A Critical Analysis Of Adam Smiths The Wealth Of Nations

A Critical Analysis of Adam Smith’s The Wealth of Nations The classic statement of economic liberalism, the policy of laissez-faire, was written during a ten-year period by Adam Smith, a Scottish professor of moral philosophy. The book’s ideas were useful in encouraging the rise of new business enterprise in Europe, but the ideas could not have taken hold so readily had it not been for the scope of Smith’s work and the effectiveness of his style. As a philosopher, Smith was interested in finding intellectual justification for certain economic principles that he came to believe, but as an economist and writer, he was interested in making his ideas prevail in the world of business. He was reacting against oppressive†¦show more content†¦Smith’s economic theories met the desire for economic change that would benefit the individual. However, mercantilism, which stimulated economic nationalism and encouraged government intervention in every aspect of trade, was the major economic system in the still primari ly agricultural economy of late eighteenth century Britain. The publication of The Wealth of Nations, the first comprehensive system of political economy, in 1776 marks the birth of economics as a separate discipline. The central theme is the growth of national wealth, which Smith, the moral and social philosopher, saw as the nation’s annual production of goods and services among the three classes: laborers, landlords, and manufacturers. Smith theorized that the liberty to trade unhindered by government intervention would result in increased abundance and wealth for all involved. Deeply opposed to mercantilist practices, which encouraged government intervention in every aspect of trade, Smith’s policy of free-trade economic liberalism, otherwise known as laissez-faire (â€Å"Let it be, let it go†) led to extraordinary economic growth, particularly in Britain and the United States. In his immensely popular and wide-ranging The Wealth of Nations, Smith pro vides an elaborate analysis of how economic systems function and develop over time, outlining the four main revolutionary economic stages that motivate society: the original â€Å"rude† state ofShow MoreRelatedThe Father of Economics - Adam Smith3144 Words   |  13 PagesThe Father of the Economics During the 18th century, when Adam Smith lived, the most important social, moral, and technological presumptions had matured. These assumptions have helped to shape the market system as the publicly accepted and entrenched economic lifestyle, and the basis for cultural and even ethical relationships. 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