The Life and Legacy of Adam Smith. The Father of Modern Economics

Adam Smith, known as the father of modern economics, was a Scottish philosopher and economist who is widely recognized for his groundbreaking contributions to the field of economics. His ideas on free-market capitalism and the division of labor have had a lasting impact on the world economy and continue to influence economic policies to this day. Born on June 5, 1723, in Kirkcawdy, Scotland, Smith’s life is a testament to the power of hard work, dedication, and intellectual curiosity.

Smith was the son of a customs officer and was raised by his mother after his father passed away when he was only six years old. He received his early education at the Burgh School of Kirkcawdy and then went on to attend the University of Glasgow, where he studied moral philosophy. His time at the university was greatly influenced by the lectures of Francis Hutcheson, a prominent philosopher of the Scottish Enlightenment. Hutcheson’s teachings on natural law and the importance of individual liberty would have a profound impact on Smith’s thinking.

After graduating from the University of Glasgow in 1740, Smith received a scholarship to attend Balliol College at the University of Oxford. However, he found the teachings at Oxford to be dull and unchallenging, and he returned to Scotland after a year without completing his degree. He then spent the next six years studying and writing in his hometown of Kirkcaldy, where he was able to fully immerse himself in the intellectual climate of the Scottish Enlightenment.

In 1748, Smith moved to Edinburgh, where he became a professor of logic at the University of Edinburgh. He also gave lectures on English literature, history, and economics. It was during this time that he was introduced to the philosopher David Hume, who would become a close friend and influence on Smith’s work. Hume’s skepticism and emphasis on empirical evidence would shape Smith’s approach to economics, which was based on observation and analysis rather than abstract theories.

In 1751, Smith was appointed as the Chair of Moral Philosophy at the University of Glasgow, the same position that his mentor Francis Hutcheson had held. This was a highly prestigious position, and it allowed Smith to continue his studies and research on economics. It was during this time that he wrote his first major work, “The Theory of Moral Sentiments,” which was published in 1759. This book examined the nature of human morality and the importance of sympathy and empathy in human behavior.

In 1764, Smith left his teaching position at the University of Glasgow to accompany the young Duke of Buccleuch on a grand tour of Europe. During this trip, he met some of the most influential thinkers of the time, such as Voltaire and Jean-Jacques Rousseau. He also visited several leading economic centers, including Paris, Geneva, and London, where he observed the workings of different economic systems and gained valuable insights into the functioning of markets.

Upon his return to Scotland in 1766, Smith began working on his magnum opus, “An Inquiry into the Nature and Causes of the Wealth of Nations,” which was published in 1776. This book revolutionized the study of economics and established Smith as one of the most influential thinkers of his time. In it, he argued that the division of labor and free-market capitalism were crucial for economic growth and prosperity. He also introduced the concept of the “invisible hand,” which refers to the idea that individuals acting in their own self-interest can contribute to the greater good of society.

“The Wealth of Nations” was an instant success and was widely read and discussed throughout Europe. It was translated into several languages and cemented Smith’s reputation as the leading authority on economics. His ideas on free trade and the division of labor were seen as a direct challenge to the prevailing mercantilist policies of the time. He argued that government intervention in the economy was counterproductive and that individuals should be allowed to pursue their own economic interests without restrictions.

Smith’s work had a significant impact on economic policies and theories in the following centuries. His ideas were embraced by the classical economists of the 19th century and continue to influence modern economic thought. He also had a profound impact on the development of capitalism, which has become the dominant economic system in the world today.

In addition to his work in economics, Smith also wrote on a wide range of other topics, including ethics, philosophy, and politics. He was a member of the prestigious Royal Society of Edinburgh and was highly respected by his peers. He never married and lived a modest life, dedicating himself entirely to his work.

Adam Smith passed away on July 17, 1790, at the age of 67. His legacy continues to live on through his influential writings, which have shaped our understanding of economics and society.