Adam Smith The Father of Capitalism and Classical

Adam Smith - The Father of Capitalism and Classical Economics Personal Information – Economic Theory – Political Criticism Matilde Lomaglio – Lorenzo Grossi – Daniel Xu PPT by Daniel Xu Key Ideas Key Words

Personal Information Adam Smith 16 th June 1723 – 17 th July 1790 (Aged 67) Born in Kirkcaldy, Fife, Scotland Political Economist, Philosopher Glasgow University and Balliol College Oxford University Appointed professor of Logic and Moral philosophy Founding member of the Royal Society of Edinburgh Comically absent-minded Talk to Himself, Spells of imaginary illness A Deist maybe?

Economic Theory General Idea: How to make a capitalist economic more human and meaningful Underlying Ambition: Make nations & people happier Specific Theory: 1. Specialization 2. Consumer Capitalism 3. How to treat the Rich 4. Educate Consumer

Specialization Modern World of WORK: 1. Produce unprecedented amounts of wealth 2. Boring and meaning-less Small Business vs Big Business Therefore, modernity cooperation owners have an extra responsibility to their workers, to remind them of purpose, role and ultimate dignity of their labor.

Mathematic Simulation for Specialization • • 10 Workers 10 Days 10 Tasks = 1 Car Individually: 1 Worker = 10 Tasks = 10 Days Cooperatively: 1 Worker = 1 Task = 1 Day Caution: Stress worker will have a lower Production Rate Unlimited Funding Individually Cooperatively Production in 10 days 10 10 Cost for one car Much more than basic Benefit overall Basic or Less Basic

Consumer Capitalism Luxury goods Good for the poor > Society devoted to high ideals Broadening Middle Class Jean-Jacques Rousseau - Sparta, austere, martial life style - Ban Luxuries VS Adam Smith - Luxuries held a serious role to play in economic - Generated the surplus of wealth into caring the weakest member of the society - Frivolity, but no starvation

Consumer Capitalism Generate sizeable profits from helping people in truly important, ambitious ways. Capitalism > Service Basic Needs + Buy Frivolous thing Capitalism = Earing True Fulfillment

How to treat the rich Christian: Make them feel Guilty. Radical Left Wing: Raise taxes Heart rates will remain cold, rich will flee away. Social Dissatisfaction Adam Smith: Rich cares about honor and respect instead of actual money Plenty of honor and status distributed “The great secret of economic is to direct vanity to proper objects. ”

Educate Consumers Evil Corp Low Paying Jobs Environmental Abuse Sickening Ingredients Fundamentally, our taste decide whether the corp is evil or not. It is not companies that degrade the world, it is our appetites, which they merely served. Capitalism will be saved by elevating the quality of consumer demand.

Moral Sentiments How human communication relies on sympathy People are self-interested but naturally like to help others.

The wealth of Nations Creates wealth for the Entire Nation Producers Engage in the enterprises for the purpose of earing money People(consumers) get what they want People(consumers ) buy products that they want Producer get financial rewards Compile and Popularize some of the pre-existed ideas, form the Classical Economics Laissez – Faire Idea were Created the concept of

Political Criticisms Can Economic ever be at once profitable & civilized? Jean-Jaques Rousseau VS Adam Smith (Consumer Capitalism) How can you say people are naturally like to help each other when your philosophies are based on self – interest and maximizing return. (Moral Sentiments) The Invisible Hands Adam Smith did not invent most of the ideas in The Wealth Of Nations, instead he popularized them, so is this concept actually his? ( The Wealth Of Nations)

Bibliography http: //www. investopedia. com/updates/adam-smitheconomics/? ad=dir. N&qo=investopedia. Site. Search&qsrc=0&o=40186 - Adam Smith: The Father of Economics, Investopedia https: //www. google. ca/search? q=adam+smith&source=lnms&tbm=isch&sa=X&v ed=0 ah. UKEwj. Pl. Ir-4 In. QAh. XIx 1 QKHc 3 h. A 68 Q_AUICCg. B&biw=1366&bih=660 - Adam Smith Image, Google https: //en. wikipedia. org/wiki/Adam_Smith - Adam Smith, Wikipedia https: //www. youtube. com/watch? v=ej. JRhn 53 X 2 M - Political Theory – Adam Smith, Youtube