Adam Smith The Father Of Economics - 1599 Words

The first individual to discuss is Adam Smith. One of the most notable tags associated with Smith is he is known as the â€Å"father of economics.† Adam Smith was a philosopher and thus this caused him to question all things about the world as well as other aspects of nature (Overview of Economics). As Smith studied, he examined closely the business side of the world and made some interesting predictions. He believed that people in societies, who behaved and acted in their own interest would produce the goods and services that a society needed to function as a whole. This led to the phenomenon of what is known as the invisible hand. Smith believed that the hand could be seen in societies, and that it literally was invisible, but its workings†¦show more content†¦Aside from this, Adam Smith also published a book that is called â€Å"The Wealth of Nations.† During the era in which he lived, it was believed that a nation’s wealth was to be determined by th e amount of gold and silver that they possessed. Smith challenged this idea and noted in his book that a nation’s wealth should be determined by its production as well as its trade (Bibliography.com). We still use this model today when we calculate our Gross Domestic Product or GDP, when we calculate our nation s wealth. It is evident that Smith possessed a far deeper understanding of the economy than others in his times. The next economist to examine is John Maynard Kaynes. One of Kaynes most notable ideas regarding economics is that he thought that the government ought to play a major role in economic practices. He truly believed that a nation would prosper the most when governments as well as some private sectors were contributing to boost the economy in times of a recession. (maynardkaynes.org) This is clearly a large contrast to what Adam Smith proposed in his theory. As noted before, Smith believed that the free market was the best option and had the laissez-faire view; this is not what Kaynes had in mind. Kaynes believed if there was a problem in the economy the governments ought to step in, rather than wait for the markets to get better over time on their own. This is probably one of the most notableShow MoreRelatedThe Father of Economics - Adam Smith3144 Words   |  13 PagesThe Father of the Economics During the 18th century, when Adam Smith lived, the most important social, moral, and technological presumptions had matured. 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He joined the Burgh school where he learned history, writing