Essay on Analysis of Wealth of Nations by Adam Smith

Additionally, with this emphasis on spontaneous coordination, Smith pointed to the possibility of a social order in which people live in harmony together with a minimum need of a central, coercive apparatus. He captured the central intuition of classical economists according to which modern commercial society, notwithstanding its conflicts, obeys a kind of pre-established order, and enjoys the advantage of a mechanism, the market, which maintains equilibria by continually adjusting competing interests.

"first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many." (Smith, Wealth of Nations, p.6)

On the other hand, Smith believes that at the state of nature, man actually tends towards harmonious relationships of bartering and are willing to work together instead of apart. He utilizes individual power to give him leverage in transactions. His creation of social order is not to control this tendency, but rather to create a system in which it can flourish, which he calls the division of labor. In this, each man finds his place in the social order, produces something in particular, and a lot of the transaction costs from bartering are worked past. Unlike Hobbes, he believes that social order simply adds to the ability of man’s power towards transaction.

In the Wealth of Nations, Adam Smith talks about international trade and subsequent government policies which became increasingly significant throughout modern history. Protectionism is the term for economic policies of restraining trade between countries when they want to protect their domestic industries from foreign competition. Trades nowadays have different forms and methods and involve more businessmen as well as consumers, which is why trade diplomats are looking to regional agreements. The US experienced two major economic declines during the 20th century, both of which had much to do with international trade. Smith mentioned tariffs in the 18th century, but the role and forms of protectionism have changed across time, so we should know whether the development of economy should actually be correlated with or decided by the political sector of the society and when protectionism will benefit or hurt economy.

Smith, however, was of the opinion that Mercantile System was deeply flawed. Firstly, as given in the Fourth Book (3) of the Wealth of Nations, he argued that the real wealth of a nation was “not in the unconsumable riches of money, but in the consumable goods annually reproduced by the labour of the society”. (4) Secondly, the balance of trade, as observed by him, often did little to enhance the wealth of a nation and instead served to create violent national animosity instead. He instead put forth the idea of a balance of annual production and consumption, which if it were unfavourable would have caused a decay of the wealth of a nation. Thirdly, Prof. Smith was a strong critic of the idea of colonialism; stating that, “To found a great empire for the sole purpose of raising up a people of customers, may at first sight, appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers, but extremely fit for a nation whose government is influenced by shopkeepers. Such statesmen, and such statesmen only, are capable of fancying that they will find some advantage in employing the blood and treasure of their fellow-citizens, to found and maintain such an empire.”(5) The implication being that the idea of colonialism was of an extremely oppressive nature, beneficial only to the colonial

Because Smith never offers up any backing for his word, the reader is left to speculate how he came up with all his information and why they should believe anything he has to say. Smith goes on and on, mentioning example after good example while never once backing up what he has to say.

Adam Smith's "Book Wealth Of nations" discusses his philosophy and motivation for salaried labor. Smith argued that the institution was just one more artificial restraint on individual self-interest. "THIS division of labor, from which so many advantages are derived, is not originally the effect of any human wisdom, which foresees and intends that general opulence to which it gives occasion. It is the necessary, though very slow and gradual consequence of a certain propensity in human nature, which has in view no such extensive utility; the propensity to truck, barter, and exchange one thing for another."

An important aspect of Smith's views, were taxes. In one of Smith's many opinions regarding human nature, he explains that the rich, once placed in a position of power, maintain that power through their dealings within a civil government which employs men of inferior wealth, to protect the wealthy lands of the rich. In layman’s terms a community with the bare minimum has little violence since there is nothing to fight over, but one with plush property and wealth, has a plethora of people fighting over one another. This is where Smith's views of taxes comes into play. In his world, the government would impose taxation, with the intentions of discouraging improper or luxurious behavior which he believed did not benefit society as a whole. (Smith, pp.18-20) When discussing human nature in the sociological spectrum, Smith likens humans to animals, or dogs in particular. The typical reliance of animals, once they're matured,on no one but themselves (becoming independents), is a characteristic that humans do not follow. I believe Smith's

We live in a world controlled by an invisible yet very present force that shapes the way we live our daily lives. With industry as its host and technology as the blood being pumped into its heart, it is a force powerful enough to bend politics to fit its needs. Capitalism; a method of industry where production and distribution are privately or corporately owned, its operation grows through profits, exploitation of labor, and extinguishing competition. During the Industrial Revolution technology was on the global stage. Factories and machines are built in existing cities producing and distributing mass goods on a global scale. Over time this fast production of goods would replace the old agricultural economy to a modern urban economy. Today the revolution is praised for creating a global trade market while surging us into a world of technology.

- Control and regulate the various economic conditions such as inflation through the management and

He was trying to say is that commercial society is a civilization where everyone is a merchant: a dealer, trader, and seller. Throughout the book, Smith starts having an agreement and disagreement on commercial society, which is a commercial society deforms human nature. However, continuing reading his book, there are more benefits of a commercial society than the drawbacks. A commercial society does not damage human nature, instead improves human nature by acting on one’s self-interest to bring positive benefits to society, connects and aids members of society together through trade and

There are several important ideas and most interesting thoughts that are poised by Smith that communicated to me directly. Some of the most important ideas that Smith depicted were a result of events that he experienced. He was able to observe traits from others who believed they “knew” a religion and he was actually able to explain to them the difference in sentences and phrases that one was able to understand and comprehend. It is important for one to not only study a religion and practice it but for one to be devoted to the religion. Religion is a part of life, and to live you must have religion in your life. In his article he continuously states that he is not defining the religion although he may not realize that he actually is. He is defining the religion as a concept in which an outside reader is able to understand. “The man of religious faith lives in this world. He is subject to its pressures, limited within its imperfections, particularized within one or another of its always-varying

After the Declaration of Independence from Britain the specialization of labor was notable through two economist: Adam Smith and Karl Marx. Adam Smith approached the specialization of labor through a capitalistic mindset. He believed that specialization of labor allowed companies to produce more products and increase workers abilities. Adam Smith’s ideas described in the “Wealth of Nations” described the “Division of Labor”. The second economist was Karl Marx which was known for his communist beliefs, which he believed specialization of labor alienated workers causing them spiritual and physical depression (Vitez, n.d.).

somehow rooted in the previous generation. Smith's style in developing this central idea is much

The most important changes were brought in the economy and the way of earning income. Industrialization turned everything upside-down in this sector of human activity. In pre-industrial societies income and the economy as a whole, were based on agriculture and manufacturing in home. Wealth was not something to be pursued, the character and personality of the individual had greater value than his wealth: “the hard-working poor man is superior to the lazy rich man” (Vidich: 230). In modern economies everything is based on industrial mass production and white-collar jobs have increased. The pursuit for wealth is so high that if we compare it with traditional societies, modern ones would look corrupted (Macionis: 408).