How Did Adam Smith Influence Capitalism

If Karl Marx was the father of communism, the 18th- century Scottish economist Adam Smith was recognized as the father of capitalism. Smith had many profound institutions on the capitalism economic sphere such as the modern free market, the division of labor and the famous “invisible hand” theory. His fundamental economic ideas impact the economy during many periods from classical to neo-classical and even our modern economy. Smith’s notable institutions is widely acclaimed throughout the world. Until today, we witness Smith’s influence various aspects of the modern market. Since US economic system is stemmed from the laissez-faire capitalism of Adam Smith, researching and analyzing about this influential thinker are valuable. It can not only help me to comprehend
His father who had the same name with Adam Smith was a lawyer while his mother-Margaret Douglass was the daughter of the rich landed Robert Douglass of Strathendry. Two months after Smith’s birth, his father passed away, so Smith was raised by his widow mother. From 1729 to 1737, Smith went to the best secondary school in Scotland- Burgh School of Kirkcaldy where he studied many subjects such as Latin, mathematic, history and writing. At the age of fourteen, Smith attended University of Glasgow and studied moral philosophy under the instruction of Francis Hutcheson. Professor Hutcheson had the most enduring and powerful influences to Smith’s mind. Smith described the mentor- Hutcheson as “the-never-to-be-forgetten-Hutcheson” because “No other man, indeed, whether teacher or writer, did so much to awaken Smith's mind or give a bent to his ideas.” (Rae 11) Studying with Hutcheson was an important step in Smith’s life which inspired him to have the passion for free speech, reasoning and liberty. 1740 was also the significant year for Smith when he entered Balliol College in Oxford with the supporting of the Snell