A discussion of adam smith and the classical economists views on international trade

Plato[ edit ] In Plato 's Republicthe origin of the state lies in the natural inequality of humanity, which is embodied in the division of labour.

A discussion of adam smith and the classical economists views on international trade

Life and Influences a. Early Life and Influences Adam Smith was born in June,in Kirkcaldy, a port town on the eastern shore of Scotland; the exact date is unknown. His father, the Comptroller and Collector of Customs, died while Smith's mother was pregnant but left the family with adequate resources for their financial well being.

Young Adam was educated in a local parish district school. Inat the age of thirteen he was sent to Glasgow College after which he attended Baliol College at Oxford University. His positive experiences at school in Kirkcaldy and at Glasgow, combined with his negative reaction to the professors at Oxford, would remain a strong influence on his philosophy.

In particular, Smith held his teacher Francis Hutcheson in high esteem. One of the early leaders of the philosophical movement now called the Scottish Enlightenment, Hutcheson was a proponent of moral sense theory, the position that human beings make moral judgments using their sentiments rather than their "rational" capacities.

According to Hutcheson, a sense of unity among human beings allows for the possibility of other-oriented actions even though individuals are often motivated by self-interest.

The moral sense, which is a form of benevolence, elicits a feeling of approval in those witnessing moral acts. Hutcheson opposed ethical egoism, the notion that individuals ought to be motivated by their own interests ultimately, even when they cooperate with others on a common project.

The term "moral sense" was first coined by Sir Anthony Ashley Cooper, Third Earl of Shaftesburywhose work Smith read and who became a focal point in the Scots' discussion, although he himself was not Scottish. Although Shaftesbury did not offer a formal moral sense theory as Hutcheson did, he describes personal moral deliberation as a "soliloquy," a process of self-division and self-examination similar in form to Hamlet's remarks on suicide.

This model of moral reasoning plays an important role in Smith's books. The Scottish Enlightenment philosophers, or the literati, as they called themselves, were a close-knit group who socialized together and who read, critiqued, and debated each other's work.

They met regularly in social clubs often at pubs to discuss politics and philosophy. Shortly after graduating from Oxford, Smith presented public lectures on moral philosophy in Edinburgh, and then, with the assistance of the literati, he secured his first position as the Chair of Logic at Glasgow University.

His closest friendship in the group—and probably his most important non-familial relationship throughout his life—was with David Humean older philosopher whose work Smith was chastised for reading while at Oxford.

Hume was believed to be an atheist, and his work brought into question some of the core beliefs in moral philosophy. In particular, and even more so than Hutcheson, Hume's own version of moral sense theory challenged the assumption that reason was the key human faculty in moral behavior. He famously asserted that reason is and ought to be slave to the passions, which means that even if the intellect can inform individuals as to what is morally correct, agents will only act if their sentiments incline them to do so.

An old proverb tells us that you can lead a horse to water but that you can't make it drink. Hume analogously argues that while you might be able to teach people what it means to be moral, only their passions, not their rational capacities, can actually inspire them to be ethical.

This position has roots in Aristotle 's distinction between moral and intellectual virtue. Smith, while never explicitly arguing for Hume's position, nonetheless seems to assume much of it.

A discussion of adam smith and the classical economists views on international trade

And while he does not offer a strict moral sense theory, he does adopt Hume's assertion that moral behavior is, at core, the human capacity of sympathy, the faculty that, in Hume's account, allows us to approve of others' characters, to "forget our own interest in our judgments," and to consider those whom "we meet with in society and conversation" who "are not placed in the same situation, and have not the same interest with ourselves" Hume:Adam Smith Theory of Development in Economics (Main Features) and the size of market depends on the available stock and the institutional restrictions placed upon both domestic and international trade.

Smith observes that, “when the market is small, no person can have encouragement to dedicate himself entirely to one employment, for .

Adam Smith (—) Adam Smith is often identified as the father of modern capitalism.

Adam Smith - Wikipedia

While accurate to some extent, this description is both overly simplistic and dangerously misleading. Adam Smith is renowned as "The Father of Economics" for his work in pioneering ideas such as free trade and GDP. that became known as classical economics.

Other economists built on Smith. The division of labour is the separation of tasks in any system so that participants may specialize.

An encyclopedia of philosophy articles written by professional philosophers.

Individuals, organizations, and nations are endowed with or acquire specialized capabilities and either form combinations or trade to take advantage of the capabilities of others in addition to their own. No, Adam Smith’s book “Wealth of Nations” is fiction.

To understand this fiction you need to read Marx’s Das Kapital that explains how capitalism leads to greed and inequality. The Economist’s early views on free trade were strongly influenced by the classical economists Adam Smith and David Ricardo, as Ruth Dudley Edwards, a historian, has pointed out.

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Smith, Adam | Internet Encyclopedia of Philosophy