Adam Smith

1
Adam Smith

• Founding Father of Economics
• Born Kirkcaldy, Fife, Scotland 1723
• Father was controller of customs,died before
  Adams birth
• Kidnapped by gypsies at age 4
• Graduated U of Glasgow at 17,studied at Oxford
• Lectured at Glasgow on Logic and Moral
  Philosophy

• Adam Smith
• 1723 - 1790

2
Adam Smith

• 1759 The Theory of Moral Sentiments
• Human behaviour
• Relationship between individual and society
• 1763 Tutor to Duke of Buccleuch
• 1776 The Wealth of Nations
• 1778 Commissioner of Customs
• lived in Edinburgh, Scotland
• died July 17, 1790

• Adam Smith
• 1723 - 1790

3
Adam Smith

• The Wealth of Nations (1776)
• Invisible Hand market forces
• Laissez faire
• role of competition, self-interest
• Specialization
• division of labour (pin example)
• Free trade
• benefits of international trade

• Adam Smith
• 1723 - 1790

4
Adam Smith

• The Wealth of Nations (1776)
• It is the maxim of every prudent master of a
  family, never to attempt to make at home what it
  will cost him more to make than to buy.
• The tailor does not attempt to make his own
  shoes, but buys them of the shoemaker. The
  shoemaker does not make his own clothes, but
  employs a tailor
• What is prudence in the conduct of every private
  family, can scarcely be folly in that of a great
  kingdom.

• Adam Smith
• 1723 - 1790