Adam Smith And Capitalism
Adam Smith, a political economist, as well as a philosopher, is a famous historical figure since the 18th century. He was born in the year 1723 in Scotland. Some refer to him as the Father of Capitalism. He put forward ideas that brought about changes in both politics and economics. His ideas put a departure to the several dominant economic ideas at the time. For three centuries, policies and philosophy of Mercantilism were dominant in Europe. The arrival of the new and great ideas from Adam Smith changed everything. Even today, his great contribution to establishing political economics discipline is still remembered.
Adam Smith and Interest in Economics
One of his great works is Wealth of Nations. He introduced the genesis of economic terms and ideas that are used even today. For example, he introduced terms like the division of labor. He studied while very young and showed interest in philosophy. His ideas on self-preservation as well as self-interest were essential pillars of His work; Wealth of Nations. He had been a lecturer before he became interested in economics. He became familiar with the Mercantilism economic policy. The policy supported for the control of the trade and industry sectors by the government. He had a clear insight of the system in France. Adam Smith started objecting to the trade policies in France. He was against the interference of the government in free trade. It is during this time of resistance that his ideas began to prevail. He published his work in Scotland in 1776 which was of great impact in economics. Also, it earned him a lot of fame. He introduced the rules for effective and efficient production. Also, he wrote about the accumulation, the distribution as well as the consumption of wealth.
Adam Smith Ideas
He introduced the idea of division of labor in economies to improve production. He saw this idea as a source of trade expansion both locally and internationally. Notably, Smith also argued that the government interference in trade and industries was not healthy for the economies. He preferred and emphasized on free as well as fair trade where private enterprises would be allowed to get engaged in trade. However, he insisted that he was not against the government involvement. Adam Smith also indicated that individuals who acted out of self -interest are likely to seek those economic activities that give huge returns.