Adam Smith (1723 - 1790) Every waster - the enemy of society, every saver – benefactor Adam Smith
Childhood Smith was born in the seaport town of Kirkcaldy, Scotland in 1723. His father died before his birth and he was raised by his mother. At the age of four Smith was kidnapped by gypsies, but was released when people went in search of him. Smith attended the local school in Kircaldy, which was seen as one of the best schools in Scotland at the time.
Studying at the University When he was 14, Smith entered the University of Glasgow, where he became a favorite pupil of Francis Hutcheson, who greatly influenced Smith's thought throughout his career. At the universiry of Glasgow, Smith developed his passion for liberty, reason, and free speech. Wnen aged 17 he won a scholarship to Oxford. Adam Smith considered the teaching at Glasgow to be far superior to that at Oxford. According to William Robert Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his lifework. " Nevertheless, Smith took the opportunity while at Oxford to teach himself several subjects by reading many books from the shelves of the large Bodleian Library. He left Oxford University in 1746, before his scholarship ended.
Teaching Smith spent several years teaching after leaving Oxford. While Smith was not adept at public speaking, his lectures met with success. When Adam Smith taught his lectures, he always divided the course into four fundamental ideas : natural theology, ethics, jurisprudence and political regulations founded on expediency. In 1751, Smith earned a professorship at Glasgow University teaching logic courses, and in 1752 Smith was elected a member of the Philosophical Society of Edinburgh. After he worked as an academic for the next thirteen years, which he characterised as "by far the most useful and therefore by far the happiest and most honorable period.
First books In the 1750 s he began to write. His books - the first was published in 1759 - explored ideas about human nature, how people interact in society and how self-interest can work as a force to benefit society as a whole. These ideas were put into an economic context in his most famous book, The Wealth of Nations. Although The Wealth of Nations is widely regarded as Smith's most influential work, it is believed that Smith himself considered Theory of Moral Sentiments to be a superior work.
The theory of free market economy Actually the book is regarded as the first modern work of economics, where he set forth his theory of free market economy. According to Adam Smith, in a free market participants, led by "invisible hand" , try to maximize their own self-interest and become wealthier, and by doing so, through trade and entrepreneurship, society as a whole is better off. Furthermore, any government intervention in the economy isn't needed because the invisible hand is the best guide for the economy
His theory states that in a free market no regulation of any type would be needed to ensure that the mutually beneficial exchange of goods and services took place, since this "invisible hand" would guide market participants to trade in the most mutually beneficial manner. Nowadays, "invisible hand" explanations are invoked to explain all sorts of phenomena, from scientific progress to environmental degradation. His legacy is still celebrated by all who support the laissez-faire economy.
Magnum opus “An Inquire into the Nature and causes of the Wealth of Nations”
According to A. Smith The basis of social relations is a division of labor There are the following conditions for the prosperity of the economy 1. Private property 2. Self-interest 3. Laissez-faire economy
Conclusion Adam Smith continues to be quoted as an expert on economics more than 200 years after he died. Smith’s work lives on, his work has arguably had more impact on modern economic policy than any other figure in economic history. The ideas of Smith are still regularly invoked and modern economic policy is measured against his principles. Even now, Smith's works are being translated and distributed in Eastern Europe, and his works have a renewed relevance.
In honor of Adam Smith…
Adam Smith Statue Beside the Mercat Cross, High Street, Edinburgh