Father of Economics
Know everything you need to know about the father of Economics. Read the accomplishments and contributions in the field of economics.
Izhar Ahmad14 Dec, 2023
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The father of economics, Adam Smith, was a Scottish economist, philosopher and author who lived in the 18th century. He was against mercantilism, supported free trade, and advocated for liberalism. Smith introduced the invisible hand theory in his original work, “The Theory of Moral Sentiments.” In free markets, competition, supply, demand, and self-interest act on themselves to naturally regulate the market.
It includes the creation of the phrase gross domestic product (GDP) and the development of the idea of compensating wage differentials. The concept states that undesirable or hazardous jobs are compensated highly to induce people to take up these jobs. The main work of Adam Smith in economics can be viewed in his ‘An Inquiry into the Nature and Causes of the Wealth of Nations’ published in 1776.Father of Economics- Early Life
Adam Smith is the “ Father of Economics. ” Recorded history started with his baptism on the 5th of June, 1723 in Kirkcaldy, Scotland. His mother, Margaret Douglas raised him, and he was named after his father, who died at birth. He joined the University of Glasgow at the age of 13 and later studied European literature at Balliol College, Oxford University. Smith was well-received back home at the University of Glasgow where he gave lectures. His academic excellence made him become a chair of logic in 1751 and chair of moral philosophy in 1752. On his return to Scotland, he delivered public lectures at the University of Edinburgh, this along with his successful lecture series resulted in his being appointed a professor at Glasgow University in 1751. Finally, he became Chair of moral philosophy. Some of Smith’s teachings were published while he was teaching and working at Glasgow. This culminated in the 1759 publication of his book, The Theory of Moral Sentiments.Who is the Father of Modern Economics?
Adam Smith is considered as the founder of modern economics. Smith was an outspoken opponent of mercantilism and a staunch defender of laissez-faire economic ideas. In his first work, "The Theory of Moral Sentiments," Smith introduced the notion of an invisible hand, which outlined how markets self-regulate via competition, supply and demand, and self-interest. Both modern capitalism and modern economics emerged with the publication of "The Wealth of Nations."Looking for the Best Commerce Coaching?
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Different Theories by the Father of Economics
Adam Smith, the father of Economics presented many theories in the field of economics. The two very famous theories by Adam Smith are:The Invisible Hand Theory
In the works going back to the 1700s, Adam Smith looked at the concept of the "invisible hand," stressing that the benefits to the economy and society come from the actions of self-interested people. The idea of the invisible hand is often presented as a natural force that, through the dynamics of supply and demand and struggle for scarce resources, guides capitalism and free markets towards efficiency rather than focusing on individual happiness. This framework includes organizations such as the legal system, which exist to protect and support fair and open competition. In the lack of government or foreign interference, the market can easily find equilibrium without being pushed into abnormal patterns. The natural balance of supply and demand helps prevent surpluses and shortages. The key to societal working at its best lies in self-interest and the freedom of creation and spending.The Theory of Free Markets
The philosophy of free markets stresses the importance of minimizing government interference and taxes in these markets. While Smith advocated for a limited government role, he recognized the government's duty in areas such as education and defense for the well-being of a country.Father of Economics FAQs
Who was Adam Smith?
The founder of modern economics, Adam Smith was a Scottish economist, philosopher, and writer who lived in the eighteenth century.
What is Adam Smith famous for?
Adam Smith is renowned for his advocacy of laissez-faire economics, the invisible hand concept, and his influential book, "The Wealth of Nations."
When did the Theory of Moral Sentiment first come out?
The Theory of Moral Sentiments was published for the first time in 1759.
When was the Wealth of Nations first published?
The first publication of "The Wealth of Nations" came out in 1776.
Who is the father of socialism?
The father of socialism is often attributed to Karl Marx.
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