Biography of Adam Smith

 Adam Smith

John Adam Smith (born in Kirkcaldy, Scotland, June 5, 1723 - died in Edinburgh, Scotland, July 17, 1790 in the age of 67 years), was a Scottish philosopher who became a pioneer of modern economics. His most famous book is An Inquiry into the Nature and Causes of the Wealth of Nations (abbreviated as The Wealth of Nations) is the first book to describe the historical development of industry and commerce in Europe as well as the basics of the development of free trade and capitalism. Adam Smith is one of the pioneers of the economic system of capitalism. This economic system emerged in the 18th century in Western Europe in the 19th century and became famous there.


State of Prosperity (Wealth of Nations) and the smaller Theory of Moral Sentiment influence, has become the starting point for any defense or criticism or other forms of capitalism, the most important in the writings of Marx and the human economy. Because laissez-faire capitalism is often associated with uncontrolled selfishness, there is a new movement that emphasizes the moral philosophy of Smith, with the focus of one's sympathy.

There is some controversy about the authenticity of the Welfare State Smith; some people deny their work is just amazing to work additional thinkers like David Hume and the Baron de Montesquieu. And, many of Smith's theories only describe historical trends away from mercantilism, toward the free-trade, which has evolved over several decades, and has had a marked influence in government policy. However, this book is to organize their ideas widely, and continues to be a book of the most influential and important in today .

Biography

Adam Smith is widely known in economic theory '"laissez-faire" is announced in the 18th century European society. Smith believed in the right to influence economic progress themselves freely, without any control by the association and / or state. This theory came to the proto-industrialization in Europe, and change the majority of Europe into a free trade area, making the possibility of a businessman. He was also known as the "Father of Economics".

Education

At age 13, Smith entered the University of Glasgow, where he studied moral philosophy under "the people who should not be forgotten" (as Smith called him) Francis Hutcheson. Here, Smith developed a strong desire for freedom, reason, and freedom of expression. In 1740 he was awarded the Snell exhibition and entered Balliol College, Oxford, but as William Robert Scott said, "University of Oxford in his time gave little if any assistance is given what should have been the work of his life," and he left the university in 1746. In the book to the V of The Wealth of Nations, Smith remarked on the low quality of instruction and intellectual activity which amounts to less than in Scotland. comments directed at the people who awarded the wealth of the colleges of Oxford and Cambridge, which makes inclusion of the professors are not based on their ability to attract students, and the fact that people posing as men of letters could enjoy life more comfortable of ministers in the Church of England.


Careers in Edinburgh and Glasgow

Smith started the year 1748 public lectures in Edinburgh under the guidance of Lord Kames. Some of his lectures offensive rhetoric and belles-lettres, but later he would take the subject of "the progress of welfare," and later, in the middle or end of the twentieth century, where he was first put forward the economic philosophy of "clear and simple system of natural liberty" where he put the matter to the audience in the essay book The Wealth of Nations. At about 1750 he met filusuf David Hume, who is ten years his senior adrift. Relationship and similarity of opinions that can be found in the details of their paper covers the history, politics, philosophy, economics, and religion mmereka indicates that both have close intellectual communion and friendship to others that which will play an important role during the Enlightenment in Scotland., He The Poker Club merutinkan of Edinburgh.

Year 1751 Smith was appointed as chairman of the board of logic at Glasgow University, was transferred in 1752 to the Council of Glasgow moral philosophy, once occupied by the famous teacher, Francis Hutcheson. Lectures covered ethics, rhetoric, jurisprudence, political economy, and "police and revenue". In 1759 he published his Theory of Moral Sentiments, embodying some of his lectures at Glasgow. This work, which builds the reputation of Smith's, explains how the human komuikasi depends on sympathy between agent and spectator (that, the individual and other community members). Analysis on the evolution of language is sometimes superficial, as demonstrated 14 years later by a further study in the primitive language by Lord Monboddo. in his work entitled The Origin and Development of Language will influence the capacity of Smith, persuasive, or rhetorical arguments, more in evidence. He based his explanation does not, like Lord Shaftesbury and Hutcheson did in the third "moral interests", also unlike Hume on utilitarianism, but based on sympathy.

Smith is now starting to pay more attention to jurisprudence and economics in college and a little on his theory of morals. Gained the same impression to the development of his ideas on political economy from the record by a college student circa 1763 who later edited by Edwin Cannan [3], and form what Scott, founder and publisher, described him as "part of the Wealth of Nations Draft ", which is dated around 1763. Cannan's work appeared as Lectures in the Justice, Police, Tax and Firearms. A more complete version was published as a lecture in Glasgow edition Jurispundensi in 1976.

Tour of France

in 1762 the academic senate of the University of Glasgow met Smith in the title Doctor of Laws. In late 1763, he got a lucrative offer from Charles Townshend (who was introduced to Smith by David Hume), to teach his stepson, the Duke of Buccleuch. Smith eventually retired from keprofessorannya and from 1764-66 traveled with his pupil, mostly in France, where he came to meet the intellectual leaders such as turgor, Jean D'Alembert, Andre Morrelet, Helvetius and, in particular, Francois Quesnay, the head of the School whose work Physiocracy Smith was honored by very high. In the course pulangnyake Kirkaldy Smith was elected to the Royal Society of London, and he dedicates most of the next ten years on his magnum opus magnum, The Wealth of Nations, which appeared in 1776. The book was well received and made the author famous.

Year-End Year

In 1778 Smith was appointed to the post sebagaikomisioner to excise in Scotland and lived with his mother in Edinburgh. In 1783 he became one of the founders of the Royal Society of Edinburgh and from 1787 until 1789 he was honorary position of Lord Chancellor mendaat University of Glasgow. He died in edinburgh on July 17, 1790 due to serious illness and was buried in the Kirkyard Canogatw.

Smith is the literary executor of two old friends from the world of Scottish academic, physicist and chemist Joseph Black, and the pioneering geologist James Huton. Smith left behind many notes and unpublished material, but gave instructions to destroy anything that is not worthy of publication. He called the History of Astronomy match, and appeared in 1795, along with other material, as Essays on Philosophical Objects.

Adam Smith's contemporary followers including John Millar


Personal character and view-view

Very little is known about Adam Smith apart from what can be deduced from his works that have been published. All his personal papers were destroyed after his death. He is married and seemed to maintain a close relationship with his mother, where he lived after returning from France and ahead of Smith's death is only 6 years later. Contemporary testimony describes Smith as an eccentric but benevolent intellectual and friendly, senility is comical, with the recurring habits of speech and gave a smile that "friendly without expression. His patience is said to have important value in her work as an administrative Glasgow. After his death it was found that the majority of its revenue donated by him in secret.


There has been some debate on the religious views of Adam Smith. His father has a great interest in Christianity and the moderate wing of the Church of Scotland (the national church in Scotland since 1690). Smith may go to England to pursue a career in the Church of England: this statement is controversial and depends on the status of the Snell exhibitions. At Oxford, Smith rejected Christianity and believed that he returned to Scotland as a Deist.


Economist Ronald Coase, however, have challenged the view that Smith was a Deist, stated that, while Smith may be referred to as "the Great Architect of the Universe", other scholars have "much exaggerated extension to which Adam Smith has entered into a belief in a God Personal ". He based this analysis of a remark in The Wealth of Nations where Smith writes that the curiosity of mankind about the "extraordinary phenomenon of nature" such as "generation, life, growth and death of plants and animals" has made man to "put it in their commonsense ". Coase notes Smith's observation in which: "Superstition is first ditujukkan to satisfy curiosity, by connecting all sighting on the agency of God's amazing". However, this belief does not contradict circuitry Deism, a belief system that holds sekptis idea of ​​a personal God.

Work

Shortly before his death Smith destroyed nearly all his manuscripts. In the later years he seems to have been planning two major keterilmuan, one in the theory and legal history and one in science and art. Published after his death Essays on Philosophical Subjects (1795) may contain a part of what will be the next deflection.

The Wealth of Nations to be influential because it was so loud that the economy and its development into a systematic discipline and self. In the western world, are still dealt if this is the most influential books in the subject ever published. When the book became a classic manifestation against mercantilism (the theory that large reserves of precious metals is a must for economic succession), appeared in 1776, there is a strong awareness for free trade in both England and America. This new feeling was born of economic hardship and poverty situation caused by the War of American Independence. However, at the time of publication, not everyone necessarily believes in the advantages of free trade: the public and parliament in the UK are still using the system for several years in the future mercantilism.

The Wealth of Nations also rejects the statement Physiocracy the importance of land, instead, Smith believed that the union is a high priority, and the division of labor will result in a significant increase in production. Smith's use an example with the manufacture of pins. One worker could make twenty pins a day. But if ten people divided into eighteen steps required to make a clasp, clasps they can make 48,000 a day. Nations are very successful, and in fact, this has resulted in emptying of the older economic school and younger economists such as Thomas Malthus and David Ricardo, Smith focused on improving the theory into what will be known as classical economics. Both the modern economy and, separately, Marxisan economy once depended on classical economics. Malthus developed rumination Smith in overpopulation, while Ricardo believed in the "iron law of wages" - which can prevent a population explosion of wages through a rational level. Smith gives a solution to the wage increases with the increase in production, a view considered more accurate today.

One of the main points of The Wealth of Nations is a free market, when the chaotic and irregular appearance, is actually guided to make the correct value and variety of goods by "invisible hands" (an image used by Smith in the Theory of Moral Sentiments, but first used in his essay, "History of Astronomy"). If a product shortage occurs, for example, then the price goes up, making a profit margin that makes the incentive for others to go into production, and scarcity. If too many producers who msauk to market, increased competition among manufacturers and increased supply will lower the price on the product to the point where the price of production, the price of natural. Even if the gains to empty the "price
natural ", then there will be an incentive to produce goods and services, and all production costs, including workers' compensation to the owner, is also included in the price of goods sold. If the price drops below empty profits, manufacturers will come out of the market, if they are located above the vacant profit , manufacturers will enter the market. Smith believed that human motives are often selfish and greedy, the competition in the free market will aim to benefit society by forcing all low fixed prices, which continue to build in incentives for various goods and services. In addition, he is worried about the business and against the formation of monopolies.

Smith vehemently attacked the antiquated government restrictions which he thought the restriction will reverse the expansion of the industry. In fact, he's attacked virtually all forms of government intervention in the economy, including tariffs, arguing that this creates inefficiency and high prices in the long run. This theory became known as "laissez-faire", which means "let them do", influenced government legislation in later years, especially during the 19th century. (After all he is not against the government. Smith advocated public education for poor adults, the institutional system that is not profitable for private industry, advocated, and the standing army.)

Two of the citations of the most famous and most frequently used in The Wealth of Nations is:


English

It is not from the benevolence of the butcher, the brewer, or the baker That We expect our dinner, but from regard to Their Own Their interest. We address Ourselves, not to humanity but to Their Their self-love, and never talk to them of our own necessities but of Their advantages.

As every individual, therefore, endeavors as much as he can both to employ his capital in the support of domestic industry, and so to direct That Produce its industry That may be of the greatest value; every individual Necessarily labours to render the annual value of society as great as he can. Generally he, indeed, Neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to foreign That of industry, he intends only his own security; and by directing That industry in Such a manner as its Produce may be of the greatest value, he intends only his own gain, and he is in this , as in many other cases, led by an invisible hand to promote an end the which was no part of his intention. Nor is it always the worse for the society That it was no part of it. By pursuing his own interest he frequently promotes That of society more effectually than when he really intends to promote it. I have never known much good done by WHO Those affected to trade for the public good. It is an affectation, indeed, not very common Among merchants, and very few words need be employed in dissuading them from it.

Indonesia

It is not good from the butcher, artisan beer, or the baker that we expect our dinner, but their concern in their own interests. We introduce ourselves, not to their humanity but to their self-love, and never talk to them for our needs but to their advantage.

As every individual, then, leave as much as what he could so he could use his capital in support of insutri in the country, and also to direct the production industry is perhaps the greatest value, every individual worker is required to place an exact value of the community as well as he could. He generally does not promote the public interest, nor know what he is promoting it as much. With memprefrensikan support of domestic to foreign industry, he aims only for his own safety, and by directing that industry in the manner in which the production is its greatest value, he is only thinking of their own, and he is in this case, like the other cases, guided by invisible hands to produce a final end which is not part of the goal. Not always the worse for the society in which it is not a part of it. By pursuing his own advantage on a regular basis he regularly produces what result to the community more than he had expected the outcome. I never saw much good has happened to anyone who trades in public goods. This is a strong emotion, in fact, not very common among merchants, and very few words that can be used to convince not do that to them.

Another favorite quote, which is usually used by economists, also of The Wealth of Nations is:

English

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to Prevent Such meetings, by any law the which either Could be Executed, or would be consistent with liberty and justice. But though the law can not Hinder people of the same trade from Sometimes assembling together, it ought to do nothing to facilitate Such assemblies; much less to render them Necessary.

Indonesia

The people of the same trade are sometimes met with, even for fun and separation, but the conversation will end up with a conspiracy against the public, or in certain cases to raise prices. Actually impossible to prevent such meetings, by any law to be imposed, or would be consistent with liberty and justice. But the law could not prevent the public from the same trade to occasionally meet together, it should not cause anything to facilitate such meetings, much less make a profit they are needed.

Quote a critical but rarely used in The Wealth of Nations is:

English

The subjects of every state ought to Contribute towards the support of the government, as nearly as possible, in Proportion to Their respective Abilities; That is, in Proportion to the revenue of the which They respectively enjoy under the protection of the state. The expense of government to the individuals of a great nation is like the expense of management to the joint Tenants of a great estate, WHO are all obliged to Contribute in Proportion to Their respective interests in the estate. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation.

Indonesia

The subjects of each country should contribute through support to the government, as nearly as possible, in proportion to their ability, that is, the proportion of the revenue which they enjoy under the protection of this country. Spending from government to individuals from countries such as expenses of management to the tenant of a large residence, diamana everything required to contribute in proportion of their interests in the country. In the observation or rejection of the statement containing the so-called equality in taxation.

Herbert Stein, who is often quoted in the article, "Adam Smith Adam Smith did not wear ties," writes that people who wear Adam Smith neckties do "to make a statement of their sincerity to the idea of ​​free markets and limited government. What comes out in WofN , however, is their patron saint is not pure or suggesting ideas. He viewed government intervention in markets with high skepticism. He is concerned with the exposition of the goodness of a free market where the main contribution to the policies, and objectives for analisaekonominya developed. "

He also has not been prepared or qualified to apply the policy in cases where he judged that their net effect will be profitable and will not damage what is basically free character of the system, "wrote Stein." He was not wearing a tie neck Adam Smith. "In reading Stein, The Wealth of Nations can provide a reasonable explanation on the Administration of the Food and Drug Administration, Consumer Product Safety Commission, an excess of authority health workers, enviromentalism, and" discriminatory taxation to reduce unnecessary habits and extravagance

"Adam Smith Problem"

In The Wealth of Nations Smith claims that his own personal interests (in a balanced institutional arrangements) can lead to beneficial results in terms of the social. But in the Theory of Moral Sentiments Smith argues that his sympathy is needed to achieve socially beneficial results. It is tangible in the surface state of contradiction.

Economist August Oncken linking to it in German as das 'Adam Smith-Problem' [8]. Austrian economist Joseph Schumpeter also concerned about this tends to contradict the work of Smith in his commentary.

Adam Smith himself saw no contradiction, since he produced a revised edition of Moral Sentiments after the publication of the Wealth of Nations. Both are in the range of ideas can be found in the Lectures of Jurispundence. In recent years most students of the work of Adam Smith argued that there is no contradiction happens. In the Theory of Moral Sentiments, Smith develops a theory of psychology in which each individual in the community find it in their self-interest to develop sympathy as they seek an award of what he calls "impartial spectator". Personal interest which he called not a narrow selfishness but something that involves sympathy.

Some readers of The Wealth of Nations assumes that when Smith speaks of "personal interests" he meant it as selfishness. Although in certain contexts, such as buying and selling, sympathy generally not be included, Smith made it clear where he saw selfishness as something that is unacceptable, if not immoral, and self-interest players have sympathy for others. The Theory of Moral Sentiments Smith argues that the private interests of actors, including the interests of any other part of society, because the opinion of an act socially enhanced the importance of appropriate and inappropriate affect interests of individuals as members of society. This context is also useful because of Adam Smith against the idea of ​​the corporation, or "joint stock company".

In any case, Adam Smith seems to believe that the moral sentiments and self-interest will add to the same thing. One possible line of reason he may have reached the stage of conclusion: invisible hands can not operate if there is no society, to initiate an initial construction of the social division of labor, and, the efficiency that comes with its manifestations. Now for the community to exist, justice is a necessary condition (which is referred to in the works of Smith's Theory of Moral Sentiments). For justice to be in any social setting, individuals must brazing desire of reward and anger that is controlled by a sense of respect and do not appreciate is also almost exclusively produced by human sympathy. In conclusion, the invisible hands of the market is, at some level, represented by the ability of humans to sympathize: Smith is a personal interest of harmony with the opinion of sympathy.

Influence

The Wealth of Nations was one of the earliest efforts to study the rise of industrial and economic developments in Europe, is the guardian of the modern academic discipline of economics. It gives one of the best known intellectual rationale for free trade and capitalism, writing extensively affect subsequent economists.

There is some controversy over the expansion of the authenticity of Smith in the Wealth of Nations. Some argue that the work is to add just a bit of pre-existing ideas of Anders Chydenius (The National Gain in 1765), David Hume and the Baron de Montesquieu. Actually, many of Smith's theory only explains the history of mercantilism and the trend towards free trade in which has been developed over several decades and has significant influence in government policy. However, Smith summarized the work of their ideas are comprehensive, and also one of the most influential and important book is currently in the field of economics.

Smith is ranked 30th in the list of most influential people of his Michael H. Hart.

From March 13, 2007 there portrait of Smith appears in the new £ 20. He was the first Scotsman to be displayed in such currency by the Bank of England. Image of the memorandum is available at bwebsite Bank of England

On June 25, 2006, where Warren Buffet announced that he would donate his fortune to The Bill and Melinda Gates Foundation, he was rewarded with a copy of Adam Smith's Wealth of Nations by Bill Gates.

Adam Smith is an inspiration from a conservative group from Missouri, Adam Smith Foundation.

Masterpiece

* The Theory of Moral Sentiments (1759)
* An Inquiry Into the Nature and Causes of the Wealth of Nations (1776)
* Essays on Philosophical Subjects (published after 1795)
* Lectures on Jurisprudence (published after 1976)