Adam Smith and His Works and Contributions Essay - 825 Words

Adam Smith and His Works and Contributions into the Economic World (Essay Sample) Content: ADAM SMITHby Students nameCode+ course nameProfessors nameUniversity nameCity, StateDate IntroductionAdam Smith, a well-known economist and philosopher, is often called the forefather of modern economics. Much of the market theory is developed by him.Though Smith wrote in many disciplines, including the history of science, literature, rhetoric, jurisprudence, and moral philosophy, the current status of the researcher is obtained due to the clarification of what roles rational self-interest and competition play in economic stimulation and prosperity. These concepts are still valuable and applicable to the present economic problems. An Inquiry into the Nature and Causes of the Wealth of Nationsand Theory of Moral Sentimentsare the books that deserve special attention.The Explanation of Choosing Adam Smith and His WorksThe author develops the basis for the system of morality in Theory of Moral Sentiments. The book argues that a person is self-commanded and self-intereste d. In accordance with Smith, self-control is based on the natural law principles whereas individual freedom is deep-rooted in self-confidence and the individuals ability to exercise his/her own interests (Ashraf, Camerer Loewenstein 2005). An Inquiry into the Nature and Causes of the Wealth of Nationsis supposed to be the first contemporary work of economics research. The author tries to disclose the nature and causes of prosperity of the nation, using real examples. The increasing division of labour is seen as a main prosperity cause by the economist. He also considers self-interests and charity as complementary instead of contradictory. While charity cannot alone make available all the necessities of life, the mechanism of self-interest can correct this deficiency. The invisible hand and analysis of mercantilism are the most influential concepts of this book. The term invisible hand was designed to show the self-regulating market behaviour. It is expected to work commonly in the free market. Smith opposes mercantilism and believes that new markets and a lower price of some goods are the main benefits of trade (Kennedy 2008).The Assessment of Their Impact on SocietyThe authors ideas presented in these two books have a great impact on society. Theory of Moral Sentiments is an essential document in the history of political and moral thought. In this work, Smith expresses the original theories of virtue, moral judgment, and conscience. Furthermore, it was a real scientific step forward, which showed that moral activities and thoughts were a product of the nature of people as social beings. The book defines the main rules of justice and prudence that are necessary for the survival of society and describes additional charitable actions that allow its prosperity (Sen 2010). It also gives a methodological, psychological, philosophical, and ethical insight into the future works of the author. An Inquiry into the Nature and Causes of the Wealth of Nationsis considere d to be the main book in economics, especially in the area offree-market capitalism. Today, it is observed as a theoretical basis for the free market concept that sets the limits of state intervention, redistribution of wealth and taxation. It spawned the contemporary concept of human capital. Explanation of the invisible hand is used for a variety of events, from environmental degradation to scientific progress (Kennedy 2009). With his notion of trade, Smith provides a succession of free-trade economists that paves the way for the comparative advantage theories of John Stuart Mill and David Ricardo in the future. With the majority of present free-market supporters, he supposes that the government must fulfil contracts and grant copyrights and patents in order to encourage original ideas and creations. Besides, the researcher believes that the government should be responsible for public works such as bridges and roads. The retaliatory tariff is an only significant difference between the position of Smith and most contemporary economists (Buchan 2006). Therefore, the books of Smith are a review of both politics and economics. ConclusionAdam Smith stimul...