Adam Smith Term Paper Example | Topics and Well Written Essays - 1000 words

Adam metalworker - Term Paper ExampleThe deportment of the economy and its interaction with the agents and actors of the economic system of a particular country has been noted and studied by various economists. This paper shall discuss one of the to the highest degree noted and prominent economists, along with his contribution, background, and school of thought for the subject. Adam Smith Adam Smith has been one of the most prominent and noted economists of his time. He was born(p) in Kirkcaldy Scotland in 1723, and, later, went to Oxford at the age of 17. In the year 1951, Smith was appointed at Glasgow as a professor of Logic, and within one year, he was made the Chair of Moral Philosophy. Besides being a Scottish social philosopher, Smith was also the founder of the political economy. He had proven to be one of the chief personalities of the Scottish Enlightenment, and had also authored some major academic works including An Inquiry into the Nature, The Theory of Moral Sentimen ts, 1759, and Causes of the Wealth of Nations, 1776. His special achievement, The Wealth of Nations, is generally regarded as the very first of the modern works in the contemporary economic society these days (Butler, Eamonn, 2007). Through this work, Adam Smith has attained ample respect and reputation, this works has been ranked the most prominent, and significant works ever published in the field of economics. Smith is broadly known as the amaze of capitalism and modern economics. Later, in the year 2009, the Scottish television channel (STV) ran votes and the economist and writer, Adam Smith, was ranked as the Greatest Scots of all time. School of Thought there argon various challenging and competing schools of thoughts commanding different opinions and viewpoints of the economic philosophies. The chief division in the classes of schools of thoughts includes the incorrupt and Neoclassical schools. Adam Smith was the pioneer of the Classical school of thought, which fundamen tally stressed upon the notion of creating economic value and distributing the wealth of the economy between various classes including the capitalists, landlords, and the workers. One of the prominent branches of the Classical school is the red school of thought. Economic Theories Just like all other economists, Adam Smith also held his own viewpoints and perceptions regarding the economic cycle that moves the world around. Due to his appear thoughts on the subject of economic, he introduced the economic theories which included one of the significant economic theories, the Invisible hand theory. The Invisible Hand Theory Adam Smith believed that there was an invisible hand in the marketplace which has always operated in order to make the markets of a self-regulating nature. This metaphor stated that all the consumers afford a free will to select what to purchase and each manufacturer is free to decide what to produce and sell. Such a marketplace sets the distribution of the produ cts and the prices which are of benefit to the individuals in the community and to the community in a collective manner. This is the involvement of self-interest which forces the actors to behave in a beneficial way. The profits are maximized using efficient methods of production. Revenues are maximized through charging lower prices and the returns are maximized by investing in the urgently required industries. Thus, all the effects in the markets give automatically and dynamically, and this occurrence, Adam Smith has mentioned, exists due to the benevolent invisible hand. All these effects take place dynamically and automatically (Helen, 2001). Contribution to economic science Adam Smith gave major contributions in the field of economics through