Adam Smith was an 18th century philosopher who wrote The Wealth of Nations, the first treatise on modern economics. He introduced the importance of self-interest and laissez-faire economics. Smith studied at the University of Glasgow and Balliol College in Oxford. He became a professor at the University of Glasgow and wrote The Theory of Moral Sentiments. Smith later became a tutor and traveled before retiring to write The Wealth of Nations. He died in 1790 and is recognized as the father of modern economics.
Adam Smith was an 18th century philosopher of political and economic thought. His pioneering book of 18 An Inquiry into the Nature and Causes of the Wealth of Nations, often referred to simply as The Wealth of Nations, is widely recognized as the first treatise on modern economics. Smith’s work introduced the importance of self-interest in economic activities and the global connotations of laissez-faire economics, in which personal economic transactions do not require government intervention.
Smith was born in Kirkcaldy, Scotland, where he was baptized on June 15, 1723—the precise date of his birth is not known. Smith’s father was a lawyer and died six months after the birth of his son. Smith was raised by his mother, Margaret, with whom he maintained a close relationship for the rest of his life.
When he was 13, Adam Smith became a student at the University of Glasgow, where he studied moral philosophy. From there he attended Balliol College in Oxford, England, an education which he found second-rate to his own education in Glasgow. He studied English Literature at Oxford until health problems interrupted his studies and he returned to Scotland. He soon became a professor at the University of Glasgow, where he taught logic and moral philosophy.
Smith’s first work, The Theory of Moral Sentiments, based on his lectures at the University of Glasgow, was published in 1759. In this volume, he presented his theory of political economy. He sought to elucidate the basis of the human capacity to form moral judgments and also initiated the idea that an “invisible hand” guides people to the optimal use of resources in any economy.
In 1764, Smith left his college career to become the tutor of Henry Scott, the Duke of Buccleuch. The couple traveled extensively throughout Switzerland and France for two years before Smith retired to Kirkcaldy, where he began writing The Wealth of Nations. This seminal work was published in 1776 and analyzed the moral implications of free market economics. In this pioneering manifesto, Smith expounded his “invisible hand” theory and deduced that following one’s self-interest was the key to economic success. “It is not from the benevolence of the butcher, brewer or baker that we expect our supper, but from their consideration for their self-interest,” Smith wrote in The Wealth of Nations.
Adam Smith died on July 17, 1790 in Edinburgh. He never married and, at his own insistence, the manuscripts he had worked on were destroyed. As he lay dying, Smith said he regretted not having accomplished more in his life than he had. Today, however, Adam Smith is widely recognized as the father of modern economics.
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