Adam Smith : The Father Of Modern Economics And Capitalism

2619 Words11 Pages
Ethan Sattler
Carolyn Crumpler
World History
7 April 2014

Adam Smith was an influential 18th century philosopher who many consider to be the “father of modern economics and capitalism.” Born in 1723 in Scotland, he was one of the greatest classical liberal thinkers of all time. He is best known for his works The Wealth of Nations and The Theory of Moral Sentiments. His ideas were developed during the mid-1700s, during the Industrial Revolution. The Industrial Revolution was one of the largest social, political, and economic shifts in human history. Economic systems during the Industrial Revolution shifted from mercantilism to laissez-faire capitalism, which allowed for competition between rival businesses. Independent (non-state owned) companies thrived by expanding into new markets, and investing in production efficiency. Large technological advances and new production concepts such as the assembly line and mass agricultural production lowered prices on goods and services. Smith’s ideas have been implemented continuously from the 1760s to the present. Adam Smith’s views on social and economic policy are the cornerstones of the classical liberal ideology. His positions on taxes, trade, regulation, and the role of government have had a profound impact on the United States, and the rest of the world.
I. Adam Smith and Taxes: Adam Smith, a fierce capitalist, believed in a less intrusive and smaller government with the lowest taxes possible. Despite his belief that
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