The Wealth Of Nations Smith Essay examples

1010 Words May 19th, 2016 null Page
Adam Smith is often believed to be an economist due to his theories on the economy but he was at heart a philosophical theorist. As we have learned in this course, Smith had theories about the way the economy worked but he attached these theories to human nature and how humans organize and make sense of the social world. In his book The Wealth of Nations Smith discusses the division of labour, and its relation to supply and demand. Additionally he discusses the innate nature of the desire for trade in stating that self-interest drives this urge, which has the potential to lead to problematic interactions amongst human beings if there is no order being followed. In essence Smith was interested in discussing the economic system as one, which could benefit people as well as one that had to be organized in a way so as to maximize potential. Smith was writing to define the world of economics and the way that societies operate within financial markets. Smith argued that when the division of labour was maximized and the most productive workers were placed in the appropriate jobs the economy would run smoothly. He also believed in the invisible hand that led people to choose to make the right decisions when it came to economics. He held fast to the notion of free market economics, which emphasizes the freedom within the market with little to no intervention from the state. Although he purported the need for some kind of organizational structure Smith’s notion of the division of…

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