Adam Smith Term Paper Example | Topics and Well Written Essays - 1000 words

rapture Smith - Term Paper precedentThe behaviour of the economy and its interaction with the agents and actors of the economical system of a particular country has been noted and analyze by various economists. This paper shall discuss one of the most noted and prominent economists, along with his contribution, background, and cropdays of thought for the subject. Adam Smith Adam Smith has been one of the most prominent and noted economists of his time. He was born in Kirkcaldy Scotland in 1723, and, later, went to Oxford at the age of 17. In the course of study 1951, Smith was appointed at Glasgow as a professor of Logic, and within one year, he was made the Chair of Moral Philosophy. similarly being a Scottish social philosopher, Smith was withal the founder of the political economy. He had turn up to be one of the chief personalities of the Scottish Enlightenment, and had also authored some major academic works including An interrogative into the Nature, The Theory of Mor al Sentiments, 1759, and Causes of the Wealth of Nations, 1776. His special achievement, The Wealth of Nations, is generally regarded as the very first of the groundbreaking works in the contemporary economic society these days (Butler, Eamonn, 2007). Through this work, Adam Smith has accomplish huge respect and reputation, this works has been ranked the most prominent, and significant works ever published in the field of economics. Smith is broadly known as the father of capitalism and modern economics. Later, in the year 2009, the Scottish television channel (STV) ran votes and the economist and writer, Adam Smith, was ranked as the Greatest Scots of all time. School of impression There are various challenging and competing schools of thoughts commanding different opinions and viewpoints of the economic philosophies. The chief division in the classes of schools of thoughts includes the Classical and Neoclassical schools. Adam Smith was the pioneer of the Classical school of tho ught, which fundamentally stressed upon the supposition of creating economic value and distributing the wealth of the economy between various classes including the capitalists, landlords, and the workers. One of the prominent branches of the Classical school is the Marxist school of thought. Economic Theories Just like all other economists, Adam Smith also held his own viewpoints and perceptions regarding the economic cycle that moves the world around. Due to his emerging thoughts on the subject of economic, he introduced the economic theories which included one of the significant economic theories, the Invisible hand theory. The Invisible Hand Theory Adam Smith believed that there was an invisible hand in the marketplace which has always operated in order to get at the markets of a self-regulating nature. This metaphor stated that all the consumers have a free will to get what to purchase and each manufacturer is free to decide what to produce and sell. Such a marketplace sets t he dissemination of the products and the prices which are of benefit to the individuals in the community and to the community in a collective manner. This is the involvement of self-concern which forces the actors to behave in a beneficial way. The profits are maximized using efficient methods of production. Revenues are maximized finished charging lower prices and the returns are maximized by investing in the urgently required industries. Thus, all the do in the markets occur automatically and dynamically, and this occurrence, Adam Smith has mentioned, exists due to the benevolent invisible hand. All these effects take place dynamically and automatically (Helen, 2001). Contribution to Economics Adam Smith gave major contributions in the field of economics through