The Father Of Modern Economics

1675 WordsNov 21, 20147 Pages
Adam Smith (1723-1790), christened the ‘father of modern economics’ made several important discoveries in the field of political economy. He was so well appreciated that many of his ideas became the forefront in dictating government policy; especially during the time of Ronald Reagan in the USA (1981-1989) and Margret Thatcher in the UK (1979-1990). It was even said that the then prime minister kept a copy of the Kirkcaldy born philosopher’s most famous work, The Wealth of Nations (1776), in her handbag . Smith’s main thematic concerns, for example incentives to work, efficiency, liberty and competition, have been vital in forming the building blocks of our contemporary understanding of economics. Therefore, it is important to critique and evaluate some of Smith’s prevalent theories that have affect policy setting and discuss their meaning, relevancy, issues and how they can be implemented by a leading authorities. Although Smith’s main objectives involving the state is for there to be as little involvement as possible, we will see that his attitudes face dilemmas, especially over the discussion of public goods, education, national defence and monopolies. Adam Smith’s economic universe was largely based around the idea of a capitalist free market system. Smith argued that the free market would be efficient in deciding what to produce how much of it and at what price. He used the metaphor of ‘The Invisible Hand’ to use a symbol for the natural settlement of how goods would
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