Christine Balcom Lawrence Hill Adam Smith Paper 11/30/22 Adam Smith Adam Smith was a Scottish economist, philosopher, and author who argued against commercialism and was an advocate for laissez-faire policies. He proposed the invisible hand idea, and is also known for creating the GDP theory. According to Smith’s theory, undesirable jobs pay higher wages to attract workers. Smith is also most famous for his 1776 book, "The Wealth of Nations." Smith was baptized on June 5, 1723, in Scotland. The exact birthdate is undocumented. His mother is Margaret Douglas and his father's name is also Adam Smith. He attended the University of Glasgow at the age of 13 and Balliol College at Oxford University, studying European literature. Smith then delivered a series of lectures at Glasgow University, which appointed him first as the chair of logic. Smith moved to France in 1763 for a better position as a tutor to the stepson of Charles Townshend. During his teaching years, Smith worked on getting lectures published. The Theory of Moral Sentiments was published in 1759. His most important piece, An Inquiry into the Nature and Causes of the Wealth of Nations, was published in 1776 after returning from France. In his book, he popularized the basis for classical economics. Smith's ideas reflect from the work of Ricardo and Marx in the 19th century, and Keynes and Friedman in the 20th century. Smith discusses the evolution of human society of no property rights to agriculture and residences. The idea of the "invisible hand" explains the forces of supply and demand in economies. According to this, by looking out for themselves, each person helps create the best outcome for everyone else. His belief is that a wealthy nation has citizens working productively to better themselves and their financial situations. This theory is often presented in terms of a natural phenomenon, guiding markets and capitalism towards efficiency, through supply and demand, and competition for scarce resources. The Wealth of Nations provides the concept of gross domestic product (GDP) and transforming the importing/exporting businesses. Smith was critical of mercantilism, arguing that countries should be evaluated on levels of production/commerce. This concept was the basis for the GDP metric concept, measuring the nation's prosperity. Many countries were soon hesitant to trade with other countries. He argued that free exchanges are created because both countries benefit. There was an increase in imports and exports. In 2007, the Bank of England put Smith's image on the £20 note 9. He was also a fellow of the Royal Society of Arts along with several buildings in Scotland which are named after him. The Adam Smith Award, is the highest honor given by The Association of Private Enterprise Education. The University of Glasgow also has a chair, library, research center, and building in Adam Smith’s name. Adam Smith is the "father of economics" because of his theories on capitalism, free markets, and supply & demand. The law of self-interest, competition, and supply and demand were the three laws of economics written by Smith. Adam Smith died on July 17, 1790, at 68, in Scotland. He was buried at Canongate Kirkyard. These ideas continue to live on in the classical school of economics and institutions.
