Adam Smith - English academic economist
The emergence of economic science since the XVIII century associated with Adam Smith. In the natural sciences, economics requires the study of the theories of the great economists.
Adam Smith was born June 5, 1723 in Scotland. From childhood he was distinguished by his ability to study, he entered the University of Glasgow, was awarded a scholarship.Outside of university, Adam Smith read additional books on political economy.His scientific work "The Theory of Moral Sentiments" in 1759 brought him fame.
In 1764 he left the pulpit and went on a journey. acquaintance during a trip with French philosophers was reflected in his work "A Study on the Nature and Causes of the Wealth of Nations". When he returned to Scotland, A. Smith was completing work on The Wealth of Nations.
In his work "Study on the Nature and Causes of the Wealth of Nations" identified the following problems: the economic development of society and the improvement of its well-being.
In the book, he gives the concept that the country's economy increases the wealth of the people with material resources.
His answer to the question which sphere in the economy is profitable, he assumes, on the one hand, the sphere of production, and, on the other hand, the development of agriculture.
Adam Smith emphasized that in order to influence the economy, it is important to take into account the interest of society, and not private interests. So he singles out the concept of "economic man" and "invisible hand".
The "invisible hand" directs "economic man to the best results, the higher goals of society. He believed that in order to support the economy and avoid mopolization, there must be free competition.
His invisible hand theory states:
consumers choose what to buy аnd manufacturers what to sell. How to produce products. He believes that competition keeps people from fraud.
value theory
А.Smith understood the concept of "use value" as the ability of an object to satisfy a person's need. At the time, many disagreed with his theory. A. Smith was prone to cost theory.
"The subject of economic science" in his opinion is the labor of a person of any kind and should be considered "productive".
Adam Smith sees money as a technical instrument of exchange. The income of workers is in direct proportion to the level of wealth of the country.
Adam Smith explained the economic relations of people as nature, whose goals may well not coincide with the interests of others. Adam Smith saw in a person all the flaws and weaknesses.
He showed that the wealth of the nation is created both in agriculture and trade, and in all types of industries that exist in the economy. The wrong approach of the rulers can hinder the growth of the country's wealth. If people work, then the country will prosper.
Yaşam Ayavefe
