Adam Smith

Adam Smith - The Legendary Economist Who Shaped Modern Economics

Adam Smith, born on June 5, 1723, in Kirkcaldy, Scotland, is known as one of the most prominent economists in history. He is highly regarded as the father of capitalism due to his 1776 work, The Wealth of Nations, which has been an influential economic work for centuries. Smith's ideas have fundamentally altered the economic theories of his time and have had a profound impact on modern economics.

Early Life and Education of Adam Smith

Adam Smith was born into an influential family, his father was a lawyer and officeholder. Smith spent several years in his early life in Kirkcaldy and had a great interest in philosophy and literature. In 1740, he attended the University of Glasgow, where he studied philosophy, mathematics, and the classics. Later, in 1746, Smith attended Balliol College, Oxford, where he received a scholarship and studied widely, but he did not get along with the teaching style and ultimately criticized the confining nature of Oxford.

Career and Major Accomplishments

After leaving Oxford, Smith returned to Scotland and began his academic career as a professor of logic and a professor of moral philosophy at the University of Glasgow. During his time there, he wrote his first book, The Theory of Moral Sentiments (1759), which argues that moral principles are the foundation of society and that people are naturally inclined to act in such a way that benefits others. This book was highly praised and established Smith as a leading philosophical thinker.

His most famous work, The Wealth of Nations (1776), is considered to be one of the world's first descriptions of what builds a nation's wealth. Smith's work has had a significant impact on modern economic theory, and he is still considered one of the most influential figures in economics.

Personality and Motivation

Adam Smith was known for his intelligence, wit, and confidence. He was a cautious but bold thinker who wasn't afraid to challenge established ideas. He was meticulous in his research, and his writing was clear and concise.

Before Becoming Famous

Despite his later success, Smith faced many challenges and difficulties early in his career. It is said that he struggled to find his way in Oxford, and his initial attempts as a tutor and writer were not well received. Moreover, Smith faced criticism from his peers due to his unconventional views on political economy.

Family Life

Adam Smith deeply admired his mother, Margaret Douglas. Unfortunately, his father died while he was young, and he never got a chance to know him well. Smith never married and had no children, but he was known to be close with his friends and colleagues.

Linked to Other People in the Industry

Benjamin Franklin, a friend and colleague of Smith, left a profound impact on him during their meeting while Smith was living in Paris. They both were very interested in each other's views and ideas, and Smith found Franklin's views to be particularly compelling.

Another individual associated with Smith is Margaret Thatcher, who was a huge admirer of The Wealth of Nations. It was said that she carried the book in her purse at all times, and she often referenced it in her speeches and discussions.

Conclusion

Adam Smith's contribution to modern economics is immeasurable, and his influence continues to shape the way we think about economics and society. His ideas on capitalism, the division of labor, and free markets have formed the basis of modern economic theory, and his legacy continues to inspire new generations of economists.