Adam Smith

​

Introduction

Adam Smith was a Scottish economist and philosopher who is often called the "father of economics." He is best known for his book "The Wealth of Nations," which is one of the most important works in the history of economic thought. Smith's ideas about free markets, competition, and the role of government have influenced many people and shaped modern economics.

​

Early Life

Adam Smith was born on June 16, 1723, in the small town of Kirkcaldy, Scotland. His father, also named Adam Smith, was a lawyer and customs official. Unfortunately, Adam's father died just a few months before Adam was born. This left his mother, Margaret Douglas, to raise him alone.

​

Adam was a bright and curious child. He loved to read and learn about the world. His mother noticed his talents and encouraged his education. At the age of 14, Adam went to the University of Glasgow, one of the best universities in Scotland at the time. There, he studied philosophy under a famous teacher named Francis Hutcheson.

​

Hutcheson’s teachings had a big influence on young Adam. He taught that people should act in ways that promote the happiness and well-being of others. This idea, known as moral philosophy, was something Adam would think about for the rest of his life.

​

Education and Early Career

After completing his studies at the University of Glasgow, Adam went to Oxford University in England. He studied there for six years, but he did not enjoy it as much as Glasgow. Oxford was very traditional and strict, and the teaching methods were old-fashioned. Despite this, Adam continued to study on his own, reading many books and thinking about big ideas.

​

In 1746, after finishing his studies at Oxford, Adam returned to Scotland. He was unsure of what career to pursue, but he knew he wanted to continue learning and teaching. In 1748, he began giving public lectures in Edinburgh, the capital of Scotland. These lectures were very popular, and many people came to hear him speak.

​

In 1751, Adam was offered a job as a professor of logic at the University of Glasgow. A year later, he became the professor of moral philosophy. He enjoyed teaching and was very good at it. His lectures covered topics like ethics, economics, and law. He was especially interested in how people make decisions and what motivates them.

​

The Theory of Moral Sentiments

In 1759, Adam Smith published his first major book, "The Theory of Moral Sentiments." In this book, he explored the nature of human relationships and how people develop moral ideas. He argued that people naturally care about others and that this concern for others helps to create a stable society.

​

One of the key ideas in the book is the concept of the "impartial spectator." This idea suggests that when we think about how to act, we imagine how an impartial observer—a person who is not involved in the situation—would judge our actions. This helps us to make fair and moral decisions.

​

"The Theory of Moral Sentiments" was well-received and made Adam Smith a respected thinker in Scotland and beyond. He continued to teach and write, and his reputation as a philosopher grew.

​

The Wealth of Nations

In 1764, Adam Smith left his job at the University of Glasgow to become a tutor to the young Duke of Buccleuch, a wealthy Scottish nobleman. This job allowed him to travel across Europe, where he met many other famous thinkers, including Voltaire and Benjamin Franklin.

During his travels, Adam Smith began to develop new ideas about economics. He observed how different countries managed their economies and saw the impact of trade and industry. These experiences helped shape his thoughts about how economies should work.

​

After returning to Scotland in 1766, Adam began working on his most famous book, "An Inquiry into the Nature and Causes of the Wealth of Nations," usually known simply as "The Wealth of Nations." It took him ten years to write, and it was finally published in 1776.

​

In "The Wealth of Nations," Adam Smith argued that the wealth of a country is not just based on its gold and silver but also on its ability to produce goods and services. He introduced the idea of the "invisible hand," which suggests that when individuals pursue their own self-interest, they unintentionally help to create a healthy economy. He also discussed the importance of competition and free markets, where businesses compete with each other to provide better products and services.

​

Adam Smith also believed that the government should play a limited role in the economy. He thought that the government should protect the country, provide justice, and build public works like roads and bridges, but it should not control businesses or trade.

​

"The Wealth of Nations" was a groundbreaking book that changed the way people thought about economics. It laid the foundation for modern economic theory and is still studied today.

​

Later Life and Legacy

After publishing "The Wealth of Nations," Adam Smith became very famous. He was invited to advise the British government on economic matters and was appointed as a commissioner of customs in Scotland. In this role, he helped to enforce trade laws and reduce smuggling.

Despite his success, Adam Smith lived a quiet and modest life. He never married and spent most of his time reading, writing, and thinking. He continued to work on his ideas until his death.

​

Adam Smith died on July 17, 1790, at the age of 67. He was buried in the Canongate Kirkyard in Edinburgh, Scotland. Before he died, he asked that all his unpublished works be destroyed. He was a private man who did not seek fame or recognition, but his ideas had already made a huge impact on the world.

​

Adam Smith’s Ideas and Their Influence

Adam Smith’s ideas have had a lasting influence on economics and political thought. His concept of the "invisible hand" has been used to explain how markets operate without the need for central control. His belief in free markets and competition has shaped modern capitalism and influenced policies in many countries.

​

Smith's ideas about the limited role of government in the economy have also been important. While he recognized that government has some responsibilities, he argued that too much government control could harm economic growth. This idea has been central to debates about the role of government in the economy ever since.

​

Adam Smith’s work has also influenced many other fields, including philosophy, sociology, and political science. His ideas about human behavior, morality, and decision-making continue to be relevant today.

​

Conclusion

Adam Smith was a brilliant thinker who changed the way we understand economics. His work has stood the test of time and continues to be studied by students, economists, and policymakers around the world. Although he lived more than 200 years ago, his ideas remain important and influential.

​

Smith's life was dedicated to learning, teaching, and thinking about the big questions of how societies work and how people can live together in harmony. His legacy as the "father of economics" is a testament to the power of ideas to shape the world.

​

Adam Smith’s writings, especially "The Wealth of Nations," have had a profound impact on our understanding of economics and continue to guide discussions about how economies should be organized. His belief in the importance of freedom, competition, and limited government remains central to economic thought today.

​

Glossary for Adam Smith

1. Economist - A person who studies money and trade.

2. Economy - The system of money, trade, and goods in a country.

3. Trade - The act of buying and selling things.

4. Market - A place or system where people buy and sell goods.

5. Wealth - Money and valuable things.

6. Ideas - Thoughts or plans about how things could work.

7. Society - A group of people living together in communities.

8. Labor - Work, especially physical work.

9. Theory - An idea or set of ideas to explain something.

10. Book - Written pages about a topic; Adam Smith wrote books.