What Would Adam Smith Do about Indian Gold Market Issue

Economics is the study of choice and the consequences that come from said choices. Ever since the 18th century, economists have continued to argue about theories that could improve society to the greatest extent. Two great economists, Adam Smith and Karl Marx, proved to develop opposing ideologies that would soon become the foundation of the two most popular political philosophies. Even though they voiced opposing views, Smith and Marx have truly made the greatest impact on contemporary economic theory in the United States because without them, our capitalist economy would not be what it is today.

Adam Smith: Adam Smith was a Scottish philosopher who is best known for The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations.

of the Indian textiles, that the flow of the silver bullion is very conflicted because

silver production and how the inflation ruined the economies. In documents 1,5, and 6 it shows

The beginnings of Adam Smith’s writing in The Wealth of Nations proposes a heavily disputed query. Adam Smith questions the cause of wealth gaps between nations. Smith longs to discover why some nations acquire excessive financial

With the continuous decline of the United States economy, it leaves us to wonder if there is anything that can be done to stop this degradation. There are several economic policies that can have different effects towards the stability of our countries currency, but one that stands out is the issue of returning to a Gold Standard. Would this be the best course of action, or would it further the problems we currently have, or would it even be better to look at an alternative solution to moor our currency? Understanding these solutions will greatly benefit those of us who live in the United States and can even have a large effect on the world. Those who understand these issues have the knowledge needed to help us make a decision on what would be best for our country’s economy.

Adam Smith was born in Kirkcaldy, Scotland in the year 1923, and died in the year 1790 at the age of 67 (Stewart, 1861). His exact date of birth is unknown but was baptized on 5th June 1723. His father was a prosecutor, advocate, and solicitor but passed on two months after his birth, leaving his mother to bring him up. His mother, Margaret Douglas, played a great role in his upbringing, especially in education. He joined the Burgh school where he learned history, writing, Latin and mathematics. He went to the University of Glasgow at the age of 14 where he studied moral philosophy; he also established his passion for reason, free speech and liberty (Stewart, 1861). In 1740, he entered Balliol College, Oxford where he undertook his postgraduate studies and became the first student to gain from the scholarship of John Snell. Conversely, his studies at Balliol College, Oxford did not contribute a lot towards his lifework as compared to his studies at Glasgow University (Stewart, 1861).

Eight decades has elapsed since the outbreak of the Great Depression, but the continuing mystery of its cause keep provoking academic debates among scholars from various fields. Eichengreen and Temin joint the debates by linking the gold-standard ideology with the cause of the Great Depression. They content that because of this ideology monetary and fiscal authorities implemented deflationary policies when the hindsight shows clearly that expansionary policies were needed. And these contractionary policies consequently pushed the stumbling world economy into the Great Depression. Eichengreen and Temin put heavy weight on analyzing why the prewar gold standard could be a force for international financial stability while interwar gold

In 1776, Adam Smith, also known as the founding father of economic liberalism, changed the world with a historical document titled "An Inquiry into the Nature and Causes of the Wealth of Nations". This book was intended to be an attack upon the economic system during the 18th century. Today, Smith is known as the inventor of the market economy because of this particular work. Although, the article has a built-in bias, having both fact and opinion. The Wealth of Nations is considered to be the "bible of capitalism".

Adam Smith and Karl Marx argued on their thoughts about capitalism and what kind of world it created, the origins of the Industrial Revolution, and the influences of division of labour. Many of those thoughts were based upon similarities in each point, but Smith had more of an economic view in the way of national wealth, while Marx held a social view for personal wealth of individuals. The two men tell of their opinion of this economic change through their work and now are seen as some of the biggest influences on the views of the Industrial Revolution and today’s world economy.

But at the same time it can be worse that we have to limit the amount of money that is on hand. Which when limited can make depressions worse by limiting the amount of money that can be put back into the economy. In addition the price of gold is dependent on the global prices and what other countries store of gold amount up to. In addition if any other countries are starting to buy large amount of gold and if they are owning it or trading it with other nations. With the chances of gold fluctuating in price, due to the amount of gold there is in the world, what countries hold the lion's share of gold, and finally what is the current state of the world. In addition the gold standard is mainly used in capitalistic economy. This is due to countries that follow the ideals of communism do not believe in people making money but instead believe in the people supporting each other. But that could also harm the countries that follow the gold standard because those communist countries hold onto their gold instead of selling it or giving the gold to a different country. The reason they may hold onto this gold is that they hope other countries may follow their example and stop following the ideal of

This developing liberal trend within the middle class produced conditions that allowed for the exploring of social thinkers such as John Locke, a philosopher of the 17th century, who theorised on politics and liberty and the individual. Then there was the Magna-Carta adding further to the liberal maelstrom of the political debate at this time. There was Adam Smith, who promoted a laissez-fare approach to economics, which was a further expression of liberal thinking. Smith’s book, ‘The wealth of a Nation’ heralded new thoughts about trade and the market. He suggested that the market should be left to regulate itself, reducing governmental control. This gave the enterprise class further opportunity to break with the old restricted practices of

Adam Smith is considered as one of the most influential economists in the 18th century. Although his theories have been criticized by several socialist economists, however, his idea of capitalism still has great impact to the rest of the economists during classical, neo classical periods and the structure of today’s economy. Even the former Prime Minister of Britain, Margaret Thatcher had praised on Smith’s contribution on today’s capitalism market. She commented “Adam Smith, in fact, heralded the end of the strait-jacket of feudalism and released all the innate energy of private initiative and enterprise which enable wealth to be created on a scale never before contemplated” (Copley and Sutherland 1995, 2). Smith is also being recognized

Second, the examination of the price of gold is necessary to see if a transition back to the gold standard would help stabilize the U.S. dollar even more. To do this we will examine the price of gold over a 10-year span and 5-year span. Some say, that commodity backed currency, like the gold standard help stabilize inflation rates better than fiat currency. In theory, this is in large part due to the fact that gold remains to be a stable fixed priced asset (Wolf, 2001). We will examine the price of gold by looking at the highs and lows of the price of gold to determine if the price of gold remains relatively stable over time. Looking at the 10-year graph of the price of gold, the highest price gold was selling at was $1900.30 per ounce and it’s lowest was $709.50 per ounce. Over the past 5 years the high has been $1751.90 per ounce and the low has been $1050.60 per ounce (Kitco, 2017). Also it should be noted, that when examining the past 5-year graph for the price of gold, gold has been on a sharp decline the past 5 years. This price fluctuation calls into question Rolnick and Welser’s findings in their study. If gold backed currency is supposed to stabilize price inflation, shouldn’t the price of gold also be stable? Data on the price of gold, shows that the price of gold itself is not inherently stable. The recent fluctuations in gold pricing, does not call

Adam Smith is considered to be the founder of a major field called Microeconomics, which is concerned with the behavior of individual entities such as markets, firms, and households. In 1776 Smith published The Wealth of Nations, a series