Saturday, November 29, 2008

Adam Smith

I was born in 1723 in Scotland as the son of Adam Smith and Margaret Douglas. My father had died before I was born, so I was raised by my mother. I attended Glasglow and Oxford universities and became a professor of moral philosophy at Glasgow in 1752. After lecturing for a couple of years, I published The Theory of Moral Sentiments in 1759. In the book, I argued that the human communication depends on sympathy between “agent and spectator.” But what I truly focused on was economy.

I believe that the impulse of self-interest work toward the public welfare in economy. I even wrote a book about it: An Inquiry into the Nature and Causes of the Wealth of Nations. A person “neither intends to promote the publick interest, nor knows how much he is promoting it… he intends only his own gain.” If each person chases his own interest, the general welfare of the society fosters as a whole. Free trade system is essential in this context for the maximum development of wealth; trades enable exchange of variety of goods. It is the “invisible hand” that regulate the market system and satisfied the economic needs.

The theory I developed is SO good that it will be still studied three hundred years later. How do I know? No comment.

1 comment:

caradeloco said...

INteresting history, I wasn't aware of this part of the history, excellent post.