Adam Smith

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Adam Smith was a Scottish political economist and moral philosopher, who studied moral philosophy at Oxford University and University of Glasgow. Smith is considered by many to be the founding father of economics and the first free-market capitalist. In fact, in many ways his philosophies and theories have helped shape our country and our economy into what it is today. Smith introduced us to the invisible hand theory which referred to the free markets. The invisible hand theory stated that ultimately when people were left able to pursue their best interests, meaning that they were able to pursue work that made them happy and that enabled them to command the highest wage for themselves or when entrepreneurs were able to provide good…show more content…
Adam Smith’s ideas are very much relevant today. However, with recent events in today’s economy, it’s obvious that some of the practices that worked previously need some serious revision to work in today’s world. There was a recent market crisis in early 2008, mainly because of the way that the markets were being run and the lack of transparency. Smith’s theories held that there is no need for government involvement, but clearly lack of government involvement in this case was simply not an option and would have lead to an even more chaotic situation. Smith’s theories were a great foundation and a lot of the ways in which we live today are based on these theories. It’s evident in our ever growing society, in the many professions that people work in and the number of new businesses being created. With that said, even though Smith’s theories are still relevant, with the changing times and society, the way the markets are handled will need to be improved. This will probably mean more government involvement at many levels to ensure and promote transparency. As the world continues to change and as new challenges are faced, there will definitely be the need for a new way of thinking to be applied to smith’s ideas In conclusion, Smith’s ideas were and still are very instrumental to our society and the way that the free markets are run. Since Adam Smith’s ideas and theories have outlasted those of any other economist,

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