Adam Smith: Father Of Economic Thoughts

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Adam Smith – Father of Economics Thoughts (1723-1790) – was a social Scottish philosopher, scholar, and political economist. He went to Burgh School where he studied mathematics, Latin, writing and history. At the age of 14, he attended the University of Glasgow, and on 1740, he went to Oxford. In 1748, He started to lecture at the University of Edinburg where he met an economist named David Hume, then they became best friends. Smith’s thoughts and ideas where reflecting the lights of the start of the industrial revolution. He was given that surname “Father of Economics”, due to his great contribution in the science of economics, and also he integrated an overall vision of forces determining the wealth of nation. His thoughts were considered…show more content…
The name “Father of Economics” was also named to Richard Cantillon who was a banker and a merchant in the mercantilist era, whom he wrote the first treatise on economics more than four decades before the publication of “An inquiry into the Nature and causes of the wealth of nations” of Adam Smith. Richard Cantillon was an Irish man who worked as a banker in Paris, his book first was not recognized in England after the publication of Adam Smith’s book in 1776. In 1881, William Stanly Jevans - English economist and logician who wrote “A General Mathematical Theory of Political Economy in 1862” and created a case that economics is a science concerned with quantities is necessarily mathematical and expounded upon the final utility theory of value – described Cantillon’s book as “The cradle of political economy” and “The first systematic treatment in political economy”. Adam Smith himself cited from Richard Cantillon’s work in his famous book “Wealth of Nations”, as Cantillon was considered as the founder and father of economics before Adam Smith by four…show more content…
This thought was argued that it only work well when both consumption and production operate in Free Market according to both Marshall and Jonathan Schlefer. Alfred Marshall was an economist who wrote “Principles of economics”, and his most famous quotes is “All wealth consists of desirable things which humans wants directly or indirectly, but not all desirable things are wealth”. While Jonathan Schlefer is an economist writer and editor in the independent and Harvard Business School, also he writes articles on Harvard Business Review according to his LinkedIn profile. In his article “There is No Invisible hand” that was published on Harvard Business Review, he claims that from 1870’s till 1970’s trying to prove the concept of invisible hand, economic theorists concluded that there is no reason to believe markets are led as if by invisible hand to an optimal equilibrium. He also supported his opinion with a real recently happened life example; the financial crisis that appeared in 2008 and the debt crisis that almost threatened the economy of both USA and Europe. The Federal Reserve failed to see the subprime mortgage crisis coming. The principle models of “Free Market and Invisible Hand” that were used assuming that the markets are always in equilibrium or adjusting to equilibrium if it moved away from it. After the detonation of the crisis, the Feds dropped its high
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