Adam Smith works on economics. Brief biography of Adam Smith: achievements of the economist and interesting facts. Influence of Smith's work
1. Life and scientific activities
2. The significance of A. Smith’s economic works
3. Smith's interpretation of economic laws
Adam Smith is a Scottish economist and philosopher, one of the largest representatives of classical political economy. He created the theory of labor value and substantiated the need for the possible liberation of a market economy from government intervention.
In “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), he summarized the century-long development of this direction of economic thought and examined the theory cost and the distribution of income and its accumulation, the economic history of Western Europe, views on economic policy, state finances. A. Smith approached economics as a system in which objective laws, amenable to knowledge. During life Adam Smith The book went through 5 English and several foreign editions and translations.
Life and scientific activities
Was born Adam Smith in 1723 in the small Scottish town of Kirkcaldy. His father, a minor customs official, died before his son was born. Adam's mother gave him a good upbringing and had a huge moral influence on him.
Adam, aged fourteen, comes to Glasgow to study mathematics and philosophy at university. The most vivid and unforgettable impressions were left on him by the brilliant lectures of Francis Hutchison, who was called “the father of speculative philosophy in Scotland in modern times.” Hutchison was the first of the professors at the University of Glasgow to give his lectures not in Latin, but in ordinary spoken language, and without any notes. His commitment to the principles of “reasonable” religious and political freedom and unorthodox ideas about a just and good Supreme Deity, caring for human happiness, caused discontent among the old Scottish professors.
In 1740, due to circumstances, Scottish universities were able to send several students each year to study in Britain. Smith goes to Oxford. During this long journey on horseback, the young man never ceased to be amazed at the wealth and prosperity of this region, so different from the economical and reserved Scotland.
Oxford met Adam Smith inhospitably: the Scots, of whom there were very few, felt uncomfortable, subjected to constant ridicule, indifferent, and even unfair treatment by teachers. Smith considered the six years spent here to be the most unhappy and mediocre of his life, although he read a lot and constantly studied on his own. It is no coincidence that he left the university ahead of schedule, without receiving a diploma.
Smith returned to Scotland and, abandoning his intention to become a priest, decided to earn his living through literary activity. In Edinburgh he prepared and delivered two courses of public lectures on rhetoric, belles lettres and jurisprudence. However, the texts have not survived, and an impression of them can only be formed from the memories and notes of some listeners. One thing is certain: these speeches already brought Adam Smith his first fame and official recognition: in 1751 he received the title of professor of logic, and the following year - professor of moral philosophy at the University of Glasgow.
Probably, Adam Smith lived happily for the thirteen years that he taught at the university - political ambitions and the desire for greatness were alien to him by nature. He believed that happiness is available to everyone and does not depend on position in society, and true pleasure comes only from satisfaction work, peace of mind and physical health. Smith himself lived to old age, maintaining clarity of mind and extraordinary diligence.
Adam was an unusually popular lecturer. Adam's course, which consisted of natural history, theology, ethics, law and politics, attracted numerous students who came from even remote places. The very next day, new lectures were hotly discussed in clubs and literary societies in Glasgow. Smith's admirers not only repeated the expressions of their idol, but even tried to accurately imitate his manner of speaking, especially his exact pronunciation.
Meanwhile, Smith hardly resembled an eloquent speaker: his voice was harsh, his diction was not very clear, and at times he almost stuttered. There was a lot of talk about his absent-mindedness. Sometimes those around him noticed that Smith seemed to be talking to himself, and a slight smile appeared on his face. If at such moments someone called out to him, trying to engage him in a conversation, he immediately began to rant and did not stop until he had laid out everything he knew about the subject of discussion. But if anyone expressed doubts about his arguments, Smith instantly renounced what he had just said and, with the same fervor, convinced of the exact opposite.
A distinctive feature of the scientist’s character was gentleness and compliance, reaching the point of some timidity; this was probably due to the female influence under which he grew up. Almost until his very last years, he was carefully looked after by his mother and cousin. Adam Smith had no other relatives: they said that after the disappointment suffered in his early youth, he forever abandoned thoughts of marriage.
His penchant for solitude and a quiet, secluded life caused complaints from his few friends, especially the closest of them, Hume. Smith became friends with the famous Scottish philosopher, historian and economist David Hume in 1752. In many ways they were similar: both were interested in ethics and political economy, and had an inquisitive mindset. Some of Hume's brilliant insights were further developed and embodied in the works of Smith.
In their friendly union, David Hume undoubtedly played a leading role. Adam Smith did not possess significant courage, which was revealed, among other things, in his refusal to take upon himself, after Hume’s death, the publication of some of the latter’s works that were anti-religious in nature. Nevertheless, Smith was a noble nature: full of desire for truth and the high qualities of the human soul, he fully shared the ideals of his time, on the eve of the Great French Revolution.
In 1759, Adam Smith published his first essay, which brought him wide fame, “The Theory of Moral Sentiments,” where he sought to prove that a person has a feeling of sympathy for others, which motivates him to follow moral principles. Immediately after release work Hume wrote to a friend with his characteristic irony: “Indeed, nothing can hint more strongly at error than the approval of the majority. I proceed to present the sad news that your book is very unhappy, because it has earned excessive admiration from the public.”
The Theory of Moral Sentiments is one of the most remarkable works on ethics of the 18th century. As a successor mainly to Shaftesbury, Hutchinson and Hume, Adam Smith developed a new ethical system that represented a major step forward compared to the systems of his predecessors.
A. Smith became so popular that soon after the publication of The Theory he received from the Duke of Bucclei to accompany his family on a trip to Europe. The arguments that forced the respected professor to leave his university chair and his usual social circle were weighty: the Duke promised him 300 pounds a year not only for the duration of the trip, but also after, which was especially attractive. Being constant for the rest of your life eliminated the need to earn a living.
The journey lasted almost three years. UK they left in 1764, visited Paris, Toulouse, other cities of southern France, and Genoa. The months spent in Paris were remembered for a long time - here Adam Smith met almost all the outstanding philosophers and writers of the era. He met with D'Alembert, Helvetius, but became especially close to Turgot, a brilliant economist, the future controller general of finance. Poor knowledge of French did not prevent Smith from talking with him for a long time about political economy. Their views had a lot in common with the idea of free trade and limiting intervention states into the economy.
Returning to his homeland, Adam Smith retires to his old parents' house, devoting himself entirely to working on the main book of his life. About ten years passed almost completely alone. In letters to Hume, Smith mentions long walks along the seashore, where nothing disturbed his thoughts. In 1776, “An Inquiry into the Nature and Causes of the Wealth of Nations” was published - a work combining abstract theory with a detailed description of the features of development trade and production.
With this last work, Smith, according to popular belief at that time, created a new science - political economy. The opinion is exaggerated. But no matter how one evaluates the merits of Adam Smith in the history of political economy, one thing is beyond doubt: no one, either before or after him, played such a role in the history of this science. “The Wealth of Nations” is an extensive treatise of five books, containing an outline of theoretical economics (books 1-2), the history of economic teachings in connection with general economic history Europe after the fall of the Roman Empire (3-4th books) and financial science in connection with the science of management (5th book).
The main idea of the theoretical part of “The Wealth of Nations” can be considered the position that the main source and factor of wealth is human labor - in other words, man himself. The reader encounters this idea on the very first pages of Smith’s treatise, in the famous chapter “On the Division of Labor.” The division of labor, according to Smith, is the most important engine of economic progress. As a condition that sets a limit to the possible division of labor, Smith points to the vastness of the market, and this elevates the entire teaching from a simple empirical generalization, expressed by Greek philosophers, to the level of scientific law. In his doctrine of value, Smith also highlights human labor, recognizing labor as a universal measure of exchange value
His criticism of mercantilism was not abstract reasoning: he described the economic system in which he lived and showed its unsuitability for new conditions. Observations made earlier in Glasgow, then still a provincial city, which was gradually turning into a large commercial and industrial center, probably helped. According to the apt remark of one of his contemporaries, here after 1750 “not a single beggar was visible on the streets, every child was busy with work”
Adam Smith was not the first to debunk economic misconceptions politicians mercantilism, which involved artificial encouragement state individual industries, but he managed to bring his views into a system and apply it to reality. He defended freedom trade and state non-interference in the economy, because he believed that only they would provide the most favorable conditions for obtaining the greatest profit, and therefore would contribute to the prosperity of society. Smith believed that the functions of the state should be reduced only to the defense of the country from external enemies, the fight against criminals and the company of economic activities that are beyond the power of individuals.
The originality of Adam Smith did not lie in particulars, but as a whole, his system was the most complete and perfect expression of the ideas and aspirations of his era - the era of the fall of the medieval economic system and the rapid development of the capitalist economy. Smith's individualism, cosmopolitanism and rationalism are in complete harmony with the philosophical worldview of the 18th century. His ardent belief in freedom is reminiscent of the revolutionary era of the late 18th century. The same spirit permeates Smith's attitude towards the working and lower classes of society. In general, Adam Smith is completely alien to that conscious defense of the interests of the upper classes, the bourgeoisie or landowners, which characterized the social position of his disciples of later times. On the contrary, in all cases where the interests of workers and capitalists come into conflict, he energetically takes the side of the workers. Nevertheless, Smith's ideas benefited the bourgeoisie. This irony of history reflected the transitional nature of the era.
In 1778, Adam Smith was appointed as a member of the Scottish Customs Board. Edinburgh became his permanent place of residence. In 1787 he was elected rector of the University of Glasgow.
Now arriving in London, after the publication of The Wealth of Nations, Smith was met with resounding success and admiration from the public. But William Pitt the Younger became his especially enthusiastic admirer. He was not even eighteen when Adam Smith’s book was published, which largely influenced the formation of the views of the future prime minister, who tried to put into practice the main principles of Smith’s economic theory.
In 1787, Smith's last visit to London took place - he was supposed to attend a dinner where many famous people gathered politicians.
Smith came last. Immediately everyone rose to greet the distinguished guest. “Sit down, gentlemen,” he said, embarrassed by the attention. “No,” Pitt replied, “we will remain standing until you sit down, because we are all your students.” “What an extraordinary man Pitt is,” Adam Smith later exclaimed, “he understands my ideas better than I do myself!”
Recent years have been painted in dark, melancholic tones. With the death of his mother, Smith seemed to have lost the will to live, the best was left behind. Honor did not replace departed friends. On the eve of his death, Smith ordered all unfinished manuscripts to be burned, as if once again reminding him of his contempt for vanity and worldly vanity.
Adam Smith died in Edinburgh in 1790.
Shortly before his death, Smith apparently destroyed almost all of his manuscripts. What survived was published in the posthumous Essays on Philosophical Subjects, 1795.
The significance of A. Smith's economic works
In the process of studying the main issue of this essay, I looked at several, in my opinion, the most suitable sources. In these books I found many often completely contradictory opinions about the role and place of Smith's teachings in economic science.
K. Marx, for example, characterized A. Smith as follows: “On the one hand, he traces the internal connection of economic categories, or the hidden structure of the bourgeois economic system. On the other hand, he puts next to this the connection as it is given visibly in phenomena competition..." According to Marx, the duality of Smith’s methodology (which K. Marx was the first to point out) led to the fact that not only “progressive economists who sought to discover the objective laws of the movement of capitalism, but also apologist economists who tried to justify the bourgeois system by analyzing the external appearance of phenomena and processes".
The assessment of Smith's works given by S. Gide and S. Rist is noteworthy. It is as follows. Smith borrowed all the important ideas from his predecessors in order to "pour" them into a "more general system." By getting ahead of them, he rendered them useless, since Smith replaced their fragmentary views with true social and economic philosophy. Thus, these views receive a completely new value in his book. Rather than remaining isolated, they serve to illustrate a general concept. From it they, in turn, borrow more light. Like almost all great “writers,” A. Smith, without losing his originality, could borrow a lot from his predecessors...
And the most interesting opinion about Smith’s works, in my opinion, was published by M. Blaug: “There is no need to portray Adam Smith as the founder of political economy. Cantillon, Quesnay and Turgot can be awarded this honor with much greater justification. However, Cantillon’s Essays, Quesnay’s articles , Turgot's "Reflections" are, at best, lengthy brochures, dress rehearsals for science, but not yet science itself. "An Inquiry into the Nature and Causes of the Wealth of Nations" is the first full-fledged work in economic science, setting out the general basis of science - the theory of production and distribution. , then an analysis of the action of these abstract principles on historical material and, finally, a number of examples of their application in economic policy, and all this work is imbued with the high idea of "an obvious and simple system of natural freedom", towards which, as it seemed to Adam Smith, the world was heading" .
The central motif - the soul of "The Wealth of Nations" - is the action of the "invisible hand". The idea itself, in my opinion, is quite original for the 18th century. and could not go unnoticed by Smith's contemporaries. However, already in the 18th century. there was an idea of the natural equality of people: every person, regardless of birth and position, should be given an equal right to pursue his own benefit, and the whole society would benefit from this.
Adam Smith developed this idea and applied it to political economy. The scientist’s idea of human nature and the relationship between man and society formed the basis of the views of the classical school. The concept of "homo oeconomicus" ("economic man") arose somewhat later, but its inventors relied on Smith. The famous phrase about the "invisible hand" may be the most often quoted passage from The Wealth of Nations. Adam Smith was able to guess the most fruitful idea that under certain social conditions, which we today describe with the term “working,” private interests can indeed be harmoniously combined with the interests of society.
Adam Smith- Scottish political economist, economist, philosopher and one of the founders of modern economic theory. His achievements in the field of economics as a science are compared to Newton's achievements in physics in terms of significance.
Brief biography
A small number of facts from the biography of Adam Smith have been preserved. It is known that he born June 1723(the exact date of his birth is unknown) and was baptized on June 5 in the town Kirkcaldy in the Scottish county of Fife.
His father is a customs official, also named Adam Smith, died 2 months before the birth of his son. It is assumed that Adam was the only child in the family. At the age of 4, he was kidnapped by gypsies, but was quickly rescued by his uncle and returned to his mother. There was a good school in Kirkcaldy, and from childhood Adam was surrounded by books.
Study period
Aged 14 years old Adam Smith entered the University of Glasgow, where he studied the ethical foundations of philosophy for two years under the guidance of Francis Hutcheson. In his first year, he studied logic (this was a mandatory requirement), then moved to the class of moral philosophy. He studied ancient languages (especially ancient Greek), mathematics and astronomy.
Adam had a reputation as a strange but intelligent man. In 1740 He entered Oxford, receiving a scholarship to continue his education, and completed his studies there in 1746.
Smith was critical of the quality of teaching at Oxford, writing in "The Wealth of Nations", What “at Oxford University, most of the professors, for many years now, have completely abandoned even the appearance of teaching”. At the university, he was often sick, read a lot, but did not yet show interest in economics.
Returning home
In summer 1746 he returned to Kirkcaldy, where he educated himself for two years. In 1748, Smith began lecturing at Edinburgh University. Initially these were lectures on English literature, later on natural law (which included jurisprudence, political doctrines, sociology and economics).
It was the preparation of lectures for students at this university that became the impetus for Adam Smith to formulate his ideas about the problems of economics. He began to express the ideas of economic liberalism, presumably in 1750-1751.
The basis of Adam Smith's scientific theory was the desire to look at man from three sides: from the standpoint of morality and morality, from civil and state positions, from economic positions.
Adam Smith's ideas
Adam lectured on rhetoric, the art of letter writing and later on the subject of "attaining wealth", where he first expounded on economic philosophy in detail "an obvious and simple system of natural freedom", which is reflected in his most famous work .
Around 1750, Adam Smith met David Hume, who was almost a decade older than him. The similarity of their views, reflected in their works on history, politics, philosophy, economics and religion, shows that together they formed an intellectual alliance that played an important role during the emergence of the so-called "Scottish Enlightenment".
"Theory of Moral Sentiments"
In 1751 Smith was appointed professor of logic at the University of Glasgow. Smith lectured on ethics, rhetoric, jurisprudence, and political economy. In 1759 Smith published a book "Theory of Moral Sentiments" based on materials from his lectures.
In this work, Smith analyzed ethical standards of behavior, ensuring social stability. At the same time, he actually opposed church morality, based on fear of punishment after death and promises of paradise.
He proposed as a basis for moral assessments "principle of sympathy", according to which what is moral is what arouses the approval of impartial and discerning observers, and also spoke in favor of the ethical equality of people - the equal applicability of moral standards to all people.
Smith lived in Glasgow for 12 years, regularly leaving for 2-3 months in Edinburgh. He was respected, made a circle of friends, and led the lifestyle of a club-going bachelor.
Personal life
There is information that Adam Smith almost got married twice, in Edinburgh and in Glasgow, but for some reason this did not happen. Neither in the memoirs of contemporaries, nor in his correspondence no evidence survives that it would seriously affect him.
Smith lived with his mother ( which he outlived by 6 years) and unmarried cousin ( who died two years before him). One of the contemporaries who visited Smith's house recorded that national Scottish food was served in the house and Scottish customs were observed.
Smith appreciated folk songs, dances and poetry, one of his last book orders was several copies of the first published volume of poetry Robert Burns. Despite the fact that Scottish morality did not encourage the theater, Smith himself loved it, especially the French theater.
Book "The Wealth of Nations"
Smith became famous worldwide after the book was published. "An Inquiry into the Nature and Causes of the Wealth of Nations" in 1776. This book analyzes in detail how an economy could operate in conditions of complete economic freedom and exposes everything that prevents this.
The Wealth of Nations discovered economics as a science
based on the free enterprise doctrine
The book substantiates the concept freedom of economic development, the socially useful role of individual egoism is shown, the special importance of the division of labor and the vastness of the market for the growth of labor productivity and national well-being is emphasized.
Recent years
In 1778 Smith was appointed one of the five Commissioners of Customs for Scotland in Edinburgh. Having a very high salary for those times of 600 pounds sterling, he continued to lead a modest lifestyle and spent money on charity. The only valuable thing left after him was the library collected during his life.
During Smith's lifetime, The Theory of Moral Sentiments was published 6 times, and The Wealth of Nations - 5 times; the third edition of “Wealth” was significantly expanded, including a chapter "Conclusion on the Mercantilist System".
In Edinburgh, Smith had his own club, on Sundays he hosted dinners for friends, and visited, among others, Princess Vorontsova-Dashkova.
Adam Smith passed away July 17, 1790 aged 67 in Edinburgh after a long bowel disease.
(June 1723 - 07/17/1790), Scottish economist and
philosopher, one of the founders of modern economics
theories.
Brief biography
Adam Smith
Scottish economist and
philosopher, one of the greatest representatives
classical political economy, born in
Kirkcaldy (Scotland) in June 1723
(the exact date of his birth is unknown) and
baptized June 5 in Kirkcaldy, Scotland
County of Fife, in the family of a customs official.
His father died 6 months before Adam was born.
At the age of 4 he was kidnapped by gypsies,
but was quickly rescued by his uncle and returned to his mother. It is assumed that
Adam was the only child in the family, as it is not found anywhere
records about his brothers and sisters.
In 1737 he entered the University of Glasgow. There, under the guidance
Francis Hutcheson, he studied the ethical foundations of philosophy. Hutcheson
had a strong influence on his worldview.
In 1740 he received a Master of Arts degree and a private scholarship for
continuing his studies at Oxford, where he attended Balliol College, Oxford
He studied at the university until 1746. However, he was not satisfied
level of teaching, since most professors didn’t even read
their lectures. Smith returns to Edinburgh, intending to take up
self-education and lecturing. In 1748, under the patronage
Lord Kames, he begins to lecture on rhetoric, art
letter writing, and later economic philosophy.
In 1748, Smith, under the patronage of Lord Kames, began reading
public lectures on literature and natural law in Edinburgh,
then in rhetoric, the art of writing letters, and later in
economic philosophy, as well as on the subject of “achieving wealth”,
where he first expounded in detail the economic philosophy of the "obvious
and a simple system of natural freedom,” and so on until 1750.
From 1751 Smith was a professor of logic at the University of Glasgow, and from 1752 he was a professor.
moral philosophy. In 1755 he published his first articles in the magazine
Edinburgh Review. In 1759 Smith released
light philosophical work on ethics “The Theory of Moral Sentiments”,
brought him international fame. In 1762 Smith received
academic degree of Doctor of Law.
Subsequently, his lectures were reflected in the most famous
Adam Smith's work: An Inquiry into the Nature and Cause of Wealth
peoples." During Smith's lifetime, the book went through 5 English editions and several
foreign publications and translations.
Around 1750, Adam Smith met David Hume,
who was almost a decade older than him. Their works on history,
politics, philosophy, economics and religion show their similarities
views. Their alliance played one of the most important roles during the period
the emergence of the Scottish Enlightenment.
In 1781, at just 28 years old, Smith was appointed professor
logic at the University of Glasgow, at the end of the year he moved to the department
moral philosophy, which he taught until 1764. He read
lectures on rhetoric, ethics, jurisprudence and political economy.
Adam Smith's scientific work "The Theory" was written in 1759.
moral feelings" containing materials from his lectures brought him
fame. The article discussed standards of ethical behavior,
which maintain society in a state of stability.
However, A. Smith's scientific interest shifted to economics, partly this
was the influence of his friend - the philosopher and economist David Hume, as well as
Smith's participation in the Glasgow Club of Political Economy.
In 1776, Adam Smith resigned his chair and, accepting an offer from
political figure - Duke of Buccleuch, accompany him abroad
the journey of the Duke's stepson. First of all, a suggestion for Smith
What was interesting was that the Duke offered him payment, significantly
exceeding his professorial fee. This journey lasted
more than two years. Adam Smith spent a year and a half in Toulouse, two months in
Geneva, where he met Voltaire. For nine months they lived in
Paris. At this time he became closely acquainted with French philosophers:
d'Alembert, Helvetius, Holbach, as well as with the physiocrats: F. Quesnay and
A. Turgot.
Publication in London in 1776 of the book “An Inquiry into the Nature and Causes of
wealth of nations" (which Smith began in Toulouse) brings to Adam
Smith is widely known. The book describes in detail the consequences
economic freedom. A system explaining the work of free
market is still the basis of economic education. One of
key provisions of Smith's theory - the need for liberation
economy from government regulation that prevents
natural development of the economy. According to Smith, people's desire
buy where it’s cheaper and sell where it’s more expensive, naturally, and therefore
all protectionist duties and incentives for exports
harmful, as are any obstacles to the free circulation of money. Most
Smith's famous aphorism - the invisible hand of the market - a phrase that he
used to explain selfishness as an effective lever in
distribution of resources.
In 1778 Smith received the post of Commissioner of Customs for Scotland and
settles in Edinburgh.
In November 1787, Adam Smith became honorary rector
University of Glasgow.
He died on July 17, 1790 in Edinburgh after a long illness.
There is a version that shortly before his death, Smith destroyed all his
manuscripts. What survived was published in the posthumous “Experiments on
Philosophical Subjects" in 1795, five years after his death.
Based on materials: Wikipedia, ru.wikipedia.org
The material was prepared based on information from open sources
Adam Smith a brief biography of the Scottish economist and philosopher, the founder of the classical school of political economy, is presented in this article.
Brief biography of Adam Smith
The future economist Adam Smith was born in the small town of Kirkcaldy in Scotland in the family of a customs worker. The exact date of birth is not known, but most researchers are of the opinion that Smith was born on June 5, 1723. And, by the way, he was baptized on the same day. The boy never saw his father, because he died before his son was born.
He received his secondary education at a local school. The mother tried to instill in her son a love of books. Smith showed an interest in mental pursuits. From the age of 14, Adam studied philosophy at the University of Glasgow. He received a master's degree and a scholarship for his studies. After 3 years, Smith enters Oxford College. He graduated from it in 1746. In Edinburgh since 1748, with the support of Lord Kames, Adam lectured students on economics, literature and law.
In 1750 he met David Hume. It turned out that he shared Smith's views on religion, philosophy, economics and politics. Together they wrote several works that played an important role during the Scottish Enlightenment.
In 1751, the economist received a position as professor of logic at Glasgow, lecturing on political economy, rhetoric and law. Based on the lectures, he wrote and published a scientific book in 1759 entitled “The Theory of Moral Sentiments.” It brought him popularity and became his most famous work. In his book, the author described the ethical standards of behavior that maintain stability in society, and also revealed a moral and ethical approach to solving equality among people.
In 1764, Smith went to France as an escort to the adopted son of the Duke of Buccleuch. He was paid very well for this work and Smith quits his job in Glasgow, devoting himself to writing a new book.
In 1776, Smith was in London and completed the book “An Inquiry into the Nature and Causes of the Wealth of Nations,” which he began in France. It is still considered the foundation of economic education.
In 1778 Adam Smith moved to Edinburgh. Here he got a job as a customs commissioner. He took his work very seriously, so he had practically no time left for scientific activity. Smith began sketching for his third book, but he did not have time to finish it. The scientist ordered to burn all his manuscripts, feeling that death was just around the corner.
(1723-1790) Founder of economics. theory, Scottish philosopher and author of the book “The Nature and Causes of the Wealth of Nations,” a representative of classical political economics. "The Wealth of Nations" introduces the abundance of economics. data and their analysis against the background of generalizing economic development trends. processes in a society based on private property. Adam Smith opposed the activities of the government, for the policy of non-interference of the state in the economy, for a departure from its interventionist policy, recommended by the theory of mercantilism, which dominated during most of the eighteenth century. Adam Smith believed that economics. freedom is an effective means of regulating the economy. The invisible hand of the market was a central concept in his teaching on economics. Competition and personal interest, which give rise to the growth of real nationality. wealth were the basis of his model. See. CAPITALISM; COMMUNISM; SOCIALISM.
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ADAM SMITH
Scottish philosopher (1723–1990), best remembered for his An Inquiry into the Causes and Nature of the Wealth of Nations (1776). After a seminal study of the division of labor, he proposed that the individual's pursuit of self-interest and the smooth functioning of the market acted as an "invisible hand" to achieve the "general welfare." Being a leading representative of the Scottish education and having visited France, where he met with leading French social and economic thinkers, Smith, in addition to economic problems, wrote about ethics, politics, law, language. In The Theory of Moral Sentiments (1779), he argued that ethical judgments depend on people's imagination of themselves in the position of others and can also be illuminated through the judgments of truth and error of an ideal impartial observer. Although strongly associated with the defense of the doctrine of Laissez Faire, Smith was not blind to the adverse effects of the division of labor, noting its potentially disruptive and dehumanizing effects on workers, although they might well have wished to limit such effects, but governments were in reality motivated by narrow interests.
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ADAM SMITH
Scottish economist whose work formed the basis of classical economic theory. A. Smith’s famous work “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776) laid the foundations for the doctrine of the market. Smith emphasized that market relations are based on the social division of labor. The scientist believed that the “invisible hand” of the market would force entrepreneurs, out of personal material interest and the desire for profit, to produce goods and services needed by society. In conditions of free competition and in the absence of government regulation, the market is able to organize economic activity in such a way that the welfare of the entire society will increase. In perfectly competitive markets, producers strive to sell as many goods as possible, which leads to price reductions to a level that allows them to cover production costs and obtain a normal profit margin. If there is a shortage of certain goods on the market, consumers offer higher prices for them, which attracts new producers to the industry and helps to increase the supply of these goods. Thus, in a market system, supply is controlled by demand. Smith actually described a new economic system that was emerging at that time in Western European countries. However, for this system to work, two conditions are necessary: the absence of government intervention and freedom of competition. Smith was very distrustful of monopolies, believing that they constituted a conspiracy against the consumer. See Private-enterprise system.
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Adam Smith
Adam Smith(Adam Smith), whom most scientists consider the founder of modern political economy as an independent science, was presumably born on June 5, 1723 in the city of Kirkcaldy in Scotland in the family of a customs official.
He graduated from the University of Glasgow and in 1740-1746 he studied at Oxford, where he studied philosophy and literature.
He began his career as a teacher. In 1748-1750 he lectured on literature and natural law. In 1751 he was awarded the scientific degree of professor of logic, in 1752 - professor of moral philosophy. Contemporaries considered Smith an outstanding speaker: his lectures attracted listeners from all over the country.
Since 1755, Adam Smith became a publicist: his first articles were published in the Edinburgh Review magazine. He gained international fame thanks to his philosophical work “The Theory of Moral Sentiments,” which was published in 1759.
From 1764 to 1766, Smith was tutor to the Duke of Becleuch. In this role, he visited Toulouse, Geneva, and Paris. He managed to meet such prominent figures of the Renaissance as Diderot, Voltaire and others.
Upon returning to his homeland, Adam Smith devoted himself to working on his main work, An Inquiry into the Nature and Causes of the Wealth of Nations, which was first published in 1776.
“The Wealth of Nations” is a treatise of five books, the first two being an essay on theoretical economics, the third and fourth about the history of economic doctrines, and the fifth about the connection between finance and the science of management.
It was in this work that for the first time we talked about selfishness as the main driving force of the economy, when the seller seeks to sell the goods where it can be done more expensively; wealth is created by all types of productive labor, not just agriculture, and precious metals are not its only expression and equivalent.
In 1778 Smith became a member of the Scottish Customs Board. He moved to Edinburgh. And in 1787 he was elected rector of the University of Glasgow.
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Smith Adam (1723-1790)
English economist, one of the founders of classical political economy. In 1766, he created the main work of his life - “A Study on the Nature and Causes of the Wealth of Nations”, which is the first full-fledged work in economic science, setting out the general basis of science - the theory of production and distribution, an analysis of the action of these abstract principles on historical material and, a number examples of their application in economic policy. This work of Smith influenced all subsequent development of economic thought in the world and the economic policies of many states. The main idea of “Studies on Nature...” is the action of the “invisible hand”: we get our bread not by the mercy of the baker, but from his selfish interest. Smith put forward the doctrine of maximum satisfaction of needs, according to which, under certain social conditions, private interests can be harmoniously combined with the interests of society. He noted that the division of labor increases labor productivity, accelerates the growth of wealth and is the most important factor in the entire history of mankind. Smith considered the mercantilists' view of money as the only wealth incorrect; moreover, he declared it expedient to replace silver and gold with paper money. Along with this, he saw that, unlike metallic money, paper money can overwhelm circulation channels and depreciate, so paper money should be issued by banks in limited quantities. Smith allocated credit money and recognized that the issue of banknotes contributed to the growth of production. Smith made significant contributions to the development of the theory of value. He determined the value of the labor expended on the production of goods and connected the exchange of goods with the amount of labor contained in them. Smith distinguished between the natural and market price of a commodity. By natural price he understood the monetary expression of value, which “seems to represent the central price towards which the prices of all goods constantly gravitate,” that is, the average price of goods determined by competition. Smith characterized the low level of the rate of profit and interest as an indicator of high economic development and “health of the nation,” although he could not explain the process of the tendency of the rate of profit to decrease. He first introduced the terms fixed and working capital and applied the categories of fixed and working capital to all functioning capital, regardless of the industry in which it is applied. Smith attached particular importance to the financial activities of the state. He laid the theoretical foundations of tax policy, emphasizing that taxes should correspond to the “strength and ability of the citizens.”Excellent definition
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SMITH ADAM
Adam (1723–90) - English economist, founder of classical political economy. Born in Scotland. As an exceptionally gifted student, he entered university at age 14. First in Glasgow and then at Oxford (1740–46) he studied philosophy. The boy was greatly influenced by the moral philosophy courses of Francis Hutcheson (1654–1746), as well as the work of David Hume (1711–76), and in particular his Treatise of Human Nature.
Upon returning to Scotland in 1751, S. received the chair of logic at the University of Glasgow. In 1752 he also received the chair of moral philosophy and thus became Hutcheson's successor. Political economy was considered in the fourth part of his course, after natural theology, ethics and jurisprudence. Thus his economic concept becomes inseparable from reflections on society in all its diversity.
The first book that brought him fame is devoted to social philosophy: we are talking about “The Theory of Moral Sentiments,” published in 1759. S. considered it his main work, judging by the fact that he devoted the last years of his life to reprinting it.
In 1764 he left his chair at the University of Glasgow and became a mentor to the young Duke of Bucclough; he is assigned a pension, which he will receive for the rest of his life. Accompanying a young nobleman during a two-year study (1764–66) in Europe, and especially in France, S. meets F. Quesnay and A.R.J. Turgot.
Returning to Scotland, S. began to write “Inquiries into the Nature and Causes of the Wealth of Nations,” which were published in 1777. The work was a great success, and during the author’s lifetime it was republished four times (1778, 1784, 1786, 1789).
In 1778 S. was appointed commissioner of customs. He died without publishing any of his other works.
The Wealth of Nations is often regarded as the introductory work of political economy and marks the birth of liberal economics. “The Wealth of Nations” includes five books, but only the first two of them form the essence of S.’s theoretical construction.
Book I examines the division of labor as a major factor in economic growth. The author then poses the problem of the cost of goods and services produced. S. believes that it is labor that creates this value (the theory of value-labor). Book I ends with an account of the theory of distribution, which deals with wages, rent and profit.
Book II deals with the accumulation of capital necessary for economic growth and the importance of saving to enable this accumulation.
In Book IV, devoted to the criticism of mercantilist positions, the author for the first time theoretically proves the need for free exchange (absolute advantage), the principles of which will then be refined by D. Ricardo (comparative advantage).
Book V deals with public finance. S.'s analysis of government spending remains an unsurpassed achievement of liberal thought to this day.
The main idea of the book was to substantiate the labor theory of value, to prove that the source of wealth is labor in all spheres of production, and not just in agriculture, thanks to the costs of which value is formed, and then the price of the product. It is appropriate to note that S., thinking about the substance (basis) of value (labor or utility), did not immediately make a choice in favor of labor. He was persuaded to this choice by reasoning about the benefits of water and diamonds. He asked himself the question: why is water, which has greater utility for humans than diamonds, valued so low? Unable to explain the value of water and diamonds by utility, he focused on the dependence of the cost of goods on labor costs. The fact is that S. did not yet know the difference between marginal and total utility. And the price is precisely connected not with the total, but with the marginal utility of the good. After all, it is not water or diamonds in general that are consumed, but a certain amount of them: liters or carats. And as the number of consumed units of a good increases, the utility of an additional unit decreases. Since water is abundant, consuming many units of water makes the marginal utility of water for each consumer low. This explains its low price. But when there is a shortage of water, for example in a desert, the value of an additional unit of water can be much higher than the value of a unit of any precious stones. It was the desire to resolve the water-diamond paradox that pushed economic science to the discovery of limit analysis. Only a century later, the authors of the theory of marginal utility found counterarguments against this “Smith's paradox.”
S.'s passion for ideas was so great that, along with Napoleon, he was considered the most powerful ruler of thoughts in Europe. Under the influence of his ideas, a course of political economy was introduced, which was first taught at the University of Edinburgh by J. Stewart, a student and friend of S.
It is believed that the three postulates of S. still determine the vector of economic science. They form the S paradigm.
First, there is the analysis of “economic man.” This figurative expression denotes a model, or concept, of a person in economic theory. The habitat of the “economic man” is the works of economists. The relationship between "economic man" and the person participating in real economic life is the relationship between theory and practice. S.'s merit is that he analyzed the model of “economic man” in relation to the industrial-market economy.
Secondly, it is the “invisible hand” of the market, which involves minimal government intervention and market self-regulation based on free prices that develop depending on supply and demand under the influence of competition.
The “invisible hand” is, in essence, the spontaneous action of objective economic laws. These laws act against, and often against, the will of the people. Having introduced the concept of economic law into science in this form, S. put political economy on a scientific basis.
Thirdly, this is wealth as a target function and an object of economic relations.
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ADAM SMITH
As the English historian of economic thought Alexander Gray noted: Adam Smith was so clearly one of the outstanding minds of the 18th century. and had such a huge influence in the 19th century. in his own country and throughout the world, which seems somewhat strange is our poor knowledge of the details of his life... His biographer is almost forced to make up for the lack of material by writing not so much a biography of Adam Smith as a history of his time.
The birthplace of the great economist was Scotland. For several centuries the Scots waged stubborn wars with England, but under Queen Anne in 1707, a state union was finally concluded. This was in the interests of English and Scottish industrialists, merchants and wealthy farmers, whose influence by this time had noticeably increased. Following this, significant economic development began in Scotland. The city and port of Glasgow grew especially quickly, around which an entire industrial area arose. It was here, in the triangle between the cities of Glasgow, Edinburgh (the capital of Scotland) and Kirkcaldy (Smith's hometown) that almost the entire life of the great economist passed.
The influence of the church and religion on public life and science gradually decreased. The Church lost control of the universities. Scottish universities differed from Oxford and Cambridge in their spirit of free thought, the large role of secular sciences and a practical bias. In this regard, the University of Glasgow, where Smith studied and taught, especially stood out. The inventor of the steam engine, James Watt, and one of the founders of modern chemistry, Joseph Black, worked next to him and were his friends.
Around the 50s, Scotland entered a period of great cultural upsurge, which was found in various fields of science and art. The brilliant cohort of talent that little Scotland has produced over half a century looks very impressive. In addition to those named, it includes economist James Stewart and philosopher David Hume (the latter was Smith's closest friend), historian William Robertson, sociologist and economist Adam Ferguson. This was the environment, the atmosphere in which Smith's talent grew.
Adam Smith was born in 1723 in the small town of Kirkcaldy, near Edinburgh. His father, a customs official, died a few months before his son was born. Adam was the only child of a young widow, and she devoted her whole life to him. The boy grew up fragile and sickly, avoiding the noisy games of his peers. Fortunately, Kirkcaldy had a good school, and Adam always had a lot of books around - this helped him get a good education. Very early, at the age of 14 (this was the custom of the time), Smith entered the University of Glasgow. After the obligatory logic class for all students (first year), he moved to the moral philosophy class, thereby choosing the humanitarian direction. However, he also studied mathematics and astronomy and always had considerable knowledge in these areas. By the age of 17, Smith had a reputation among students as a scientist and somewhat strange fellow. He could suddenly think deeply among a noisy company or start talking to himself, forgetting about those around him.
Having successfully graduated from the university in 1740, Smith received a scholarship for further studies at Oxford University. He spent six years almost continuously at Oxford, noting with surprise that at the illustrious university they teach and cannot teach almost anything. Ignorant professors were only engaged in intrigue, politicking and spying on students. More than 30 years later, in the Wealth of Nations, Smith settled scores with them, causing an outburst of their rage. He wrote, in particular: At Oxford University, most of the professors have for many years completely abandoned even the appearance of teaching.
The futility of further stay in England and political events (the uprising of Stuart supporters in 1745-1746) forced Smith to leave for Kirkcaldy in the summer of 1746, where he lived for two years, continuing to educate himself. At the age of 25, Adam Smith amazed with his erudition and depth of knowledge in a wide variety of fields. The first manifestations of Smith's special interest in political economy also date back to this time.
In 1751, Smith moved to Glasgow to take up a professorship at the university there. First he received the department of logic, and then - moral philosophy. Smith lived in Glasgow for 13 years, regularly spending 2-3 months a year in Edinburgh. In his old age he wrote that this was the happiest period of his life. He lived in an environment that was familiar to him and close to him, enjoying the respect of professors, students and prominent citizens. He could work unhindered, and much was expected of him in science.
As in the lives of Newton and Leibniz, women did not play any significant role in Smith's life. However, vague and unreliable information has been preserved that twice - during the years of his life in Edinburgh and in Glasgow - he was close to marriage, but both times everything was upset for some reason. His mother and cousin ran his house all his life. Smith outlived his mother by only six years, and his cousin by two years. As one visitor who visited Smith noted, the house was absolutely Scottish. National food was served and Scottish traditions and customs were observed.
In 1759, Smith published his first major scientific work, The Theory of Moral Sentiments. Meanwhile, already in the course of work on the Theory, the direction of Smith's scientific interests changed noticeably. He studied political economy more and more deeply. In commercial and industrial Glasgow, economic problems intruded especially powerfully into life. There was a kind of political economy club in Glasgow, organized by the rich and enlightened mayor of the city. Smith soon became one of the most prominent members of this club. Acquaintance and friendship with Hume also strengthened Smith's interest in political economy.
At the end of the last century, the English economist Edwin Cannan discovered and published important materials that shed light on the development of Smith's ideas. These were some slightly edited and rewritten notes of Smith's lectures taken by a student at Glasgow University. Judging by the content, these lectures were given in 1762-1763. From these lectures, it is first of all clear that the course of moral philosophy that Smith taught to students had by this time turned, in essence, into a course of sociology and political economy. In the purely economic sections of the lectures one can easily discern the beginnings of ideas that were further developed in The Wealth of Nations. In the 1930s, another interesting discovery was made: a sketch of the first chapters of The Wealth of Nations.
Thus, by the end of his time in Glasgow, Smith was already a profound and original economic thinker. But he was not yet ready to create his main work. A three-year trip to France (as tutor to the young Duke of Buccleuch) and personal acquaintance with the physiocrats completed his preparation. It can be said that Smith arrived in France just in time. On the one hand, he was already a sufficiently established and mature scientist and person not to fall under the influence of the physiocrats (this happened to many smart foreigners, not excluding Franklin). On the other hand, his system had not yet fully formed in his head: therefore, he was able to perceive the beneficial influence of F. Quesnay and A. R. J. Turgot.
France is present in Smith's book not only in ideas, whether directly or indirectly related to physiocracy, but also in a great variety of different observations (including personal ones), examples and illustrations. The overall tone of all this material is critical. For Smith, France, with its feudal-absolutist system and fetters for bourgeois development, is the most striking example of the contradiction of actual orders with the ideal natural order. It cannot be said that everything is good in England, but in general its system is much closer to the natural order with its freedom of personality, conscience and - most importantly - entrepreneurship.
What did three years in France mean for Smith personally, in a human sense? Firstly, a sharp improvement in his financial situation. By agreement with the Duke of Buccleuch's parents, he was to receive 300 pounds a year, not only during the voyage, but as a pension until his death. This allowed Smith to spend the next 10 years working solely on his book; he never returned to the University of Glasgow. Secondly, all contemporaries noted a change in Smith’s character: he became more collected, businesslike, energetic and acquired a certain skill in dealing with various people, including the powerful. However, he did not acquire any secular luster and remained in the eyes of most of his acquaintances as an eccentric and absent-minded professor.
Smith spent about a year in Paris - from December 1765 to October 1766. Since the centers of intellectual life in Paris were literary salons, there he mainly communicated with philosophers. One might think that the acquaintance with C. A. Helvetius, a man of great personal charm and remarkable intelligence, was of particular importance for Smith. In his philosophy, Helvetius declared egoism to be a natural property of man and a factor in the progress of society. Related to this is the idea of the natural equality of people: every person, regardless of birth or status, should be given an equal right to pursue his own advantage, and the whole society will benefit from this. Such ideas were close to Smith. They were not new to him: he took something similar from the philosophers J. Locke and D. Hume and from Mandeville’s paradoxes. But of course, the brilliance of Helvetia's argument had a special influence on him. Smith developed these ideas and applied them to political economy. Smith's idea of human nature and the relationship between man and society formed the basis of the views of the classical school. The concept of homo oeconomicus (economic man) arose somewhat later, but its inventors relied on Smith. The famous phrase about the invisible hand is one of the most quoted passages in The Wealth of Nations.
What is economic man and the invisible hand? Smith's train of thought can be imagined something like this. The main motive for human economic activity is selfish interest. But a person can pursue his interest only by providing services to other people, offering his labor and products of labor in exchange. This is how the division of labor develops. Each individual person strives to use his labor and his capital (as we see, both workers and capitalists can be meant here) in such a way that his product has the greatest value. At the same time, he does not even think about the public benefit and does not realize how much he contributes to it, but the market leads him precisely to where the result of investing his resources will be valued by society the most. The "invisible hand" is a beautiful metaphor for the spontaneous action of objective economic laws.
Smith called the conditions under which the beneficial effects of selfish interest and spontaneous laws of economic development are most effectively realized the natural order. For Smith, this concept has a double meaning. On the one hand, this is the principle and goal of economic policy, i.e. laissez faire policy, on the other hand, it is a theoretical construct, a model for studying economic reality.
In physics, useful tools for understanding nature are the abstractions of an ideal gas and an ideal liquid. Real gases and liquids do not behave ideally or behave this way only under certain specific conditions. However, it makes a lot of sense to abstract from these disturbances in order to study the phenomena in their pure form. Something similar is represented in political economy by the abstraction of economic man and free (perfect) competition. Science would not be able to study mass economic phenomena and processes if it did not make certain assumptions that simplify, model an infinitely complex and diverse reality, and highlight the most important features in it. From this point of view, the abstraction of economic man and free competition played a crucial role in economic science.
For Smith, homo oeconomicus is an expression of eternal and natural human nature, and the policy of laissez faire follows directly from his views on man and society. If the economic activity of each person ultimately leads to the good of society, then it is clear that this activity should not be constrained by anything. Smith believed that with freedom of movement of goods and money, capital and labor, the resources of society would be used in the most efficient way.
The economic policy of the English government over the next century was, in a sense, the implementation of Smith's program.
Such an interesting story has been preserved. In the last years of his life, Smith was already famous. While in London in 1787, Smith arrived at the house of a noble nobleman. There was a large company in the drawing room, including Prime Minister William Pitt. When Smith came in, everyone stood up. According to his professorial habit, he raised his hand and said: Please sit down, gentlemen. Pitt responded to this: After you, doctor, we are all your students here. This may be just a legend, but it is very plausible. W. Pitt's economic policy was largely based on the ideas of free trade and non-interference in the economic life of society, which Adam preached. Smith.
Translated works:
1. Smith A. Research on the nature and causes of the wealth of nations. In 2 volumes. M.: Sotsekgiz, 1935
2. Smith A. The Theory of Moral Sentiments, or Experience in Research on the Laws Governing Judgments. St. Petersburg: I. I. Glazunov, 1895.
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