Adam Smith: The Father Of Economic System

1.0 INTRODUCTION

A wide spectrum of areas in our social life is covered by economy as in housing, religion, health, education, defense, transportation and others whereby it has the aspects that can be discussed through the point of view of economics. The well known father of Economics and most celebrated English Economist Adam Smith, termed the Economics as “Economics is a science that enquires into the nature and causes of the wealth of nations” in his book ‘Science of Wealth’ towards the end of the eighteenth century. In short, the life of individuals and society are influenced by the so-called theory of the economy overall. Human wants in social life are unlimited, but the ways to fulfill those wants are scarce. This is where economics

The customs, traditions, and beliefs help shape the products and the services the economy produces, as well the standards and way of their distribution. The resources are mainly from Countries which practice this type of economic system are mostly rural and farm-based. It is a type of economic system where individuals and businesses own most of the natural and capital resources. These resources include the factories, farms machineries, land, minerals, and other resources found within the geographical area where this form of economic system is adopted (Washoe County School 2013). There is also a high level of freedom for individual and businesses to buy and sale goods. Goods are made available to customers through the market of exchange between buyers and

The country changed from the export policy of primary natural resources and agricultural products to institute itself as a rapidly industrializing country with a varied export base. In the middle of 1960s, Malaysia entrenched 5-year planning, focusing some areas of economic growth and social changes, and allot public resources for priority sectors of the economy and for infrastructure development. Despite these efforts, the government was reluctant to institute centralized control over the state's economy.

The 5-year plans became a basis for official development strategies. Government plays major role in economic growth as well as distribution of wealth. For instance, our government imposes tax and gives subsidies at the same time for the citizens. The victory of mixed economic system commenced in Malaysia with the initiative of Central Government with the establishment of National Development Plan. In Malaysia, the planning revolves around the Economic Planning Unit and other central departments while the Malaysia’s experience in controlling the implementation of national developments structured and projects have contributed towards the victory of this national socioeconomic progress utilizing mixed economic