Adam Smith: The Founder Of Classical Economics

Adam Smith, known as the founder of classical economics, believed wealth to be created and not transferred from one person to another. He disliked and distrusted government as well as elite groups of wealthy individuals. Smith was against the practice of slavery and the financing of wars by government deficits; let’s just say the classical economists, such as Smith were against wars all together. Some things that Smith were for instead of against include “natural harmony” or “laissez-faire”. Laissez-faire means “let-it-be” or more defined as “a phrase expressive of the principle that government should not interfere with the action of individuals, esp. in industrial affairs and in trade” (Oxford English Dictionary, 2014). Smith was a firm believer

Everyone is in a category. “In 2012, according to the U.S. Census Bureau, about 46.5 million people, or 15.0 percent of the nation’s population lived below the official poverty level” (http://www.bls.gov/cps/cpswp2012.pdf, 2014). The official poverty level is considered to be “a family with an income of less than $22,314 a year or an individual making less than $11,139” (Washington Times Editorial, 2011, as cited in Fording, p. 1162). Sure, these statistics can be further divided by demographic information such as White, Black, Asian, Hispanic, male, female, age, etc. even locality but the primary disposition here is that there is an unequal distribution of wealth. Let’s go back to the first sentence; that Adam Smith believed that wealth is not transferrable but instead creatable. He is a supporter of the free market. Classical Economists, like that of Smith, “view free markets as a system that best allows us to satisfy our unique individual desires” (Genetski, 2011). Now granted there are critics of the free market and the most hard hitting objectives to free market is precisely rewards to the already wealthy and production of an unequal distribution of income. Accused of farthing, or placing less value upon the poor or advising people to look out for themselves; Smith has denied those accusations and in imposing his classical theories of economics

This can be done in a free market environment, free; but organized and where competition is present. Competition is what “curbs major excesses of self-interest” (Stapleford, 2009). We should want to improve our living standards by creating more wealth for ourselves but we should also be concerned with the living conditions of others. We should conduct our business in a moral and ethical way by being fair and just. Yes, unequal distribution of wealth may cause social unrest. Everyone I’m sure has heard of high crime rates being closely linked to poor neighborhoods. Forbes Magazine states in an article titled “Whether Rich or Poor, Feeling Deprived Makes Us Steal More” that research has found that by feeling financially deprived people commit “morally questionable behaviors” such as theft, embezzlement and even “office sabotage” (www.forbes.com, 2013). We’ve all heard that not money; but the love of money is the root of all evil. God’s word is full of scriptural references to how we, as Christians should handle our financial matters. God tells us in Exodus to give to the needy, interest free, in Proverbs it says “Wealth gained by dishonesty will be diminished” (Proverbs 13:11, NKJV). Proverbs also tells man not to trust in his riches and to be generous. I think this reverberates Smith’s idea of having wealth but being generous with it. According