adam smith biography & theories

1. BY: UMAIMA

2. 
ADAM SMITH also known as
''The Father of Economics'‘
or
''The Father of Capitalism‘
5 June 1723-17 July 1790
(aged 67)

3. 
 Smith was born in Kirkcaldy, Scotland.
 His father was a Scottish Writer , advocate and judge
advocate.
 He also served as comptroller of the customs in
Kirkcaldy.
EARLY AGE

4. 
 Smith's mother was the daughter of the landed
Robert Douglas of Strat Hendry.
 She married Smith's father in 1720.
 Two months before Smith was born, his father died.
EARLY AGE

5. 
 He attended the Burgh School of Kirkcaldy
characterized by Rae as "one of the best secondary
schools of Scotland at that period from 1729 to 1737
 He learned Latin, mathematics, history, and writing.
EARLY AGE

6. 
 Smith entered the University of Glasgow when he
was 14 and studied moral philosophy under Francis
Hutcheson.
 Here, he developed his passion for liberty, reason,
and free speech.
FORMAL EDUCATION

7. 
 In 1740, he was the graduate scholar presented to
undertake postgraduate studies at Balliol College,
Oxford, under the Snell Exhibition
 He left Oxford University in 1746, before his
scholarship ended.
FORMAL EDUCATION

8. 
 Adam Smith was famous for his two books namely
 1 ) The Theory of Moral Sentiments published in
1759 based on the social relationship and explain the
sources of mankind and ability of moral Judgments.
 2) The Wealth of Nations published in 1776
regarded as Smith most famous work.
FAMOUS BOOKS

9. 
 In his book he emphasis on
 1) Free Trade : it is the Principle of liberalism. Its
mean straightforward flow of products and
minimum help of Government.
 2) limited Government influence between business
and individuals.
The Wealth of Nations

10. 
 One of the greatest contributions of Adam Smith was
the invisible hand theory which he used to
demonstrate how self-interest guides the most
efficient use of resources in a nation’s economy, with
public welfare coming as a by- product .
Invisible Hand

11. 
 . According to Adam Smith, self-interest should not
be denied. In the ‘Wealth of Nations’, he asserts that
self-interest in the market is to encourage the growth
of society through the division of labor and the
maximization of wealth. For him, self-interest is
enough to motivate the exchange of goods.

12. 
 It is the policy of minimum government interference
in economic affairs of individuals and society.
 The government should not interfere with economic
matters.
 The policy of laissez-faire received strong support in
classical economics.
Laissez-faire

13. 
 Businesses and governments should be allowed to
trade freely (meaning without tariffs) around the
world
Freedom of Trade

14. 
 Individuals have the right to own physical objects
(and sometimes people!) as private property to the
exclusion of others.
Private property

15. 
 Human & labor power should be increased.
 Prices should be proportional to the amount of labor
in production.
 USE VALUE
 EXCHANGE VALUE
VALUE THEORY

16. 
 The economic values of a good or services is
determined by total amount of labor used in
production process
 The division of labor mean the division of work
refers to the division of a large task. It mean the
specialization of cooperation Individuals who
perform specific tasks and roles.
Labor theory of value

17. 
 He focused on analysis of manner in society
 He presented 4 stages of economics & human
development:
 1: Hunting
 2: Pasturage
 3: Agriculture
 4: Commerce
History & sociology
Theory

18. 
 Human welfare is annual product of labor & capital.
 Production is based on amount of labor & capital.
 Government must care for protection of society,
justice & to provide work.
Economic Welfare
Theory

19. 