adam smith
Adam Smith is well known for being the Father of Economics. He was the first person to organize economic theory into the body of knowledge we base our theory on today. His theories today are known as Classical Economics and his book The Wealth of Nations was the first economics test. Characteristics of the Classical System include supply creates demand, wages and prices are flexible, the demand for money equals transactions demand plus percautionary demand, no hoarding is possible, savings is a function or determined by the rate of interest and the relationship is direct, investment is a function of the rate of interest and the relationship in inverse, saving and investment are equal, no depression is possible in the long run, and Laissez Faire.
Smiths baptism was on June 16, 1723 in Scotland. Smith attended the University of Glasgow at age 14, later on transferring to Balliol College in Oxford, England. He also spent time tutoring and teaching. Smith is culpable for promoting many of the ideas that built the school of thought that became known as Classical Economics. Laissez Faire philosophies like reducing the role of government intervention and taxation in the free markets and the idea that an invisible hand models supply and demand are key concepts Smiths writing is responsible for advocating. Adam Smith believed if the customer was satisfied and their needs were meet if would be good for both parties. This type of system would be beneficial for a country as a whole because the producer would continue to earn profits and the customers would keep coming back because they are satisfied. This is good for a country because it keeps it thriving.
The book The Wealth of Nations is divided into two volumes (five books) it is a huge piece of work. The concepts it promoted generated international attention and helped drive the move from land based wealth to wealth created by assembly line production methods driven by division of labor. Smiths place in history is
Smiths baptism was on June 16, 1723 in Scotland. Smith attended the University of Glasgow at age 14, later on transferring to Balliol College in Oxford, England. He also spent time tutoring and teaching. Smith is culpable for promoting many of the ideas that built the school of thought that became known as Classical Economics. Laissez Faire philosophies like reducing the role of government intervention and taxation in the free markets and the idea that an invisible hand models supply and demand are key concepts Smiths writing is responsible for advocating. Adam Smith believed if the customer was satisfied and their needs were meet if would be good for both parties. This type of system would be beneficial for a country as a whole because the producer would continue to earn profits and the customers would keep coming back because they are satisfied. This is good for a country because it keeps it thriving.
The book The Wealth of Nations is divided into two volumes (five books) it is a huge piece of work. The concepts it promoted generated international attention and helped drive the move from land based wealth to wealth created by assembly line production methods driven by division of labor. Smiths place in history is