The Father of Economics

Continuing my introduction to economics today I will be looking at the man known as ‘the father of economics’ Scottish philosopher Adam Smith. In order to develop my knowledge about this influential figure I have created a fact file about him which can be seen below.

• Date of Birth: 16th June, 1723
• Date of Death: 17th July, 1790
• Education: At the age of 15 Smith attended Glasgow University studying moral philosophy before moving on to Oxford in 1940
• Career: In 1948 he began giving lectures at Glasgow University. In 1751 Smith was appointed professor of logic at Glasgow university, transferring in 1752 to the chair of moral philosophy. His lectures covered the field of ethics, rhetoric, jurisprudence and political economy, or “police and revenue.” He then moved on to become the tutor of the son of a duke for ten years before he was appointed as commissioner of customs in Scotland, his last job before his death.
• Notable Published Works:

‘The Wealth of Nations’

‘The Theory of Moral Sentiments’

Shortly before his death Smith had nearly all his manuscripts destroyed. In his last years he seems to have been planning two major treatises, one on the theory and history of law and one on the sciences and arts. The published Essays on Philosophical Subjects (1795) probably contains parts of what would have been on the latter.

In my exploration of Smith I have discovered many economic concepts and significance Smith had in shaping economics into what it is today. Such as his theories which paved the way for capitalism, being the first to present the idea that everyone acting with self interest would benefit the the entire country, and how these same theories have led to study of both Micro and Macro economics. One concept I discovered I found particularly interesting is the concept of the ‘Invisible Hand’. Smith explained that an economy will function well if the government will leave people alone to buy and sell freely among themselves. He suggested that if people were allowed to trade freely, self interested traders present in the market would compete with each other, leading markets towards the positive output with the help of an invisible hand. This is also the foundation on which capitalism is built.