensate for well defined and narrowly specified “market failures” (First Monday, 2001).
Smith also covers the topic of supply and demand. He states there is an equillibrium point at which the supply and demand are equal and profits are maximized (Kilcullen, 1996). His definition of market price is the cost of creating goods in their final form and getting them to the final destination where they are sold. Costs include transportation, production, materials, rent, etc.
My opinion is if more money is put into the economy then it will grow faster, but if too much is entered, inflation will occur. The economy should be free of government control, yet oversee it to prevent any problems. Greenspan is abusing his position and should let the currency flow into the market rather than holding it back. Greenspan is preventing problems but is being too cautious. I feel the economy should be allowed to flourish and grow to its fullest capacity. By inserting more money it will grow, and help control the unemployment rate. Greenspan has a very challenging job as the Chairman of the Federal Reserve, He must disperse currency into the market while not allowing inflation to occur.
In conclusion, Adam Smith made as much sense in the 18th century as he does today. It was Smith, the Father of Economics, who presented economics as a discipline all its own. He knew the producer and the consumer are the vital elements of the economy, seeing the consumer as more important as they presented the need and controls the prices by deciding how much he or she is willing to spend. Smith is a historical legacy who was both brilliant and congenial. For people who believe in free markets, property rights, and individual enterprise, Adam Smith laid the framework three centuries prior, and we owe him a lot, namely our capitalistic economy to him.
31b
Другие работы по теме:
Kate Chopin 2 Essay Research Paper Adam
Kate Chopin 2 Essay, Research Paper Adam Smith, Thomas Malthus, and David Ricardo are classical economists whose discoveries in the late eighteenth and early nineteenth century made a great impact on economics to this day.
Enlightenment Essay Research Paper THE THINKING OF
Enlightenment Essay, Research Paper THE THINKING OF THE SCOTTISH ENLIGHTENMENT THINKERS? The theme of the “unintended and unanticipated consequences of social action” implies that social change occurs through social action without foreseeing the outcome. Scottish Enlightenment thinkers Adam Smith and Adam Ferguson, each provide their own theory of unanticipated effects of human action.
Shoot The Teacher Essay Research Paper SHOOT
Shoot The Teacher Essay, Research Paper SHOOT THE TEACHER By: David Belbin During the couple of days that pass in this book, lots of things happen. A boy in his mid teens becomes to heavy a
April Morning Essay Essay Research Paper I
April Morning Essay Essay, Research Paper I think that some of the reasoning behind Moses Cooper letting Adam fight in the war was that Adam was no longer a small child like his brother
Adam Sandler Essay Research Paper Adam Sandler
Adam Sandler Essay, Research Paper Adam Sandler is a well-known comedian, musician, actor, screenwriter, and singer. He is known throughout the nation for his accomplishments in the entertainment business.
Adam Smith Essay Research Paper Some say
Adam Smith Essay, Research Paper Some say he was absent-minded or even oblivious, but I rather like to think of it as frequent states of profound thought. The man I refer to is Adam Smith and after having read the assigned excerpts and a few other passages from his The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations I not only hold him in a new light, but I have arrived at three heavily debated conclusions.
CapitalimSocialism Essay Research Paper There are many
Capitalim-Socialism Essay, Research Paper There are many different economic systems that reside in someway throughout the world today like capitalism and socialism. Here in the United States, we live in a mixed economy ??one in which private enterprise and governmental participation coexist?. Currently Americans? lives are centered on the individual, according to Adam Smith.
April Morning Essay Research Paper April MorningI
April Morning Essay, Research Paper April Morning I think that some of the reasoning behind Moses Cooper letting Adam fight in the war was that Adam was no longer a small child like his brother Levi.
Capitalism And Communism Essay Research Paper Capitalism
Capitalism And Communism Essay, Research Paper Capitalism and Communism are two totally different economic systems. Capitalism is a much better economic system than Communism. Capitalism is an economic system characterized by freedom of the market and is the economic system where you do not have freedom because the government will make most of your decisions for you.
John Milton Essay Research Paper John Milton 2
John Milton Essay, Research Paper John Milton’s “Paradise Lost” describes the fall of man in a poetic lyric. His book closely details the character God, Satan, and how Adam and Eve came do their downfall. God’s first human creation, Adam, was given all luscious gifts of paradise, including free will. The Tree Of Knowledge was Adam and Eve’s only forbiddance.
The Superiority Of Capitalism Essay Research Paper
Being reared in the typical capitalist community o the United States, it is much easier for people to relate to the thoughts of Adam Smith. This is not to say that everyone disagrees with the ideas of pure Communism, but like the old adage says, “Communism looks good on paper, but in practice, it is completely ineffective.”
Patricia Smith Essay Research Paper Patti Smith
Patricia Smith Essay, Research Paper Patti Smith Homepages, Biographies, and Interests a patti smith babelogue – The premier site for any and all information, from contacting patti to poetry, sound clips, performances, etc.
Bessie Smith Essay Research Paper Bessie SmithMeredith
Bessie Smith Essay, Research Paper Bessie Smith Meredith Kerr 2-21-00 Bessie Smith was born in a shack in Chattanooga, Tennessee around 1894. Black birth certificates were not kept very well back then, but that is the assumed date. In those times black women did not have many choices for careers, but Bessie?s talent proved to be more than enough to give her a life as an entertainer.
Mr Smith Goes To Washington Essay Research
Paper The film Mr. Smith Goes To Washington (dir. Frank Capra, 1939) emphasizes honesty verses falsehood. Jefferson Smith (James Stewart) has great honor and he upholds his integrity. Smith is always in constant danger because he lets his honesty take over. Fallacy and lies manipulate Smith s integrity to achieve their purposes.
My Paper Essay Research Paper 895 Mae
My Paper Essay, Research Paper 895 Mae Lynn Drive Fenton, Missouri 63026 March 4, 2000 Mr. John Smith Director of Central Service St. Mary?s Hospital P.O. Box 656
Adam Smith Vs Karl Marx Essay Research
Paper Adam Smith vs. Karl Marx Being reared in the typical capitalist community in the United States, it is much easier for me to relate to the thoughts of Adam Smith. This is not to say that I do not agree with some of the precepts of pure Communism, but like the old adage says, “Communism looks good on paper, but in practice, it is completely ineffective.” Historically, this form of government does not tend to succeed because of many factors.
Life Essay Research Paper LifeWhat is it
Life Essay, Research Paper Life What is it that makes life interesting? Better yet, does life even have a purpose? Right away most people would have answered yes to this question, but how sure are we if yes is the right answer. I too question myself if everyone on Earth or this whole universe has a meaning to live.
Adam And Eve Essay Research Paper In
Adam And Eve Essay, Research Paper In the ?Book of Genesis?, an ancient Hebrew story from the King James Bible, we are given the account of Adam and Eve. Eve is led up the path of temptation and forced to make a
Adam And Eve Essay Research Paper Lee
Adam And Eve Essay, Research Paper Lee Daville English IV A Summary of ?The Diaries of Adam and Eve? This play takes place in a beautiful, mysterious garden. Two characters make up
What Is Liberty Essay Research Paper What
What Is Liberty Essay, Research Paper What is Liberty? During the age of enlightenment many philosophes had different views on the definition of liberty. In the opinion of the philosophes , Voltaire, Smith, Montesquieu and Rousseau the four ideals were almost identical. Voltaire stated, Liberty is the life of the soul.
Classical Economist
– Adam Smith Essay, Research Paper Often called the founder of modern economics, Adam Smith, born in Kirkcaldy, Scotland, June 5, 1723, was a wide-ranging social philosopher and economist whose masterwork, “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), is one of the most influential studies of Western civilization.
Joe Smith Essay Research Paper Joe Smith
Joe Smith Essay, Research Paper Joe Smith Returns To His Roots Seeing that Joe Smith received just two offers, he decided to return to his roots in Minnesota agreeing to the six-year 34 million dollar contract he rejected earlier this week. It appeared very evident that Smith was not re-signing with the Pistons after the press conference which was held this past Tuesday.
Adam Smith (I Lost My Password So
Im Resubmitting Essay, Research Paper “Let the market alone” is one of the pieces of advice Adam Smith gave to the world for it to live by (Heilbroner 69). Smith said this regarding the economy and government intervention. No one would have expected that this advice could pertain to a culture that is far more complex and advanced than the one Smith lived in over 200 years ago.
Adam Smith Vs John Keynes Essay Research
Paper How can John Maynard Keynes version of capitalism be compared to Adam Smith’s? Both are considered to be the molders and theorizers of the economic era. They are both very different in thinking, one complex the
Impact Of Economics And Science During The
19Th Century Essay, Research Paper Steve Dohl 3/13/01 Pre IB His/Geo The impact of Economics and Science during the 19th Century In the period from c. 1850-1914 economics and science were changing the world and lifestyles. Adam Smith introduced the idea of capitalism and gave the idea that mercantilism is bad (‘lessie faire’).
Adam Smith The Founder Of Modern
Economics Essay, Research Paper Adam Smith: The Founder of Modern Economics Adam Smith was born in 1723 in Kirkcaldy, Fife, Scotland, fatherless. The exact date of his birth is unknown. Smith was baptized June 5, 1723. At the age of fifteen, he began his schooling at Glasgow and Oxford. In 1751, after he finished school, he was offered a job at Glasgow University where he became the new Professor of Logic.
Wealth Of Nations By Adam Smith Essay
, Research Paper Wealth of Nations? Adam Smith shows, systematically and consistently, how a market-based economic system promotes general welfare through the sole maximisation of individual outcomes. Smith goes through a completely exhausting and methodical
Adam Smith Essay Research Paper Adam Smith 2
Adam Smith Essay, Research Paper Adam Smith, (1776), of the division of labor According to Adam Smith, economic growth is rooted in the increasing division of labor and the specialization of the labor force by the breaking down of large jobs into many little ones. Under this regime, each worker becomes an expert in one area of production and workers do not have to switch tasks during the day.
Adam Smith Essay Research Paper Keeley SloanAdam
Adam Smith Essay, Research Paper Keeley Sloan Adam Smith Adam Smith was born in 1723. The age of humanism and reason, in other words the age of greed and corruption associated with dreadful living conditions. At the age of about fifteen, Smith proceeded to Glasgow University, studying moral philosophy under Francis Hutcheson.
Adam Bede Essay Research Paper Adam Bede
Adam Bede Essay, Research Paper Adam Bede Technology advances with time. Though, technological advancement is needed to move a civilization forward, it also has its downsides. With more products and services available, it is impossible to live a life of relaxation as people once did long before. In George Eliot’s “Adam Bede,” one can see the difference in the purity of “old leisure” and the corruption of modern leisure through Eliot’s use of diction, imagery, and personification.
Adam
’s Song Essay, Research Paper Adam’s Song I never thought I?d die alone I laughed the loudest who?d have known? I trace the cord back to the wall No wonder it was never plugged in at all
An Analysis On Adam Purcell
’s Sleep Adam Sleep Essay, Research Paper An Analysis of Purcell’s’ Sleep, Adam, Sleep Out of all of the composers of the Baroque era, Henry Purcell seems to have extraordinary consideration for Italian operas, court odes, and religious anthems. He is best known for the epic Dido and Aenas, which was one of his famous operas.
Adam Smith Essay Research Paper Adam SmithThe
Adam Smith Essay, Research Paper Adam Smith The British philosopher and economist Adam Smith was born in Kirkcaldy, Scotland. He was educated at the universities of Glasgow and Oxford.