The idea of economics has relevant since the beginning of time. Economics is the social science having to do with production, consumption and transfer of wealth in a society or country. Scottish philosopher and economist, Adam Smith, is known as the “The Father of Economics.” Smith is known for proposing many modern ideas such as, the invisible hand, gross domestic product, and the theory of compensating wage differentials. He is also greatly known for his books, “The Theory of Moral Sentiments” and “The Wealth of Nations.” Although many economists have followed, Adam Smith’s work has most impacted the modern world of economics. In all of Adam Smith’s works, he mentions the principle of capitalism, which he was a stronger supporter of. The
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Self-interest is still a huge component of the market system. In today’s economy, all businesses and entrepreneurs are absorbed in self-interest. Anyone who owns their own business wants what is best for their own cause and will take any measure in order to have more demand and buyers. Self-interest is what promotes competition which keeps the market system alive and keeps from market failure and inflation. If Adam Smith hadn’t introduced his theories at the time he did, economics wouldn’t be the same. For example, if he hadn’t promoted free trade, international trade would be more difficult and commerce would be a slow. Without free trade, our economy would be stuck in the same ancient conditions, having to deal with tariffs on our international trades. Although Smith’s ideas had a different intention at the time written they are still relevant. The father of economics, Adam Smith, shaped the way economy was in his time and has been the root for how modern day economy is. Most modern ideas are rooted from the ones presented in Smith’s original works such as, “The Theory of Moral Sentiments” and The Wealth of Nations.” Smith introduced economy to the important principles of free trade, the invisible hand and self-interest. Without his contributions, society and economics would still be stuck in the 18th century
Self-interest is still a huge component of the market system. In today’s economy, all businesses and entrepreneurs are absorbed in self-interest. Anyone who owns their own business wants what is best for their own cause and will take any measure in order to have more demand and buyers. Self-interest is what promotes competition which keeps the market system alive and keeps from market failure and inflation. If Adam Smith hadn’t introduced his theories at the time he did, economics wouldn’t be the same. For example, if he hadn’t promoted free trade, international trade would be more difficult and commerce would be a slow. Without free trade, our economy would be stuck in the same ancient conditions, having to deal with tariffs on our international trades. Although Smith’s ideas had a different intention at the time written they are still relevant. The father of economics, Adam Smith, shaped the way economy was in his time and has been the root for how modern day economy is. Most modern ideas are rooted from the ones presented in Smith’s original works such as, “The Theory of Moral Sentiments” and The Wealth of Nations.” Smith introduced economy to the important principles of free trade, the invisible hand and self-interest. Without his contributions, society and economics would still be stuck in the 18th century