Author Bio:
Adam Smith was a renown Scottish intellectual in the 1700s. Extensively educated in European literature and affairs, Smith greatly advocated for the use of individualism and free market economies to be the driving factor of unprecedented economic transformation during his lifetime. In one of his most famous works, "The Wealth of Nations," Adam Smith goes on to defend self-interest and money-making in a time in which it was repeatedly questioned.
Date/Context:
Smith was situated in a period of an increasing global market, new technology, and a growing industrial society to fuel European enlightenment and prosperity. He denounces mercantilism and even contended Britain's American colonies were not worth the cost. During his studies, Smith applied a systematic and "natural" reviewal of the global economy, mirroring the time's profound historical, scientific, and educational revolutions.
Summary:
In "The Wealth of Nations" Adam Smith weighs on the detriments of mercantilism, or government regulation of the economy. Smith suggests a more laissez-faire approach in which the economy will regulate itself. He contends that it is solely the individual producer and self-interest that drives the economy. This division of labour ultimately influences widespread production and a free market based economy. All of this is "natural", he argues, and the government should not interfere with tariffs, subsides, and coercive practices.
Key Quotation: "Labour…is the real measure of the exchangeable value of all commodities…"
The author's bio was very informative. However, adding more information about his education would have added to his credibility on this subject. Your description of the date and context provided substantial evidence as to how the author's time period that he lived in influenced his writing. The summary identified all of the author's key points, but I think that the key quotation could have supported these points in a more substantial way.
ReplyDeleteSmith's ideas must also be considered in line with the dominant philosophies of the Enlightenment. This work is generally considered to be the basis of capitalism, which helped give rise to the Industrial Revolution.
ReplyDelete