Nobody downloaded yet

The Nature and Causes of the Wealth of Nations, Adam Smith - Essay Example

Comments (0) Cite this document
The Nature and Causes of the Wealth of Nations Your name Institution The Nature and Causes of the Wealth of Nations Adam Smith is considered to be the father of modern economics. He contributed extensively towards the shaping of the overall foundation of economics by writing some works…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
The Nature and Causes of the Wealth of Nations, Adam Smith
Read TextPreview

Extract of sample
"The Nature and Causes of the Wealth of Nations, Adam Smith"

Download file to see previous pages One of the essential ideas in “The Wealth of Nations” is the division of labour. According to Smith, the division of labour occurs due to the increase in production rather than any other factor. The division of labour, however, can only be beneficial if a nation has more industry in place. The book argues that agriculture does not produce a larger division of labour as compared to industry. According to Smith, the division of labor arises not from the innate wisdom of the masses, but due to a human tendency to barter. Smith, therefore, argues that the reasons for the specialization are due to the differences in natural talent rather than any other factor. The book also discusses the limitations of the division of labour and indicates that the division of labour is actually limited by the extent of the market. The overall limited opportunities in the market actually result into the lack of labour specialization. If a market can be expanded, the specialization of labour can further occur, and the society can benefit from more skilled workers. In 1778, Smith was appointed the Commissioner to the Customs. This experience sharpened his understanding of trading and of the manner how exchange actually took place between two parties. He designed and developed policies and methods to curb smuggling so that overall revenues could be increased. He remained single during his entire life and died in Edinburgh on July 19, 1790 (Smith, 1761 a). He was a ruthless advocate of individualism, and his interests ranged from natural theology, ethics, and jurisprudence, to economics, which may explain the cause as to why he wrote “The Theory of Moral Sentiments” (Smith, 1761 a). He denied self-love as a principle which could never be virtuous. He thought that sympathy and self-interest were complementary. He once expressed that it was not from the benevolence of the butcher, the brewer, or the baker, that a worker could expect dinner, however, in fact, each agent worked in their own self-interest (Smith, 1761 a). He also discussed the concept of money and how various commodities were used as money. He reviewed the origins of money and how different nations actually used it in order to create a medium for exchange. He also speculated how metals were used as money and how nations actually invented new methods of developing money with the purpose of creating an exchange value. Further, he also discussed nominal prices for commodities as well as prices for labour. He also outlined how prices were actually determined and what were some of their components. Smith was in favour of labour and indicated that labour was the means by which an individual earned wages in a competitive market; a labourer must produce something others valued to earn (Smith, 1761 a). “The Wealth of Nations” reveals that nature and causes of the nation’s prosperity come from the increasing of the labour division to systematize its production (Smith, 1761 a). Smith professed that individual would invest resources, e.g. land and labour, to earn the highest possible return of investment, but it must yield to the equal rate of return (Smith, 1977 b). For classical economists this was the core of Smith’s proposition of economic theory. Smith advocated equality of returns to explain the differences of salaries based on the knowledge, skills, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Nature and Causes of the Wealth of Nations, Adam Smith Essay”, n.d.)
The Nature and Causes of the Wealth of Nations, Adam Smith Essay. Retrieved from https://studentshare.org/macro-microeconomics/1477585-the-nature-and-causes-of-the-wealth-of-nations
(The Nature and Causes of the Wealth of Nations, Adam Smith Essay)
The Nature and Causes of the Wealth of Nations, Adam Smith Essay. https://studentshare.org/macro-microeconomics/1477585-the-nature-and-causes-of-the-wealth-of-nations.
“The Nature and Causes of the Wealth of Nations, Adam Smith Essay”, n.d. https://studentshare.org/macro-microeconomics/1477585-the-nature-and-causes-of-the-wealth-of-nations.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Who was Adam Smith
Adam Smith is an economist and a writer of a number of prominent books, such as The Nature and Causes of the Wealth of Nations written in 1776. He theorized a system, which fixed essential principles of economics and its operations (Smith (a), n. d.).  His book explicates the relation of supply and demand and the ideation of division of labour forces in the industrial period, which accorded him such distinction that catapulted him to the Board of Customs in Scotland.
4 Pages(1000 words)Essay
Wealth of nations by Adam Smith
Adam took what seemed outdated in trade and commerce then used public policy and his wisdom to re-state all these facts into complete, fresh, and new principles that people use fruitfully centuries later (Smith, 2010).
4 Pages(1000 words)Term Paper
Contradictions in International Trade
By making a comparative analysis and determining each pros and cons from the underlying sources, we can analyse whether there is an inherent contradictions between a multilateral and bilateral trade agreements generally speaking. Trade (or also called commerce) is defined is the deliberate exchage of goods, services or both.
18 Pages(4500 words)Essay
Adam Smith: Wealth of Nations - Book IV, Chaper II
He lectured at Glasgow University, as the Chair of Logic and then as the Chair of Moral Philosophy. He delivered memorable lectures on natural theology, ethics, jurisprudence and economics. He retired from academia in 1764 and served as tutor to the young Duke of
5 Pages(1250 words)Essay
Adam smith biography
His unforgettable teacher at Glasgow University was Francis Hutcheson. Then Smith studied at Balliol College, Oxford, from 1740 to 1746. After that period, Smith started his career as public
8 Pages(2000 words)Essay
Reading Adam Smith in the 21st Century
He has said that the importance of going back to Smith is to understand the study of economics as simply another way of understanding the human condition in society and more importantly to be able to know how to better it. Smith saw himself as a philosopher first and last and as we shall see in An Inquiry Into the Nature and Causes of the Wealth of Nations (1776) he believed that the modern commercial society, nascent though in his time, had certain advantages for society.
6 Pages(1500 words)Essay
The argument in The Wealth of Nations by Adam Smith depends on the possibility of failure. Why is this so What implications does this have
Most of these principles are based upon the concept of certain economic actions arising naturally out of man’s desire to prevent failure through achieving the best terms for himself. Since
5 Pages(1250 words)Essay
Adam Smith Wealth of Nations
Adam Smith is one of the well-known political economists in the 18th century because of his work called "An Inquiry into the Nature and Causes of the Wealth of Nations" or simply called Wealth of Nations. His work paved the way to modern economics and gave rationale for capitalism, free-trade and libertarianism.
1 Pages(250 words)Essay
Adam Smith
With division of labor, each department has increased dexterity, more time is saved and advancements in technology hence improving departmental production and consequently production of the entire organization. Several factors
5 Pages(1250 words)Essay
Economic systems envisioned by Adam Smith in An Inquiry into the Nature and Causes of The Wealth of Nations and Karl Marx in The Communist Manifesto
According to both Adam Smith and Carl Marx, the economic system of today known as the modern industry arose from the development of the industries into global and more specified industries. The economic system today has production reduced from the mere single
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic The Nature and Causes of the Wealth of Nations, Adam Smith for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us