Adam Smith

A series of flashcards covering key concepts, facts, and details from the lecture on Adam Smith.

Who was Adam Smith?

A prominent philosopher and economist from Scotland, known for his works on Moral Philosophy and Political Economy.

What was Moral Philosophy in Adam Smith's time?

A broader field encompassing Natural Theology, Ethics, Jurisprudence, and Political Economy.

What is Natural Theology?

The search for design and order in the chaos of the cosmos.

How did the English social scene of the late 18th century appear?

It appeared as a brute struggle for existence, marked by rapacity, cruelty, and irrational customs.

What was Adam Smith's connection to James Watt?

He compared society to Watt's strange steam machines, indicating its inefficiency and danger.

What did a visitor to the tin mines of Cornwall observe?

Miners displayed a lack of order and harmony, often indulging in long breaks and lethargy.

What characterized the life of agricultural workers in 18th century England?

They roamed in search of work, often with low wages and minimal resources.

Describe the working conditions in the factories during Adam Smith's time.

Children worked long hours tending machines in harsh conditions with minimal oversight.

What was the primary concern of Adam Smith's inquiry?

The principles underlying the cohesion of society and the role of self-interest in market functioning.

What is 'the invisible hand'?

A metaphor for how self-interest in a competitive market leads to positive societal outcomes.

How did Adam Smith view the division of labor?

He saw it as a mechanism that enhances productivity and societal welfare.

What was the significance of 'The Wealth of Nations'?

It laid the foundation for modern economics and described the self-regulating nature of markets.

What are the two great laws of the system according to Adam Smith?

The Law of Accumulation and the Law of Population.

What is the Law of Accumulation?

It states that the accumulation of capital leads to increased production and wealth.

How did Smith perceive the relationship between wages and population?

Higher wages would lead to an increase in the population, thereby regulating the labor market.

What role does competition play in Smith’s market theory?

It acts as a regulator preventing excessive pricing and ensures that goods meet societal demand.

How did Adam Smith's theories relate to his views on government intervention?

He argued for minimal government intervention, believing it typically hampers market efficiency.

What was Smith’s perspective on the consumer?

He believed that consumption is the ultimate goal of production, with the consumer being the priority.

What did Smith criticize in terms of the practices of businessmen?

He warned against monopolistic practices and conspiracies among trades that hurt public welfare.

How did Smith’s personal life and habits influence his career?

His absentmindedness and eccentricities contributed to his reputation, yet he was respected for his intellect.

What was the impact of The Theory of Moral Sentiments?

It explored how humans can make moral decisions and sympathize with others, influencing ethical theory.

What was Adam Smith's opinion on poverty and the working class?

He believed that no society could truly flourish if a large portion of its population was poor and miserable.

Who was Charles Townshend in relation to Adam Smith?

Townshend was a political figure who recognized Smith’s talents and hired him as a tutor for his stepson.

What was the structure of 'The Wealth of Nations'?

It covered various economic principles, including labor specialization and the impacts of self-interest.

What was the historical context of Adam Smith's ideas?

His insights emerged during the Industrial Revolution when economic and social changes were profound.

How does Smith’s work reflect Enlightenment thought?

It embodies reason, progress, and the belief in natural laws governing human behavior and economics.

What was the focus of Smith's analysis in The Wealth of Nations?

He analyzed how market mechanisms could effectively create wealth for society as a whole.

What was Adam Smith's lasting legacy?

He is regarded as the father of modern economics, influencing many economic systems and philosophies.

How did Smith distinguish between productive and unproductive labor?

He believed productive labor creates wealth, while unproductive labor does not contribute to economic growth.

What did Smith say about the moral sentiments of individuals in society?

He suggested that individuals have an innate ability to empathize with others, which shapes moral judgments.

What criticisms did Smith face concerning his economic theories?

Critics argued his theories neglected the social consequences of market operations and capitalism's inequities.

What significant transformations did Smith's ideas inspire?

His ideas laid the groundwork for free-market economics and influenced later economic theorists.

What is computed as 'the labor of other people' in economic terms?

The extensive cooperation across various sectors necessary for producing goods.

Describe the industrial landscape Smith operated in.

An environment marked by small factories and burgeoning industries competing for market dominance.

How did Smith arrive at his views on wealth distribution?

He concluded that wealth should benefit society at large rather than just a select few.

What was a common critique of market mechanisms during Smith's time?

That market competition could lead to unethical practices and exploitation of the working class.

What was the effect of Smith’s critiques of mercantilism?

He dismantled arguments favoring wealth accumulation through trade restrictions, advocating for free trade.

How did Smith's contemporaries view his work?

His theories sparked debates and were initially met with skepticism but gradually gained acceptance.

What did Smith believe about the outcomes of selfish actions in society?

He argued that individual self-interest could lead to societal benefits, creating a balanced economy.

What did Smith suggest about the role of education?

He supported public education as a means to raise societal standards and improve individual understanding.

What type of government did Smith advocate for?

He preferred a limited government that facilitated the operations of the free market without harsh interference.

What was Smith's assessment of the wealth creation process?

He believed it was driven by individual efforts to specialize and innovate within a competitive environment.

How did Smith view the future of society?

He held an optimistic view, believing that society would continually improve through market efficiencies.

What was Adam Smith's historical influence?

He substantially shaped economic thought and policy, influencing governments and societies on economic matters.

In Smith’s view, what was the ultimate purpose of labor?

To contribute positively to the collective well-being of society and improve living standards for all.

What did Smith think about the nature of wealth?

He saw true wealth as the goods and services consumed by society rather than mere gold and silver.

How did Adam Smith end his career?

He lived a quiet life after gaining recognition, continuing to influence economic thought until his death.

What led to Smith's lasting recognition in economic discussions?

His insightful analysis of market forces and human behavior in the context of economic principles.

What activities characterized Smith's tenure at the University of Glasgow?

He was a respected lecturer beloved by students, noted for his lectures on morality and economics.

What was a significant consequence of The Wealth of Nations?

It initiated a shift in economic thinking away from mercantilism towards capitalism and free markets.

How did the public respond to The Wealth of Nations upon its release?

It took time for the book to gain readership and respect but eventually became highly influential.

What influence did Smith have on future economists?

His ideas shaped foundational economic theories and inspired subsequent generations of economists.

What did Smith think about luxury and its effects on society?

He recognized its potential to distract but also acknowledged its role in driving economic production.