Adam Smith, Economist
Philosopher-ethicist,
One of the founders
modern economic
theories

Biography

A. Smith was born on June 5, 1723 in Kirkcaldy
(Scotland) in the family of a customs official.
At the age of 14 (1737) he entered the University
Glasgow, where he studied ethical principles for two years
philosophy, logic, ancient languages, mathematics,
astronomy
In 1740-1746. – studies at Baileyall College in
Oxford (during these years he was not yet interested
economics)
In the summer of 1746, after the uprising of Stuart supporters, he
went to Kirkcaldy, where he studied for two years
self-education.

A person's only treasure is his memory. Only in it is his wealth or poverty. A. Smith

In 1748 Smith began lecturing in Edinburgh on
natural law (including jurisprudence,
political doctrines, sociology and economics).
It was then that Smith began to form his
ideas about economic problems.
The basis of Smith's scientific theory was the desire to look
per person on three sides:
from the standpoint of morality and morality
from civil and government positions
from an economic point of view

Later he began preparing lectures on the subject of “achieving wealth,” where he for the first time outlined in detail the economic philosophy of “obvious and

Later he began preparing lectures on the subject of “achievement
wealth", where he first outlined in detail
economic philosophy "obvious and simple"
systems of natural freedom", which is reflected in his
most famous work, An Inquiry into the Nature and
reasons for the wealth of nations"
In 1759 Published the article “The Theory of Moral
feelings." In which he discussed the standards of ethical
behaviors that support society in a state of
stability (opposite Christian morals
based on fear of punishment and conversions from heaven),
proposed the "principle of sympathy" (according to which
it was worth putting yourself in the place of another person in order to
understand it better), and also expressed ideas of equality,
according to which moral principles must
apply equally to everyone.

In the 1930s, sketches of the first chapters of Wealth were found; they date back to 1763. These sketches contain ideas about the role of the division of labor

Sketches were found in the 1930s
the first chapters of “Wealth”; they date
1763 These sketches contain
ideas about the role of division of labor, concepts
productive and
unproductive labor, etc.
mercantilism is criticized and given
justification for the principle of non-interference.

In 1763-66, Smith lived in France, where he personally became acquainted with the ideas of the physiocrats.

Initially it was believed that the main
The Wealth of Nations ideas were
borrowed by Smith from the physiocrats; And
therefore the discovery of the Glasgow lecture
students were extremely important as
proof that the main ideas
already formed for Smith even before
French trip.

After returning from France, Smith lived in London for six months as an unofficial expert to the Minister of Finance, and from 1767. he is six years old

After returning from France, Smith
lived in London for six months as
unofficial expert to the minister
finance, and since 1767 he lived for six years
in Kirkcaldy, working on a book.
Smith gained fame only after
publication of the book “Research on
the nature and causes of the wealth of nations"
in 1776
Died 17 July 1790 in Edinburgh (
Scotland, UK)

The main ideas of the economic teachings of A. Smith

"An Inquiry into the Nature and Causes of the Wealth of Nations"
The book describes the consequences in detail
Economic freedom.
Included are discussions of concepts such as
the principle of non-interference, the role of selfishness,
division of labor, market functions and
international importance free
economy. The book discovered economics
as a science, launching the doctrine of free
entrepreneurship.

"An Inquiry into the Nature and Causes of the Wealth of Nations" begins with an analysis of the problem of the division of labor. Smith's source of division of labor

"An Inquiry into the Nature and Causes
wealth of nations" begins with an analysis
problems of division of labor. Source
Smith's division of labor saw exchange.
With the growth of the division of labor and the development of exchange
he connected and the origin of the money that Smith
assessed as a technical means of exchange.
He considered money a commodity, a product of spontaneous
objective process of development of society,
universal instrument of trade.

Smith devoted a lot of space to issues of cost. He identified random market prices depending on supply and demand.

The price is based on a certain
amount of labor embodied in a product
- i.e. exchange value.
According to Smith, value is equal to the sum of three
types of income: wages,
profits and rents.

By salary, Smith understood the amount of money that a commodity producer receives for his goods. Wages in his teaching are characterized

as the cost of labor.
Profit according to Smith is a deduction
from the product of the worker's labor. This
the result of unpaid labor,
appropriation of someone else's property by a capitalist.
Smith characterized rent as a deduction from
product of the worker's labor, which
appropriated by landowners.

Sidorchuk Ekaterina

Adam Smith: biography, main ideas.

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Adam Smith

Adam Smith (1723-1790) - Scottish economist and philosopher, one of the largest representatives of classical political economy. He created the theory of labor value and substantiated the need for the possible liberation of a market economy from government intervention. In “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), he summarized the century-long development of this direction of economic thought, examined the theory of value and income distribution, capital and its accumulation, the economic history of Western Europe, views on economic policy, and state finances. A. Smith approached economics as a system in which objective laws that are amenable to knowledge operate. During Adam Smith's lifetime, the book went through 5 English and several foreign editions and translations. Biography

At the heart of Smith's entire system of economic views is the idea that the wealth of society is created by labor in the production process. It depends 1. On the share of the population engaged in productive labor. 2. On the level of labor productivity. Smith considered the division of labor to be the most important factor in economic progress and made it the starting point of his research. Using the example of a pin factory, he showed a huge increase in labor due to the specialization of individual groups of workers to perform only one operation: Adam Smith's Basic Idea

K. Marx, for example, characterized A. Smith as follows: “On the one hand, he traces the internal connection of economic categories, or the hidden structure of the bourgeois economic system. On the other hand, he puts next to this the connection as it is given visibly in phenomena competition..." According to Marx, the duality of Smith’s methodology (which K. Marx was the first to point out) led to the fact that not only “progressive economists who sought to discover the objective laws of the movement of capitalism, but also apologist economists who tried to justify the bourgeois system by analyzing the external appearance of phenomena and processes." The assessment of Smith's works given by S. Gide and S. Rist is noteworthy. It is as follows. Smith borrowed all the important ideas from his predecessors in order to "pour" them into a "more general system." By getting ahead of them, he rendered them useless, since Smith replaced their fragmentary views with true social and economic philosophy. Thus, these views receive a completely new value in his book. Rather than remaining isolated, they serve to illustrate a general concept. From it they, in turn, borrow more light. Like almost all great “writers,” A. Smith, without losing his originality, could borrow a lot from his predecessors... And the most interesting opinion about Smith’s works, in my opinion, was published by M. Blaug: “There is no need to portray Adam Smith as the founder of political economy . This honor with much greater justification can be awarded to Cantillon, Quesnay and Turgot. However, Cantillon's "Essays", Quesnay's articles, Turgot's "Reflections" are at best lengthy brochures, dress rehearsals of science, but not yet science itself. "Research on nature and causes of the wealth of nations" is the first full-fledged work in economic science, setting out the general basis of science - the theory of production and distribution, then an analysis of the action of these abstract principles on historical material and, finally, a number of examples of their application in economic policy, and all this work imbued with the lofty idea of ​​“an obvious and simple system of natural freedom,” towards which, as it seemed to Adam Smith, the world was moving.” The significance of A. Smith's economic works

The economic theory that Smith expounded in An Inquiry into the Causes and Wealth of Nations was closely connected with the system of his philosophical ideas about man and society. Smith saw the main driver of human actions in selfishness, in the desire of each individual to improve his situation. However, according to him, in society, the selfish aspirations of people mutually limit each other, forming together a harmonious balance of contradictions, which is a reflection of the harmony established from above and reigning in the Universe. Competition in the economy and everyone's desire for personal income ensure the development of production and, ultimately, the growth of social welfare. One of the key provisions of Adam Smith's theory is the need to free the economy from state regulation that impedes the natural development of the economy. He sharply criticized the prevailing economic policy of mercantilism at that time, aimed at ensuring a positive balance in foreign trade through a system of prohibitive measures. According to Smith, the desire of people to buy where it is cheaper and sell where it is more expensive is natural, and therefore all protectionist duties and incentives for exports are harmful, as are any obstacles to the free circulation of money. Smith's interpretation of economic laws

Polemicizing with the theorists of mercantilism, who identified wealth with precious metals, and with the physiocrats, who saw the source of wealth exclusively in agriculture, Smith argued that wealth is created by all types of productive labor. Labor, he argued, also acts as a measure of the value of a product. At the same time, however, Adam Smith did not mean the amount of labor that was spent on the production of a product, but the amount that can be purchased for a given product. Money is just one type of product and is not the main purpose of production. Adam Smith associated the well-being of society with increased labor efficiency. He considered the most effective means of increasing it to be the division of labor and specialization, citing the now classic example of the pin factory. However, the degree of division of labor, he emphasized, is directly related to the size of the market: the wider the market, the higher the level of specialization of the producers operating in it. This led to the conclusion that it was necessary to abolish such restrictions for the free development of the market as monopolies, guild privileges, laws of residence, compulsory apprenticeship, etc. According to Adam Smith’s theory, the initial value of a product during distribution is divided into three parts: wages, profit and rent . With the growth of labor efficiency, he noted, there is an increase in wages and rent, but the share of profit in the newly produced value decreases. The total social good is divided into two main parts: the first - capital - serves to maintain and expand production (this includes the wages of workers), the second goes for consumption by the unproductive classes of society (owners of land and capital, civil servants, military personnel, scientists, liberal professions). etc.). The well-being of society depends on the ratio of these two parts: the larger the share of capital, the faster social wealth grows, and, conversely, the more funds spent on unproductive consumption (primarily by the state), the poorer the nation.

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Economic teachings of Adam Smith Prepared by: student of the DEN-202 group Alexey Korneev

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Adam Smith economist, ethical philosopher; one of the founders of modern economic theory.

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A. Smith was born on June 5, 1723 in Kirkcaldy (Scotland) in the family of a customs official. At the age of 14 (1737) he entered the University of Glasgow, where he studied the ethical foundations of philosophy, logic, ancient languages, mathematics, and astronomy for two years. In 1740 - 1746 - studying at Baileyall College in Oxford (during these years he was not yet interested in economics) In the summer of 1746, after the uprising of Stuart supporters, he left for Kirkcaldy, where he studied self-education for two years. Biography

4 slide

In 1748, Smith began lecturing in Edinburgh on natural law (including jurisprudence, political doctrine, sociology and economics). It was then that Smith began to formulate his ideas about the problems of economics. The basis of Smith's scientific theory was the desire to look at a person from three sides: from the positions of morality and morality, from civil and state positions, from economic positions.

5 slide

Later he began preparing lectures on the subject of “attaining wealth,” where he for the first time expounded in detail the economic philosophy of “an obvious and simple system of natural liberty,” which was reflected in his most famous work, “An Inquiry into the Nature and Causes of the Wealth of Nations.” In 1759, he published an article “The Theory of Moral Sentiments”, in which he discussed the standards of ethical behavior that maintain society in a state of stability (opposite to Christian morality, based on fear of punishment and promises of heaven), proposed the “principle of sympathy” (according to which it was worth putting putting himself in the place of another person in order to better understand him), and also expressed ideas of equality, according to which the principles of morality should be applied equally to everyone.

6 slide

In the 1930s, sketches of the first chapters of Wealth were found; they date from 1763. These sketches contain ideas about the role of the division of labor, the concept of productive and unproductive labor, and so on; mercantilism is criticized and justification is given for the principle of non-intervention.

7 slide

In 1763-66, Smith lived in France, where he personally became acquainted with the ideas of the physiocrats. It was initially believed that the main ideas of The Wealth of Nations were borrowed by Smith from the Physiocrats; and therefore the discovery of the lectures of the Glasgow student was extremely important as proof that Smith had already formed the main ideas before the French trip.

8 slide

After returning from France, Smith lived in London for six months as an unofficial expert to the Chancellor of the Exchequer, and from 1767 he lived in Kirkcaldy for six years, working on a book. Smith gained fame only after the publication of the book “An Inquiry into the Nature and Causes of the Wealth of Nations” in 1776. He died on July 17, 1790 in Edinburgh (Scotland, Great Britain).

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The main ideas of the economic teachings of A. Smith The book describes in detail the consequences of economic freedom. Included are discussions of concepts such as the principle of laissez-faire, the role of selfishness, the division of labor, the functions of the market, and the international significance of a free economy. The book opened economics as a science, launching the doctrine of free enterprise. "An Inquiry into the Nature and Causes of the Wealth of Nations"

10 slide

"An Inquiry into the Nature and Causes of the Wealth of Nations" begins with an analysis of the problem of the division of labor. Smith saw the source of the division of labor in exchange. With the growth of the division of labor and the development of exchange, he also connected the origin of money, which Smith assessed as a technical means of exchange. He considered money a commodity, a product of a spontaneous objective process of social development, a universal instrument of trade.

11 slide

Smith devoted a lot of space to issues of cost. He identified random market prices depending on supply and demand. The price is based on a certain amount of labor embodied in a product - i.e. its exchange value. According to Smith, value is equal to the sum of three types of income: wages, profits and rent.

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Biography

Scottish economist, one of the founders of modern economic theory. Studied for 3 years at the University of Glasgow, then 6 years at Oxford. Major works: The Theory of Moral Sentiments (1759) Lectures on Jurisprudence (1766) An Inquiry into the Nature and Causes of the Wealth of Nations (1776) An Account of the Life and Works of David Hume (1777) Thoughts on the State of Competition with America (1778) Essays on Philosophical Subjects (1785) )

Adam Smith (1723 - 1790)

Slide 3

What is the source of wealth

The source of growth in the wealth of the people, according to A. Smith, is: Gross national product Growth in the population of the state Increase in production Free competition Division of labor Transition from manufactures to factory production

Slide 4

Three factor theory

“The theory of three factors” - the theory of formation of the value of goods

CAPITAL LABOR LAND COST PROFIT WAGES RENT DISTRIBUTION:

Slide 5

"THE INVISIBLE HAND"

Internal desire encourages progress through competitive mechanisms.

The desire of individuals for personal gain contributes to overall progress, without the individual's intention to do so.

Slide 6

Principles of taxation according to A. Smith: Universality Certainty Distribution For labor For land For capital Convenience Equity

“Injustice tempts and encourages one to break the law, this leads to punishment, which in turn leads to new injustice...”

Slide 7

The end of the presentation

Thank you for your attention

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