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Adam Smith was an 18th century Scottish philosopher known as the father of modern economics. He authored two influential works: The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations. In Wealth of Nations, Smith introduced concepts like the invisible hand of the market, division of labor, and argued that free market capitalism and competition could lead to economic prosperity. He believed self-interest and the pursuit of profit would motivate individuals and businesses to produce what society demands, resulting in a harmonious system regulated by supply and demand. Smith's work laid the foundations for modern economic theory and influenced thinkers for generations.

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220 views

Assignment

Adam Smith was an 18th century Scottish philosopher known as the father of modern economics. He authored two influential works: The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations. In Wealth of Nations, Smith introduced concepts like the invisible hand of the market, division of labor, and argued that free market capitalism and competition could lead to economic prosperity. He believed self-interest and the pursuit of profit would motivate individuals and businesses to produce what society demands, resulting in a harmonious system regulated by supply and demand. Smith's work laid the foundations for modern economic theory and influenced thinkers for generations.

Uploaded by

Rahman Surkhy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Contents

Introduction............................................................................................................. 2
About Adam Smith.................................................................................................. 2
Objectives............................................................................................................. 2
Key Concepts of Adam Smith..................................................................................... 3
THE MARKET............................................................................................................ 3
THE INVISIBLE HAND............................................................................................... 3
GROWTH................................................................................................................. 3
THE MARKET IS PROSPERITY................................................................................... 4
MORAL LAW OF PROGRESS..................................................................................... 4
LEGACY.................................................................................................................... 4
TOP QOUTES........................................................................................................... 4
References.................................................................................................................. 5

Introduction
About Adam Smith
Adam Smith 16 June 1723 till 17 July 1790 was a Scottish moral
philosopher, pioneer of political economy. Smith was known for
two classic works, The Theory of Moral sentiments (1759) and An
inquiry into the Nature and Causes of the Wealth of Nations
(1776) the latter, usually abbreviated as the wealth of Nations,
Smith studied Social philosophy at the university of Glasgow and
at Balliol College, Oxford, Smith began delivering public Lectures
in 1748 in Edinburg, sponsored by the philosophical society of
Edinburgh under the patronage of Lord Kames. His lecture topics
included rhetoric and belles-lettres, and later the subject of the
progress of opulence While smith was too adept at public
speaking, his lectures met the success.
In 1751, smith earned a professorship at Glasgow University
teaching logic courses, and in 1752 he was elected a member of
the philosophical society of Edinburg, having been introduced to
the society by lord kames. When the head of moral philosophy
died the next year, smith took over the position he worked as an
academic for the next thirteen years, which he characterized as
by far the most useful and therefore by far the happiest and most
honorable period of his life.

Objectives
Objective of this Assignment is to get information about Adam
smith father of Economic and key concepts which were written by
Adam smith in his books. Assignment is to increase Knowledge
about something by doing sample research type of studying in
assignment we look after what is our topic is about.

Key Concepts of Adam Smith


THE MARKET

Society can depend on unregulated capitalist


markets rather than tradition or authoritarianism
Self-interest guided by profit motivates people to
perform tasks required by society what people are
willing to pay for)
Competition regulates greed i.e. over chargers lose
to those that charge cheaper, even for wages.
Thus pursuit of self-interest leads to communal
prosperity.
Depends on freedom to pursue self-interest and
compete.
THE INVISIBLE HAND

Supply and demand always uses prices and profits to


signal
To producers that society required. Thus producers,
in
search of profits, produce what society requires - in
the
Correct quantity and at a competitive price.
Too little of a good produced for society - high
demand for
low supply leads to high profit from high prices so
attracts
more eort into production and vice versa until at
equilibrium

GROWTH

Division of labor (splitting up a task) allows workers


to
Specialize in niches (leading to productivity,
innovation etc.)
Growth comes from the above
Wealth = freedom + trade + division of labor
Freedom - pursuit of self interest
Trade - allows competition and global cooperation for
division of labor; against mercantilism
THE MARKET IS PROSPERITY

Market will work for societal good if left alone


(laissez faire
from French Physiocrats)
Guided by laws of invisible hand rather than iron fist
Capitalism today is unlike his ideal model - with less
Competition from monopolies, large unions etc.
Less freedom and trade leads to less prosperity
MORAL LAW OF PROGRESS

Law of accumulation - profits will be spent for


expansion
until higher demands for wages makes profit margins
thin
and disappear
Law of population - labor is subject to demand; as
wages
rise, more people will enter the workforce (e.g.
through
birth rates) and vice versa
Increased population increases worker supply so
lower

wages and higher profit - laws counter balance for


harmony
Thus, progress inevitable and society will reach its
reward
LEGACY

Formalized economic thinking - presented both sides


whilst
giving evaluative factors, then argued for his opinion
on the
best means for prosperity
Optimism in dynamic progression of society
Long discussions and digressions on prominent
economic
themes of his day
TOP QOUTES

It is not from the benevolence of the butcher, the


brewer, or
the baker that we expect our dinner, but from their
regard
To their own interest.
No society can surely be ourishing and happy, of
which the
Far greater part of the members are poor and
miserable. To
Feel much for others (is) human nature.
All money is a matter of belief.
On the road from the City of Skepticism, I had to pass
Through the Valley of Ambiguity.

References
Introduction
https://en.wikipedia.org/wiki/Adam_Smith
Key Concepts
http://www.slideshare.net/Mintame/asummary-of-adam-smith-ideas-life-legacy

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