Adam Smith 1723 – 1790 Philosopher, Political Scientist, Journalist, Educator, Scholar, Economist

Early Life Born in Kirkcaldy, Scotland Exact date of birth is unknown, but his baptism was recorded on June 5th, 1723 Attended Burgh School where he studied: Latin, math, history and writing Entered university of Glasgow at 14 In 1740 transferred to Oxford University

Professional Life 1748 – began giving public lectures at the University of Edinburgh 1750 – he met and became life long friends with Scottish philosopher and economist David Hume 1759 – published The Theory Of Moral Sentiments He became the tutor of the future Duke of Buccleuch and moved to France (1763–1766) Smith now began to give more attention to jurisprudence and political economy in his lecture and less to his theories of morals. Made friends with intellectual leaders as Turgot, D'Alembert, André Morellet, Helvétius and, in particular, Francois Quesnay, the head of the Physiocratic school whose work he much respected. In his last years he seems to have been planning two major treatises, one on the theory and history of law and one on the sciences and arts

Theories Father of Economics Classical Economic Theory Focused on the production of income Major contributors: land, labor, capital came up with ‘the invisible hand’ “All money is a matter of belief” http://www.investopedia.com/video/play/invisible-hand/

Criticism Too much importance to wealth Narrow meaning of wealth Concept of economic man (social interest is ignored) Man welfare is missing Doesn't’t study means of earning Narrow and controversial views – true meaning of wealth?

Awards/Honors Adam Smith awards are recognized globally as the ultimate benchmark for achievement in corporate treasury In 1787, Smith was named rector of the University of Glasgow, and he died just three years later, at the age of 67. July 4th, 2008 – The Adam Smith Institute was the first major monument to Adam Smith The Wealth of Nations won Smith a far-reaching reputation, and the work, considered a foundational work of classical economics, is one of the most influential books ever written

Later Life In his later years he took a tutoring job that allowed him to travel Europe and meet influential people. His younger brother then died in 1766, prompting him to quit the tutoring job. In May 1773 he was elected fellow of the Royal Society of London and was elected a member of the Literary Club in 1775. He died on July 17 1970 at the age of 67 in Edinburgh, Scotland, UK.

Important Works His first major work is “The Theory of Moral Sentiments” was published in 1759. The main point of the work is that our sense of morality is derived from our capacity to sympathize with other people either directly or indirectly. In 1776 he published, “An Inquiry into the Nature and Causes of the Wealth of Nations, which is thought to be the first work dedicated to the study of political economy. It was foundational work for classical economics and is considered one of the most influential books ever written.

Important Works Continued.. In the five books Smith writes largely against the mercantile system, an account of a complicated economic system based on human nature and the deep-rooted social dynamics. Books 1 and 2 focus on the idea of division labor. Book 3 considers Great Britain in the context of social evolution. Book 4 criticizes the “mercantile commerce” Book 5 describes what he considers to be the appropriate roles of government (defense, justice, creation and maintenance of public works) Theme of the work is the idea that economic systems are automatic, and when left with substantial freedom can regulate itself