ContentsIntroduction................................................................................................................................................2

About Adam Smith......................................................................................................................................2

Objectives...............................................................................................................................................2

Key Concepts of Adam Smith.......................................................................................................................3

THE MARKET............................................................................................................................................3

THE INVISIBLE HAND................................................................................................................................3

GROWTH.................................................................................................................................................3

THE MARKET IS PROSPERITY....................................................................................................................4

MORAL LAW OF PROGRESS.....................................................................................................................4

LEGACY....................................................................................................................................................4

TOP QOUTES............................................................................................................................................4

References...................................................................................................................................................5

Introduction About Adam SmithAdam Smith 16 June 1723 till 17 July 1790 was a Scottish moral philosopher, pioneer of political economy. Smith was known for two classic works, The Theory of Moral sentiments (1759) and An inquiry into the Nature and Causes of the Wealth of Nations (1776) the latter, usually abbreviated as the wealth of Nations, Smith studied Social philosophy at the university of Glasgow and at Balliol College, Oxford, Smith began delivering public Lectures in 1748 in Edinburg, sponsored by the philosophical society of Edinburgh under the patronage of Lord Kames. His lecture topics included rhetoric and belles-lettres, and later the subject of “the progress of opulence” While smith was too adept at public speaking, his lectures met the success.

In 1751, smith earned a professorship at Glasgow University teaching logic courses, and in 1752 he was elected a member of the philosophical society of Edinburg, having been introduced to the society by lord kames. When the head of moral philosophy died the next year, smith took over the position he worked as an academic for the next thirteen years, which he characterized as “ by far the most useful and therefore by far the happiest and most honorable period of his life.

ObjectivesObjective of this Assignment is to get information about Adam smith father of Economic and key concepts which were written by Adam smith in his books. Assignment is to increase Knowledge about something by doing sample research type of studying in assignment we look after what is our topic is about.

Key Concepts of Adam Smith THE MARKET

Society can depend on unregulated capitalist markets rather than tradition or authoritarianism

Self-interest guided by profit motivates people to perform tasks required by society what people are willing to pay for)

Competition regulates greed i.e. over chargers lose to those that charge cheaper, even for wages.

Thus pursuit of self-interest leads to communal prosperity. Depends on freedom to pursue self-interest and compete.

THE INVISIBLE HAND

Supply and demand always uses prices and profits to signal To producers that society required. Thus producers, in search of profits, produce what society requires - in the Correct quantity and at a competitive price. Too little of a good produced for society - high demand for low supply leads to high profit from high prices so attracts more effort into production and vice versa until at ‘equilibrium’

GROWTH

Division of labor (splitting up a task) allows workers to Specialize in niches (leading to productivity, innovation etc.) Growth comes from the above Wealth = freedom + trade + division of labor Freedom - pursuit of self interest Trade - allows competition and global cooperation for division of labor; against mercantilism

THE MARKET IS PROSPERITY

Market will work for societal good if left alone (‘laissez faire’ from French Physiocrats) Guided by laws of ‘invisible hand’ rather than iron fist Capitalism today is unlike his ideal model - with less Competition from monopolies, large unions etc. Less freedom and trade leads to less prosperity

MORAL LAW OF PROGRESS

Law of accumulation - profits will be spent for expansion until higher demands for wages makes profit margins thin and disappear Law of population - labor is subject to demand; as wages rise, more people will enter the workforce (e.g. through birth rates) and vice versa Increased population increases worker supply so lower wages and higher profit - laws counter balance for harmony Thus, progress inevitable and society will reach its reward

LEGACY

Formalized economic thinking - presented both sides whilst giving evaluative factors, then argued for his opinion on the best means for prosperity Optimism in dynamic progression of society Long discussions and digressions on prominent economic themes of his day

TOP QOUTES

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard To their own interest. No society can surely be flourishing and happy, of which the Far greater part of the members are poor and miserable. To

Feel much for others (is) human nature. All money is a matter of belief. On the road from the City of Skepticism, I had to pass Through the Valley of Ambiguity.

ReferencesIntroduction https://en.wikipedia.org/wiki/Adam_Smith

Key Concepts http://www.slideshare.net/Mintflame/a-summary-of-adam-smith-ideas-life-legacy