Adam Smith and the Theory of Capitalism
Adam Smith developed the theory of capitalism. He suggested that capitalism was like an invisible hand that guided the economy, meaning that capitalism is the natural way for an economy to work. Basically, if a good or service is in demand you can gain an economic profit by supplying that good.
Adam's Smith's impact on economics is that he argued for competition in the market place and that free competition would create lower prices as well as economic growth and higher employee wages. He created Laissez-faire (leave it alone) when it came to governments involvement in business. in his book (wealth of nations), smith found that specialization of the workforce (as well as free choice and competition) to be the cornerstones of a functioning economy.Specialisation, combined with a healthy competition, provides the best product to the consumer at the lowest cost.scince the consumer is the most important part of a free trade market,and the french had not accepted this fact until Adam smith's work, we can truly say that Adam smith's work was the cause of capitalistic triumph in the modern world.
Adam Smith was a Scottish philosopher who became a political economist in the midst of the Scottish Enlightenment. He is best known for writing "The Theory of Moral Sentiments" (1759) and "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776). The latter, mostly known now as "The Wealth of Nations", is one of the earliest and the most famous pieces that discussed industry and commerce, and this is believed to be one of the major contributors to modern academic discipline economics.
Smith's arguments against mercantilism and in favor of free trade were a stark challenge to much of the protectionism, tariffs and gold-hoarding that prevailed at the time. He entered the University of Glasgow at the age of 15, and studied moral philosophy. His original interest in Christianity has been recorded as one that was ultimately rejected as that of a Deist, although
Adam's Smith's impact on economics is that he argued for competition in the market place and that free competition would create lower prices as well as economic growth and higher employee wages. He created Laissez-faire (leave it alone) when it came to governments involvement in business. in his book (wealth of nations), smith found that specialization of the workforce (as well as free choice and competition) to be the cornerstones of a functioning economy.Specialisation, combined with a healthy competition, provides the best product to the consumer at the lowest cost.scince the consumer is the most important part of a free trade market,and the french had not accepted this fact until Adam smith's work, we can truly say that Adam smith's work was the cause of capitalistic triumph in the modern world.
Adam Smith was a Scottish philosopher who became a political economist in the midst of the Scottish Enlightenment. He is best known for writing "The Theory of Moral Sentiments" (1759) and "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776). The latter, mostly known now as "The Wealth of Nations", is one of the earliest and the most famous pieces that discussed industry and commerce, and this is believed to be one of the major contributors to modern academic discipline economics.
Smith's arguments against mercantilism and in favor of free trade were a stark challenge to much of the protectionism, tariffs and gold-hoarding that prevailed at the time. He entered the University of Glasgow at the age of 15, and studied moral philosophy. His original interest in Christianity has been recorded as one that was ultimately rejected as that of a Deist, although