• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Essay on Adam Smith

Extracts from this document...


Adam Smith Adam Smith is possibly the most influential economist the world has ever known and certainly the majority of his beliefs and models have had a great effect on and have been proven true in the modern world. Not only this, but his undoubted influence on so many great economists preceding him prove what a genius and original thinker he was. Born on the 5th June 1723 in Kirkcaldy, Scotland he was not and would never be a rich man, however he was undoubtedly a gifted individual, joining Glasgow University at the tender age of 15 to study moral philosophy. Two years later he joined Oxford University although it seems Smith was unhappy with the lesser intellectual activity in the English universities compared to the Scottish and so he returned to Scotland in 1746. Smiths contribution to the academic world was vast and his work was not restricted to just the economic world, however if we just look at his economic contribution to the world, its clear his most significant work was published in 1776 named "The Wealth of Nations". ...read more.


An economy with a free trade policy regarding goods from outside of the economy Smith believed would increase: production, competition, choice, living standards and opportunity to invest. He encouraged the British Empire to adopt this policy however it became very hard to do so when the American colonies refused to cooperate and use the same policy. The attraction of the current mercantilist policy was that by reducing the amount imported by setting tariffs or quotas on imported items, home-grown firms could prosper and produce more for the domestic market as well as foreign markets, thus exporting more. Smith however was strongly apposed to such a protectionist agenda, clearly of the belief that free international trade would benefit everybody; this idea can be linked back to the division of labour and the invisible hand. Some countries have a comparative or absolute advantage in producing certain products, therefore if these countries produce what they are best at producing and if every country seeks to increase their own benefits by selling the surplus of goods they do not need everybody in the international market will benefit. ...read more.


Population growth being reliant on ability to accommodate an increasing workforce and investment relying on the rate of savings and land growth being limited and relying on conquest of foreign lands these are endogenous. As these are not always produced in the working of the market economy we are brought back to Smiths belief that Government needs to be active to assure long run growth. This model of growth remains the main model of classical growth. To summarise I think to even to question Adam Smith as influential would be a mistake. The man is surely one of if not the most influential economists that have walked this earth. Many have described him as the "father" of modern-day economics and his influence upon brilliant economists that have followed him speaks for itself. All the major economic and political powers of today's world are influenced by if not built upon Smiths idea of Capitalism and free trade. His image has been placed on the �20 note and rightly so I believe. The truths of his predictions and models are clear for everybody to see and his ability to create ideologies well in advance of the time he lived in was quite remarkable. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays


    In the context of national production, the nation has opportunities to produce wine and cheese for example. If the nation wishes to produce more cheese, then because labour resources are scarce and fully employed, it is necessary to move labour out of wine production, in order to increase cheese production.

  2. Free essay

    Adam Smith "invisible hands"

    Demand curve generally is downward-sloping due to diminishing marginal utility, Mankiw's 3rd principle: 'Rational people think at the margin' (Mankiw, 2008, p6). Within a specific time period, every additional units of a commodity that consumers consume, the marginal utility they gain from each unit will diminish eventually leads to the decline in the total utility and consumption of the commodity.

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    industrial goods. As a result of the Uruguay Round agreements, the WTO goes much wider and comes closer to universal coverage, providing market access rules for the bulk (if not all) of international trade. As important, the agreements go well beyond the coverage of border barriers (tariffs and quotas)

  2. Free essay

    does uk housing market warrant government intervention

    10,100 Average gross weekly household income, 2003/04 - 2005/067 (�) 455 Average weekly household expenditure, 2003/04 - 2005/067 (�) The fig. above is related to the key statistics I have talked about concerning the relative standards of living, in the north and the South East respectively.

  1. Why has GDP growth been so slow in Somalia?

    Civil war changes the capital stock in two ways. First, internal con?ict reduces the existing stock of capital. Residential structures, roads, bridges, ports, and factories are targeted and destroyed by competing militaries in wartime. During the first wave of war between clan militias fighting for control over the capital in the wake of President Siad Barre's fall, most of

  2. Is Mexico better off with NAFTA

    According to the IMF Working Paper; How Has NAFTA Affected the Mexican Economy? Review and Evidence, first of all they have to undergo structural reforms to become more competitive in international markets. The energy sector must get fresh investments. Hopefully this will raise the electrical generation needed to support an

  1. Chile: Better of Joining NAFTA or MERCOSUR?

    The converse is also true. Many development and trade theorists also believe that a country's modernization and economic growth are based, in part, on its ability to develop competitive exports of manufactures (Toraro, Michael, Economics Development, White Plains, N.Y.: Longman, 1994, p.483-491).

  2. Comprehensive Anatomy of China

    People's Court's president as well as the procurator-general of the Supreme People's Procuratorate; reviewing and endorsing the national economic plan and state budget; sanctioning the founding of special administrative regions, e.g. Hong Kong, and to make decisions on questions of war and peace.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work