Adam Smith Wealth Of Nations

The Wealth of Nations is a book that has stood the test of time for scholars interested in economics for hundreds of years. The theories of Adam Smith were revolutionary in the way that they set up modern capitalism. In this essay, I will go over Smith’s views on the gains of specialization, the role of government in the economy, and the relationship between workers, landowners, and capitalists. One of the first principles Smith introduces is the idea of specialization. His theory was that people should work in the areas they are skilled in. He uses the example of the “trade of a pin-maker,” one who is a “workman not educated to this business.” Smith explains that a pin-maker who is not skilled in his trade may perhaps only make one pin a

During the time period, it was common for the monarchy to delegate who made what products, while collecting a share for themselves. People were to give the king what he asked for, and in return would receive the bare necessity of supplies on which to survive. Smith, however, believed in the free market. His theory was that a nation would profit the most if the government had no say in what was produced, and where the items were sold. This goes along with specialization, which is key to aiding the economy. Along with specialization, Smith advocated for the use of “productive” over “unproductive” labor. Productive labor was valuable, because it increased the value of the country, whereas unproductive labor sucked up resources. Smith summed this up by saying: “A man grows rich by employing a multitude of manufacturers: he grows poor by maintaining a multitude of menial servants.” In this example, the manufacturers are productive laborers, whereas servants are

Though he was considered to be the father of capitalism, Smith did not believe that personal gain should be above everything else. He believed that certain goods, such as law enforcement, sewage, water, etc, be paid in taxes, so that everyone would have access to them equally. He even said that public schools were necessary to ensure that everyone had the opportunity to receive an education. He did, however, believe that teachers should be paid well enough to care about the quality of an education they were providing to their students. Otherwise, the teacher will “either to neglect [his duty] altogether, or, if he is subject to some authority which will not suffer him to do this, to perform it in as careless and slovenly a manner as that authority will permit. Nonetheless, above all else, Smith believed the topmost priority of a society was to have a well-functioning militia. This was so because there was no point in striving to create a prosperous economy if a neighboring country could easily come in and steal everything. Smith believed that only a small portion of a civilization should be recruited to the military. This way, they could be paid with taxes, which would further incentivise them to try their best to protect the