6678049
ADAM SMITH (the
classical school)
- Life
- Borned at 1723, in Scotland
- Enrolled at Glasgow University at age 14
- Studied moral and political science in Oxford
- Scottish Philosopher and Economists
- " Father of Economists"
- Died at 1790
- Borned at 1723, in Scotland
- important influences
- General intellectual climate of the Age
of Enlightenment (17th century)
- People's reasoning ability
- The concept of the natural order
- People's reasoning ability
- Quesnay and Turgot
- Physiocrats' attack on mercantilism
- Proposed to remove trade barriers
- Physiocrats' attack on mercantilism
- Fancis Hutcheson ( Smith's
teacher of Moral Philosophy )
- David Hume ( Smith's friend )
- General intellectual climate of the Age
of Enlightenment (17th century)
- Major
Contributions
- The Theory of Moral Sentiments (1768)
- Selfishness
- sociable
- unsociable
- sociable
- Benevolence
- Attitude towards
right/wrong based on the
degree of sympathy
- Attitude towards
right/wrong based on the
degree of sympathy
- Selfishness
- Wealth of Nations (1776)
- 3 important elements
- Division of Labor
- Self- interest
- Business = Profits
- Individual = Stastification & lower price
- Worker = Wages
- Business = Profits
- The absoliute advantage
of international trade
- Division of Labor
- Discussion of 2 Systems
- Nature of
Economic System
- Determined by the
private interest of
individual
- support the country's
industry to seek their
own safety
- support the country's
industry to seek their
own safety
- Determined by the
private interest of
individual
- Natural Freedom
System
- Sovereign - Public
Work
- Defend the
country from
foreign invasion
- Defend the
country from
foreign invasion
- Sovereign - Public
Work
- Nature of
Economic System
- Price of Goods
- Use Value
- Exchange Value
- Value of Goods
- Use Value
- The economic
laws of a
Competitive
Economy
- Value
- Market Price
- Wages
- Profit
- Rent
- Debt
- Economic Development
- Economic Development
- Debt
- Rent
- Profit
- Wages
- Market Price
- Value
- 3 important elements
- The Theory of Moral Sentiments (1768)
- Impacts
- Economic context
- The Feudal world ends and merchants
- Industrial Capitalist era begins
- Free Trade
- Earth Natural Law
- Against Free interventionism
- Laisser - faire
- Slogan " let do, let
pass"
- Slogan " let do, let
pass"
- The Feudal world ends and merchants
- Social context
- England: Industrial
Revolution
- Creation of large factories and railway lines
- Invention of Machine to vcalue
- People from countryside to the city
- Division of labor
- Specialization
- Invisible hand
- Specialization
- Creation of large factories and railway lines
- England: Industrial
Revolution
- Political context
- Interventional role of
the Government
- wealth does not leave the
country
- wealth does not leave the
country
- Dictate Trade Laws
- Tariffs
- Import ban
- Tariffs
- Market
- Monopoly Patents granted to individuals or companies
- Monopoly Patents granted to individuals or companies
- Interventional role of
the Government
- Economic context
- Opposition to other
schools
- Mercantilism
- Accumulation of Gold and sliver
as the basic of wealth
- Smith : Gold & Silver
led to a devaluation of
metals
- Smith : Gold & Silver
led to a devaluation of
metals
- Accumulation of Gold and sliver
as the basic of wealth
- Keynesian
- Relied heavily on monetary policy
- Relied heavily on monetary policy
- Mercantilism
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