History of Economic Thought/Adam Smith

Introduction Adam Smith was a Scottish economist, philosopher, and author. He was a moral philosopher, a pioneer of political economy, and was a key figure during the Scottish Enlightenment era. Historical Context Adam Smith's Life Adam Smith as a Philosopher Before Smith wrote The Wealth of Nations, he was famous with The Theory of Moral Sentiments. The Theory of Moral Sentiments was in the Enlightenment tradition. How can a selfish person make moral judgments satisfying other people? Each person stands at his own system. Smith asked himself why, if people are only self-interested, each town does not resemble the vicious state of nature, "solitary, poor, nasty, brutish, and short." (phase of Thomas Hobbes) Smith made an answer. When people make moral choices, he said, they think an impartial spectator. Instead of simply being selfish, they take the impartial observer’s advice. In this way, people decide on the basis of sympathy, not selfishness. Smith's Thoguht on Ethics and Jurisprudence The Wealth of Nations In 1776, The Wealth of Nations was published. Smith on Labour and Capital Values and Prices Money and Banking Free Market and The Invisible Hand Smith on Taxation Adam Smith as an Economist Legacy and Influence Reference and further reading Adam Smith