Adam Smith
Background
In the world of economics, Adam Smith stands out as dominating, central figure. Numerous commentators have often referred to him as the founder of modern economics; essentially the reason why free trade exists (Schumacher, 2012). But as Henry (2000) provides, the position occupied and articulated by Adam Smith in the development of economic theory is of precarious enjoyment, mainly because some of his works essentially contain dangerous elements that are evidently innate in the works of Karl Max. In this regard, therefore, there are those who see Smith’s works as a definitive backdrop for the existence of the economic nuance of capitalism. Adam Smith, according to John Rae (2005), was born on 5th June, 1723 at Kirkcaldy, …show more content…
As such, according to Hunt (2002), Smith determined that emancipation of producers through the increase of freedom and the extension of rights essentially laid the foundation for the improvement and commercialization of the economic state of the society. A keen analysis of this statement provides for the comprehension that Smith advanced that increment of freedoms led to increased productivity form the producers who were motivated to maximize personal profit, a concept that gave birth to capitalism. In essence, Smith theory of economic development was based on the idea that individuals acted selfishly and strictly on their own behalf, and on the behalf of the classes of which they represented (Hunt, 2002). While some may view the independent and selfish operation of individuals for the maximization of profit to be egoistic, Smith deduced that it promoted economic development because it inadvertently led to a benevolent harmony, aided by an invisible hand. As Lange (2013) frames it, the theory of economic development innate in The Wealth of Nations depicts the progression of opulence in the society, which as Singh (1959) asserts, is founded on the doctrine of free trade and socio-political
Background
In the world of economics, Adam Smith stands out as dominating, central figure. Numerous commentators have often referred to him as the founder of modern economics; essentially the reason why free trade exists (Schumacher, 2012). But as Henry (2000) provides, the position occupied and articulated by Adam Smith in the development of economic theory is of precarious enjoyment, mainly because some of his works essentially contain dangerous elements that are evidently innate in the works of Karl Max. In this regard, therefore, there are those who see Smith’s works as a definitive backdrop for the existence of the economic nuance of capitalism. Adam Smith, according to John Rae (2005), was born on 5th June, 1723 at Kirkcaldy, …show more content…
As such, according to Hunt (2002), Smith determined that emancipation of producers through the increase of freedom and the extension of rights essentially laid the foundation for the improvement and commercialization of the economic state of the society. A keen analysis of this statement provides for the comprehension that Smith advanced that increment of freedoms led to increased productivity form the producers who were motivated to maximize personal profit, a concept that gave birth to capitalism. In essence, Smith theory of economic development was based on the idea that individuals acted selfishly and strictly on their own behalf, and on the behalf of the classes of which they represented (Hunt, 2002). While some may view the independent and selfish operation of individuals for the maximization of profit to be egoistic, Smith deduced that it promoted economic development because it inadvertently led to a benevolent harmony, aided by an invisible hand. As Lange (2013) frames it, the theory of economic development innate in The Wealth of Nations depicts the progression of opulence in the society, which as Singh (1959) asserts, is founded on the doctrine of free trade and socio-political