Adam Smith Capitalism Analysis
Capitalism refers to the factors of production being privately controlled rather than by the state and that money is invested in businesses to make a profit. The foundation of capitalism was created by Adam Smith, a Scottish philosopher and economist, during the Age of Enlightenment. Smith’s objectives differed from those of the feudal empires and monarchies. The natural laws created by Adam Smith, which characterize the Industrial Revolution in the United States, led to a dramatic increase in competition and a transcendence in the rate of innovation, it is best exemplified through Thomas Edison and Nikola Tesla’s war of currents. Adam Smith is regarded as the father of capitalism due to his work in political economics, specifically production,
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Smith's theory coincided with a long-developing American tradition of individualism and opposition to government interference. America, not Britain, would be the great testing ground of Adam Smith's ideas (Miller and Masur). The industrial revolution was characterized by a technological revolution and a commercial revolution fueled by economic individualism and unrestricted competition. The lower class was transitioning from farm lands to a more secure job in a factory. Despite the terrifying wages and labor conditions, America would gradually improve. Adam Smith in “Theory of Moral Sentiments,” argues humans are social creatures and that poverty causes unfavorable regard. This industrial boom allowed the poverty-stricken to find a job and reestablish that love/belonging stage in their life. It could be argued this led to the beginning of the creation of the middle class, reshaping the haves and have-nots. Private investments and loans enabled inventors and scientists to develop these new technological advancements at expediting rates. Without capital from wealthy investors, many inventions would have not occurred due to insufficient funding, which was required to create their vision. Along with the importance of the creation of these inventions, the jobs that followed producing these goods were just as important, this best exemplifies Smith’s invisible …show more content…
It has led us into a period without the famines, diseases, and other misfortunes that continually plagued pre-industrialized civilizations. Of course there were periods of famines and diseases, but the occurrence of them significantly decreased, due to mass transportation of medicine and food. Enhanced globalization through technological development and scientific development enabled Smith’s natural laws of an economy become more prevalent. Other than technological and scientific developments, capitalism has enabled medical breakthroughs to further benefit mankind. Without proper funding, vaccines and treatment would not have been able to be discovered, which is just as important today as it was in the 1800s. The only way to truly value the impact of the industrial revolution and capitalism is to look at those today who have yet to experience the effects of innovation and require global aid in, such as Haiti. The fate of the hungry and disease-ridden peasants in such areas as Africa and [other parts of the world] is perhaps the most forceful and convincing argument in favor of capitalism’s industrial revolution (Majewski). Adam Smith’s natural laws of an economy in “Wealth of Nations” gave birth to capitalism, which led to a spur of scientific and technological development creating today’s modern
Smith's theory coincided with a long-developing American tradition of individualism and opposition to government interference. America, not Britain, would be the great testing ground of Adam Smith's ideas (Miller and Masur). The industrial revolution was characterized by a technological revolution and a commercial revolution fueled by economic individualism and unrestricted competition. The lower class was transitioning from farm lands to a more secure job in a factory. Despite the terrifying wages and labor conditions, America would gradually improve. Adam Smith in “Theory of Moral Sentiments,” argues humans are social creatures and that poverty causes unfavorable regard. This industrial boom allowed the poverty-stricken to find a job and reestablish that love/belonging stage in their life. It could be argued this led to the beginning of the creation of the middle class, reshaping the haves and have-nots. Private investments and loans enabled inventors and scientists to develop these new technological advancements at expediting rates. Without capital from wealthy investors, many inventions would have not occurred due to insufficient funding, which was required to create their vision. Along with the importance of the creation of these inventions, the jobs that followed producing these goods were just as important, this best exemplifies Smith’s invisible …show more content…
It has led us into a period without the famines, diseases, and other misfortunes that continually plagued pre-industrialized civilizations. Of course there were periods of famines and diseases, but the occurrence of them significantly decreased, due to mass transportation of medicine and food. Enhanced globalization through technological development and scientific development enabled Smith’s natural laws of an economy become more prevalent. Other than technological and scientific developments, capitalism has enabled medical breakthroughs to further benefit mankind. Without proper funding, vaccines and treatment would not have been able to be discovered, which is just as important today as it was in the 1800s. The only way to truly value the impact of the industrial revolution and capitalism is to look at those today who have yet to experience the effects of innovation and require global aid in, such as Haiti. The fate of the hungry and disease-ridden peasants in such areas as Africa and [other parts of the world] is perhaps the most forceful and convincing argument in favor of capitalism’s industrial revolution (Majewski). Adam Smith’s natural laws of an economy in “Wealth of Nations” gave birth to capitalism, which led to a spur of scientific and technological development creating today’s modern