Nature And Causes Of The Wealth Of Nations

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Adam Smith is known as the originator of the first of the free-market capitalism, laissez-faire kebijksanaan well as the father of modern economics. An Inquiry into the Nature and Causes of the Wealth of Nations, or commonly abbreviated as "The Wealth of Nations" is a famous book by Adam Smith that contains economic ideas now known as classical economics. Inspiration from this book came from her teacher while studying at the University of Glasgow namely Francis Hutcheson and college friend David Hume (Becker, 2007). Posts Smith also consists of a thorough explanation megenai mercantilist writings and fisokrat that disentiskannya well be a material economic studies. Antaara Smith dissent and you mercantilist one of the factors that determine prosperity, where the mercantilists…show more content…
From the above explanation, it can be concluded that Adam Smith as the father of modern economics with classical theory have new insights which in his time was the early stages of the industrial revolution. Outstretched discussion of the theory of production costs, wages, profits, rents, as well as the theory of development that take into account the value of the division of labor and capital accumulation. Classical economic outlook is the cornerstone of personal interest (self-interest) with natural independence, so that everyone knows exactly what is necessary and beneficial for him. When compared with the previous understanding ideas, theories Smith tend to be more integrated, consistent, deep, and is more common with a lot of talk about wealth. He also challenged the view of the Merchantilist stating that wealth consists of cash and precious metals. According to Smith, international trade is not merely to get the precious metals but for the exchange of commodities necessary, expand the market and this will increase the division of
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