Essay on Analysis of Wealth of Nations by Adam Smith

Analysis of Wealth of Nations by Adam Smith People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. Adam Smith The reasons for writing a book such as Adam Smiths The Wealth of Nations are many, and Smith seems to have had several in mind. His study traces the stages in the development of the modern economic system in an attempt to explain it, maps out the origins of money, and finally tackles the issues facing the mercantile system which controlled the society he lived in. In the process, he provides an exposition for his vision of a laissez faire economy, that is, capitalism as we now know it.†¦show more content†¦Looking at his own societys economic system, Smith explores the division of labour, the role it has to play in industrialization, and its general impact upon the wealth of the state. Smith regards the division of labour and the resultant specialization as the key to increasing the productivity of labour, rather than the increase in mechanization since the Industrial Revolution began, as many would argue. Naturally, a highly specialized economic unit would be dependent upon interaction with other, similarly specialized units, and Smith illustrates that a system of fair and accessible trade is necessary for an efficient use of labour. The much quoted example of the pin maker is used to demonstrate Smiths point about the division of labour. Despite its questionable accuracy, this example does much to illustrate the plight of labour under a system of increasing specialization. That is to say, it shows the boredom and melancholia which can be associated with repetitious and laborious work. For Smith, however, any such problem is amply compensated for by the relative prosperity of a society based upon specialized markets and trades. For instance,Show MoreRelatedAnalysis Of Thomas Hobbes Leviathan And Adam Smith s The Wealth Of Nations1852 Words   |  8 Pages Most important among the many big ideas in Thomas Hobbes’ Leviathan and Adam Smith’s The Wealth of Nations are those that deal with human nature and how to create and maintain social order. In this paper, I will argue Hobbes’ lack of optimism, and Smith’s lack of pessimism in their theories of human nature, and will also discuss how our idea of social order changes once these aspects are taken into consideration. Hobbes’ theory of human nature begins with the statement that all men are createdRead MoreAn Inquiry Into The Nature And Causes Of The Wealth Of Nations986 Words   |  4 PagesIn 1776, Adam Smith, also known as the founding father of economic liberalism, changed the world with a historical document titled An Inquiry into the Nature and Causes of the Wealth of Nations. 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