Adam Smith Intro Flashcards
What are his main works?
Theory of Moral Sentiments and Wealth of Nations
When was Theory of Moral Sentiments last revised
1790
What is the Wealth of Nations Known as?
the first modern work of economics, precursor to homo economics
invisible hand
self-interested competition could lead to economic prosperity and greater good
assumptions of the invisible hand
1) people are rational
2) consumers maximize utility
3) producers maximize profits
4) acting in your own self interest leads to an increase in the well being of everyone
division of labor
basis of growth and prosperity, fundamental contribution that can be taken from the first few chaps of Wealth of Nations
Elements of Smith’s theory that are relevant today
1) against trade restrictions
2) politicians are preoccupied with short term issues (they don’t know what to do and also don’t care about long term)
3) decentralizing gov’t
4) against gov’t intervention
5) individuals are frugal, gov’t is not
6) businesses are socially responsible
7) proponents of the free market
8) don’t attack social problems though the gov’t
What major movements was Smith work tied to/inspired by?
Mainly Scottish Enlightenment and French and American Enlightenments
how is morality created?
through the sympathetic process
Important influences on Smith
1) Scottish Enlightenment 2) attack on trade barriers by mercantilists 3)people can discover what is ethically good - the will of God is important
Scottish Enlightenment
period in 18th century Scotland, outpouring of intellectual and scientific work, rationalist outlook. Scientific revolution influenced by Newton - Scottish Enlightenment wanted to look at the motions of society analogous to Newton’s discoveries about physical work - wanted to find the laws that govern society
chief values of Scottish Enlightenment
virtue, and practical benefit for the individual and society as a whole
where was he born?
Scotland
what mundane job did Smith hold before becoming a major philosopher?
comptroller of customs, same as his father
Relationship with his Mother
was dependent on her for his whole life
