Introduction :
Adam Smith (June 5, 1723 –
July 17, 1790) was a Scottish Economist and Philosopher who happened to be an
important figure in the Scottish Enlightenment. He refused to attribute
economic power to the divine will(god’s will being the first cause of
everything that exists) but rather to political, natural, social, economic, and
technological causes. He is considered by many people The Father of
Capitalism.
Early Life and Education :
Adam Smith was born to a
wealthy family. Named after his father who was a lawyer, and his mother
Margareta Douglas was the daughter of a landowner. He had 5 siblings and grew
up in a comfortable, middle-class household.
Smith received an education in
Mathematics, History, and Classical Languages at the Burgh School of Kirkcaldy.
At the age of 14, he enrolled at the University of Glasgow where he delved deep
into Mathematics and studied Moral Philosophy. He also got a scholarship in
1740 after graduating from Glasgow to attend Baliol college at the University
of Oxford. He was introduced to the ideas of the Scottish Enlightenment which
accentuated the importance of reason and individualism. And that would later
aid him in becoming a professor of logic at the University of Glasgow in 1751,
and he later became a professor of moral philosophy.
Career :
Smith gave lectures on a
variety of subjects at the University of Glasgow including; economics, ethics,
and rhetoric. He also made a lot of independent and government service. Notably
publishing his book called “The Theory of Moral Sentiments” which showed that
our moral ideas and actions are a product of our nature as social
creatures.
In 1760, Smith became more
involved with FRSA(Fellow of the Royal Society of Arts) an organization
that promoted arts, manufacturing, and commerce in the United Kingdom. He gave
a series of lectures at the FRSA which solidified him as an Economist and
helped him expound on his ideas all the more.
In 1776, Smith published his
most recognized work, “The Wealth of Nations” which discussed his ideas about
capitalism, free markets, and the division of labor. This particular book was
widely influential and cemented Adam Smith’s stance as one of the leading
scholars of that time.
As mentioned before, Smith had
a fair share of government service involvement. Serving as a commissioner of
customs in Scotland and as a member of the Board of Trade in London.
Legacy :
Smith has had a long-lasting
contribution to modern economics. His ideas emphasized the great importance of
free markets; the least amount of government collusion and individual
self-interest. Because Smith argued that when individuals seek out their
self-interest in a free market, they will automatically produce goods and
services that people value, and in return that will lead to economic growth and
prosperity. Adam Smith is well-known for having said: “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.”
He basically says; that we
don’t rely on the kindness of the people to provide the goods and services, but
rather on their own self-interest.
Critiques :
However, Smith’s ideology has
been criticized on multiple occasions, particularly regarding the potential
negative consequences of capitalism, which many times lead to inequality in
income and exploitation of labor.
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